effect of entrepreneurial, marketing capabilities ... o… · the purpose of research was to study...

370

Effect of Entrepreneurial Marketing Capabilities Innovation and

Business Strategy toward Competitive Advantage of Small and

Medium Enterprises in Northern Region of Thailand

Panida Sattayopat 1 Chaiyutha Lertpachin 2 and Suriyajarat Techatonmeansakurn 3 1 PhD Candidate Department of Management Sciences Lampang Rajabhat University

Thailand

2 Department of Management Sciences PhD program Lampang Rajabhat University

Thailand

3 Faculty of Humanities and Social Sciences Lampang Rajabhat University Thailand

Abstract The purpose of research was to study the casual relationship among entrepreneurial

marketing capabilities innovation and business strategy which had effect toward

competitive advantage of small and medium enterprises in Northern region of Thailand It

was survey research with stratified sampling group of 465 small and medium enterprises from

8 provinces ie Chiangrai Chiangmai Nan Phayao Phrae Mai Hong Son Lampang

and Lamphun The data analysis was conducted with descriptive statistics to find percentage

average standard deviation and inferential statistics analysis with structural equation

model

The outcomes of structural equation model analysis revealed that entrepreneurial had the

most direct effect toward marketing capabilities and followed by entrepreneurial had direct

effect toward business strategy Lastly the entrepreneurial had direct effect toward

innovation The research study also revealed that entrepreneurial had indirect effect toward

competitive advantage through marketing capabilities innovation business strategy

Keywords Entrepreneurial Marketing capabilities Innovation Business Strategy

Competitive Advantage Small and Medium Enterprises

1 Introduction

The complexity of current business destined entrepreneurs to promptly adjust their

organization structure to cope with both internal and external environment which had effect

toward the SMEs business operations (Kuratko and Hodgetts 2004) In order for the business

to gain the competitive advantage they must continue organization development (Porter 1990)

It was essential for entrepreneurs to have operational excellence over their competitive rivals

or to rely on the agility in coping with the arisen competitive arena with their long term

strategy (Wingwon 2007 p 74)

Small and medium entrepreneurs had dispersed throughout the country and contributed

value-added resources in economic system through the production or processing products and

service including the revenue generating from exporting cargoes that in turn yielded

371

substantial foreign currency each year It was also enhancing experience of entrepreneurs

(Boone and Kurtz 2010) in producing numerous products and in preventing monopoly in such

industry since competition would integrating among enterprises of all sizes within domestic

and international marketing which in turn would generated economic flow at macro level

(Sertvanich 2005 p 2)

By year 2010 the number of enterprises in Thailand had climbed to 2924910 representing

9960 percents of total enterprises of all types creating the work employment of 10507500

representing 7786 percents of total work employments and generated gross domestic

products of 40 percents of total gross domestic products (Office of Small and Medium

Enterprises 2010 pp 1-4)

Even though at present there were many enterprises but the majority of entrepreneurs

still had limitation on the managing business system from the lack of experiences (Casey

1996 p5) lack of business planning lack of production knowledge and lack of financial

management and the minimal knowledge on marketing capability (Bougheas Mizen and

Yalcin 2004 Saito and Villanueva 1981 pp 631-640) lack of adaptability to external

environment lack of applying innovation in business (Saengtienchom 2012 pp 1-5) including

the limitation in competing with large business Hence the outcomes of enterprises were not

at good level At the end the entrepreneurs had to close down their businesses after a short

operation (Office of Small and Medium Enterprises 2010 p 8)

The establishment of SMEs in Thailand was at average of over 50000 cases per year and

was with continued increasing trend But it was also with alarm concern over the report

of Business Development Department that there were at the average of 22000 registered

SMEs dissolved their businesses per year (Office of Small and Medium Enterprises 2010 p

10) which did not yield so good outcomes toward the economic and social status of the country

The result revealed that a number of SMEs were with a good business performance with future

growth and sustainability but there were also a substantial number of failure SMEs even

within the similar industry (Jiamjittrong 2010 p3) Hence it was the primary motive for

researcher to conduct this research study on the effect factors toward the competitive advantage

of SMEs

2 Research Objectives

21 Study the opinion level of entrepreneurial marketing capabilities innovation and business

strategy competitive advantage of SMEs in Northern region of Thailand

22 Study the casual relationship among entrepreneurial marketing capabilities innovation

and business strategy toward competitive advantage of SMEs in Northern region of Thailand

