The objectives of this research are to study the direct influence on the competitive advantage

and pattern development of variables affecting the competitive advantage of the Thai oil

palm industry. This research employs a quantitative research method. The population for

the study consists of 150 oil palm industrial operators in Thailand. Questionnaires are used

in the data collection and the data are analyzed by using SEM. The research results reveal

that the Knowledge Management Process and Supply Chain Integration positively influence

the competitive advantage in the quality, delivery, and cost. The competitive advantage

receives a positive direct impact from the Knowledge Management Process and Supply

Chain Integration. The variation of competitive advantage can be explained as 84%. The

obtained results can be used for developing the industry to create economic growth and

sustainable competitive advantage.