Open AccessCausal Relationship Model of Supply Chain Risk of Organic Rice in Thailand
Author(s) -
Paveerat Pakdeenarong,
Thammanoon Hengsadeekul
Publication year - 2019
Publication title -
journal of social science studies
Language(s) - English
Resource type - Journals
ISSN - 2329-9150
DOI - 10.5296/jsss.v6i2.14431
Subject(s) - lisrel , supply chain , agriculture , structural equation modeling , organic farming , econometrics , economics , business , agricultural economics , statistics , mathematics , marketing , geography , archaeology
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.