Mediation Effect Innovation in Transferring Effects of Organizational Culture, Market Orientation, Knowledge Management and Entrepreneurship to Sustainable Competitive Advantage of Footwear and Leather Goods Industry
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Published:
Oct 31, 2018
Keywords:
Organizational Culture Innovation Sustainable Competitive Advantage
Main Article Content
Abstract
This research aims to study (1) Organizational culture, market orientation, knowledge management, entrepreneurship, innovation and sustainable competitive advantage of footwear and leather goods industry; and (2) Innovative capability as mediators linking organizational culture, market orientation, knowledge management and entrepreneurship to the sustainable competitive advantage of footwear and leather goods industry. Questionnaires were distributed to 400 entrepreneurs of footwear and leather goods industry. Data were analyzed in terms of percentage, mean, standard deviation and structural equation model. In-depth interview of 10 entrepreneurs were conducted for qualitative research in order to confirm the developed framework from literature review.
Results of this study showed that (1) organizational culture, market orientation, knowledge management, entrepreneurship, innovation and sustainable competitive advantage were at overwhelmingly high level, with 4.10, 4.01, 4.19, 4.11, 4.19 and 4.15 respectively; and (2) Innovative capability were mediators linking organizational culture, market orientation, knowledge management and entrepreneurship to the sustainable competitive advantage of footwear and leather goods industry.
Article Details
How to Cite
Boonyoo, T. (2018). Mediation Effect Innovation in Transferring Effects of Organizational Culture, Market Orientation, Knowledge Management and Entrepreneurship to Sustainable Competitive Advantage of Footwear and Leather Goods Industry. Ph.D. In Social Sciences Journal, 8(S), 44–62. Retrieved from https://so05.tci-thaijo.org/index.php/phdssj/article/view/136460
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Research Article
Academic articles, research articles, and book reviews in the Ph.D. in Social Sciences Journal are author’s opinions, and not the publisher’s, and is not the responsibility of the Ph.D. in Social Sciences Journal Philosophy Association, Ramkhamhaeng University. (In the case that research is done on human, the researcher has to be trained in Ethics for Doing Research on Human Training and has to produce the evidence of the training).
References
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Abdullah, N. H., Shamsuddin, A., Wahab, E., & Hamid, N. A. (2014). The relationship between organizational culture and product innovativeness. Procedia Social and Behavioral Sciences, 129, 140-147.
Almor, T., & Hashai, N. (2004). The competitive advantage and strategic configuration of knowledge-intensive, small-and medium-sized multinationals: A modified resource-based view. Journal of International Management, 10(4), 479-500.
Barney, J. B. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-120.
Biegelmeyer, U. H., Camargo, E. M., Craco, T., Galelli, A., Fernandes, A. M., & Biegelmeyer, S. C. (2017). The relationship between market orientation, learning orientation and organizational performance in the development of new products. International Journal of Business Management and Economic Research, 8(5), 1052-1059.
Boonyoo, T. (2018). Mediated effects of structural capital and entrepreneurship in transmitting relational capital to the productivity for Thailand’s gems and jewelry industry. Panyapiwat Journal, 1(1), 41-53. [In Thai]
Boonyoo, T., Rungruangwuddikrai, N., Piriyakul, M., & Khantanapha, N. (2016). Serial mediated effects of intellectual capital and entrepreneurship in transmitting organizational culture to performance of Bus Body Industry. Ph.D. in Social Sciences Journal, 6(1), 78-94. [In Thai]
Chin, W. W. (2001). PLS graph user’s guide version 3.0. Retrieved May 31, 2017, from https://www.Pubinfo.vcu.edu/carma/documents
Gatignon, H., & Xuereb, J.-M. (1997). Strategic orientation of the firm and new product performance. Journal of Marketing Research, 34(1), 77-90.
Gurbuz, G., & Aykol, S. (2009). Entrepreneurial management, entrepreneurial orientation and Turkish small firm growth. Management Research News, 32(4), 321-336.
Gurteen, D. (1998). Knowledge creativity and innovation. Journal of Knowledge Management, 2(1), 5-13.
Hair, J. F., Anderson, R. E., Tatham, R. L., & Black, W. C. (1998). Multivariate data analysis (5th ed.). Upper Saddle River, NJ: Prentice Hall.
Hamdoun, M., & Zouaoui, M. (2017). Impact of environmental management on competitive advantage of Tunisian companies: The mediator Role of organization culture. International Review of Management and Marketing, 7(2), 76-82.
Hayes, A. F. (2013). Introduction to mediation, moderation, and conditional process analysis: A regression based approach. New York: The Guilford.
Islam, M. Z., Mahtab, H., & Ahmad, Z. A. (2008). The role of knowledge management practices on organizational context and organizational effectiveness. ABAC Journal, 28(1), 42-53.
