Causal Relationships of Influencing Factors on the Performance of Small and Medium Enterprises (SMEs) in Thailand
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Abstract
This research aimed to examine the causal relationships among factors influencing the performance of small and medium-sized enterprises (SMEs) in Thailand. The sample comprised 300 entrepreneurs or executives of SMEs in Thailand, selected via multistage random sampling. The data collection tool was a questionnaire. Descriptive statistics and structural equation modeling were used for data analysis. The research results concluded that the developed causal relationship model was in good agreement with the empirical data, with the statistical values of ² = 5.396, df = 4, p = .249, c²/df = 1.349, GFI = .995, and RMSEA = .034. The results of the influence analysis indicated that transformational leadership, strategic management, and organizational innovation had statistically significant direct positive effects on performance. In addition, it was found that transformational leadership could indirectly influence performance, with strategic management and organizational innovation acting as mediating variables. These findings highlight the crucial role of leaders in driving change, with effective leadership providing an essential foundation for developing strategic management processes and building a culture of innovation, both of which are key drivers of enhanced SME performance.
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