Decision on Logistics Transportation System of Thai Automotive Service Parts Industry

The purpose of this paper is to study factors that affecting decision to choose logistics transportation system in Thai Automotive Service Parts Industry. The study identified contexts where sourcing is made based on transaction cost economics theory (TCE), the resource-based view (RBV), core competency (CC), and customer requirement (CR). Sampling data of 174 respondents of the suppliers in Thai Automotive Service Parts Industry were collected and analyzed by using multivariable analysis. Generalized Linear Model (GLM) reveals that transaction cost characteristics factor is the significant factor in determining on Transportation Cost. Ordered Probit model was also employed in analyzing different levels of decision in choosing logistics transportation system in Thai Automotive Service Parts Industry. The estimated results indicate that Transportation Cost, Capability, and Customer Requirement are major factors in determining decision on to logistics transportation system while core competency has insignificant impact. This finding implies that core competency theory cannot be applied in this case.