Relation between logistics and enterprise performance of automotive industry in Thailand

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Sawat Wanarat
Tiyadah Pichayasupakoon


The objective of this research is to examine the causal relation of internal management, logistics management and business performance of automotive and automotive parts industry in Thailand, using Structural Equation Modeling (SEM). The sample is chosen from companies in automotive parts manufacturing industry in Thailand. The questionnaires are distributed to 334 respondents. The statistics employed in this research are descriptive statistics, confirmatory factor analysis and structural equation model. The results show that the conceptual model aligns with the empirical data (X2 =96.429, p = 0.468, X2/df = 1.004, GFI = 0.966, AGFI = 0.946, CFI = 1.000, RMSEA = 0.004). The findings of this research indicate that a risk in internal management has positive impacts on logistics management at a significant level = 0.01. Logistics management has positive impacts on business performance at a significant level = 0.01. Internal management has positive impacts on business performance at a significant level = 0.01. Furthermore, the outcome shows that internal management has an indirect impact on business performance at a significant level = 0.01. The results show that internal management and logistics management have a relationship that help increase the effectiveness of business performance, the organization should focus on advocating skill training to employees, managing costs, and curating appropriate technology for the business operation to increase the effectiveness of business performance in a long run.


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