Influential Driving Factors for Corporate Performance: A Case of Small and Medium Enterprises in Thailand
Keywords:
Market orientation, market capability, corporate sustainability, innovation, competitiveness, corporate performance, small and medium enterprises, , and cultural agency theoryAbstract
Refined SME cultural agency, analysed and synthesised qualitatively using cultural agency theory. The findings achieve objective 1: (1) market orientation has a positive and direct influence on innovation; (2) market capability has a positive and direct influence on innovation; and (3) corporate sustainability has a positive and direct influence on innovation; objective 2: (1) market orientation has a positive and direct influence on competitiveness; (2) market capability has a positive and direct influence on competitiveness; (3) corporate sustainability has a positive and direct influence on competitiveness; and (4) innovation has a positive and direct influence on competitiveness; objective 3: (1) innovation has a positive and direct influence on corporate performance; and (2) competitiveness has a positive and direct influence on corporate performance; and objective 4: the causal relationship model had goodness of fit measures coherence with empirical data, are a chi-square (c2) value = 94.782, degrees of freedom (df) = 125, relative chi-square (c2/df) = 0.758, p–value = 0.980, goodness of fit index (GFI) = 0.970, adjusted goodness of fit index (AGFI) = 0.949, and root mean square error of approximation (RMSEA) = 0.00.
References
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Vorhies, D.W., & Morgan, N.A. (2005). Benchmarking marketing capabilities for sustained competitive advantage. Journal of Marketing, 69(1), 80–94.
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Yolles, M. (2018). Governance through political bureaucracy: An agency approach, Kybernetes, https://doi.org/10.1108/K-09-2017-0329.
Yolles, M., & Di Fatta, D. (2017). Antecedents of Cultural Agency Theory: In the footsteps of Schwarz Living Systems. Kybernetes, 46(2), 210-222, https://doi.org/10.1108/K-11-2016-0316.
Yolles, M.I. (1999). Management Systems: A Viable Approach. London: Financial Times Pitman.
Yu, W., Ramanathan, R., & Nath, P. (2017). Environmental pressures and performance: An analysis of the roles of environmental innovation strategy and marketing capability. Technological Forecasting and Social Change, 117(4), 160–169.
Zou, S., Fang, E., & Zhao, S. (2003). The effect of export marketing capabilities on export performance: An investigation of Chinese exporters. Journal of International marketing, 11(4), 32-55.
ASEAN (The Association of Southeast Asian Nations). (2015). ASEAN strategic action plan for SME development 2016-2025 Jakarta: ASEAN secretariat, November 2015. Retrieved July 24, 2017, from http://www.smecorp.gov.my/images/pdf/SAP-SMED-Final.pdf.
Aziz, N. N. A., & Samad, S. (2016). Innovation and competitive advantage: Moderating effects of firm age in foods manufacturing SMEs in Malaysia. Procedia Economics and Finance, 35(2016), 256-266
Brundtland, G. H. (1987). Our common future (Report for the World Commission on Environment and Development, United Nations). Oxford: Oxford University Press.
Castro, S. Y. P., Guzman, G. M., & Serna, M. D. C. M. (2015). The relationship between corporate social responsibility and competitiveness in Mexican SMEs. Journal of Faculty of Tourism and Hotels, 9(2), 141-156.
Cooper, M.C., Innis, D.E., Dickson, P.R. (1992). Strategic planning for logistics. Council of Logistics Management, Illinois: Oak Brook.
Díaz-Chao, Á., Sainz-González, J., & Torrent-Sellens, J. (2016). The competitiveness of small network-firm: A practical tool. Journal of Business Research, 69(5), 1769-1774.
Dominici, G., & Yolles, M. (2016). Decoding the XXI century’s marketing shift: An agency theory framework. Systems, 4(4), 1-13.
Ejrami, M., Salehi, N., & Ahmadian, S. (2016). The effect of marketing capabilities on competitive advantage and performance with moderating role of risk management in importation companies. Procedia Economics and Finance, 36(2016), 22-28.
Engert S., Rauter R., Baumgartner, R.J. (2016). Exploring the integration of corporate sustainability into strategic management: A literature review. Journal of Cleaner Production, 112(2016), 2833-2850
Golob, T. F. (2003). Structural equation modelling for travel behaviour research. Transportation Research Part B: Methodological, 37(1), 1-25.
Guo, K., Yolles, M., Fink, G., & Iles, P. (2016). The changing organization: Agency theory in a cross-Cultural context. Cambridge: Cambridge University Press.
Hair, J. F., Black, W.C., Babin, B. J. and Anderson, R. E. (2014). Multivariate Data Analysis, 7th edition. Harlow: Pearson Education Limited
Hansen, E. G., & Schaltegger, S. (2017). Sustainability Balanced Scorecards and their Architectures: Irrelevant or Misunderstood? Journal of Business Ethics, 1-16, https://doi.org/10.1007/s10551-017-3531-5.