Jafari, M., Pour, F. B., & Maleki, M. (2014). A combined model for sustainable competitive advantage based on knowledge management, organizational innovation and agility. Applied Mathematics in Engineering Management and Technology, 2(2), 66-87.
Jimenez-Jimenez, D., Martinez-Costa, M., & Sanz-Valle, R. (2014). Innovation, organizational learning orientation and reverse knowledge transfer in multinational companies. Electronic Journal of Knowledge Management, 12(1), 47-55.
Kim, W. C., & Mauborgne, R. (2004). Blue ocean strategy. Cambridge, MA: Harvard Business School Press.
Lee, J.-S., & Hsieh, C.-J. (2010). A research in relating entrepreneurship, marketing capability, innovative capability and sustained competitive advantage. Journal of Business & economics Research, 8(9), 109-119.
Mansoori, S. S., Sarlak, M. A., Shafiei, M., & Afrooz, S. (2013). A research in relationship between entrepreneurship, marketing capability, innovative capability and sustainable competitive advantage Kaveh industrial city 2012-2013. Advances in Environmental Biology, 7(8), 1490-1497.
Miller, D. (1983). The correlates of entrepreneurship in three types of firms. Management Science, 29(7), 770-791.
Ministry of Industry. (2016). Strategy of Thai industrial development 4.0. Retrieved May 31, 2017, from https://www.oie.go.th/sites/default/files/attachments/industry_plan/thailandindustrialdevelopmentstrategy4.0.pdf [In Thai]
Narver, J. C., & Slater, S. F. (1990). The effect of a market orientation on business profitability. Journal of Marketing, 54(4), 20-35.
Nazem, F., & Mozaiini, M. (2014). The moderatior role of organizational culture between intellectural capital and business performance: An empirical study in Iraqi industry. Net Journal of Social Sciences, 2(3), 82-91.
Office of Industrial. (2012). Introduction to the Footwear and Leather Goods industry. Bangkok: Wongsawang. [In Thai].
Office of Small and Medium Enterprise Promotion. (2013). Summary of situation in the small and medium in 2013 and forecasts for 2014. Retrieved May 31, 2017, from https://https://www.sme.go.th/Lists/ EditorInput/DispF.aspx?ID=2232. [In Thai].
Ong, J. W., Ismail, H. B., & Goh, G. G. G. (2010). The competitive advantage of Small and Medium Enterprises (SMEs): The role of entrepreneurship and Luck. Journal of Small Business and Entrepreneurship, 23(3), 373-391.
Pardi, S., Imam, S., & Zainul, A. (2014). The effect of market orientation and entrepreneurial orientation toward learning orientation, innovation, competitive advantages and marketing performance. European Journal of Business and Management, 6(21), 69-81.
Porter, M. E. (1985). Competitive advantage: Creating and sustaining superior performance. New York: Free Press.
Rowley, J. (2000). From learning organization to knowledge entrepreneur. Journal of Knowledge Management, 4(1), 7-14.
Sarmadi, H., Nayebzadeh, S., & Moeinadin, M. (2015). Examining the relationship between organizational culture, knowledge management and intellectual capital case study: Branches of Sepah Bank in Yazd city. Advances in Environmental Biology, 9(2), 54-64.
Schermerhorn, J. R., Hunt, J. G., & Osborn, R. N. (2003). Organizational behavior. New York: John wiley & Sons.
Setyanti, W. L. H., Troena, E. A., Nimran, U., & Rahayu, M. (2013). Innovation role in mediating the effect of entrepreneurship orientation, management capabilities and knowledge sharing toward business performance: Study at Batik SMEs in East Java Indonesia. Journal of Business and Management, 8(4), 16-27.
Shihab, M. S., Wismiarsi, T., & Sine, K. (2011). Relationship between organizational culture and entrepreneurial orientation: Indonesian SMEs context. International Conference on Business, Economics and Tourism Management, 24, 93-97.
Suardhika, I. N., & Suryani, N. K. (2016). Strategic role of entrepreneurial marketing and coustomer relation marketing to improve competitive advantage in small and medium enterprises in Bali Indonesia. International Journal of Management and Commerce Innovations, 4(1), 628-637.
Tajudin, M. M., Musa, O., & Musa, N. C. (2012). Effects of organizational culture, market orientation, and innovativeness toward new product performance amongst Malaysian SMEs. International Journal of Innovation and Business Strategy, 1, 24-48.
Taleghani, M., Rad, S. K., & Rahmati, y. (2012). The role of innovation in the relationship between knowledge management and competitive advantage: An empirical study of tourism industry. Journal of Basic and Applied Scientific Research, 2(4), 3607-3614.
