| Summary: | Globally, logistics cost an average of 11% of a country's gross domestic product (GDP). Furthermore, Thailand’s 40 million foreign tourists are provisioned by a logistics system which relies on roads 97.68% of the time to deliver nearly half a billion tonnes of goods. However, Thailand has national logistics' cost averaging 14% of its GDP. With Thailand’s revenues from logistics reaching $96.5 billion in 2019, the authors saw the importance of undertaking a study to determine how the Thai road logistics industry process capability (PC) is influenced by knowledge absorption capability (KAC), technology capability (TC), product innovation (PI), and service innovation (SI). By use of multi-stage random sampling, a sample of 483 owners, executives, and managers was obtained, whose responses from the seven-level scale questionnaire were analysed using LISREL 9.10 software. From both the initial CFA and final SEM of the eight hypotheses model, all the model’s causal variables were found to influence PC positively. This can be explained by 81% of the variance in the Thai road logistics industry PC (R2). The causal variables influencing Thai logistics industry PC ranked from highest to lowest were KAC, TC, PI, and SI, with total effect (TE] values at 0.90, 0.81, 0.30 and 0.10, respectively. Therefore, in a smartphone-enabled, Internetconnected, social media world, Thai road service organizations need to marry ‘technological innovation' process capabilities to ensure a competitive advantage and survivability. However, the need for a digitally enabled, 21st-century knowledge worker becomes even more crucial, but companies find obtaining these workers a difficult task, with Thai educational systems hard-pressed to deliver them. As a result, Thailand needs to educate and train a new generation of workers in the transportation and logistics sectors.
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