Causal Factors of Organizational Innovation Affecting Restaurant Performance in the Northeastern Region of Thailand DOI:

Abstract

          This research aimed to examine 1) the causal factors influencing organizational innovation and restaurant performance, and 2) the impact of these causal factors on the performance of restaurants through organizational innovation. The research utilized a questionnaire to gather data on market orientation, transformational leadership, knowledge management, organizational innovation, and organizational performance. The investigation revealed that 1) causal factors influencing organizational innovation and restaurant performance Respondents expressed a strong opinion of each component overall (4.37, 4.36, 4.28, 4.39, and 4.39, respectively). The study of the confirmatory element indication variable model revealed that it aligned well with the empirical data. Chi-Square = 98.42, x²/df = 1.69, CFI = 1.00, GFI = 0.96, AGFI = 0.92, RMSEA = 0.047, SRMR = 0.028. Regarding 2) the impact of causal elements of organizational innovation on restaurant performance. The findings indicated that transformational leadership exerts the most significant positive direct effect on organizational innovation ( = 0.28). Subsequently, knowledge management ( = 0.26) and market orientation ( = 0.19) are shown. Furthermore, the study revealed that market focus and business innovation had the greatest impact on organizational performance (=0.29). Subsequently, transformative leadership ( = 0.27) and knowledge management ( = 0.21) are presented. The findings of this research can be utilized in formulating restaurant operational strategies. It emphasizes the promotion of transformational leadership. This is achieved by providing employees with opportunities to suggest new menus or services, and by nurturing their potential through skill training. We ensure efficient knowledge management by utilizing online systems or inventory management applications. Utilize information in daily tasks and modify techniques based on previous experiences. Focus on understanding client requirements by gathering review data and engaging in direct dialogues. Enhance the menu, service, and ambiance of the restaurant to align with the target demographic. For instance, modifying flavors and creating bilingual menus for tourists. These innovative skills enable the creation of new menus and services. We utilize local ingredients, innovative cooking techniques, or seasonal meals to enhance value. Effectuate a positive impact and enhance contentment. Such an initiative would enhance the operational efficiency of the restaurant industry in Northeast Thailand.