A Causal Relationship Model of Factors Influencing the Performance of Small and Medium Enterprises in Thailand

Main Article Content

Pattratida Wattanapunkitti


The objectives of this research were to 1) study innovative organization, competitive advantage, entrepreneurship, and performance of small and medium enterprises (SMEs) in Thailand; 2) investigate the influence of entrepreneurship, innovative organization, and competitive advantage on the performance of small and medium enterprises (SMEs) in Thailand. The sample in this study was 384 SMEs in Thailand, which was determined according to Krejcie and Morgan’s criteria at 95% confidence and 5% error and selected by stratified and purposive random sampling. The instrument for collecting data was a questionnaire with a reliability of .834. Data were analyzed using frequency, percentage, mean, standard deviation, Pearson’s product-moment correlation, and structural equation modeling (SEM) to test hypotheses. The research result showed that 1) the average of entrepreneurship, innovative organization, competitive advantage, and performance of SMEs as a whole and each aspect is at a high level; 2) the proposed model adequately explained the empirical data with fit indices including c2 =267.004, df =92, p=.000, c2/df =2.902, GFI =.933, and RMSEA =0.075. The influence of the variables in the model was as follows:

1. Entrepreneurship had a direct, positive influence on an innovative organization and competitive advantage and an indirect, positive influence on competitive advantage and performance.

2. Innovation organization had a direct, positive influence on competitive advantage and performance and an indirect, positive influence on performance.

3. Competitive advantage had a direct, positive influence on performance.

It also showed that entrepreneurship, innovative organization, and competitive advantage could jointly predict 64% of SMEs’ performance. The findings can be used as a guideline to create growth and competitiveness of SMEs.

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How to Cite
Wattanapunkitti, P. (2021). A Causal Relationship Model of Factors Influencing the Performance of Small and Medium Enterprises in Thailand. Journal of Arts Management, 5(3), 986–1004. Retrieved from https://so02.tci-thaijo.org/index.php/jam/article/view/251784
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