The Causal Relationship Model between Business Innovation Orientation, Entrepreneurial Capacity, Entrepreneurial Opportunity and Performance of Startup Firms in Thailand
Keywords:
Business Innovation Orientation, Startup Firms, Entrepreneurial Capacity, Performance, Entrepreneurial OpportunityAbstract
This research aims to investigate the causal relationship model between business innovation orientation, entrepreneurial capacity, entrepreneurial opportunity and performance of entrepreneurs of Startup Firms, by using a questionnaire as an instrument for collecting data from 300 entrepreneurs of Startup Firms in Thailand; The variables consisted of one exogenous latent variable Business Innovation Orientation; and three endogenous latent variables: Entrepreneurial Capacity, Entrepreneurial Opportunity, Performance. These latent variables were measured by 15 observed variables. All the composite reliability values of questionaire ranged from 0.912 to 0.947 and all the average variance extracted values ranged from 0.776 to 0.845. Data was analyzed by SEM.
The results show that the highest-level factor influencing the entrepreneurial capacity directly influenced entrepreneurial opportunity. In addition, subordinate highest-level factor influencing the business innovation orientation directly influenced entrepreneurial capacity. Moreover, the results found that the measurement model was in congruence with the empirical data. This model exhibits goodness of fit. Therefore, entrepreneurs of startup firms in Thailand should develop their entrepreneurial capacities by giving importance to acquiring new innovation resources to the developing product innovation, management innovation, marketing innovation, finance and accounting innovation capability to create a competitive advantage and higher performance. However, the variables in the structural equation model can explain the performance of entrepreneurs of Startup Firms by coefficient of determination (percentage = 86.70, 82.10, and 89.10).
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