Value Chain and Logistics Cost Management with Sufficiency Economy Philosophy Influencing Operational Efficiency of Pineapple Farmers in Loei Province

Abstract

This research aimed to: 1) study the application of the Sufficiency Economy Philosophy, value chain management, logistics cost management and operational efficiency; and 2) create a structural equation model of value chain management and logistics cost management with the application of the Sufficiency Economy Philosophy that influences the operational efficiency of pineapple farmers in Loei Province. A systematic sampling technique was used, divided into 14 districts. Simple random sampling was used in each district. The research instrument was a questionnaire. Statistics used included frequency, mean, standard deviation, and structural equation model testing. The results revealed that the principles of the Sufficiency Economy Philosophy, value chain management, and logistics cost management have a direct and positive influence on performance. The structural equation model is consistent with the empirical data (Chi-Square= 86.264, df= 69, Relative Chi-square= 1.250, p-value= .078, GFI= 0.974, AGFI= 0.955, RMSEA= .024, RMR= .020). Farmers focused on investing according to their own abilities, not beyond their means, using community resources to their full potential, and having moral principles and living a simple life according to local culture. Emphasis is placed on developing partnerships with suppliers to improve quality and reduce costs, applying technology to reduce operating costs, and building agricultural networks to create added value, increase productivity, reduce costs, and expand new marketing channels. The research findings highlight the importance of applying the Sufficiency Economy Philosophy in conjunction with value chain and logistics cost management to enhance operational efficiency and create sustainability.