Relationships Between Sufficiency Economy Philosophy and Business Performance Using Balanced Scorecard: A Case Study of Logistics Business in Southern Thailand
Keywords:
Sufficiency Economy Philosophy, Balanced Scorecard, Logistics Business, Southern ThailandAbstract
This study aims to investigate to what extent logistics service providers in southern Thailand have implemented the Sufficiency Economy Philosophy (SEP), as well as to examine the relationship between the practice of the Sufficiency Economy Philosophy and business performance, as measured by a balanced scorecard. Descriptive analysis and multiple regression are used for data analysis. The study found that logistics service providers in southern Thailand have applied the Sufficiency Economy Philosophy to their business operations at a high level. Relatively high scores were also seen for all individual components and conditions in the Sufficiency Economy Philosophy. Practicing the Sufficiency Economy Philosophy has a significant impact on most perspectives of business performance measured by a balanced scorecard. Customers, internal business processes, as well as learning and growth processes score at a high level. Only the financial perspective scores at a moderate level, implying that logistics service providers in the southern region do not focus on financial issues. These positive impacts can be interpreted using the stakeholder theory which mainly concerns the corporative stakeholders. Corporate plans are carefully made considering customers, employees, and shareholders, as well as society. Considering the relationships between each component of the Sufficiency Economy Philosophy and the balanced scorecard, the study reveals that the application of moderation, self-immunity, knowledge, and integrity in the business operations of logistics service providers (LSPs) can lead to high values in the focal business’s balanced scorecard. Results of the study are useful for business operations development and corporate decision making in logistics service providers.
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