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Int. J Sup. Chain. Mgt Vol. 8, No. 3, June 2019

Mediating Role of Sustainability Capability in

Determining Sustainable Supply Chain Management
in Tourism Industry of Thailand
Kittisak Jermsittiparsert#1, 2*, Watcharin Joemsittiprasert#3, Somsathid Phonwattana#4
1
Department for Management of Science and Technology Development, Ton Duc Thang University, Ho Chi Minh
City, Vietnam
2
Faculty of Social Sciences and Humanities, Ton Duc Thang University, Ho Chi Minh City, Vietnam
Corresponding author: E-mail: kittisak.jermsittiparsert@tdtu.edu.vn
3
Division of Business Administration, ASA College, New York, USA.
E-mail: watjoemsittiprasert1@asa.edu
4
Political Science Association of Kasetsart University, Bangkok, Thailand
E-mail: paulwattana70@gmail.com

Abstract---The current study empirically investigates the 1. Introduction and Background

factors of sustainable supply chain performance in tourism
industry of Thailand. Globally, competition has increased due Firms focus on their stability as concern has increased in
to involvement of enhanced quality and sustainable practices in recent years for sustainable performance and
business operations including effective supply chain competitiveness. Various stakeholders of firms scrutinize
management as it has become one of the prime concerns of and advocate key components of social interaction between
firms as it plays vital role in achievement of goals and
business and social entities [1-3]. The trend to focus on
competitive advantages. The study investigate the relationship
sustainable performance and relationships between business
between customer awareness as it is one of the crucial factor
which needs to be addressed by firms primarily in order to and social entities has been extended over number of years
operate in turbulent and highly competitive environment. The towards its supply chain and relation with sustainability of
customer awareness positively influence SSCM and business partner’s standards for their supply chain.
sustainability capability, similarly competitiveness is Previously studies have been conducted on effects of
investigated with sustainability capability and SSCM, positive impact of supply chain and risk of negative supply
moreover, mediation role was examined between customer chain for global brands around the world. The researchers
awareness, competitiveness and SSCM by sustainability have depicted and explained the concept of ‘chain liability
capability. The current study is conducted on tourism industry
effect’ as firm must be accountable for its actions taken for
of Thailand, to determine the effect and influence of customer
supply chain activities globally [4, 5].
awareness and competitiveness on sustainability capability and
SSCM. The study is unique in determining the mediating role
The concerns related to environment and sustainable
of sustainability capability between independent variable and
dependent variable. The analysis of the study suggest that competitive position depends upon supply chain activities of
customer awareness influence SSCM, similarly competitiveness partners as firms depends upon their supply chain initiatives
also effect SSCM and sustainability capability, moreover and play major role in their business operations. Researchers
mediating effect was also reported and demonstrated in and practitioners have stated management of sustainable
analysis phase of the study by shrinking the effect of supply chain practices as most challenging task throughout
independent variables on dependent variables.The study is the business operations. Another challenging task for firms
relevant and investigated the factors related to the is availability of less information related to customers in
development of SSCM and provides guidance to firms to
order to sustain effective supply chain management which
achieve sustainable and continuous improvements in business
shows relationship with business partners [5, 6]. Firms
operations and supply chain of involved stakeholders of Thai
tourism industry. usually focus on incorporating into their own business
operations, normally it is found that patterns are unclear
Key words: Sustainability Capability, Sustainable Supply Chain under which firms extend their supply chain activities and
Management, Tourism Industry. integrate it with their partners via SSCM. Researchers have
focused on developing better understanding for
______________________________________________________________ incorporating supply chain activities for sustainable
International Journal of Supply Chain Management
IJSCM, ISSN: 2050-7399 (Online), 2051-3771 (Print)
Copyright © ExcelingTech Pub, UK (http://excelingtech.co.uk/)
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Int. J Sup. Chain. Mgt Vol. 8, No. 3, June 2019

