THE ANTECEDENTS AND CONSEQUENCE OF THE INVENTORY CAPABILITY IN SMEs

Abstract

This research focused on an examination of the inventory capabilities of supply chain logistics in SMEs in Thailand.  It aimed to investigate the factors influencing the capability within logistics management in these SMEs, and to develop a model of the inventory capability of their supply chains.  This research is embedded in a survey method.  It included a pilot test using undergraduate business students to pre-test questionnaire items.  380 samples were randomly drawn from Thailand enterprises.  Quantitative data were analyzed with statistical techniques such as exploratory factor analysis, confirmatory factor analysis and structural equation modeling.  The results found that the model of inventory capability management factors consisted of warehouse, transportation, inventory, and delivery capabilities.  The warehouse and transportation capabilities affected the inventory capability, which in turn influenced the delivery capability.  The managerial implications are discussed.