Exploratory Factor Analysis of Network Components in Micro Enterprises Facing the COVID-19 Crisis

Abstract

Micro enterprises represent the foundational tier of Thailand’s economic structure. The COVID-19 crisis severely impacted these businesses, which are characterized by limited resources and heightened vulnerability to disruption—particularly in terms of revenue loss and business continuity. In this context, business networks emerged as a critical mechanism for recovery. This study aims to examine the components and indicators of networks that enhance organizational resilience among micro enterprises during crisis periods. Using Exploratory Factor Analysis (EFA), data were collected through a questionnaire survey of 158 micro-entrepreneurs affected by the COVID-19 pandemic. The results reveal two distinct components: Network Dynamics, which reflects affective and relational aspects, and Network Capability, which captures the ability to build and utilize collaborative partnerships and shared resources. The model comprises nine indicators, all with factor loadings exceeding 0.50 and communalities ranging from 0.50 to 0.72, indicating strong construct validity. The two components are interrelated, with network dynamics fostering the effective use of network resources. The findings suggest that robust business networks can mitigate risk and enhance the adaptive capacity of micro enterprises, thereby supporting organizational resilience under conditions of uncertainty. These insights offer practical implications for strengthening network structures to improve business agility and continuity in times of crisis.