3 Scope of Research

Conceptual Framework and Research Hypothesis

The review of relevant literatures under the conceptual framework of Covin and Slevin

(1991) on entrepreneurial conceptual framework of Vorhies (1988) Weerawardena (2003)

372

on marketing capabilities conceptual framework of Drucker ( 1985) Hall ( 1994) Gibbons

( 1997) on innovation conceptual framework of McKinseyrsquos 7S Framework Peters and

Waterman (1982) on business strategy and conceptual framework of Porter (1980) on competitive

advantage The overall conceptual framework with summarized hypothesis as follows

Fig 1 Research Conceptual Framework

4 Relevant Literature reviews

From the review of conceptual frameworks theories and relevant researches on entrepreneurial researcher was able to summarize as follows

41 Entrepreneurial Concept

Entrepreneurial had deeper meaning than entrepreneurs it covered not only the

characteristics of entrepreneurs but it extended to include the process of activities arisen

from the feeling or responsibility of entrepreneurs (Drucket 1985 pp 67-72) The concept of

Bygrave and Hofer (1991) stated the relationship with duty and all related activities on the

generating of opportunities and creativities of organization in achieving such opportunities

It covered the work process through the risk taking for higher benefits the proactive works

creating innovation over competitors (Covin and Slevin 1991 p 277)

Weerawardena and OCass (2004 pp 419ndash 428) quoted that entrepreneurial played

important role in marketing capabilities by entrepreneurs was the mechanism driving or

supporting organization to search for the new market or marketing capabilities and

introducing new products As the owner of business or senior management had the role in

initiating creativities and risk taking in new business operation which aligned with the concept

of Shahid Qureshi (2010) who studied on the relationship and outcomes of entrepreneurial

business strategy and marketing capabilities effect toward the competitive advantage of SMEs

as per the below hypothesis

Entrepreneurial

Marketing Capabilities

Innovation

Competitive Advantage

Business Strategy

H1 H6

H2

H3

H4

H5

H7

H8

373

H1 Entrepreneurial had direct effect toward marketing capabilities

Schumpeter (1994) cited the importance of entrepreneurs toward the innovation

development by pointing out that innovation supported the economic growth when

entrepreneurs had created innovation Entrepreneurs had important role toward the success

of innovation development which matched the view of Wingwon (2012 pp1-14) who

mentioned that entrepreneurial strategic decision making and innovation had positive

indirect effect toward the competitive advantage of enterprises through innovation

Furthermore Nelson Jorge Ribeiro Duarte (2010 pp 1-16) concluded the antecedent of

entrepreneurial and business strategy were important toward the competitive advantage

and the sustainable success of organization which in line with the research of Moreno and Jose

casillas (2008 pp507-527) who concluded that entrepreneurial had direct effect toward

business strategy and both factors had relationship toward business success and competitive

advantage of organization at significant level as per the below hypothesis

H2 Entrepreneurial had direct effect toward innovation

H3 Entrepreneurial had direct effect toward business strategy

42 Marketing Capabilities Concept

Marketing Capability was the mixed process format of knowledge skills with organizational

internal resources which was able to respond to the market demands focus on the value-

added products and services for the organization competitive capability in the market (Vorhies

1988 pp 3-23 Day 1994 pp 37-52) Business was able to be self-development in order to

cope with the customer requirements and competitors including various relevant

environments to solve commercial issues (Tsai and Shih 2004 pp 524-530 Weerawardena

2002 pp 15-36) Business was able to equally share data among all departments in respond

to the marketing demand customer expectation and satisfaction over competitors (Slater and

Narver 1994 pp 46-55) The marketing capabilities supported the competitive advantage of

the organization which leading to larger customers base higher profits (Guenzi and Troilo

2002 pp 974-988 Slater and Narver 2000 pp 120-127 Vorhies 2002 pp 80-94)

