Causal Relationship Study of Management Innovation and New Product Development in the Banana Industry of Pathum Thani Province

Abstract

This research aimed to (1) analyze the confirmatory factors and (2) examine the causal relationships of management innovation and new product development in the banana industry of Pathum Thani Province. The study employed a quantitative approach using a questionnaire as the primary data collection tool, surveying 240 entrepreneurs in the banana industry. Data analysis utilized descriptive statistics and structural equation modeling (SEM) to test the research hypotheses. The results revealed that:  (1) Confirmatory Factor Analysis: The findings showed that the confirmatory factor model demonstrated a strong fit with empirical data.  The indicators, including chi-square, GFI, CFI, and RMSEA, confirmed the model’s appropriateness and reliability. The key innovations studied included farm management, new product development, market responsiveness, farmer skill and knowledge development, resource management, readiness for change, and support from government policies.and (2) Causal Relationship Analysis: The results indicated that the causal model aligned well with empirical data. Key factors included government policies, market responsiveness, farmer skills, and readiness for change. The development of innovations in the banana industry requires the integration of multiple factors to achieve maximum efficiency. Furthermore, support from both government and private sectors will enhance the competitiveness of the banana industry in Pathum Thani Province, fostering sustainable growth.