performance. As the result, firms need to focus on The economic situation of Thailand depicts that several
development of understanding and patterns for extending sectors are under financial stress including construction,
sustainability of supply chain activities [7]. agriculture and industrial sector due to various external and
internal factors. On the other hand, service sector found to
Current study intends to examine the factors and be stable continually and growing even recession period
information associated with environmental concerns for specifically the tourism industry [14]. Tourism industry
adoption of sustainable supply chain management (SSCM). contributes 17% in overall GDP of Thailand and provides
The study intends to examine the sustainable supply chain opportunities for growth in Thai’s economic future [15]. The
management activities for enhancing the effectiveness while tourism industry believed to be one of major and
considering and incorporating consumer awareness. contributive industry in Thai economy and play vital role in
Researchers have focused on impact of consumer awareness social development. The tourism industry of Thailand found
on stakeholder engagement, similarly the relationship to be attractive as most of the producers and consumers
between consumer awareness and sustainable supply chain consume associated products. The tourist service provider in
management activities will be elaborated in current study. Thailand affect experience of associated products as various
Current study will examine the relationship between products and services related to tourism industry. Further, it
consumer awareness and sustainable supply chain has been stated that in tourism industry different level of
management, further greening production activities will be participants involved in providing quality services provide
explained in relationship with sustainable supply chain satisfactory services. The researchers have found and stated
management. The study intends to examine the influence of various reasons in growth of tourism industry and huge
customers’ awareness on sustainable supply chain activities. revenues generated in Thailand. The tourism industry has
Further, the engagement of stakeholders will also be increased rapidly and expanded in recent years and expected
examined to be influential towards sustainable supply chain to grow further in future.
management [7].
Supply chain management entails the purpose of
South East Asian Region based firms focus on greening establishing trust based relation and collaboration among
aspect of supply chain management. The greening supply business partners to improve business operations from
chain aspect demonstrates sincere commitment towards inbound to outbound operations. The performance of supply
sustainability of firms [8, 9]. The researchers have identified chain must be considered for effective and efficient supply
that majority of the customers don’t distinguish between chain activities of service industry. There is lack of
firm itself and its suppliers. The stakeholders of firms derive empirical evidences regarding tourism industry and supply
firm in specific and diverse way to avoid any environmental chain aspect [15, 16]. There are just few studies found on
liability which got affected by their supply chain activities. the hotel and tourism industry and its performance which are
Researchers have focused on initiatives for supply chain limited to tour operators in South East Asian region [17, 18].
activities for protection of environmental damages. Most of Fewer studies have been conducted on concept of SCM
the previous studies focused on functional areas only for related to tourism industry and related supply chain. The
effective supply chain [10, 11]. Researchers have depicted most of the previous researchers addressed the performance
that various transactions such as flow and transformation of of internal supply chain activities but overlooked extended
materials to finished goods or services utilized by customers multiple supply chain members [19, 20]. The researchers
and availability and usage of information in both up and have developed framework for supply chain performance in
down side of entire supply chain comes under the services industry, current study intendeds to examine the
management of supply chain [12]. Thus, there is need to sustainable supply chain management influenced by
focus on sustainable supply chain management at both end customer awareness, competitiveness with mediating role of
including upstream and downstream directions of supply sustainability capability in tourism industry of Thailand.
chain.
2.1. Tourism and Tourism Supply Chain Model:
1.1. Tourism industry of Thailand:
Previous researchers have categorized tourism into six
The tourism sector has become significantly important and different characteristics; (1) the tourism industry consists of
contributive in economy of world and play role as driver for different products and services including transportation and
growth in many countries. The emerging and highly residence for tourists. (2) Unpreserved because services
contributive tourism industry for growth in economy has cannot be stored for future utilization. (3) information-
been observed in several countries including Thailand [13]. intensive; as it is core of tourism industry because
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Int. J Sup. Chain. Mgt Vol. 8, No. 3, June 2019

information is required before purchasing of product or 2.2. Sustainable Supply Chain Management and
service and customer needs to seek information before travel Customer Awareness:
in order to consume product. (4) Tourism is complicated in
nature as accommodation, transport and dining are Information sharing and effective utilization on time among
important components of this service. (5) Presentation and customers stated as an essential element which motivate
interpretation of products are important factor for point of firms for pursuing sustainable supply chain performance.
sale. (6) Finally, tourism industry is associated with higher Previous studies have established that customers are
fluctuations and competition in providing better services. considered as important factor in sustainability of firm but
usually they are unaware of their supply chain activities [7].
The model is introduced for defining upstream and These supply chain activities including purchases associated
downstream side of supply chain related to Tourism industry decisions and supply chain activities usually hidden from
[16]. Following figure demonstrate an example of Tourism customers or not known at customer level. Literature has
Supply Chain Model. depicted that sustainability of firm normally depends upon
financial performance. Previous literature has suggested that
firms strive for profit maximization through sustainable
practices [23, 24].