In addition the concept of Wingwon (2011 pp 1-10) concluded that innovation

management and shared value had positive effect toward business strategy Morgan Vorhies

and Mason ( 2009 pp 909-92) studied the relationship between marketing capabilities and

competitive advantage of successful enterprises revealed that marketing capabilities had

direct effect toward the competitive advantage of successful enterprises as per below

hypotheses

H4 Marketing capabilities had direct effect toward innovation

H5 Innovation had effect toward business strategy

H2 Marketing capabilities had effect toward competitive advantage

374

43 Innovation Concept

Gibbons (1997 p13) stated that innovation was any new concept or idea in the

organization it could be either on product process or service including the new management

approach and new organizational marketing events which in line with the concept of Hall (1994

pp 19-22) who elaborated that innovation was more than the changing in technology

Innovation consisted of all activities that led to the change and interacted with the developing

or modifying of new technology The common adopted innovation by entrepreneurs in

business competition could be classified into 4 types (Johne 1999 pp 6-11) ie 1) product

and service innovation 2) process innovation 3) marketing innovation and 4) managing

innovation (Urabe Child and Kagono 1988 pp 4-5)

Schumpeter (1950) described innovation as the importance resources in building

competitive advantage had direct effect toward the organization (Damanpour Szabat and

Evan 1989 Han et al 1998) The organization with innovation would have adapted own self

to comply with the changing environment and led to the success with innovation as one of the

important key elements in developing and maintaining competitive capabilities (Damanpour et

al 1989 Han et al 1998) as per the below hypothesis

H7 Innovation had effect toward the competitive advantage

44 Business Strategy Concept

Strategy was plan with specified path or approach for organization to operate in achieving

objectives and targets (Davies 2000 Mintzberg 1996 pp 25-30) with focused on the integrating

and coordinating of the various business environments for the competitive advantage (Porter 1890

1882 1889 Thompson and Strickland 2003) It was the critical elements that entrepreneurs would

have to review in developing business policy strategic plan core value targets and objectives to

enhance organizational capability (Lertpachin 2011 p 5) The concept of McKinseyrsquos 7S Framework

had fundamental concept on efficiency of business derived from the correlation of internal

relevant elements within business ie 1) strategy 2) structure 3) system 4) style 5) staff 6)

skill and 7) shared value (Peters and Waterman 1980)

Duarte (2010) presented that entrepreneurial and business strategy had effect toward

competitive advantage and sustainable success or organization at significant level which aligned

with the concept of Alzal Sawat (2010 pp 87-102) It concluded that marketing capabilities

had effect toward business strategy and both variables had effect toward competitive

advantage and sustainable success or organization as per the below hypothesis

H8 Business strategy had effect toward competitive advantage

45 Competitive Advantage Concept

Porter (1985) described the competitive advantage as the differentiated business value

from competitors created for customers for their satisfactory The generating of competitive

375

advantage consisted of 3 strategic dimensions ie 1) cost leadership strategy was the

competitive strategy which focused on the lowest costs in attracting majority market and in

generating high profits Senior leader applied this strategy in controlling operating costs for

lower than competitors in expanding market shares and in earning higher profits 2)

differentiation strategy was the competitive strategy which focused on the creating of

differences in products in attracting customers to appreciate the outstanding differences

from competitors and 3) focus strategy was the competitive strategy which focused on the

meeting of demands on specific group or area of customers that were often overlooked by other

entrepreneurs It mainly focused on the limited market products or geographic areas

5 Research Methodology

This quantitative research applied survey research concept with 4 scope dimensions ie 1)

Content dimension to study the conceptual framework of entrepreneurial marketing capabilities

innovation business strategy and competitive advantage 2) Population dimension was the SMEs

entrepreneurs from industry commercial and service sectors 3) Area dimension covered 8

provinces in Lanna group ie Chiangrai Chiangmai Lampang Nan Prayao Phrae Lamphun and

Maehongsong 4) Duration dimension covered 8 months period from October 2012 till July 2012

The research tools were questionnaire developed from the literature reviews on 1) Entrepreneurial

was developed from the research works of Miller and Toulouse (1986) and Wingwon (2011) (2)

Marketing capabilities was developed from the research works of Qureshi (2010) and Merriless

Thiele Lye (2011) 3) Innovation was developed from the research works of Drucker (1985) and

Wingwon (2011) 4) Business strategy developed from the research works of McKinseyrsquos 7rsquoS

