The Integrated Potential of Manufacturing Business Strategies Influencing the Competitive Advantage of Lanna Enterprises Cluster in Thailand
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Jun 5, 2018
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Abstract
The purpose of this research was (1) to study the factors of reputation, trust groups, network participation, marketing capability, product innovation and competitive advantages of Lanna enterprise clusters in Thailand. (2) to study the integrated potential of manufacturing business strategies influencing the competitive advantage of Lanna Enterprise Clusters in Thailand. A mixed methodology research with a sampling group of 131 was used in this study. This research used a census survey. The research tools used were questionnaires and in-depth interviews. Descriptive statistic was applied to analyze percentage, average, standard deviation, skewness, kurtosis, reliability, and deviation. Inferential statistic was used to analyze the effects of structural relationship with the AMOS 7.0 program. The confirmatory factor analysis revealed that the applied variable measurement model conformed with the theory by observing variables having solution values between 0.820-1.000, with an average variance value between 0.678-0.849, and reliability value between 0.907-0.968. The structural casual relationship model conformed with empirical data χ2 = 236.42, df = 230, 2/ df = 1.028, GFI = 0.989, CFI = 0.998, RMR= 0.026, RMSEA = 0.015 by the group 's reputation had the highest value and sequence followed by network participation, product innovation, marketing capability, and competitive advantage. The integrated potential of manufacturing business strategy and analysis of factors influencing the integrated potential of manufacturing business strategies influencing the competitive advantage of the Lanna enterprise clusters revealed that group trust had the most direct effect on marketing capability followed by reputation, and lastly, network participation. The most important factors influencing the product innovation was network participation followed by reputation. As for the trust group, it had no support on product innovation. The most direct effect on the competitive advantage was product innovation, followed by marketing capability. In addition, both the reputation and the network participation had an indirect influence on the competitive advantage through the marketing capabilities and product innovation. The group trust factor had an influence indirectly through competitive advantage in the marketing capabilities, but did not influence product innovation. The outcomes of both quantitative and qualitative research revealed that the competitive advantage of Lanna enterprise clusters in Thailand was derived from marketing capability potential and outstanding product innovation.
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ใจแก้ว อ., วิงวอน บ., & พันธ์ุแพ พ. (2018). The Integrated Potential of Manufacturing Business Strategies Influencing the Competitive Advantage of Lanna Enterprises Cluster in Thailand. Journal of Management Science Chiangrai Rajabhat University, 10(2), 108–139. Retrieved from https://so03.tci-thaijo.org/index.php/jmscrru/article/view/127203
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References
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Cefis, E. , & Marsili, O. (2005), 'A Matter of Life and Death: Innovation and Firm Survival.' Industrial and Corporate Change, 14(6), 1-26. Colin Coulson –Thomas. Managing Supply Chain Relationships. 2005;. [Cited 2012 Aug 15]. Available From: http://www.groupe-intellex.com/editorials/17-management/13-supply-chain management-business. html Damanpour, F., Szabat, K. A., & Evan, W. M. (1989). The Relationships between Types of Innovation and Organizational Performance. Journal of Management Studies, 26(6): 587–601. Day, G. (1994)."The Capabilities of Market-Driven Organization,"Journal of Marketing, October], 37-52. Denzin, N. K. (1970). The Research Act in Sociology. Chicago: Aldine. Dierickx, I. & Cool, K. (1989). Asset Stock Accumulation and Sustainability of Competitive Advantage. Management Science. 35 (12): 1504–1511. Fombrun, C. (1996). Reputation: Realizing Value from the Corporate Image. Boston : Harvard Business School Press. Fombrun, C. J. , & Van Riel, C. B. M. (1997). 