Stakeholder theory suggests that sustainability aspect

usually described in terms of interest of diverse groups of
stakeholders by firms. These stakeholders include
employees, government, environmental authorities,
consumers and investors [25, 26]. Stakeholders of firms
support sustainability performance as these efforts found to
be influential by strong beliefs of these stakeholders [7],
[27]. If the firm has better reputation and sustainable
performance it receives better and positive response from
stakeholders in terms of investment, productivity, less
Source: Zhang et al. (2009) regulatory pressure and consumption; which assist firms to
perform better in competitive business environment [28].
2. Literature review
The cost of negotiation and information sharing can also be
Academically researchers have defined supply chain reduced by creating and establishing mutual trust and
management as: cooperation among stakeholders. The behavior of firms
influenced by stakeholders, the access to resources also
“SCM is defined as collaboration and integration of key influence the behavior of firms and environment as flow of
business processes from purchasing of raw material, resources found to be an important factor in establishing the
manufacturing and distribution to end users along with behavior of firm. Researchers have stated that stakeholders
information that add value for consumers and stakeholders” influence opinion of public for organizational favor and for
[21]. sustainable performance [6].

Researchers have defined sustainable supply chain Studies have been conducted to examine the role of
management as management of material, capital and customer awareness in sustainability of supply chain
information flow among various entities of firms as performance. Researchers have stated the relationship
effective cooperation with other associated companies. between customer awareness and financial figures of
Sustainable development has been taken as three organizations [29]. Researchers have found that customers
dimensions; including economic, environmental and social are willing to pay higher prices for premium services which
aspects are derived from stakeholders and customers [22]. resulted in sustainability of engagement, further it is stated
The definition given above highlights the environmental and that socially responsible firms attracts long term customers
social side for sustainable supply chain management along and establish long term engagement. The concerns of firm to
with the economic aspect stands always very important in be socially responsible and to act ethical towards
determining sustainability of firms. Thus, sustainable supply environment friendly goods or services attract large number
chain management found to be important and considered by of customers and gain sustainable relationship and enhance
various researchers as integral aspect of whole supply chain. performance overtime while being environmental friendly
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Int. J Sup. Chain. Mgt Vol. 8, No. 3, June 2019

