A Structural Equation Model Explicating the Effects of Strategic Management, Organizational Resilience, and Competitive Advantage on Business Growth of SMEs System Integrators in Thailand
Article Sidebar
Main Article Content
Abstract
This research article aimed to study (1) develops and inspects a structural equation model explicating the effects of strategic management; examines (2) the effects of strategic management, organizational resilience, and competitive advantage on business growth of SMES system integrators in Thailand. The quantitative research approach was employed with a questionnaire as a research instrument to collect data from 250 system integrators business entrepreneurs in Thailand using the technique of purposive sampling. Data were analyzed using mean and standard deviation. The structural equation modeling (SEM) analysis was conducted in the hypothesis test.
Findings are as follows: The confirmatory factor analysis of variables found to exhibit congruence with the empirical data. The chi-square (χ²) was 107.823; degrees of freedom (df) = 112; chi-square/ degrees of freedom (χ²/df) = 0.962; root mean square error of approximation (RMSEA)=0.000; Tucker-Lewis index (TLI) = 1.002, comparative fit index (CFI) = 1.000, and standardized root mean square residual (SRMR) = 0.039, respectively. The hypothesis test found that strategic management exhibited direct effects on competitive advantage and organizational resilience. Organizational resilience exhibited direct effects on competitive advantage and business growth. Competitive advantage exhibited direct effects on business growth. In conclusion, all the factors exhibited effects on business growth as the hypothesis set.
Article Details
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
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
Andrews, P. D. (2020). Women-owned small businesses: The impact of social networks on small business growth and leadership development in a global marketplace. Doctoral Dissertation in Global leadership and Chang, Pepperdine University.
Brown, C., Seville, E., & Vargo, J. (2017). Measuring the organizational resilience of critical infrastructure providers: A New Zealand case study. International Journal of Critical Infrastructure Protection, 18, 37-49.
Chen, X. (2012). Impact of business intelligence and IT infrastructure flexibility on competitive advantage: An organizational agility perspective. The University of Nebraska-Lincoln.
Department of Industrial Promotion. (2021). Registrant SI. Retrieved from https://www.diprom-si.net/ [In Thai]
Duchek, S. (2014). Growth in the face of crisis: The role of organizational resilience capabilities. In Academy of Management Annual Meeting Proceedings (pp. 861-866). Faculty of Business and Economics, TU Dresden, Germany.
Dyer, J. H., Godfrey, P., Jensen, R., & Bryce, D. (2016). Strategic management: Concepts and tools for creating real world strategy. Wiley & Sons.
Fosfuri, A., Giarratana, M. S., & Roca, E. (2016). Social business hybrids: Demand externalities, competitive advantage, and growth through diversification. Organization Science, 27(5), 1275-1289.
Frese, M. (2000). Success and failure of micro business owners in Africa: A psychological approach. Praeger.
Geiser, C. (2012). Data analysis with Mplus. Guilford Press.
Gökdeniz, I., Kartal, C., & Kömürcü, K. (2017). Strategic assessment based on 7S McKinsey model for a business by using analytic network process (ANP). International Journal of Academic Research in Business and Social Sciences, 7(6), 342-353.
Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2010). Multivariate data analysis (7th ed.). Pearson.
Kantur, D., & Say, A. I. (2015). Measuring organizational resilience: A scale development. Journal of Business Economics and Finance, 4(3), 456-472.
Kaplan, R. S., & Norton, D. P. (1992). The balanced scorecard: Measures that drive performance. Harvard Business Review.
Kelloway, E. K. (2015). Using Mplus for structural equation modeling: A researcher’s guide (2nd ed.). Sage.
Lassila, A. (2006). Offering software as a service: Case study of system integrators. In European Conference on Information Systems (pp. 1-12). Association for Information Systems.
Meijaard, J., Brand, M. J., & Mosselman, M. (2005). Organizational structure and performance in Dutch small firms. Small Business Economics, 25, 83-96.
McManus, S., Seville, E., Vargo, J., & Brunsdon, D. (2008). Facilitated process for improving organizational resilience. Natural Hazards Review, 9(2), 81-90.
Ministry of Industry (Thailand). (2016). Thailand industrial 4.0 development strategy 20 years (2017-2036). Retrieved from http://www.oie.go.th/sites/default/files/attachments/industry_plan/thailandindustrialdevelopmentstrategy4.0.pdf [In Thai]
Nidumolu, S. R., & Knotts, G. W. (1998). The effects of customizability and reusability on perceived process and competitive performance of software firms. MIS Quarterly, 22(2), 105-137.
Njeru, K. N., & Kariuki, P. (2019). Influence of mckinsey framework on competitive advantage of firms in the telecommunication industry in Kenya. Journal of International Business, Innovation and Strategic Management, 3(1), 68-81.
Nunnally, J.C., & Bernstein, I. H. (1994). The assessment of reliability. Psychometric Theory, 3, 248-292.
Office of the National Economic and Social Development Council. (2017). National strategy 20 years (2018-2037). Retrieved from https://www.nesdc.go.th/main.php [In Thai]
Ogundana, O. (2020). Factors influencing the business growth of women-owned sewing businesses (WOSBs) in Lagos-State, Nigeria: A gender-aware growth framework. Nottingham Trent University.
Pantaweesak, N. (2019). Are Thai system integrators ready for manufacturing industry in the digital age and AI?. Retrieved from https://shorturl.asia/CEK9x [In Thai]
Porter, M. E. (1985). Competitive strategy: Techniques for analyzing industries and competitors: With a new introduction. The Free Press.
Porter, M. E. (2005). The competitive advantage creating and sustaining superior performance. The Free Press.
Qing, C. (2015). Driving business growth in the information economy: New perspectives from technology vendors and entrepreneurial ventures. Doctoral Thesis of Philosophy, National University of Singapore.
Rouse, M. (2018). Definition system integrator. Retrieved from https://searchitchannel.techtarget.com/definition/systems-integrator
Rudolph, J. W., & Repenning, N. P. (2002). Disaster dynamics: Understanding the role of quantity in organizational collapse. Administrative Science Quarterly, 47(1), 1-30.
Rajpatty, S. (2011). Integrating TQM methods with corporate strategy: A source of sustainable competitive advantage. Sheffield Hallam University (United Kingdom).
Sharma, S., & Sharma, S. K. (2020). Probing the links between team resilience, competitive advantage, and organizational effectiveness: Evidence from information technology industry. Business Perspectives and Research, 8(2), 289-307.
Silpcharu, T. (2017). Research and data processing with SPSS and AMOS (18th ed.). Chulalongkorn University Press. [In Thai]
Singh, A. (2013). A study of role of McKinsey’s 7S framework in achieving organizational excellence. Organization Development Journal, 31(3), 39-50.
Wang, J., & Wang, X. (2019). Structural equation modeling: Applications using Mplus. John Wiley & Sons.
Waterman, R. H., Peters, T. J., & Phillips, J. R. (1980). Structure is not organization. Business Horizons, 23(3), 14-26.
Webb, B., & Schlemmer, F. (2006). Resilience as a source of competitive advantage for small information technology companies. In IFIP International Federation for Information Processing (pp. 181-197). Springer.
Xiao, L., & Cao, H. (2017). Organizational resilience: The theoretical model and research implication. In ITM Web of Conferences (pp. 1-4). EDP Sciences.