The effects of social capital orientation on innovation performance of SME sector in Thailand

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Sumittra Jirawuttinunt
Eakapoom Wongsahai


It is obvious that businesses in Thailand are facing with economic transformation. Thailand 4.0 policy became crucial for innovation-driven economy as to response to fast changing business environment. Social capital orientation is one of vital strategies which create a significant advantage. This study is designed to investigate the effect of social capital orientation on innovation performance via knowledge management capability and entrepreneurial capability which are used as mediating variables for testing their relationships. The data for this study was collected using a cross-sectional quantitative survey. The sample size using Tara Yamane sampling size is 400 small and medium enterprises in Thailand. The data collections are proportion of 6 provincial groups of SMEs and simple random sampling is applied to represent the entire data. The sample consists of managers, senior managers, and chief executive officer. Mail survey questionnaire was used as research instrument. Ordinary Least Square (OLS) multiple regression analysis is applied to test research hypotheses. Research results show that there are four dimensions of social capital orientation, including networking focus, awareness of trust, effective communication, and collaboration creation that have positive effect on knowledge management capability, entrepreneurial capability, and innovation performance. All social capital orientation dimensions can explain assumptions of knowledge management capability at 39.10%, entrepreneurial capability at 40.60% and innovation performance at 38.80%. Moreover, the independent variable such as networking focus is proved to fully support hypotheses. It can conclude that SMEs manager can achieve innovation performance through the developing of social capital orientation. Particularly, networking focus, awareness of trust and effective communication are the important intangible assets for SMEs in Thailand. Thus, the executives should increase networking focus, awareness of trust and effective communication to gain innovation for competitiveness.


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Sumittra Jirawuttinunt, Mahasarakham University, Thailand



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