initiatives [30]. Survey has been conducted and it has been position and performance. Managerial functions of firm play
found that 40% executives stated that market opportunities vital role in attaining competitive position and advantages
can be capitalized by increased green movement activities by meeting expectation and satisfying customers,
initiation and green products and services initiatives while empowerment of employees, quality and cost system and
keeping customer in contact and aware about supply chain manufacturing or services’ continuous improvement and
or green activities [31]. Studies have found positive productivity has been depicted in literature as important
association between sustainable initiatives and firm value. factors for gaining competitive advantages [35, 36].
Researchers have diverse opinion in terms of impact of
Firms strive to maintain their competitive position and managing environments or greening the supply chain
sustain their performance and supply chain partners. There management towards achievement of competitiveness of
are various factors found to be as resistant and reduce firms. Competitiveness found to be effective between firm
commitment towards sustainable supply chain management. and market, as firms seeks environmental value-drivers in
Sustainable standards for supply chain can only be achieved product and services. Researchers have stated that usually
through effective managerial efforts and affordable cost. firms do not consider environmental issues for gaining
Sometime, supply chain partners are located in less competitiveness as consumers and firms may not consider
environmental regulatory countries [32]. Factor create environmental factors necessary for competitiveness [37].
hurdle and found to be cause of instability may include lack
of information, insufficient resources and lack of customer Environmental concerns has increased in recent years and
concerns among relationship between various associated stated as one of important and crucial issue for gaining
firms [5, 6]. Limited information provided to customers also competitive advantages. Consumers and stakeholders have
effect sustainability and performance of firm to compete in become increasingly concerned with environmental issues
highly competitive environment [33]. Researchers have associated with their industry. Growing number of firms in
stated that unawareness of customers about supply chain or any sector primarily focus on environmental concerns for
operational activities may cause less interest for developmental phenomenon around the world [35]. On the
performance and sustainability of firms [29][70]. basis of above discussion it is appropriate to say that
Researchers have argues that lack of customer awareness environmental issues have become important and crucial
about sustainability activities will negatively affect the source of competitiveness. Literature has depicted that
efforts of firms and may all initiatives and efforts in vain. It leading firms of all sectors have focused on environmental
has been predicted that positive correlation exist between issues to gain competitiveness for sustainable capability and
awareness and sustainability and it plays vital role in sustainable supply chain activities. Leading firms of South
performance and efforts of firms acknowledged which East Asian region including Thailand, Malaysia, Indonesia
depicts that informed customers has positive effect on and Vietnam region firms have realized that they must focus
sustainability and performance. Conversely, transparency on environmental issues for gaining competitiveness.
enable firms and customers to gain mutual benefits between
suppliers and business partners including customers which However, there is lack of empirical studies on determining
results in sustainable supply chain management [34]. the sustainable supply chain management influenced by
competitiveness. The present study addresses the sustainable
Above discussion has lead to the prediction of current study supply chain management influenced by customer
that customer awareness found to be an essential factor in awareness and competitiveness of firms with mediating role
sustainability of supply chain management. On the base of of sustainable capabilities on tourism industry of Thailand.
above discussion following hypothesis has been formulated: On the basis of above discussion following hypothesis has
been formulated:
H1: Customer Awareness influence sustainable supply
chain management at tourism sector of Thailand H3: Competitiveness of firms influences sustainable supply
chain management at tourism industry of Thailand.
H2: Customer awareness influence sustainable capability of
firms at tourism industry of Thailand H4: Competitiveness of firms influence sustainable
capability of firms at tourism industry of Thailand
2.3. Competitiveness and Sustainable Supply Chain
Management: 2.4. Mediating Role of Sustainability Capability:

Competitiveness enables firms to gain advantages over their Lack of information, resources including physical, financial
competitors and enhances capabilities to sustain their and human resources and expertise related to various
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Int. J Sup. Chain. Mgt Vol. 8, No. 3, June 2019

business activities found to be major cause of reluctance of firms must be able to justify their decisions related to supply
firms to be more sensitive towards issue of sustainability chain with stakeholders and partners for sustainability
[38, 39]. Further researchers focus on developing the performance [46]. High level of motivation and efforts of
capability for improvement in internal operations. Experts at firms for sustainable performance they must focus and
firms play vital role in achieving sustainability and stated as develop capability and invest in sustainable capabilities and
prerequisite for them to be responsive to increase customer supply chain management. The engagement of stakeholders
expectation for gaining sustainability among supply chain such as customers determine the monitoring level of
partners. The information sharing between supplier firm and suppliers with firms for establishing link for better
customer has significant importance between customer and performance of supply chain activities [47][68].
focal firm. Firms strive to manage sustainable performance
of supply chain from customers of related firms. Therefore, The current study entails sustainable capability as mediating
availability of resources plays significantly important role in role between independent variables and dependent variable.
strongly managing supply chain activities and focus on On the basis of above discussion following hypothesis have
sustainability. Firms can’t implement or sustain operational been formulated:
excellence with expertise and resources required. The
H5: Sustainable capability mediate relationship between
capability of firms can be incorporated by managing experts
customer awareness and sustainable supply chain
and resources which assist to gain sustainable supply chain
management
performance [6].
H6: Sustainable capability mediate relationship between
Firms establish their environmental friendly supply chain
competitiveness of firms and sustainable supply chain
logistics and activities to become more competitive in the
management
relevant industry. Sustainable performance of supply chain
requires environmental friendly financial products; which is H7: Sustainable capability influence SSCM at tourism
described as firm’s past to predict sustainable furniture [40]. industry of Thailand
Researchers have described the phenomenon of
sustainability and performance in literature and found 2.6. Research Framework:
significant relationship. Researchers have identified the
development of definition and capability of reduction in
emission, wastage and reduction of toxic material in
Customer
production of any goods for environmental accidents and Awareness
cleaner environment. The studies stated that firms must
adopt innovative operational techniques suitable for
environment and for better performance [41]. The Sustainable
researchers have given economic performance of firms as SSCM
Capabilities
linked to the sustainable supply chain management
performance. Further, it is predicted that greening the supply
chain activities play vital role in gaining sustainability of
performance while increasing productivity and efficient
utilization of resources.
Competitiveness
Firms establish higher engagement with stakeholders which
found to be sustainable with higher performance [42, 43].
Managers at firms focus to improve control and production
mechanism for comply sustainable wishes to avoid negative 3. Methodology:
response [44]. Empirical studies have reported that
Methodology is discussed in current phase of the study,
transparency in information sharing with stakeholder also
study sample, analysis unit, data collection tool from
encourage sustainable performance and engage stakeholders
electronic industry of Thailand, from users and operators
for effective communication helps to gain sustainable
have been collected. Questionnaire was developed from
performance [6]. Researchers have reported that long term
adopted scales of variables from previous studies.
benefits can be achieved by effective engagement with
stakeholders [45][69]. Studies have been conducted on
sustainable performance and capability and reported that
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Int. J Sup. Chain. Mgt Vol. 8, No. 3, June 2019

