The Influence of Green Logistics towards the Business Performance under Circular Economy Principles: The Case of the Packaged Food Industry in Thailand

Abstract

This study examined the factors influencing the firm performance under circular economy principle using Thailand packaged food industry context. We hypothesized that the firm performance under circular economy optimized when process alignment exists in green logistics customer integration, and production efficiency. We distributed the questionnaire survey to 400 entrepreneurs of packages food enterprise in Thailand and analyzed the data vis Partial Least Square Structural Equation Modeling (PLS-SEM) using SmartPLS 4.0 program. Reflective-formative model was employed and the reliability test, validity test, and hypothesis testing were conducted. The results confirmed that green logistics positively influence firm performance under circular economy principles directly and indirectly via the mediating roles of customer integration and production efficiency. The findings imply that customer integration and production efficiency play important roles in enhancing the operational success and firm stability. Out empirical results provide guidelines for entrepreneurs in strategic green supply chain management such as logistics efficiency, waste reduction, pollution prevention, green innovation access, all of which enable advancement in Thailand packaged food industry towards becoming a sustainable manufacturing base for the global markets.