The Causal Relationship Model of Transformational Leadership Market Orientation and Innovation that affect Thai Small Food Products Enterprise’s Business Success
Article Sidebar
Main Article Content
บทคัดย่อ
This study aims to test the causal relationship model of transformational leadership, market orientation, and innovation influencing the success of small food product manufacturing enterprises. The sample in the study was 365 small food product manufacturing enterprises based on the database of the Department of Industrial Works. The data were collected using questionnaires. Then, the gathered data were analyzed using the structural equation modeling technique. The results of the analysis showed that the model was fitted with the empirical data through all defined criteria of consideration. The study found that transformational leadership had a positive direct influence on business success with a path coefficient of 0.198 at a statistically significant level of .05, transformational leadership had a positive direct influence on market orientation with a path coefficient of 0.694 at a statistically significant level of .01, transformational leadership had a negative direct influence on innovation with a path coefficient of -0.004 at non statistically significant, market orientation had a negative direct influence on business success with a path coefficient of -0.072 at non statistically significant, market orientation had a positive direct influence on innovation with a path coefficient of 0.880 at a statistically significant level of .01, and innovation had a positive direct influence on the business success with the path coefficient of 0.864 at a statistically significant level of .05.
Article Details
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
References
Afriyie, S., Du, J. and Musah, A. A. I. (2019). Innovation and marketing performance of SME in an emerging economy: The moderating
effect of transformational leadership. Journal of Global Entrepreneurship Research, 9(40), 1-25.
Agyemang, F. G., Boateng, H. and Dzandu, M. D. (2017). Examining intellectual stimulation, idealized influence and individualized consideration as an antecedent to knowledge sharing: Evidence from Ghana. Knowledge Management and E-Learning, 9(4), 484-498.
Al-Marai, E. M., Al-Swidi, A. K. and Hanim, F. (2014). The measurement of firm performance’s dimensions. Asian Journal of Finance and Accounting, 6(1), 24-49.
Avermaete, T., Viaene, J., Morgan, E. J. and Crawford, N. (2003). Determinants of innovation in small food firms. European Journal of Innovation Management, 6(1), 8-17.
Aziz, N. N. A. and Samad, S. (2016). Innovation and competitive advantage: Moderating effects of firm age in foods manufacturing SMEs in Malaysia. Procedia Economics and Finance, 35, 256-266.
Baker, W. E. and Sinkula, J. M. (2009). The complementary effects of market orientation and entrepreneurial orientation on profitability in small businesses. Journal of Small Business Management, 47(4), 443-464.
Baregheh, A., Rowley, J., Sambrook, S. and Davies, D. (2012). Innovation in food sector SMEs. Journal of Small Business and Enterprise Development, 19(2), 300-321.
Bass, B. M. (1990). Bass and stogdill's handbook of leadership: Theory research and managerial applications (3rd ed.). New York: Free Press.
Bass, B. M. and Avolio, B. J. (1990). Developing transformational leadership: 1992 and beyond. Journal of European Industrial Training, 14(5), 21-27.
Bass, B. M. and Avolio, B. J. (1993). Transformational leadership: A response to critiques. San Diego: Academic Press.
Bass, B. M., and Avolio, B. J. (1994). Improving organizational effectiveness through transformational leadership. Thousand Oaks: Sage.
Benabou, R. and Tirole, J. (2003). Intrinsic and extrinsic motivation. The Review of Economic Studies, 70(3), 489-520.
Cantele, S. and Zardini, A. (2018). Is sustainability a competitive advantage for small businesses? An empirical analysis of possible mediators in the sustainability-financial performance relationship. Journal of Cleaner Production, 182(2018), 166-176.
Chen, L. Y. and Barnes, F. B. (2006). Leadership behaviors and knowledge sharing in professional service firms engaged in strategic alliances. Journal of Applied Management and Entrepreneurship, 11(2), 51-69.
