The Causal Relationship Model of Transformational Leadership Market Orientation and Innovation that affect Thai Small Food Products Enterprise’s Business Success

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Nachapol Suriyasenee
Sukij Khorchurklang
Waiphot Kulachai


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.

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