Tee, C.-W., Oon, K.-H., Kuek, T.-Y., & Chua, B.-H. (2012). Investigating the relationship among knowledge management, human resources management practices and innovation: A conceptual study of Malaysia SMEs. Knowledge Management International Conference, pp.225-230.
Wei, O. J., Ismail, H. B., & Goh, G. G. G. (2010). The competitive advantage of Small and Medium Enterprises (SMEs): The role of entrepreneurship and luck. Journal of Small Business and Entrepreneurship, 23(3), 373-391.
Weihong, X., Caitao, S., & Dan, Y. (2008). A study on the relationships between organizational culture, organizational learning, technological innovation and sustainable competitive advantage. International Conference on Computer Science and Software Engineering, 5, 9-13.
Wheelen, T. L., & Hunger, J. D. (2010). Strategic management and business policy: Achieving sustainability (12th ed.) . Upper Saddle River, NJ: Prentice Hall.
Wingwon, B. (2012). Effects of entrepreneurship, organization capability, strategic decision making and innovation toward the competitive advantage of SMEs enterprises. Journal of Management and Sustainability, 2(1), 137-150.
Abdullah, N. H., Shamsuddin, A., Wahab, E., & Hamid, N. A. (2014). The relationship between organizational culture and product innovativeness. Procedia Social and Behavioral Sciences, 129, 140-147.
Almor, T., & Hashai, N. (2004). The competitive advantage and strategic configuration of knowledge-intensive, small-and medium-sized multinationals: A modified resource-based view. Journal of International Management, 10(4), 479-500.
Barney, J. B. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-120.
Biegelmeyer, U. H., Camargo, E. M., Craco, T., Galelli, A., Fernandes, A. M., & Biegelmeyer, S. C. (2017). The relationship between market orientation, learning orientation and organizational performance in the development of new products. International Journal of Business Management and Economic Research, 8(5), 1052-1059.
Boonyoo, T. (2018). Mediated effects of structural capital and entrepreneurship in transmitting relational capital to the productivity for Thailand’s gems and jewelry industry. Panyapiwat Journal, 1(1), 41-53. [In Thai]
Boonyoo, T., Rungruangwuddikrai, N., Piriyakul, M., & Khantanapha, N. (2016). Serial mediated effects of intellectual capital and entrepreneurship in transmitting organizational culture to performance of Bus Body Industry. Ph.D. in Social Sciences Journal, 6(1), 78-94. [In Thai]
Chin, W. W. (2001). PLS graph user’s guide version 3.0. Retrieved May 31, 2017, from https://www.Pubinfo.vcu.edu/carma/documents
Gatignon, H., & Xuereb, J.-M. (1997). Strategic orientation of the firm and new product performance. Journal of Marketing Research, 34(1), 77-90.
Gurbuz, G., & Aykol, S. (2009). Entrepreneurial management, entrepreneurial orientation and Turkish small firm growth. Management Research News, 32(4), 321-336.
Gurteen, D. (1998). Knowledge creativity and innovation. Journal of Knowledge Management, 2(1), 5-13.
Hair, J. F., Anderson, R. E., Tatham, R. L., & Black, W. C. (1998). Multivariate data analysis (5th ed.). Upper Saddle River, NJ: Prentice Hall.
Hamdoun, M., & Zouaoui, M. (2017). Impact of environmental management on competitive advantage of Tunisian companies: The mediator Role of organization culture. International Review of Management and Marketing, 7(2), 76-82.
Hayes, A. F. (2013). Introduction to mediation, moderation, and conditional process analysis: A regression based approach. New York: The Guilford.
Islam, M. Z., Mahtab, H., & Ahmad, Z. A. (2008). The role of knowledge management practices on organizational context and organizational effectiveness. ABAC Journal, 28(1), 42-53.
Jafari, M., Pour, F. B., & Maleki, M. (2014). A combined model for sustainable competitive advantage based on knowledge management, organizational innovation and agility. Applied Mathematics in Engineering Management and Technology, 2(2), 66-87.
Jimenez-Jimenez, D., Martinez-Costa, M., & Sanz-Valle, R. (2014). Innovation, organizational learning orientation and reverse knowledge transfer in multinational companies. Electronic Journal of Knowledge Management, 12(1), 47-55.
Kim, W. C., & Mauborgne, R. (2004). Blue ocean strategy. Cambridge, MA: Harvard Business School Press.
Lee, J.-S., & Hsieh, C.-J. (2010). A research in relating entrepreneurship, marketing capability, innovative capability and sustained competitive advantage. Journal of Business & economics Research, 8(9), 109-119.
Mansoori, S. S., Sarlak, M. A., Shafiei, M., & Afrooz, S. (2013). A research in relationship between entrepreneurship, marketing capability, innovative capability and sustainable competitive advantage Kaveh industrial city 2012-2013. Advances in Environmental Biology, 7(8), 1490-1497.
