Investigating Relationships Between Supply Chain Capabilities, Competitive Advantage, and Business Performance

Abstract

Growing in the competitive environment, organizations need to find ways to improve their performance even better by ensuring that all key drivers are being developed and utilized effectively. Thai and Vietnamese food industries are rapidly growing sectors. This study investigates the relationships between supply chain capabilities and competitive advantages towards business performance, and compares the above mentioned relationships between Thai and Vietnamese food industries. The data were gathered from conducted surveys with the food manufacturing companies in both countries, and tested by Structural Equation Modeling. The empirical results show that supply chain capabilities play an important role in business improvement in both countries. While, supply chain integration is considered as a critical factor for the Vietnamese food industry, human resource management is much regarded as important for the Thai food industry. These findings help companies in each country decide the best strategy for differentiating themselves in their business environment.