3.1. Sampling procedure: Researchers have stated that environmental concerns have
become the source of competitiveness and it is visible by
In current study researcher decided to apply purposive analysis of leading companies of South East Asian region.
sampling on random sample of tourism business in The researchers have defined the competitive dimension of
Thailand. The sample was conducted on the basis of supply chain, but there is lack of empirical research on
explaining the link of competitiveness and sustainable
availability of transportation, accommodation and dining
capability. The study of Purba Rao (2005) established the
facilities. The list of tour operators can be obtain from the parameter for determining the competitiveness of firm with
Ministry of tourism of Thailand, total 400 sample size is respect to supply chain [35]. The four items of the scale was
available which provides services in tourism industry given including (i) improved efficiency, (ii) quality
including transportation, accommodation and dinning, so improvement, (iii) productivity improvement, and (iv) cost
sample size for the current study was 400 around the whole saving.
country. Total 400 questionnaires were sent to the
Sustainability Capability (SC): The studies have been
executives of business operators around the country, 190
conducted to determine the sustainability of firms directly
useable questionnaires were returned from these tour
from ASSET4 [7]. The construct reflects managerial
operators.
practices to avoid environmental issues and to generate long
2.5. Instrument: term value [42]. The measurement item of the construct
includes information on energy usage, recycled water,
The survey questionnaire was adopted from the study of carbon emission, waste recycling and pollution control,
different studies. The instrument was used by various other which reflects the sustainability capability of firms
researchers to investigate the relationship with different set [42][63][64].
of variables and dependent variable in determining the
supply chain effectiveness in different markets and Sustainable Supply Chain Management (SSCM):
industries. All the scale of the study was measured on five- Researchers have conducted studies to determine the
point Likert Scale range from 1 as “low” and 5 represents
sustainable supply chain management activities in various
“High”.
contexts. To determine the empirical analysis of current
Customer Awareness (CA): The higher the increase of study researcher adopted the scale of SSCM from the study
awareness of consumer shows social responsible behavior of Mengfeng Gong (2019). The 6 item scale was adopted
by firms and benefits to get engage in suitable behavior. from previous study [7][65].
Researchers have argued that performance of information
environment of firms can be improved through marketing
programs and customer awareness play important role in
4. Results and discussion
sustainability of firm [29][67]. Researcher used the
Thomson Reuters ASSET4 database, which is well reputed 4.1. Measurement model:
and has publicly available information and it is one of the
reliable and trustworthy data sources for sustainable analysis In the present study researcher decided to use PLS and
[53]. [54]. Current study measured customer awareness measurement model technique to identify the relationship of
(CA) by loyalty score from ASSET4, according to ASSET4, research model. SMART-PLS is one of the vital tools used
the construct of CA covers the performance of firm in terms for investigating the relationship between constructs of the
of satisfaction of customers, communication policy, brand research framework. The current study considered the use of
value and monitoring policy which further entails consumer measurement model and structural equation modeling
complaints.
(SEM) techniques for investigating relationships.
Competitiveness (Comp): There are various managerial Measurement scale was checked as suitable tool for
principles of satisfying customers, empowerment of determining the relationships empirically and details are
employees, quality and cost, manufacturing and given in table 1 below. Cronbach alpha was examined of
improvement in production which enhances developmental each construct and results are demonstrated in table 1.
aspect of firms by various researchers and given Deming’s
14 points for determining the competitive advantage through The values in table show that all values are higher than 0.60
early described principles [35][66]. Researchers have stated which shows acceptable for determining the relationships of
that these points are not sufficient and appropriate to
framework. Thus all the measurement scale has strong
determine which reflect the impact of environmental aspect
or supply chain management while considering the green construct validity.
environment.
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Int. J Sup. Chain. Mgt Vol. 8, No. 3, June 2019