Cheungsuvadee, K. (2018). A study of ways to improve business strategies of small and medium enterprises in Lower-Northeastern region 2. Journal of Business, Economics and Communications, 13(1), 169-184.
Darmawati, L. E. S., Nirwanto, N. and Subiyantoro, E. (2018). The effect organizational culture as a mediation of transformational leadership to SMEs organization performance in Malang City – East Java (study on small food and drink). IOSR Journal of Business and Management, 20(6), 6-12.
Deshphandé, R., Farley, J. U. and Webster, F. E. (1993). Corporate culture, customer culture, customer orientation and innovativeness. Journal of Marketing, 57(1), 23-37.
Feranita, N. V., Nugraha, A. and Sukoco, S. A. (2020). Effect of transformational and transactional leadership on SMEs in Indonesia. Problem and Perspective in Management, 18(3), 415-425.
Francis, D. and Bessant, J. (2005). Targeting innovation and implications for capabilitydevelopment. Technovation, 25(3), 171-183.
Hair, J. F., Black, W. C., Babin, B. J. and Anderson, R. E. (2010). Multivariate data analysis (7th ed.). New Jersey: Pearson Prentice Hall.
Hawkins, D. I., Best R. J. and Coney, K. A. (2001). Consumer behavior: Building marketing strategies. McGraw-Hill, USA.
Homburg, C. and Pflesser, C. (2000). A multiple-layer model of market orientation organizational culture: Measurement issues and performance outcomes. Journal of Marketing Research, 37(4), 449-462.
Hoonakker, P. and Carayon, P. (2009). Questionnaire survey nonresponse: A comparison of postal mail and internet surveys. International Journal of Human Computer Interaction, 25(5), 348 – 373.
Ichwan, A. F. and Nursyamsiah, S. (2019). The effect of responsive and proactive market orientation on product innovation and company performance: A case study on MSMEs in the culinary field in D.I. Yogyakarta. Integrated Journal of Business and Economics, 3(1), 32-42.
Jaiyeoba, O. O., Neneh, B., Iwu, C. G. and Moeti-Lysson, J. S. (lecturer) (April 25, 2018). Impact of leadership styles and market orientation behavior on small firms performance in Botswana. Proceeding 4th Bienial Conference – Africa Academy of Management (pp.92-102). Addis Ababa: School of Commerce at Addis Ababa University, Ethiopia.
Jyoti, J. and Sharma, J. (2012). Impact of market orientation on business performance: Role of employee satisfaction and customer satisfaction. Vision-Journal of Business Perspective, 16(4), 297-313.
Kantaputra, P. (2016). The key success factors in small and medium enterprises: SMEs. Western University Research Journal of Humanities and Social Science, 2(1), 59-76.
Kaplan, R. S. and Norton, D. P. (1992). The balanced scorecard: Measures that drive performance. Harvard Business Review, 70(1), 71-79.
Kelloway, E. K. (2015). Using Mplus for structural equation modeling; A researcher’s guide (2nd ed.). California: Sage Publications.
Kerin, R. A., Berkowitz, E. N., Hartley, S. W. and Rudelius, W. (2003). Marketing (8th ed.). Singpore: McGraw-Hill. Inc.
Kline, R. B. (2016). Principles and practice of structural equation modeling (4th ed.). New York: Guilford Press.
Kohli, A. K. and Jaworski, B. J. (1990). Market orientation: The construct, research propositions, and managerial implications. Journal of Marketing, 54(2), 1-18.
Kumar, R. V., Gopinath, K., Vijay Radhakrishnan, V. and Yasodharan, K. (lecturer) (March 21, 2014). Designing a method for solving quality, cost and delivery problem’s in SMEs to enable implementation of agile / lean manufacturing. Second National Conference on Trends in Automotive Parts Systems and Applications (pp. 521-528). Sri Krishna College of Engineering and Technology, Tamilnadu, India.
