A partial least squares model for SCM strategy, willingness for external collaboration, competitive performance and relative performance: Effects of marketing and logistics performance in the palm oil industry

Abstract

This research investigation is concerned with whether in the palm oil business, marketing performance and logistics performance influence supply chain management (SCM) strategy, external collaboration willingness, competitive performance and relative performance. The analysis proceeds by means of the structural equation model (SEM) so as to determine causal relationships in regard to the factors just mentioned. Data were collected from palm oil establishments in the southern part of Thailand. Findings indicate that marketing performance and logistics performance are necessary for an organization to exhibit good SCM strategy, external collaboration willingness, relative performance and competitive performance in the palm oil business. It was also found that marketing performance exerted a high level of influence on these four factors while logistics performance influence only on SCM strategy and willingness for external collaboration.