Moderating Effect of Corporate Governance on the Relationship of Supply Chain Management Capabilities and Supply Chain Organizational Performance of the Pharmaceutical Industry of Thailand


  • Sudawan Somjai
  • Kampon Sriwatanakul
  • Orranarth Nakornsri


The objective of the study is to investigate the moderating effect of corporate governance in the relationship of supply chain management capabilities (SCMC) and supply chain organizational performance (SCOP) of the pharmaceutical industry of Thailand. To achieve data was collected from the 300 senior managers of pharmaceutical industry which yield a 70% response rate. For analyzing the results, Smart PLS software 3 was used by employing the structural equation modeling (SEM) technique. The direct effect findings of the study show that supply chain information technology capability (SCIN), supply chain relational capability (SCRC)and supply chain dynamic capabilities (SCDC) have a significant and positive association with the supply chain organizational performance (SCOP) of the pharmaceutical industry of Thailand. On the other hand, the indirect findings show that corporate governance (CG) is significantly moderates on the relationship of SCRC, SCDC and SCOP. Whereas, corporate governance is not significantly moderates in the relationship of SCIN and SCOP. These findings reveal that CG is considered to be a significant moderator because it has significant moderating effect in most of the exogenous variable and SCOP which shows a big contribution of the following study. These findings further could also be support to the managers of the organizations to know about the importance of the SCMC and CG for increasing the SCOP. The research limitations and future direction are also discussed at the end of the study.