Lekmat, L. and Intaragasem, P. (2019). Potential development guidelines of SMEs. University of Thai Chamber of Commerce Journal Humanities and Social Sciences, 39(2), 104-122.
Levitt, T. (1965). EXPLOIT the product life cycle. Harvard Business Review, 43(6), 81-94.
Lundvall, B. A. (1992). National systems of innovation: Towards a theory of innovation and interactive learning. London: Pinter Publishers.
Manisha, S. (2016). Impact of transformational and transactional leadership style on organization performance of SMEs. International Journal of Business Economics and Management Research. 6(7), 73-89.
Martins, E. C. and Terblanche, F. (2003). Building organisational culture that stimulates creativity and innovation. European Journal of Innovation Management, 6(1), 64-74.
Masuo, D., Fong, G., Yanagida, J. and Cabal, C. (2001). Factors associated with business and family success: A comparison of single manager and dual manager family business households. Journal of Family and Economic, 22(1), 55-73.
Matzler, K., Hinterhuber, H. H., Daxer, C. and Huber, M. (2008). The relationship between customer satisfaction and shareholder value. Total Quality Management and Business Excellence, 16(5), 671-680.
McKeown, M. (2008). The truth about innovation. London, Prentice Hall.
Menrad, K. (2004). Innovations in the food industry in Germany. Research Policy, 33(6-7), 845-878.
Mesu, J. (2013). Transformational and transactional leadership: Does it work in small to Medium-Sized enterprises?. Dissertation, Ph.D, University of Twente, Netherland.
Mueller, R. O. (1996). Basic principles of structural equation modeling: An introduction to LISREL and EQS. New York: Springer.
Narver, J. C. and Slater, S. F. (1990). The effect of a market orientation on business profitability. The Journal of Marketing, 54(4), 20-35.
Nasir, J., Ibrahim, R.M., Sarwar, M.A., Sarwar, B., Al-Rahmi, W.M., Alturise, F., Al-Adwan, A.S., and Uddin, M. (2022). The effects of transformational leadership, organizational innovation, work stressors, and creativity on employee performance in SMEs. Frontiers in Psychology, 2022(13), 1-11.
Nazarian, A., Soares, A., and Lottermoser, B. (2017). Inherited organizational performance? The perceptions of generation Y on the influence of leadership styles. Leadership and Organization Development Journal, 38(8), 1078-1094.
Nunnally, J.C. (1978). Psychometric theory (2nd ed.). New York: Mcgraw-Hill.
Oliver, R. L. (1999). Whence consumer loyalty?. The Journal of Marketing, 63(4), 33–44.
Rosenbusch, N., Brinckmann, J. and Bausch, A. (2011). Is innovation always beneficial? A meta-analysis of the relationship between innovation and performance in SMEs. Journal of Business Venturing, 26(4), 441-457.
Salavou, H. (2002). Profitability in market – orientated SMEs: Does product innovation matter?. European Journal of Innovation Management, 5(3), 164-171.
Samson, A. T. and Ilesanmi, O. A. (2019). The relationship between transactional leadership, transformational leadership and Performance of SMEs in Nigeria. Noble International Journal of Business and Management Research, 3(4), 73-85.
Schermelleh-Engel, K., Moosbrugger, H. and Müller, H. (2003). Evaluating the fit of structural equation models: Test of significance and descriptive goodness-of-fit measures. Methods of Psychological Research Online, 8(2), 23-74.
Shafique, I. and Kalyar, M. N. (2018). Linking transformational leadership, absorptive capacity, and corporate entrepreneurship. Administrative Sciences, 8(9), 1-17.
Shahzad, M. A., Iqbal, T., Jan, N., and Zahid, M. (2022). The role of transformational leadership on firm performance: Mediating effect of corporate sustainability and moderating effect of knowledge-sharing. Frontiers in Psychology, 2022(13), 1-15.
