The Development of a Causal Model for Value Chain Management and Marketing Strategies Affects Business Performance of SMEs in Ubon Ratchathani Province
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Abstract
This article aims to study the causal model of marketing strategies and value chain management affects the performance of SME businesses in Ubon Ratchathani Province. It consists of three latent and sixteen observed variables using causal structural equation modeling. Data were collected using questionnaires with 271 small and medium enterprise operators in Ubon Ratchathani Province by stratified random sampling. The study results found that (1) the causal relationship model of marketing strategies and value chain management affects the performance of SME businesses in Ubon Ratchathani Province was consistent with the empirical evidence. (2) marketing strategies increase the performance of SMEs, especially it plans for finding distribution channels for products or services to reach more new customers. It helps make SMEs' value chain management system more efficient because marketing strategies are planned for production and services, setting prices and promoting marketing (3) value chain management increases the performance of SMEs, especially in the financial aspect and internal processes of SME businesses.
Therefore, if SME entrepreneurs want to increase business performance, they should focus on marketing strategies (Total Effect = 0.98) and value chain management (Total Effect = 0.61), respectively. Value chain management, businesses should emphasize human resource management because employees in the organization are the drivers of every process of the business so that it can be carried out according to the business's goals. Second, operations technology and research are essential in production and service processes to ensure quality and standards. The next essential processes are inbound logistics, infrastructure, outbound logistics, services, and purchasing. The results of this research will provide SME entrepreneurs with guidelines on prioritizing marketing strategy planning and value chain management to increase the performance of SMEs. In addition, government agencies, such as The Office of Small and Medium Enterprises Promotion (OSMEP), have seen the guidelines for organizing activities to develop SME entrepreneurs be on point, especially in planning marketing strategies for distribution channels and managing the administrative value chain, human resources, operation, technology and research in the further.
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