A MODEL FOR COMPETITIVE SERVICE LEVEL OF LOGISTICS SERVICE PROVIDERS IN THAILAND - VIETNAM – CHINA

Abstract

The objectives of this research were to develop a casual relationship model for competitive service level of logistics service providers in international transportation to investigate the direct and indirect effects in international transport logistics of Thais, Vietnamese and Chinese service providers. Samples were 509 logistics service providers, of which were 159 were from Thailand, 157 were from Vietnam, and 193 were from China, using purposive sample selection method. Research instrument was a questionnaire. Data were analyzed by descriptive statistics and Structural Equation Modeling (SEM), using Lisrel version 8.80. Findings were the causal relationship model was fit to empirical data with the Chi-square (X2) = 72.75, df = 62, p = 0.165, GFI = 0.98 AGFI = 0.97, RMSEA = 0.018. The direct effects showed that the competitive Service Level (SVL) was affected by Dominant Power on selection (DOM) with coefficient value at 0.37, and also from Service Performance Unit (SPU) as 0.36. The competitive Service Level (SVL) was also affected indirectly by Dominant Power on selection (DOM) at 0.11, followed by Strategic Sourcing Technique (SST) at 0.09 respectively. Moreover, the observed variables valued the reliability in between 0.54 – 0.94. The highest reliability was factors: Cost and Flexibility (Z1, Z3) which were equally at 0.94. For the lowest reliability value was: Risk avoidance (Y4) valued at 0.54. For implementation and further research recommended to modify the degree of observed variable in Service Performance Units (SPU) which may significant differently in a different policy and local cultures in different countries.