The Causal Relationship of Digital Business Strategy, Digital Capability, Competitive Advantage and Performance of SMEs Entrepreneurs in Restaurant
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Abstract
Small and Medium Enterprises (SMEs) were critical to Thailand's economy. Furthermore, the advent of digital technology enables businesses to create opportunities and strengths. The purpose of this study were to (1) clarify the relationship between digital business strategy, digital capability, competitive advantage, and performance; (2) serve as a guideline for SME restaurant digital economy implementation; and (3) provide information for SME restaurant decision-making in establishing competitive advantage and performance for enhanced productivity. Gathering data through a questionnaire with 294 restaurant SMEs entrepreneurs and statistical structural equation modeling was used to test the hypothesis.
According to the results, the model was consistent with empirical data. Digital business strategies have a direct influence on digital capability and competitive advantage, whereas digital capability has a direct impact on competitive advantage as well as performance. Competitive advantage directly affects performance. Furthermore, digital business strategies and digital capability have an indirect impact on performance via competitive advantages. Therefore, restaurant SMEs should have an efficient digital business strategy since it serves as the animating principle of digital proficiency and may contribute to a competitive advantage, encouraging the business's performance to improve.
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