Effect of Business Performance Model of Small and Medium Industries in Thailand

Abstract

The main purpose of the study is to examine the effect of supply chain management practices on the supply chain related performance of SMEs in Thailand. Meanwhile, the study has also examined the mediating role of operational performance in the relationship between supply chain management and supply chain related performance. For this study, 186 samples were collected from Thai manufacturing SMEs. A variance-based structural equation modeling approach, i.e., partial least square method was employed to test the research framework. Significant positive and direct impact of both OPRM and SCHP is found on the operational performance. On the evidence is found for the direct and significant impact of operational performance and supply chain performance. on organizational performance in context to supply chain management practices. the findings obtained in this research confirm the significant impact of SCM practices on the SMEs operational efficiency in context to emerging country. These findings can be used by the researchers to develop future studies. Important knowledge can also be gathered by the top managers regarding the impact of supply chain management practices on organizational performance.