Modelling the Success of Supply Chain Collaboration in the Thai Dairy Industry

Thailand’s dairy industry provides a source of protein for citizens; however, 90% of milk producers are smallholders, on average handling approximately 21–50 cows per farm. In addition to disease control and health regulations, supporting milk producers in supply chain activation by implementing a collaborative concept can significantly improve the success of the dairy industry. Understanding the contributory factors and collaboration model will lead to success in supply chain collaboration. This study gathered potential 95 variables from a literature review. Through the process of expert review, these were refined into 49 critical variables. Moreover, this pilot study, with participation from co-operatives and individual farmers, aims to develop conceptual frameworks in six areas: performance and commitment, internal and external collaboration, measurement and evaluation, joint operation, sharing and innovation, and negotiation. Furthermore, 26 factors were identified clearly by exploratory factory analysis. In addition, the main study was conducted via a paper-based questionnaire with 1,053 participants nationwide. A result of the study confirmed the proposed framework from EFA analysis, and a verified model, by confirmatory factor analysis and Structure Equation Modelling, gives a clearer understanding of the factors and constructs leading to the success of supply chain collaboration in Thailand’s dairy industry.