Framework Peters and Waterman (1982) and 5) Competitive advantage was developed from the

research works of Day and Wensleyrsquos (1988) Porter (1980) and Lee Itsieh (2010) Researcher

applied the 7 levels opinion measurement of Likert scale Population was total 279482 SMErsquos

entrepreneurs in Lanna group (Department of Business Development 2011) applying stratified

random sampling method and proportional selected 500 representative of entrepreneurs from

each province (Office of Small and Medium Enterprises 2010) and received 465 responded

questionnaire representing 93 percent which had been screened for completeness and coded for

research analysis

6 Data Analysis

The research applied descriptive statistics in analysis data to find the percentage means and

standard deviation and inferential statistics to analyze the correlation path in testing of

variables for direct indirect or total effect with SmartPLS program (Ringle Wende and Will

2004) The research tools were measured with Cronbachrsquos Alpha (Lee 1951) eg the value on

entrepreneurial factor was equal to 973 on marketing capabilities factor was 973 on

376

innovation factor was 973 on business strategy was 973 and on competitive advantage was

973

5 Research Summary

Section 1 General profile information of SMEs entrepreneurs

The research outcomes revealed that the majority of total SMEs entrepreneurs from 8

provinces were female in gender with average age between 31-40 years old with

undergraduate educational level and followed by below undergraduate level with business

operation in service sector and followed by in sale distribution representative or commercial

sector with business operation tenure of 1-5 years and followed by 6-10 years with source

of investment from owner finance representing 5140 percents and followed by financial

institution loans representing 4150 percents with majority of business operation at

profitable level representing 5510 percents

Section 2 SMEs entrepreneurs had favorable opinions on all 5 factors at rather high level

ie on entrepreneurial factor with value equal to 519 on marketing capabilities factor with

value equal to 519 on innovation factor with value equal to 485 on business strategy factor

with value equal to 512 and on competitive advantage factor with value equal to 512

Section 3 Outcomes of structural equation model analysis

The outcomes of structural equation model analysis revealed that entrepreneurial factor had

effect toward marketing capabilities with highest coefficient path value equal to 0703 and

with R2 value equal to 0494 and followed by entrepreneurial factor had effect toward

business strategy with coefficient path value equal to 0600 and with R2 value equal to 0479

and lastly entrepreneurial factor had effect toward innovation with coefficient path value

equal to 0477 and with R2 value equal to 0249 The entrepreneurial factor had effect toward

competitive advantage with coefficient path value equal to 0181 and with R2 value equal to

0594

377

Fig 2 Analysis with SmartPLS Program (Ringle Wende and Will 2004)

The marketing capabilities factor had effect toward the competitive advantage with

coefficient path value equal to 0258 and with R2 value equal to 0594 and marketing

capabilities factor had effect toward innovation with coefficient path value equal to 0030 and

with R2 value equal to 0249 The innovation factor had effect toward competitive advantage

with coefficient path value equal to 0029 and with R2 value equal to 0594 and innovation

factor had effect toward business strategy with coefficient path value equal to 0156 and with

R2 value equal to 0479 The business strategy facto had effect toward competitive advantage

with coefficient path value equal to 0568 and with R2 value equal to 059

8 Hypothesis Test

The outcomes of hypothesis test of entrepreneurial marketing capabilities innovation and

business strategy had effect toward competitive advantage of SMEs entrepreneurs at Lanna

group of Thailand could be summarized as follows

Table 2 Outcomes of Direct Indirect and Total Effects

Dependent Variable R2 Effect Antecedent

Entrep Mkt Cap Inno Bus Stra

Compt Ad 0594 DE 0000 0258 0029 0568

IE 0579 0004 0088 0000

TE 0579 0262 0117 0568

Bus Stra 0479 DE 0600 0000 0156 NA

IE 0077 0005 0000 NA

TE 0677 0005 0000 NA

Inno 0249 DE 0477 0030 NA NA

IE 0021 0000 NA NA

TE 0498 0030 NA NA

Mkt Cap 0494 DE 0703 NA NA NA

378

IE 0000 NA NA NA

TE 0703 NA NA NA

Note TE = Total Effect DE = Direct Effect IE = Indirect Effect NA = Not Applicable

Entrep = Entrepreneurial Mkt Cap =Marketing Capabilities Innov =Innovation Bus Stra = Business

