This research has a purpose to examine the effect of entrepreneurial orientation and competitive advantage on organizational performance of food industry small and medium enterprises (SME) in lower North-Eastern. Populations is used in the research are 306 entrepreneurs in the SMEs food industry consisting of Nakhon Ratchasima, Chaiyaphum, Buriram and Surin provinces, by calculating samples at 99% confidence equals to 214 people and using questionnaires as a research tool. Using descriptive statistics including frequency, percentage, mean, standard deviation and hypothesis by multiple regression analysis. The focus of entrepreneurship in proactiveness (β=0.33, p<0.01) and competitive advantage in cost leadership (β=0.22, p<0.01) effect the organizational performance with statistical significant at 0.01, for entrepreneurial orientation in innovation (β=0.12, p<0.05) and competitive advantage in market-focus (β=0.17, p<0.05) effect the organizational performance with statistical significance at 0.05 level respectively. The organizational performance in the lower North-Eastern could be predicted at 68 percent (AdjR2=0.68). Therefore, entrepreneurs should pay attention to entrepreneurial orientation in proactiveness and innovation. Competitive advantage in terms of cost leadership and market-focus in order to enable the organization to be more efficient in management processes and maximize profits may drive the organization to move forward with being the market leader and bringing new technological innovations to make more qualitive products with the changes and fierce competition.
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