Strategic Factors Affecting Thai Export Performance in the South Korean Market

Abstract

This research Article  aimed to identify and examine the strategic factors affecting the export performance of Thai entrepreneurs in the highly competitive South Korean market. This study employed a quantitative research methodology, utilizing a structured questionnaire to collect data from a sample of 400 executives and owners of Thai firms exporting to South Korea. The data were analyzed using descriptive statistics and Structural Equation Modeling (SEM) to test the proposed hypotheses. The findings revealed that the developed model demonstrated a strong fit with the empirical data, and the strategic factors studied could collectively explain 65.4% of the variance in export performance (R² = 0.654). The hypothesis testing results indicated that five strategic factors had a significant positive influence on export performance. Ranked by the magnitude of their influence, these factors are: marketing and export strategy (β = 0.312), firm resources and capabilities (β = 0.285), socio-cultural adaptation (β = 0.255), export experience and knowledge (β = 0.154), and market conditions (β = 0.128). Notably, the trade policy and agreements factor (e.g., FTAs) was not found to have a statistically significant influence. This study suggests that success in the South Korean market is driven by a firm’s ability to integrate its internal strengths (resources, experience) with external agility (adaptation to market, culture, and strategy). Formal institutional supports like Free Trade Agreements may not be a decisive factor for competitive advantage in this complex market, highlighting the need for entrepreneurs to focus on more nuanced strategic initiatives.