Causal Relationship Model of Supply Chain Risk of Organic Rice in Thailand

Abstract

This study aimed to gain a better understanding of the causal factors that affect dependent variables in the supply chain risk of organic rice in Thailand. Consequently, the purpose of this research was to develop a structural equation model of the supply chain risk. A questionnaire was used to gather data from a sample of 250 farmers who were certified under the organic agriculture standards in Thailand and the data were analyzed using LISREL 8.80. The Chi-square value of 192.21, a degree of freedom of 167, and a p-value of 0.08828 indicated that the model was consistent with the empirical data. The model was composed of 23 observed variables and 3 latent variables: input, organic agriculture standard, and supply chain risk. Input was found to have a positive and direct effect on organic agriculture standard (coefficient of 0.71), and a negative and direct effect on supply chain risk (coefficient of −0.65). Organic agriculture standard had no effect on supply chain risk.