Role of Inventory Management on Competitive Advantage of Small and Medium Companies in Thailand

Abstract

The purposes of this research were to study the inventory management factors affecting the competitive advantageand confirm the inventory management factors affecting the competitive advantage. This research was a mixed methods research.First, the quantitative data was collected from the sample of 280 small and medium companies in Thailand. This research focusedon 14 observable variables. Then, the qualitative data was collected from nine key informants who were the experts in theinventory management field. The results indicated that the structural equation model was consistent and harmonious with theempirical data with the model consistency indices as follows: 2= 106.32, df = 69, 2/ df = 1.54, CFI = 0.99, GFI = 0.95, SRMR= 0.042, RMSEA = 0.044. Furthermore, the inventory control systems had the greatest influence on the competitive advantage,followed by inventory control practices, and information technology, respectively.