Analysis of the Causal Relationship Path Influencing Local Economic Capital Development Approached for Enhancing the Capacity of Community Enterprise Entrepreneurs in the Lower Northern Region of Thailand

Abstract

The objectives of this research are 1) to study the marketing mixed strategy of social capital and local economic capital of community enterprises in order to improve the competitiveness of community enterprises; 2) to analyze the causal path affecting the development of local economic capital to improve the ability of community enterprises. It is a quantitative research. The population in this study consists of 250 community entrepreneurs in the lower northern region. The research tool is a questionnaire. The statistical data analysis comprises of structural equation model analysis with percentage, average, and standard deviation.

The findings reveal that 1) the marketing mixed strategy level of social capital and local economic capital of community enterprises, the average is at a high level and improvement of competitiveness is at moderate level; 2) the model is quite consistent with the empirical data, considering CMIN-p=161.389; CMIN/df=1.416; GFI=0.956; RMSEA=0.026 found that the local economic capital of community enterprises consists of physical capital, financial capital, cultural wisdom capital, and human resource capital which cause a direct influence on increasing competitiveness. It consists of low cost, different making, innovation, market, and quality. The knowledge from research is that the way to develop local economic capital to increase the capability of community entrepreneurs from the marketing mixed strategy to the social capital is a causal relationship with local economic capital of community enterprises and indirect influence on competitiveness enhancement through local economic capital of community enterprises.