THE EFFECT OF MARKET ORIENTATION LEARNING ORIENTATION AND INNOVATIVENESS ON FIRM PERFORMANCE OF SMALL AND MEDIUM ENTERPRISE IN SERVICE SECTOR: THE NORTHEASTERN REGION OF THAILAND
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Abstract
The objectives of the research were to 1) study the causal relationship of the factors that influence the performance of the small and medium enterprise in the service sector, the northeastern region of Thailand; and 2) examine the congruence of the developed model. The samples used were 600 chiefs of entrepreneurs of small and medium enterprises in the service sector, the northeastern region of Thailand. The multi-stage random sampling method was employed to select the samples. The statistics used in this research is the confirmatory structural model analysis.
The findings of the research are as follows: 1) There were three factors, namely market orientation, learning orientation, and innovativeness, which influenced the performance of the small and medium enterprises in service sector firms. Learning orientation had the highest direct influence, but market orientation had the highest indirect influence. Learning orientation showed the highest total influence on performance. 2) The developed causal relationship model conformed to the empirical data with X2 = 67.151, df =52, X2/df = 1.291, P-value = .077, GFI= .985, CFI = .998, RMSEA = .022 The standardized co-efficiency of antecedent factors ranged from .584 to .918. Learning orientation showed the highest co-efficiency. The latent factors predicted the causal relationship model at 77.6 percent.
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