Supply Chain Management Practices, Competitive Advantage and Organizational Performance in Automotive Parts Supply Chains
Keywords:
Supply Chain Management Practices, Competitive Advantage, Organizational Performance, Automotive PartsAbstract
The objectives of this research were to: 1. study the impact of supply chain management practices towards competitive advantage, and 2. study the organizational performance in automotive parts supply chains management in order to support automotive parts manufacturers for driving competitive advantage of organization. This research was quantitative research by using questionnaire as an instrument to collect the data as well as using stratified random sampling technique to obtain samples from first-line and middle managers from 321 companies of automotive parts manufacturers (Tier 1) in Thailand. The data analysis of this study used Structural Equation Modeling to prove hypothesis.
The results found that the development of structural equation modeling based on supply chain management practices, competitive advantage and organizational performance were consistent with the empirical data with the CMIN/df = 2.481 / AGFI = 0.892 / RFI = 0.925 / IFI = 0.963 / CFI = 0.963 / RMSEA = 0.068. The level supply chain management practices had a positive effect on competitive advantage at 0.001 significance level as well as the competitive advantage had positive effect on organizational performance at 0.001 significance level with the path coefficient indicates the direct effect of 0.857 and 0.685, respectively. Regarding these findings, the entrepreneurs are able to use them as the guidelines to strengthen the organizational strategy in order to drive the competitive advantages as well as the effective performance management outcomes in supply chain management practices.
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