Hesse-Biber, S. N. (2010). Mixed methods research: Merging theory with practice. London: Guilford Press.
Jernström, E., Karvonen, V., Kässi, T., Kraslawski, A., & Hallikas, J. (2017). The main factors affecting the entry of SMEs into bio-based industry. Journal of Cleaner Production, 141, 1-10.
Lii, P., & Kuo, F. I. (2016). Innovation-oriented supply chain integration for combined competitiveness and firm performance. International Journal of Production Economics, 174(C), 142-155.
Martinez-Conesa, I., Soto-Acosta, P., & Palacios-Manzano, M. (2017). Corporate social responsibility and its effect on innovation and firm performance: An empirical research in SMEs. Journal of Cleaner Production, 142(4), 2374-2383.
Mashahadi, F., Ahmad, N. H., & Mohamad, O. (2016). Strategic innovation ambidexterity and the internationalization performance of small and medium enterprises: An insight into herbal-based small and medium enterprises. World Journal of Entrepreneurship, Management and Sustainable development, 12(2), 161-175.
Mortensen, P. S., & Bloch, C. W. (2005). Oslo Manual-Guidelines for collecting and interpreting innovation data. Paris: Organisation for Economic Cooperation and Development, OECD.
Narver, J. C., & Slater, S. F. (1990). The effect of a market orientation on business profitability. The Journal of marketing, 54(4), 20-35.
O’Farrell, P. N., Hitchens, D., & Moffat, L. (1992). The competitiveness of business services firms: A matched comparison between Scotland and the South East of England. Regional Studies, 26(6), 519-525.
Rungfapaisarn K., Thiraporn N. (2016). Thai SMEs ‘slower to progress than regional peers’. Retrieve March 8, 2017 from http://www.asianews.network/content/thai-smes-‘slower-progress-regional-peers’-22037
Sohn, M. H., You, T., Lee, S. L., & Lee, H. (2003). Corporate strategies, environmental forces, and performance measures: A weighting decision support system using the k-nearest neighbour technique. Expert Systems with Applications, 25(3), 279-292
Takata, H. (2016). Effects of industry forces, market orientation, and marketing capabilities on business performance: An empirical analysis of Japanese manufacturers from 2009 to 2011. Journal of Business Research, 69(12), 5611-5619.
U-tantada, S.; Mujtaba, G. B.; Yolles, M.; & Shoosanuk, A. (2016). Sufficiency economy and sustainability. Journal of Thai Interdisciplinary Research (extra issue: ISSN: 2465-3837), 84-94.
U-tantada, S.; Yolles, M.; Mujtaba, G. B, & Shoosanuk, A. (2017). Strategic SMEs cultural agency and global market economy. The 5 thStamford international and national conference proceedings, “business and higher education,” Stamford International University, Asoke campus, Bangkok, Thailand. p. 18-20.
Vorhies, D.W., & Morgan, N.A. (2005). Benchmarking marketing capabilities for sustained competitive advantage. Journal of Marketing, 69(1), 80–94.
WSF (World SME Forum). (2016). What is the Business Community recommending to G20 Leaders on SME development? Retrieved June 26, 2016, from http://worldsmeforum.org/blog/what-is-the-business-community-recommending-to-g20-leaders-on-sme-development/.
Yolles, M. (2006). Organizations as complex systems: An introduction to knowledge cybernetics (Vol. 2). Creenwich, Connecticut: Information Age Publishing.
Yolles, M. (2018). Governance through political bureaucracy: An agency approach, Kybernetes, https://doi.org/10.1108/K-09-2017-0329.
Yolles, M., & Di Fatta, D. (2017). Antecedents of Cultural Agency Theory: In the footsteps of Schwarz Living Systems. Kybernetes, 46(2), 210-222, https://doi.org/10.1108/K-11-2016-0316.
Yolles, M.I. (1999). Management Systems: A Viable Approach. London: Financial Times Pitman.
Yu, W., Ramanathan, R., & Nath, P. (2017). Environmental pressures and performance: An analysis of the roles of environmental innovation strategy and marketing capability. Technological Forecasting and Social Change, 117(4), 160–169.
Zou, S., Fang, E., & Zhao, S. (2003). The effect of export marketing capabilities on export performance: An investigation of Chinese exporters. Journal of International marketing, 11(4), 32-55.
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Published
2019-02-27
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U-tantada, S., Yolles, M., Mujtaba, B. G., & Shoosanuk, A. (2019). Influential Driving Factors for Corporate Performance: A Case of Small and Medium Enterprises in Thailand. KASEM BUNDIT JOURNAL, 20(Feburary), 157–172. Retrieved from https://so04.tci-thaijo.org/index.php/jkbu/article/view/173614
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