Causal Factors Influencing Organizational Competencies Affect Performance of Community Enterprises: Woven Fabrics and Clothing in the Northeastern Central Region
Keywords:
Organizational Competency, Entrepreneurial Orientation, Human Resource Management, Information Technology Management, Organizational PerformanceAbstract
Enhancing the capabilities of community enterprises in the textile and garment sector remains a critical challenge for Thailand’s grassroots economy, as many producers continue to face limitations in entrepreneurial skills, systematic management practices, and the adoption of digital technologies. This study investigates the causal mechanisms that shape organizational competency and performance among community enterprises in the lower Northeastern region. The analysis is grounded in System Theory, complemented by resource-based and organizational competency perspectives, to explain the interplay among input factors, internal processes, and organizational outcomes. Data were collected from 420 community enterprises and analyzed using Structural Equation Modeling (SEM).
The research findings reveal that the model demonstrates strong empirical fit. Specifically, entrepreneurial orientation, human resource management, and information technology management exert positive effects on organizational competence, which serves as a mediating mechanism transmitting their influence to organizational performance. The model explains 90% of the variance in organizational competence and 96% of the variance in organizational performance, reflecting substantial predictive validity for organizational outcomes. These results confirm the pivotal role of organizational competence as an integrative mechanism that synthesizes knowledge, skills, and technology to enhance the competitive capabilities of community enterprises in the northeastern region, which rely heavily on local wisdom and robust collaborative networks.
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