Miller, D. (1983). The correlates of entrepreneurship in three types of firms. Management Science, 29(7), 770-791.
Ministry of Industry. (2016). Strategy of Thai industrial development 4.0. Retrieved May 31, 2017, from https://www.oie.go.th/sites/default/files/attachments/industry_plan/thailandindustrialdevelopmentstrategy4.0.pdf [In Thai]
Narver, J. C., & Slater, S. F. (1990). The effect of a market orientation on business profitability. Journal of Marketing, 54(4), 20-35.
Nazem, F., & Mozaiini, M. (2014). The moderatior role of organizational culture between intellectural capital and business performance: An empirical study in Iraqi industry. Net Journal of Social Sciences, 2(3), 82-91.
Office of Industrial. (2012). Introduction to the Footwear and Leather Goods industry. Bangkok: Wongsawang. [In Thai].
Office of Small and Medium Enterprise Promotion. (2013). Summary of situation in the small and medium in 2013 and forecasts for 2014. Retrieved May 31, 2017, from https://https://www.sme.go.th/Lists/ EditorInput/DispF.aspx?ID=2232. [In Thai].
Ong, J. W., Ismail, H. B., & Goh, G. G. G. (2010). The competitive advantage of Small and Medium Enterprises (SMEs): The role of entrepreneurship and Luck. Journal of Small Business and Entrepreneurship, 23(3), 373-391.
Pardi, S., Imam, S., & Zainul, A. (2014). The effect of market orientation and entrepreneurial orientation toward learning orientation, innovation, competitive advantages and marketing performance. European Journal of Business and Management, 6(21), 69-81.
Porter, M. E. (1985). Competitive advantage: Creating and sustaining superior performance. New York: Free Press.
Rowley, J. (2000). From learning organization to knowledge entrepreneur. Journal of Knowledge Management, 4(1), 7-14.
Sarmadi, H., Nayebzadeh, S., & Moeinadin, M. (2015). Examining the relationship between organizational culture, knowledge management and intellectual capital case study: Branches of Sepah Bank in Yazd city. Advances in Environmental Biology, 9(2), 54-64.
Schermerhorn, J. R., Hunt, J. G., & Osborn, R. N. (2003). Organizational behavior. New York: John wiley & Sons.
Setyanti, W. L. H., Troena, E. A., Nimran, U., & Rahayu, M. (2013). Innovation role in mediating the effect of entrepreneurship orientation, management capabilities and knowledge sharing toward business performance: Study at Batik SMEs in East Java Indonesia. Journal of Business and Management, 8(4), 16-27.
Shihab, M. S., Wismiarsi, T., & Sine, K. (2011). Relationship between organizational culture and entrepreneurial orientation: Indonesian SMEs context. International Conference on Business, Economics and Tourism Management, 24, 93-97.
Suardhika, I. N., & Suryani, N. K. (2016). Strategic role of entrepreneurial marketing and coustomer relation marketing to improve competitive advantage in small and medium enterprises in Bali Indonesia. International Journal of Management and Commerce Innovations, 4(1), 628-637.
Tajudin, M. M., Musa, O., & Musa, N. C. (2012). Effects of organizational culture, market orientation, and innovativeness toward new product performance amongst Malaysian SMEs. International Journal of Innovation and Business Strategy, 1, 24-48.
Taleghani, M., Rad, S. K., & Rahmati, y. (2012). The role of innovation in the relationship between knowledge management and competitive advantage: An empirical study of tourism industry. Journal of Basic and Applied Scientific Research, 2(4), 3607-3614.
Tee, C.-W., Oon, K.-H., Kuek, T.-Y., & Chua, B.-H. (2012). Investigating the relationship among knowledge management, human resources management practices and innovation: A conceptual study of Malaysia SMEs. Knowledge Management International Conference, pp.225-230.
Wei, O. J., Ismail, H. B., & Goh, G. G. G. (2010). The competitive advantage of Small and Medium Enterprises (SMEs): The role of entrepreneurship and luck. Journal of Small Business and Entrepreneurship, 23(3), 373-391.
Weihong, X., Caitao, S., & Dan, Y. (2008). A study on the relationships between organizational culture, organizational learning, technological innovation and sustainable competitive advantage. International Conference on Computer Science and Software Engineering, 5, 9-13.
Wheelen, T. L., & Hunger, J. D. (2010). Strategic management and business policy: Achieving sustainability (12th ed.) . Upper Saddle River, NJ: Prentice Hall.
Wingwon, B. (2012). Effects of entrepreneurship, organization capability, strategic decision making and innovation toward the competitive advantage of SMEs enterprises. Journal of Management and Sustainability, 2(1), 137-150.