The Causal Factors Affecting the Organizational Survival of Small and Medium Enterprises in Northeast Region, Thailand
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Abstract
This research aimed to 1) develop and verify a model of causal factors affecting the organizational survival of small and medium enterprises (SMEs) in the northeast region of Thailand; 2) analyze the direct effects of the factors of networking capability (NWC), innovation capability (INvc), and organizational performance (ORP) on organizational survival (ORS); and 3) analyze the indirect effects of the factors of NWC, INvC, and ORP on the ORS through the moderating variables of ORP and INvC. 389 developed questionnaires were collected from SMEs in Nakhonratchasima and Khonkaen provinces for the quantitative research. Purposive and stratified random sampling techniques were applied. For analyzing and verifying the model, descriptive statistics and the structure equation modeling technique were applied. The research results were found as follows: 1) The confirmatory model was found to be harmonious with empirical data with CMIN/DF 1.795, CFI 0.967, TLI 0.953, GFI 0.960, NFI 0.930, RMSEA 0.045, and RMR 0.015. 2) NWC, INvC, and ORP could predict the variance of ORP by 63%. NWC had a direct effect on ORS (0.55, p-value 0.05), on INvC (0.79, p-value 0.001), and on ORP (0.75, p-value 0.001). INvC had a direct effect on ORS (0.46, p-value 0.01). ORP had no direct effect on ORS. And 3) ORS was indirectly affected by NWC through INvC (0.17), and a positive ORP cannot ensure the survival of SMEs’ organizations in the long term.
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