Causal Model of External Knowledge Search and Entrepreneurial Orientation on Small and Medium Enterprise Performance in the 3 Southern Border Provinces

Authors

  • Meedian Chumat Ramkhamhaeng University
  • Wongtheera Suvannin Ramkhamhaeng University
  • Wisit Rittiboonchai Nakhon Pathom Rajabhat University

Keywords:

External Knowledge Search, Entrepreneurial Orientation, Small and Medium Enterprise Performance

Abstract

           The objectives of this study were to (1) study the level of external knowledge search, absorptive capacity, entrepreneurship orientation, competitive strategy, small and medium enterprise performance in the 3 southern provinces. (2) Study the direct and indirect causal influence of variables. (3) Check the consistency of the causal influence model of variables. (4) Confirm and verify with qualitative data of the causal influence of model of external knowledge search, absorptive capacity, entrepreneurship orientation, competitive strategy, small and medium enterprise performance in the 3 southern provinces.

          The research methodology used a combination of quantitative and qualitative research. The population of this research was small and medium sized businesses in the 3 southern border provinces by using data from the Ministry of Industry. The researcher selected only the companies registered as companies and limited partnership, which will get a total of 331 entrepreneurs, with 2 respondents per company equal to 662 people. The respondents are business owners, executives, or people who have knowledge and understanding about the issues in this research. After sending the questionnaires, the researchers received 476 sets of questionnaires. The researcher used the structural equation model and analyzed with Statistical Software Package and LISREL program.

          The results of the research showed that the level of variables are as following: the external knowledge search was at high level. The adsorptive capacity was at high level. The entrepreneurial orientation was at high level. The competitive strategy was at medium level and the entrepreneurial performance was at medium level.

          The hypothesis testing to examine the direct and indirect influences of the important factors that have an influence on the entrepreneurial performance are as follows: (1) The external knowledge search (EK) did not influence the entrepreneurial performance. (2) The external knowledge search influences the entrepreneurial performance pass the absorptive capacity which is a significant variable in the middle (mediator) at the level of 0.01 (3) Absorption capacity influences the entrepreneurial performance significantly at the level of 0.01 (4) The external knowledge search has a significant influence on entrepreneurial orientation at the level of 0.01 (5) entrepreneurial orientation did not influence the entrepreneurial performance (6) entrepreneurial orientation influence the entrepreneurial performance through the competitive strategy, which is a significant variable (mediator) at the level of 0.01 (7) The competitive strategy has influence on entrepreneurial performance significantly at the level of 0.01.

References

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Published

2020-06-28

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Research Articles