'The Reputational Landscape', Corporate Reputation Review, 1(1/2), 5-13. Fombrun, C. , & Shanley,M. (1990).What’s in a name? Reputation building and corporate strategy. Academy of Management Journal, 33: 233-258. Franco, M. , & Haase, H. (2009). “Entrepreneurial orientation from learning alliances: A study towards business performance”.Small Business Review,6(8) : 45-67. Guenzi, P. , & Troilo, G. (2006). Developing Marketing Capabilities for Customer value Creation through Marketing-Sales Integration.Industrial Marketing Management, 35(8): 974-988. Han,J.,Kim,N.,Srivastava,R.(1998).Marke tOrientation and Organizational Performance: Is Innovation the Missingink?. Journal of Marketing, 62, 30-45. Hardin,R.(1992)."Thestreet-level epistemology of trust,"Analyse & Kritik,14 : 152-176. Herbig, P., & Milewicz, J. (1995), "The Relationship of Reputation and Credibility to Brand Success", Journal of Consumer Marketing, 12 (4), 5-10. Jaakkola, M. ; Möller, K. ; Parvinen, P. ; Evanschitzky, H. , & Muhlbacher, H. (2010). “Strategic marketing and Business Performance: A Study in three European Engineering Ccountries”,Industrial Marketing Management,39(8) : 1300-1310. Kaplan, R. S., & Norton, D.P. (2004). Measuring the Strategic Readiness of Intangible Assets, Harvard Business Review (February): 52-63. Kovacs, P. J., & Lee , J. (2010). Developing a Community-University Partnership for Intergenerational Programming: Relationship Building is key. Journal of Intergenerational Relationships, 8(4), 406-411. Levintha l,D., & Myatt, J. (1994).Co-evolutionof Capabilitiesand Industry: The Evolution of Mutual Fund Processing Strategic Management Journal,15,45–62. Lin, C., & Kuo, T. (2007). The Mediate Effectof Learning and Knowledgeon Organizational Performance, Journal of Industrial Management and Data Systems,107(7): 1066-1083. Mayer, R.C., Davis, J.H., & Schoorman, F.D.,1995. An Integrative Model of Organizational Trust. Academy of Management Review, 20(3), 709-734. Nadvi, K.,“Industrial clusters and networks: case studies of SME growth and innovation”. UNIDO SME Programme, October 1995. Ostrom, Elinor (1992), ‘The Rudiments of a Theory of the Origins, Survival, and Performance of Common-Property Institutions’, in Bromley, Daniel W., et al. (eds), Making the Commons Work: Theory, Practice, and Policy, San Francisco, ICS Press, 293-318. Podolny, J. M., & Baron, J. N. (1997). Resources and relationships: Social networks and mobility in the workplace. American Sociological Review, 62 : 673-693. Porter, Michael E., "Competitive Advantage". 1985, Ch. 1, pp 11-15. The Free Press. New York. Raymond L.&St-Pierre J.(2003).Entrepreneurial Antecedents And Performance Outcome of Organisational Development in Manufacturing SMEs.Institut de recherche sur les PME. Université du Québec à Trois-Rivières C.P. 500. Reina, D.S., & Reina, M.L. (2006).Trust and Betrayal in the Workplace: Building Effective Relationships in Your Organization,2nded.SanFrancisco:Berrett Koehler. Rosenfeld, S. A. (1997). Bringing Business Clusters into the Mainstream Economic Development. European Planning Studies, 5(1), 3-23. Rotter, J. B. (1971). Generalized expectancies for interpersonal trust. American Psychologist, 26, 443–452. Schumpeter, J. A. 1950. Capitalism, Socialism, and Democracy. 3d ed. New York: Harper and Row. Slater, S.F., & Narver, J.C. (2000a). Intelligence Generation and Sperior Customer Value. Journal of the Academy of Marketing Science, 28(1), 120-127. Smith-Doer, L., & Powell, W.W. (2005). Networks and Economic Life. The handbook of economic sociology. Princeton University Press Street, C. T., & Cameron, A. F. (2007). External relationships and the small business: A review of small business al liance and networking research.Journal of Small Business Management, 45(2): 239-266. Tabachnick, B.G., & Fidell, L.S. (2007). 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Antecedents of PLS Path Model for Competitive Advantage and Financial Performance of SMEs in Thailand. African Journal of Marketing Management, 2(6): 123-135. Yahya, A. Z., Othman, M. S. , Othman, A. S . , Rahman, I. A. , & Moen, J. A. (2011). Process Innovation: a study of Malaysian Small Medium Enterprises (SMEs). World Journal Management, 3(1) : 146-156. Yilmaz, Cengiz and Shelby D. Hunt. 2001. “Salesperson Cooperation: The Influence of Relational, Task, Organizational, and Personal Factors.” Journal of the Academy of Marketing Science 29 (fall): 335-335. Yin R. K. (2003). Case Study Research: Design and Methods. (3rd ed.). Thousand Oaks, CA: Sage Publications, Inc Yli-Renko, Autio, H. E. , & Sapienza, H.J. (2001).Social Capital, Knowledge Acquisition, and Knowledge Exploitation in Young Technology-Based Firms, Strategic Management Journal, 22(6-7) : 587-614.