Strategy Compt Ad = Competitive Advantage

Table 2 revealed the effect factors had effect on all 4 variables for both direct and indirect

effect toward variables with full details as follows

1 Entrepreneurial had direct effect toward marketing capabilities with correlation path

value equal to 0703 and R2 value equal to 0494with direct effect toward innovation with

coefficient path value equal to 0477 and with R2 value equal to 0249 with direct effect

toward business strategy with coefficient path value equal to 0600 and with R2 value equal to

0479 and with indirect effect toward competitive advantage with coefficient path value equal

to 0579 and with R2 value equal to 0594

2 Marketing capabilities had direct effect toward innovation with coefficient path value

equal to 0030 with R2 value equal to 0249 with indirect effect toward business strategy with

coefficient path value equal to 0005 with R2 value equal to 0479 with direct effect toward

competitive advantage with coefficient path value equal to 0258 and with indirect effect

toward competitive advantage with coefficient path value equal to 0004 and with R2 value

equal to 0594

3 Innovation had direct effect toward business strategy with coefficient path value equal to

0156 with R2 value equal to 0479 with direct effect toward competitive advantage with

coefficient path value equal to 0029 and with R2 value equal to 0594 with indirect effect


equal to 0594

4 Business strategy had direct effect toward competitive advantage with coefficient path

value equal to 0568 and with R2 value equal to 0594

Table 3 Outcomes of Hypothesis Test

Research Hypothesis Coef t-stat Outcomes

H1 Entrepreneurial had direct effect toward Marketing Capabilities

0702 848 Supported

H2 Entrepreneurial had direct effect toward Innovation 0477 442 Supported

H2 Entrepreneurial had direct effect toward Business Strategy 0600 1147 Supported

379

H4 Marketing Capabilities had direct effect toward Innovation 0029 024 Not Supported

H2 Innovation had effect toward Business Strategy 0156 196 Supported

H2 Marketing Capability had effect toward Competitive Advantage 0257 226 Supported

H7 Innovation had effect toward Competitive Advantage 0028 105 Not Supported

H9 Business Strategy had effect toward Competitive Advantage 0568 582 Supported

Remark t-stat ge 182 indicated that hypothesis with statistical significance at 005 level

Table 3 revealed outcomes of hypothesis test which could be summarized as follows

Hypothesis 1 Entrepreneurial had direct effect toward Marketing Capabilities

Outcomes of hypothesis test revealed that entrepreneurial had direct effect toward

marketing capabilities with coefficient path value equal to 0702 and with t-stat value equal

to 848 which supported hypothesis at statistical significance level of 005

Hypothesis 2 Entrepreneurial had direct effect toward Innovation


innovation with coefficient path value equal to 0477 and with t-state value equal to 442

which supported hypothesis at statistical significance level of 005

Hypothesis 3 Entrepreneurial had direct effect toward Business Strategy


business strategy at coefficient path value equal to 0600 and with t-state value equal to 1147


Hypothesis 4 Marketing Capabilities had direct effect toward Innovation

Outcomes of hypothesis test revealed that marketing capabilities had direct effect toward

innovation with coefficient path value equal to 0029 and t-stat value equal to 024 which not

supported by hypothesis

Hypothesis 5 Innovation had direct effect toward Business Strategy

Outcomes of hypothesis test revealed that innovation had direct effect toward business

strategy at coefficient path value equal to 0156 and with t-state value equal to 196 which

supported hypothesis at statistical significance level of 005

Hypothesis 6 Marketing Capabilities had effect toward Competitive Advantage

380


competitive advantage at coefficient path value equal to 0257 and with t-state value equal


Hypothesis 7 Innovation had effect toward Competitive Advantage

Outcomes of hypothesis test revealed that innovation had direct effect toward competitive

advantage with coefficient path value equal to 0028 and t-stat value equal to 105 which not


Hypothesis 8 Business Strategy had effect toward Competitive Advantage

Outcomes of hypothesis test revealed that business strategy had direct effect toward



