A resource-based view approach on mediating effect of logistics integration capabilities on firm performance: an empirical study on the food processing industry in Thailand

Abstract

This research extended the implication of Resource-Based View perspective in the field of logistics management by examining relationships between logistics capabilities and firm performance with the emphasis on mediating effect of integration capabilities. The aim of this study was to determine direct and indirect relationships among logistics capabilities namely: a) demand management, b) supply management, and c) information management, with the firm performance through the mediating role of integration capabilities. The survey was conducted on food processing industry in Thailand and deployed Structural Equation Modeling (SEM) for analysis. The results suggested that there were no direct relationships between demand and supply management capabilities, and the firm performance, but rather indirect relationships through integration capabilities, which indicated mediating effects. Analysis of the data had further suggested positive relationships among logistics capabilities as well as the effect of information management on logistics capabilities. Moreover, the direct relationships between each of logistics capabilities and the integration capabilities inferred that all logistics capabilities affected integration capabilities. The mediating role of logistics integration capabilities had strongly supported Resources-Based View perspective that the distinctive and unique capabilities can be created through firm’s resources and capabilities integration. The conclusions had contributed theoretically to provide further evident to support RBV, and practically, an implication for managers to recognize the potential of firm’s internal resources as the key enablers in achieving superior firm performance.