Multi-level factors affecting firm competitiveness in ASEAN region of small and medium enterprises of Thailand

Abstract

     This research examined the external and internal factors influencing the competitiveness of SMEs in Thailand operating in the ASEAN context. A quantitative approach was applied using a survey method with a questionnaire as a tool to collect data from a sample of 527 Thai SMEs from June 2016 to March 2017. The findings indicated a relatively medium-to- high level of competitive capacities on the part of Thai SMEs in general. SMEs in the service and manufacturing sectors, as well as firms with international experience, were rated at a high level compared to others. In addition, the analysis of the variables using a structural equation model demonstrated that firm performance had a positive relationship to the level of business competitiveness (r = .43). The research results also indicated the potential competitive capacity development of Thai SMEs, with evidence from relevant variables regarding firm performance, which directly affected the company's competitiveness. Organizational strategy, firm readiness for internationalization, and organizational char- acteristics were the significant factors that were seen to enhance the competitive capacity of SMEs in Thailand. Hence, entrepreneurs should improve these indices in order to better carry out their business in the region.