Table 4 Outcomes of Composite Reliability Analysis

Construct CR AVE R2 Construct

Entrep Mkt Cap Inno Bus Stra Compt Ad

Entrep 0935 0534 - 0730

Mkt Cap 0936 0620 0494 0743 0790

Inno 0964 0731 0248 0678 0614 0855

Bus Stra 0942 0645 0478 0455 0381 0498 0803

Compt Ad 0942 0700 0594 0626 0624 0702 0365 0837

Note CR = composite reliability AVE = Average Variance Extracted

Entrep = Entrepreneurial Mkt Cap = Marketing Capabilities Innov = Innovation Bus Stra =Business

Strategy

Compt Ad = Competitive Advantage

Table 4 revealed the composite reliability value of every variable and with AVE value higher

than 050 which indicated that all questions of each indicator were able to measure the value

with reliability and coefficient value of each individual indicator within the same variable had

higher coefficient value than coefficient of the different variable It indicated that

measurement of each construct was able to effectively measure own context which

confirmed its composite reliability

381

9 Research Outcomes Discussion

The majority of SMEs entrepreneurs in Lanna group of Thailand were female in

gender with average age between 31-40 years old which in line with the study of Silverstein

and Sayre (2009 pp 48-90) who stated that female entrepreneurs were more delicate

tolerate and determine in managing business than male in certain situation with particular

on the task which had to deal with relationship with others of both internal and external

organization It could be quoted that lady would be the driver of modern economy which

aligned with the concept of Zimmerer and Scarborough (2002 pp 15-19) who described the

element of entrepreneurs as working group of 30 years old and over with undergraduate

educational level with well living standard with determination in managing business risks

with vision and determination in learning and managing business with business operation in

service sector and followed with the sale distribution representative or commercial sector

with duration in business operation of 1-5 years and followed with 6-10 years with majority

of capital investment from owner private fund with business operation at profitable level and

followed with continued business growth

The majority of SMErsquos entrepreneurs had rather high entrepreneurial marketing

capabilities innovation business strategy which aligned with the concept of Shahid Qureshi

(2010) who discovered that entrepreneurial business strategy and marketing capability had

effect toward the success of enterprises The research outcomes of Wingwon (2012 pp 1-

14) summarized that entrepreneurial strategic decision making and innovation had positive

effect toward competitive advantage of small and medium enterprises by entrepreneurial

had indirect effect toward the competitive advantage of SMEs through innovation Lastly the

competitive advantage had rather high importance as it consisted of the creating of

differentiation cost leadership and focus on core business which matched with the concept

of Barney (1991 pp 99-120) which stated that competitive advantage as perceived by

customers was the higher value of products or services over competitors which could not be

substituted or compared against other offers and with higher switching costs When

comparing the performance outcomes with competitive advantage it revealed the marketing

advantage price competitiveness lower discount than competitors high quality of products

or services durability and innovation

The outcomes of structural equation model revealed that entrepreneurial had direct

effect toward marketing capability which demonstrated that entrepreneurial was the

supporting mechanism for organization in searching for new market and in introducing new

products in market and generated the marketing capability (Liu Luo and Shi 2002 pp 367-

382) It also played the critical role in product and service development (Kerin 1992 pp 331-

334) by applying entrepreneurial as the owner role in creative thinking and risk taking in

operating new business Therefore entrepreneurial had important role for leading the

organization toward marketing capabilities

382

Furthermore entrepreneurial had direct effect toward business strategy which confirmed

with the study of Wingwon (2007) which summarized that entrepreneurship risk

management inspiration and determination of staff and relevant stakeholders It included

the business capacity in operating future business (Wingwon 2007 p 49) with flexibility in

modifying target strategy and proactive operation in order to cope with the evolved changing

environment The research study pointed out the importance of business strategy of SMEs

that supported the SMErsquos sustainability and competitive advantage (Chen and Hambrick 1995

Hitt et al 1991 Storey 1994)

In addition entrepreneurial had direct effect toward innovation with aligned with the

concept of Schumpeter (1994) who quoted the importance of entrepreneurs in innovation

development He pointed out that innovation would assist the economic growth Hence

entrepreneurs had important role in developing innovation and it would in turn assisted

entrepreneurs in achieving business success

Lastly entrepreneurial had indirect effect toward competitive advantage through

marketing capabilities innovation and business strategy which conformed with research work

of Jia ndash Sheng Lee Chia-Jung Hsich (2010) It revealed that entrepreneurial had direct effect

toward marketing capabilities ability in creating innovation sustainable competitive

