THE CAUSAL AND EFFECT FACTORS INFLUENCING BUSINESS TRANSFORMATION AND BUSINESS PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES UNDER THE PRODUCTION SECTOR IN THAILAND
Keywords:
Digital Technology, Competitive Advantage, Service quality, Business Transformation, Business PerformanceAbstract
This research aimed to (1) to study causal and effect factors influencing business transformation and business performance of small and medium enterprises under the production sector in Thailand, (2) to analyze confirmatory factors of causal and effect factors influencing business transformation and business performance of small and medium enterprises under the production sector in Thailand. The sample comprised entrepreneurs of small and medium enterprises under the production sector in Thailand from a stratified sampling technique. Data were collected from 400 persons responding to the questionnaire. The findings from the study revealed that (1) causal factors comprised 3 major components as digital technology having 4 subcomponents, i.e. ability of technology acquisition (acquisitive capability), ability to use technology (operative capability, ability to adapt technology (adaptive capability), and ability to create technological innovation (innovative capability). Competitive capability consisted of 3 subcomponents, i.e. cost competitive advantage, differentiation competitive advantage, and response competitive advantage. Quality of service provision consisted of 5 subcomponents, i.e. equitable service, timely service, sufficient service, continuous service, and progressive service. Effect factors comprised business transformation having 4 subcomponents, i.e. market transformation, finance transformation, personnel transformation, and operation transformation. Business performance had 4 subcomponents as financial performance, internal process, learning and development, and customers, (2) analysis results of the confirmatory factors of causal and effect factors influencing business transformation and business performance of small and medium enterprises under the production sector in Thailand found they were consistent with the empirical data which considered by statistical values of Chi-Square/df, CFI, GFI, AGFI, RMSEA and SRMR that passed the determined criteria
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