Shoosanuk, A., Sangtrakul, M., Shoosanuk, C. and CHaroernpornpanichkul, K. (2018). The influence of perceived value on trust, satisfaction, word of mouth and repurchase of the healthy food consumers in Bangkok. Nida Business Journal, 22, 96-113.
Sirinon, W. and Ponphai, R. (2020). The effect of entrepreneurial orientation and competitive advantage on organizational performance of food industry small and medium enterprises in lower north-eastern. NRRU Community Research Journal, 14(1), 242-252.
Skinner, W. (1971). The anachronistic factory. Harvard Business Review, 49(1), 61-70.
Slater, S. F. and Narver, J. C. (1994). Does competitive environment moderate the market orientation-performance relationship. Journal of Marketing, 58(1), 46-55.
Song, M. and Noh, J. (2006). Best new product development and management practices in the Korean high-tech industry. Industrial Marketing Management, 35(3), 262-278.
Sulaeman, A., Sule, E. T., Hilmiana, H. and Cahyandito, M. F. (2020). Entrepreneur transformational leadership for SME’s business sustainability. Advances in Economics, Business and Management Research, 117, 240-242.
Suwanjaroen, W., Isichaikul, R., Buunperm, T. and Sombuunsawasdee, A. (2016). Development of transformational leadership and innovation model influencing business performance of food exporting companies in Thailand. Modern Management Journal, 14(2), 129-144.
Tajasom, A., Hung, D. K. M., Nikbin, D. and Hyun, S. S. (2015). The role of transformational leadership in innovation performance of Malaysian SMEs. Asian Journal of Technology Innovation, 23(2), 172-188.
Tayrueakam, S. (2004). Path analysis. Journal of Educational Measurement Mahasarakam University, 10(15), 15-28.
The Department of Industrial Works. (2020). Factory data. Retrieved February 10, 2020, from https://www.diw.go.th/webdiw/s-data-fac/
The Office of SMEs Promotion. (2019). Definition of SMEs. Retrieved April 19, 2023, from https://www.sme.go.th/th/cms-detail.php?modulekey=332andid=1334/
The Office of SMEs Promotion. (2020). MSME white paper 2020. Bangkok: The Office of Small and Medium Enterprises Promotion.
The Office of SMEs Promotion. (2021). SME situation report 2021. Bangkok: The Office of Small and Medium Enterprises Promotion.
The Office of the National Economic and Social Development Council. (2019). Annual report 2019. Bangkok: Amrin Printing and Publishing.
Tourish, D. (2014). Leadership, more or less? A processual, communication perspective on the role of agency in leadership theory. Leadership, 10(1), 79-98.
Tripopsakul, S. (2018). The structural equation model of E-service quality on customer satisfaction and repurchase intention: Case study of purchasing. Chulalongkorn Business Review, 40(158), 23-52.
Watts, T. and McNair-Connolly, C. J. (2012). New performance measurement and management control systems. Journal of Applied Accounting Research, 13(3), 226-241.
Widiartanto, S. and Suhadak, S. (2013). The effect of transformational leadership on market orientation, learning orientation, organization innovation and organization performance. Journal of Business and Management, 12(6), 8-18.
Wong, H. K. and Ellis, P. D. (2007). Is market orientation affected by the product life cycle. Journal of World Business, 42(2), 145-156.
Wongchaiya, S. and Pheunpha, P. (2018). The influence of business strategies and entrepreneur characteristics on the business success of small and medium entreprises. Journal of the Association of Researchers, 23(2), 139-152.
Yadeta, D. U., Jaleta, M. E. and Melese, M. W. (2022). Transformational leadership, market-oriented culture, and implementation of total quality management practices: Proposed conceptual model. European Scientific Journal, 18(12), 42-57.
Yanjiang, C., Dan, W. and Lang, X. (lecturer) (June 21, 2006). Influencing factors of continuous improvement and tendency to change. IEEE International Conference on Management of Innovation and Technology (pp.181-185). Institute of Electrical and Electronics Engineers, Singapore.