Structural Equation Model of Competitive Advantage Factors of Northern Thai SMEs in Service Business Sector

Main Article Content

Benchawan Benchakorn
Phoommhiphat Mingmalairaks

Abstract

The objectives of this study were to study the competitive advantages of small and medium enterprises in the service business sectors in the northern region. The qualitative research method approach by using parity measurement was used as the research methodology. The random sampling group for the quantitative research in this study was 369 entrepreneurs in small and medium enterprises of Northern Thai SMEs in the service business sectors. The research instrument was rating scale questionnaire. Data were analyzed for basic statistics and confirmatory factor analysis to test the model consistency, the structural equation of the competitive advantages of small and medium enterprises in the service business sectors. The study indicated that there were five competitive advantage factors for small and medium enterprises in the service business sectors as follows: (1) marketing and customer differentiation (.916), (2) personnel (.869), (3) technology (.857), (4) management (.823), (5) costs (.765) respectively. The conformance test results of the structural model on competitive advantages between small and medium-sized enterprises in the service business sectors by employing Chi-square (χ2 /df), goodness-of-fit index (GFI), and adjusted goodness-of-fit index (AGFI) were found that the p value was .062. The value of χ2 /df was 1.174. The GFI value was .997. The TLI value was .994. The RMSEA value was .015, and the HOELTER value is 751. The findings confirmed that the structural relationships of competitive advantage factors in the small and medium enterprises among the service business sectors was at the high level.

Article Details

How to Cite
Benchakorn, B. ., & Mingmalairaks, P. . (2020). Structural Equation Model of Competitive Advantage Factors of Northern Thai SMEs in Service Business Sector. Journal of Management Science Chiangrai Rajabhat University, 15(1), 48–72. Retrieved from https://so03.tci-thaijo.org/index.php/jmscrru/article/view/154629
Section
Research Articles
Author Biographies

Benchawan Benchakorn, คณะวิทยาการจัดการ มหาวิทยาลัยราชภัฏเชียงราย

*Ph.D. (Business Administration), School of Management, Mae Fah Luang University. (2019)

Phoommhiphat Mingmalairaks

**Ph.D. (Business Technology Management) RMIT University. Melbourne, Australia. (2011). Currently a Lecturer in Business Administration, School of Management, Mae Fah Luang University.

References

Anderson, J. C. & Gerbing, D. W. (1988). Structural equation modeling in practice: A review and recommended two-step approach. Psychological Bulletin. 103. 411-423.

Amit, R. & Schoemaker, P. J. (1993). Strategic assets and organizational rent. Strategic management journal. 14(1). 33-46.

Buijink, W., Maijoor, S., Van Witteloostuijn, A. & Zinken, M. (1993). The evolution of the structure of the Dutch audit industry: An empirical study. Unpublished research memorandum. University of Limburg, Maastricht.

Deming, W. E. (1981). Improvement of quality and productivity through action by management. National productivity review. 1(1). 12-22.

Flippo, E.B. (1971). Principles of Personnel Management. New York: Mcgraw Hill Book. 4–7.

Iuliana, C., Sorin, M. D. & Razvan, D. (2008). The competitive advantages of small and medium enterprises. Strategic Management Journal. 811-816.

Jeeramat Pongnarat. (2016). The Procreation of Competitive Advantage Strategies for Entertainment Enterprise in Chiang Mai. Master of Business Administration in Business Administration, Maejo University. Retrieved January 11, 2017. from https://webpac.library.mju. ac.th:8080/mm/fulltext/

thesis/2560/pongnarat_jeeramat/fulltext.pdf. (In Thai)

Kanchanopast Supattra. (2011). The Factors Influencing successful Implementation of E- Commerce to Create Competitive Advantage, within SME Businesses. Suan Sunandha Rajabhat University. Retrieved June 11, 2011. from https://www.ssruir.ssru.ac.th/bitstream/ssruir/456/1/045-54.pdf. (In Thai)

Kettl, D. F. & Fosler, J. W. (2005). The Politics of the Administrative Process. (3rd ed.). Washington D.C. : CQ Press.

Kotler, Philip. (1999). Kotler on Marketing: How to Create, Win, and Dominate Markets. New York, NY : Free Press.

Meksuwan Atchara. (2017). The Competitive Advantage of Agricultural Processing Industry SMEs Entrepreneurs in Upper Northern Region, Thailand. Journal of Yala Rajabhat University. 12(Special Issue). 13-26. (In Thai)

Mondy, R. W., Noe, R. M. & Premeaux, S. R. (1999). 7th Ed. Human Resource Management. UpperSaddle River, NJ : Simon & Schuster.

Munir, A., Lim, M. K. & Knight, L. (2011). Sustaining competitive advantage in SMEs. Procedia- Social and Behavioral Sciences. 25. 408-412.

Office of Small & Medium Enterprise Promotion. (2016). The Study of Supporting Approach for SMEs high Growth Sectrors. Retrieved June 20, 2016. from https://www. sme.go.th/th/images/data/SR/

ownload/2014/07july

Office of Small & Medium Enterprise Promotion. (2017). The 2016 Situation report of SMEs. Retrieved August 1, 2017. from https://www.sme .go. th/th/ images/ data/SR/download/2015/report_year

Peters, T. J. & Waterman, Robert. H. Jr. (1982). Search of Excellence. (New York : Happer and Row).

Porter, M. E. (1990). The Competitive Advantage of Nations. New York : Free Press.

Prakthayanon Suchart. (2013). Creation of Competitive Advantages of Small and Medium-Sized Business of the Vehicle Industry in Thailand. ACADEMIC JOURNAL BANGKOKTHONBURI UNIVERSITY. 2(1). 102-110. (In Thai)

Tornatzky, L. G., Fleischer, M. & Chakrabarti, A. K. (1990). The processes of technological innovation. Retrieved October 10, 2017. from https://is.theorizeit.org/ Technology-organization-environment_framework

Torudom Rungnapha. (2013). Key Success Factors of Small and Medium Entrepreneurs in Agricultural Industry the Case study of Chacherngsao. Rajamangala University of Technology Thanyaburi. Retrieved June 11, 2016. from https://www.research.rmutt.ac .th/?p=2150. (In Thai)

Wickham, PA. (2001). Strategic Entrepreneurship: A Decision-Making Approach to New Venture Creation and Management. (2nd ed.) Harlow : Pearson Education.