A Novel Environmental Performance Evaluation of Thailand's Food Industry Using Structural Equation Modeling and Fuzzy Analytic Hierarchy Techniques

Currently, the environment and sustainability are important topics for every industry. The food industry is particularly complicated in this regard because of the dynamic and complex character of food products and their production. This study uses structural equation modeling (SEM) and a fuzzy analytic hierarchy process (FAHP) to investigate which factors are suitable for evaluating the environmental performance of Thailand's food industry. A first-stage questionnaire survey was conducted with 178 managers in the food industry that obtained a certificate from the Department of Industrial Work of Thailand to synthesize the performance measurement model and the significance of the relationship between the indicators. A second-stage questionnaire measured 18 experts' priorities regarding the criteria and sub-factors involved in the different aspects and assessment items regarding environmental performance. SEM showed that quality management, market orientation, and innovation capability have a significantly positive effect on environmental performance. The FAHP showed that the experts were most concerned about quality management, followed by market orientation and innovation capability; the assessment items for quality policy, quality assurance, and customer orientation were of the most concern. The findings of this study can be referenced and support managerial decision making when monitoring environmental performance.