Causal Factors Affecting Competitive Advantages of Community Enterprises Producing Processed Agricultural Products in the Three Southern Border Provinces
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Abstract
Competitive advantage is one of the operational objectives of any business organization amidst the changing environment and highly competitive markets. This advantage is the ability of enterprises to be superior to their rivals in the business arena. Therefore, if entrepreneurs know the sources of competitive advantages, it could result in enhancing their competitive advantage. This study aimed to (1) examine the differences in a competitive advantage based on community enterprise characteristics and (2) develop and validate a model of causal factors affecting the competitive advantage of community enterprises producing processed agricultural products. This study was carried out based on a mixed-methods research design. Data were collected through questionnaire-based responses from 325 entrepreneurs of community enterprises producing processed agricultural food products in Thailand’s three southern border provinces and through in-depth interviews with 15 community enterprise entrepreneurs. The quantitative data were analyzed through the use of descriptive statistics, ANOVA, and the structural equation modeling technique. Content analysis was used to analyze the qualitative data.
The results revealed that competitive advantage had no statistically significant differences relative to the size and age of community enterprises. The proposed model was consistent with empirical data (2/df = 1.737, RMSEA = 0.048, CFI=0.997, SRMR = 0.020). The variables in the proposed model which were intellectual capital, dynamic capability, and innovative capability accounted for 86.80 percent of the total variance of competitive advantage. Dynamic capability and innovative capability had a direct positive and significant influence on competitive advantage. Innovative capability and dynamic capability also play a role as mediators in the relationship between intellectual capital and competitive advantage. In addition, the results of the qualitative data analysis support the quantitative data. Therefore, the competitive advantage of these community enterprises could be gained by strengthening their intellectual capital to leverage their innovative capability and dynamic capability.
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