Table 1: Cronbach Alpha (α) Values of all constructs: 4.3. Hypothesis Testing:

S# Constructs Items α Remarks H1: Direct effect: Customer Awareness influence

1 CA 04 0.736 Acceptable sustainable supply chain management at tourism sector of
2 Comp 04 0.612 Acceptable Thailand
3 SC 06 0.710 Acceptable
4 SSCM 06 0.711 Acceptable The first hypothesis as depicted in the framework of the
study that customer awareness influence supply chain of
firms and assist them for sustainability. Table 4 shows
Internal consistency of the construct is determined by
results of hypothesis statistically significant and positive
composite reliability (CR). The value of CR must be higher
relationship is found between customer awareness and
than 0.5 for strong acceptability [57]. The values of CR and
sustainability of supply chain management of tourism
AVE (Average variance extract) is demonstrated in the table
industry of Thailand. The result shows Path Cof as 0.321
2 below.
and t-value is found higher than the cutoff point 1.96 and
Table 2: Composite Reliability and Average variance which is 2.96. Therefore H1 is statistically supported.
extracted:
Table 4: Direct effect H1

S# Hypothesis Path cof T-Value Remarks

H1 CASSCM 0.321 2.96 Acceptable

H2: Direct effect: Customer awareness influence

sustainable capability of firms at tourism industry of
Discriminant Validity: Thailand

Examining the discriminant validity is one of important Results showed that hypothesis one statistically significant
component of measurement model; square root of AVE is positive relationship between sustainability capability and
demonstrated in the table below and compared with values sustainable performance at tourism industry of Thailand; the
of correlation of each construct. Table 3 demonstrates the path coefficient demonstrated as 0.601 and a t-value 3.120 at
discriminant validity in diagonal and square root in non 0.01 level of significance. The results are consistent with
diagonal elements. previous study of Wilhelm et al (2016) which also suggested
that firms sustain their supply chain performance for gaining
Table 3: Discriminant Validity of constructs long term benefits and strives to manage own sustainability.
Therefore, H2 found to be statistically influential, hence
hypothesis 2 is supported.

Table 5: Direct effect H2

4.2. Structural Equation Model: S# Hypothesis Path cof T-Value Remarks

H2 CASC 0.601 3.120 Acceptable
The relationships between constructs were examined and
hypothesis testing was considered in the present study.
SEM-PLS was used for examining and empirically H3: Direct effect: Competitiveness of firms influences
investigate hypothesis in present study. The study presents sustainable supply chain management at tourism industry of
hypothesis testing in current phase and demonstrates results Thailand.
of empirical examination.
The direct hypothesis between competitiveness and SSCM
with argues that competitiveness of firm influence supply
chain of firms and assist them for sustainability. Table 6
shows results of hypothesis statistically significant and
positive relationship is found between constructs at tourism
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Int. J Sup. Chain. Mgt Vol. 8, No. 3, June 2019

industry of Thailand. The result shows Path Cof as 3.121 H6: Sustainable capability mediate relationship between
and t-value is demonstrated as 3.56. Therefore H3 is competitiveness of firms and sustainable supply chain
statistically supported. Table 6: Direct effect H3 management

