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The purpose of this paper is to investigate the effects of rational decision making on business performance of the SMEs in Thailand. This research was conducted by using questionnaires as research instruments for collecting data from 247 executives of the SMEs in Thailand. The research found that the rational decision making in aspect of identifying problem, gathering information and evaluating alternatives (EA) are significantly and positively correlated to the firm’s overall performance. This research can be used as a guideline for the SME executives to create a business strategy and make an effective decision on business in order to improve their firm’s performance.
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