A Causal Model of Supply Chain Performance of the Seaweed Industry in Davao Region, Philippines

Abstract

The study aimed to establish causal relationships between exogenous variables on supply chain performance of the seaweed industry in Davao Region through a multivariate analysis approach known as structural equation modelling (SEM). Exogenous variables in the study include supply chain quality management practices, supply chain flexibility, supply chain responsiveness, and supply chain efficiency. Specific issues that were unaccounted by the SEM were also culled out using in-depth interviews. The sequential explanatory mixed-methods research design involved the collection of primary data from N=163 seaweed farmers in Davao Region. Results revealed that supply chain quality management practices, flexibility, and responsiveness were assessed high while supply chain efficiency was found to be moderate. Seaweed farms were found to perform very highly. The four exogenous variables were found to significantly and positively correlate with supply chain performance. In addition, results from the structural equation modelling revealed that the most suitable exogenous variables that best influence supply chain performance of seaweed farms in the Region are the supply chain’s quality management practices and efficiency. The best-fitting structural equation model was able to satisfy most of the fit indices with exception to its SRMR and PNFI values.