Causal Relationship of Factors Influencing Financial Management Capability of Small and Medium Enterprises: A Case Study of Agricultural Machinery Business in Thailand

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Raden Tanpracha
Phongthep Srisopachit
Natcha Krimjai
Chanidapa Deesukanan


This research aimed at developing factors that influence the financial management capability of small and medium enterprises. Quantitative research method is used. Data were collected from 395 agricultural machinery entrepreneurs. The statistical analysis used to analyze the data was Structural Equation Model (SEM).

The results showed that the analysis result received was consistent with the empirical data, with the accepted homogeneity index. And from the route analysis it is found that dynamic ability factor, strategic cost management factor, differentiation strategic factor and factor on acceptance of technology and innovation have a direct influence on the financial performance with statistical significance. The agricultural machinery business therefore can use the analysis results as a guideline to manage the business to raise their potential which will result in increased operating results, creating potential products for the business to be able to develop and compete both within the country and the world market.


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Tanpracha, R., Srisopachit, P., Krimjai, N., & Deesukanan, C. (2020). Causal Relationship of Factors Influencing Financial Management Capability of Small and Medium Enterprises: A Case Study of Agricultural Machinery Business in Thailand. Ph.D. In Social Sciences Journal, 10(1), 282–296. Retrieved from
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