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Key Drivers of Operational Performance of E-commerce Distribution Service Providers in Thailand

The Journal of Distribution Science / The Journal of Distribution Science, (P)1738-3110; (E)2093-7717
2022, v.20 no.12, pp.89-98
https://doi.org/https://doi.org/10.15722/jds.20.12.202212.89
VONGURAI, Rawin

Abstract

Purpose: Due to the rapid growth of e-commerce in Thailand, the operational excellence of distribution service providers has been elevated. Thus, this research investigated the key drivers of operational performance of e-commerce distributors in Thailand. The research contains key variables: the analytics capabilities of an organization, supply chain disruption orientation, innovation capability, and operational performance. Research design, data, and methodology: An online survey is administered to top managers and key personnel (N=425) employed for at least one year in Thailand's top five e-commerce distributors. The sampling methods were conducted using purposive sampling, quota sampling, and convenience sampling. Confirmatory Factor Analysis and Structural Equation Model were applied to analyze and confirm the model's goodness-of-fit and hypothesis testing. Results: The findings reveal that an organization's analytics capabilities significantly affect supply chain disruption orientation and supply chain resilience. Furthermore, operational performance is affected by supply chain disruption, supplier quality management, and innovation capability. Nevertheless, supply chain resilience and digital supply chain have no significant effect on operational performance. Conclusions: The results imply that supply chain digitalization could drive higher operational performance. Distribution businesses are encountering transformation and disruption, which should address the high level of a digital supply chain, innovation, and quality management to maximize their profit margin and delivery service quality.

keywords
Operational Performance, Distribution, Digital Supply Chain, Innovation Capability, Quality Management

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