Supply Chain Management Components and Firm Performance: Evidence from Thailand

In general, supply chain management creates value for firms, customers, vendors, and stakeholders interrelating throughout a supply chain. The emergence of supply chain management components in supporting such circumstances have resulted in the need to explore further their subsequent effect on firm performance. This study attempts to examine the use of supply chain management components and investigates relationships between each of 11 supply chain management components and performance of Thai firms. Based on responses received from 241 firms, correlations and simple regression analysis were used to analyze the data. Our results suggest that there are significant positive relationship between components and firm performance. This study not only validates supply chain components' contribution and emphasizes its potential, but it also ranks top five most critical supply chain management components affecting firm performance. These findings provide important insights for managers to understand the nature of their firms. It is also suggested that firms should focus more on managerial and behavioral management components.