FACTORS INFLUENCING THE COMPETITIVE ADVANTAGE AND BUSINESS PERFORMANCE OF SMALL AND MEDIUM-SIZED ENTERPRISES IN THE WHOLESALE AND RETAIL SECTOR OF THAILAND

Abstract

This research aimed to 1) study the causal factors influencing competitive advantage and business performance of small and medium-sized enterprises (SMEs) in Thailand's wholesale and retail trade sector; 2) examine the impact of these causal factors on competitive advantage and business performance of SMEs in the same sector; and 3) develop a causal model illustrating the influence of these factors on competitive advantage and business performance in Thailand's wholesale and retail SME sector. The sample consisted of 420 SME entrepreneurs or employees holding supervisory positions or higher, aged 20 years and above, working in SMEs within the wholesale and retail trade sector who were members of the Thai Small and Medium Enterprise Association. Data were collected using a questionnaire with a validity coefficient of 0.76 and a reliability coefficient of 0.87. Data analysis was conducted using statistical software with a significance level of 0.05. Statistical methods included frequency, percentage, mean, standard deviation, confirmatory factor analysis (CFA), and goodness-of-fit testing to examine the consistency between the research model and empirical data.

The research findings revealed that 1) the factors influencing competitive advantage included digital technology, modern management and administration, and business networks. In addition, 2) the factors affecting business performance were competitive advantage, digital technology, modern management and administration, and business networks. Moreover, 3) digital technology, modern management and administration, and business networks exerted both direct and indirect effects on business performance. The developed causal model of factors influencing competitive advantage and business performance of SMEs in Thailand's wholesale and retail trade sector demonstrated good fit with the empirical data.