The Influence of Organization Leadership Innovative Management Market Orientation and Organizational Agility on the Business Performance of Cosmetics Original Equipment Manufacturer in Thailand

Abstract

This mixed-methods research aimed to: 1) examine the levels of organizational leadership, innovation management, market orientation, organizational agility, and performance of cosmetic contract manufacturing companies in Thailand; 2) investigate the influence of organizational leadership, innovation management, market orientation, and organizational agility on organizational performance; and 3) develop a performance enhancement model for cosmetic contract manufacturing companies in Thailand. Quantitative data were collected from 340 entrepreneurs or executive representatives of cosmetic contract manufacturing companies through a five-point rating scale questionnaire. The item discrimination indices ranged from .393 to .779, while the Cronbach’s alpha coefficients for the measurement scales ranged from .741 to .826, indicating acceptable reliability. Data were analyzed using descriptive statistics and structural equation modeling. Qualitative data were obtained through in-depth interviews with 30 key informants and analyzed using content analysis. The findings revealed that: 1) organizational leadership, organizational agility, innovation management, performance, and market orientation were all rated at a high level, with mean scores of 4.12, 4.08, 4.01, 3.98, and 3.92, respectively; 2) organizational leadership, innovation management, and market orientation jointly explained 89 percent of the variance in organizational agility, while organizational agility, organizational leadership, and market orientation jointly explained 73 percent of the variance in organizational performance. Organizational agility was found to serve as a mediating variable between organizational leadership, innovation management, and market orientation and organizational performance and 3) the COSMETIC–BSC Model was developed as a strategic framework for enhancing organizational performance. The model integrates customer and market insight development, organizational agility, quality standards and sustainability, strategic leadership, business networking, technology and data-driven management, innovation capability, and competitive advantage enhancement, leading to performance improvement across the four Balanced Scorecard dimensions: financial, customer, internal process, and learning and growth perspectives.