S# Hypothesis Path cof T-Value Remarks The study introduced the mediator in framework,
H3 CompSSCM 3.121 3.560 Acceptable sustainability capability is placed as mediator between
customer awareness and SSCM, and current phase examined
the mediation effect by using PLS with steps that relies on
H4: Direct effect: Competitiveness of firms influence regression analysis.
sustainable capability of firms at tourism industry of
Thailand Hypothesis 5 of the present study argues that sustainable
capability mediate relationship between customer
Positive and significant relationship has been depicted of awareness, competitiveness and SSCM, the results in table 9
hypothesis four as well, the relationship between below demonstrate the mediation results, statistically test for
competitiveness and sustainable capability of firms at hypothesis 5 including mediation effect; researcher follow
tourism industry of Thailand found to be influential. The the procedure of Baron and Kenny (1986) in present study.
results in table 7 show the direct effect between construct of The procedure insists on four conditions to be fulfilled in
hypothesis 4. Path coefficient of relation is observed as order to mediate the relationship to be satisfied on statistical
0.596 and t-value is observed as 3.108 and sig level of 0.01. grounds. These conditions includes (i) the independent
The t-value of relationship found to be higher than the cutoff variables ‘customer awareness’ & ‘competitiveness’ has
point 1.96; Therefore H4 statistically accepted and direct effect on mediator variable ‘sustainability capability’
supported. as depicted in analysis phase and discussed in hypothesis 2
& 4. (ii) the independent variables ‘customer awareness’ &
Table 7: Direct Effect H4 ‘competitiveness’ significantly influence dependent variable
(SSCM) directly, so it is already demonstrated in discussion
S# Hypothesis Path cof T-Value Remarks
of hypothesis 1 & 3; which significantly influence SSCM
H4 CompSC 0.596 3.108 Acceptable directly. (iii) The third conditions address the relationship
between mediator variable and dependent variable. The
result of hypothesis 7 demonstrates and meets the third
H7: Direct effect: Sustainable capability influence SSCM at
condition that it must significantly influence dependent
tourism industry of Thailand
variable. (iv) The effect of independent variables on
The hypothesis 7 determines the relationship between dependent variable must change or reduce in presence of
sustainable capability and SSCM and found positive mediating variable. Current phase of the analysis addresses
significant relationship between these constructs. The the 4th condition of Baron and Kenny for successful
statistical figures shows that Path cof is observed as 0.311 mediation. If any of the condition is not found in
and t-value is found to be positive and significant 3.246; relationship then mediation will not be successful and
which is higher than cutoff point 1.96. The results are shown hypothesis considered as rejected [48].
in table 8 below; on the basis of statistical figures hypothesis
Figure 2 below summarized mediating effect.
7 is supported.
5.1. Total Effect:
Table 8: Direct Effect H7

S# Hypothesis Path cof T-Value Remarks 0.321

H7 SCSSCM 0.311 3.246 Acceptable CA SSCM

4.4. Mediating Effects: 3.121

Comp SSCM
H5: Mediator Sustainable capability: Sustainable capability
mediate relationship between customer awareness and
sustainable supply chain management
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Int. J Sup. Chain. Mgt Vol. 8, No. 3, June 2019

5.2. Mediating Effect: competitiveness on sustainability capability and SSCM;

sustainability capability on SSCM was also reported as
discussed in the analysis phase of the current study.
SC Mediation was examined in the study by fulfilling the
0.601 conditions of Baron and Kenny (1986) and found positively
0.311
significant. The results demonstrated that effect of customer
CA
0.089
awareness and competitiveness was higher on SSCM
0.596 SSCM directly as compare to involvement of mediating variable by
shrinking the effect size. Therefore, all the hypothesis of the
Comp 0.093
study was accepted and supported statistically.

The results of the study are important for managerial

implications for adopting best practices for sustaining
The results depicted in above discussion met all conditions effective supply chain management performance at tourism
of mediation suggested by Baron and Kenny (1986), the industry of Thailand. Firms strive to utilize best of their
results shows that firm’s sustainability capability has resources in respond to need of customers and to become
positive significant effect on SSCM performance and effect competitive which further effect and influence sustainability
of both independent variables shrinks with addition of capability and SSCM as demonstrated in the analysis phase
mediator variable. of the present study. When firms develop knowledge for
enhancing capability and competitiveness in their business
Table 9; Mediation effect: operations and supply chain management, they successfully
gain better positions and appropriate place in market and
S# Hypothesis Path T- Remarks
support their firms to be competitive and sustainable over
cof Value
longer time frame.
H5 CASCSSCM 0.089 3.246 Acceptable
H6 CompSCSSCM 0.093 2.013 Acceptable
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