advantage and entrepreneurial had indirect effect toward sustainable competitive advantage

through marketing capabilities and innovation capability Shahid Qureshi (2010) had also

concluded that entrepreneurial business strategy marketing capability had effect toward

the success of SMEs

10 Research Recommendations

1 The study of entrepreneurial by applying different sampling groups with larger sampling

size The study should cover the large enterprises for comparison on the perception of

entrepreneurial of SMEs against the large enterprises

2 Government sector ought to fully aware and support the knowledge learning on

innovation development on continuous basis for entrepreneurs to applying such knowledge in

supporting competitive advantage and leading the economic development of the country as a

whole

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strategy Journal of Strategy Marketing 11 15-35

386

Weerawardena J O Cass A amp Julian C (2002) lsquoDoes industry matter Examining the role

of industry structure in innovation-based competitive marketing strategy Journal of

Business Research 59 37-45

Wingwon B ( 2007) SMEs Business Management Department of General Management

Faculty of Management Science Lampang Rajabhat University

Wingwon B (2011) Antecedents and Outcomes of Business Strategy for SMEs

Entrepreneurs in Northern Region Faculty of Management Science Lampang Rajabhat

University

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) 78-93

Zimmerer T W amp Scarborough N M (2002) Essentials of Entrepreneurship and Small

Business Management (4thed) New Jersey Prentice-Hall

371

substantial foreign currency each year It was also enhancing experience of entrepreneurs

(Boone and Kurtz 2010) in producing numerous products and in preventing monopoly in such

industry since competition would integrating among enterprises of all sizes within domestic

and international marketing which in turn would generated economic flow at macro level

(Sertvanich 2005 p 2)

By year 2010 the number of enterprises in Thailand had climbed to 2924910 representing

9960 percents of total enterprises of all types creating the work employment of 10507500

representing 7786 percents of total work employments and generated gross domestic

products of 40 percents of total gross domestic products (Office of Small and Medium

Enterprises 2010 pp 1-4)

Even though at present there were many enterprises but the majority of entrepreneurs

still had limitation on the managing business system from the lack of experiences (Casey

1996 p5) lack of business planning lack of production knowledge and lack of financial

management and the minimal knowledge on marketing capability (Bougheas Mizen and

Yalcin 2004 Saito and Villanueva 1981 pp 631-640) lack of adaptability to external

environment lack of applying innovation in business (Saengtienchom 2012 pp 1-5) including

the limitation in competing with large business Hence the outcomes of enterprises were not

at good level At the end the entrepreneurs had to close down their businesses after a short

operation (Office of Small and Medium Enterprises 2010 p 8)

The establishment of SMEs in Thailand was at average of over 50000 cases per year and

was with continued increasing trend But it was also with alarm concern over the report

of Business Development Department that there were at the average of 22000 registered

SMEs dissolved their businesses per year (Office of Small and Medium Enterprises 2010 p

10) which did not yield so good outcomes toward the economic and social status of the country

The result revealed that a number of SMEs were with a good business performance with future

growth and sustainability but there were also a substantial number of failure SMEs even

within the similar industry (Jiamjittrong 2010 p3) Hence it was the primary motive for

researcher to conduct this research study on the effect factors toward the competitive advantage

of SMEs

2 Research Objectives

21 Study the opinion level of entrepreneurial marketing capabilities innovation and business

strategy competitive advantage of SMEs in Northern region of Thailand

22 Study the casual relationship among entrepreneurial marketing capabilities innovation

and business strategy toward competitive advantage of SMEs in Northern region of Thailand

3 Scope of Research

Conceptual Framework and Research Hypothesis

The review of relevant literatures under the conceptual framework of Covin and Slevin

(1991) on entrepreneurial conceptual framework of Vorhies (1988) Weerawardena (2003)

372
























Entrepreneurial


Innovation


Business Strategy

H1 H6

H2

H3

H4

H5

H7

H8

373

































hypotheses




374





































375





























research analysis

6 Data Analysis






376


973

5 Research Summary






















0594

377










8 Hypothesis Test







Compt Ad 0594 DE 0000 0258 0029 0568

IE 0579 0004 0088 0000

TE 0579 0262 0117 0568

Bus Stra 0479 DE 0600 0000 0156 NA

IE 0077 0005 0000 NA

TE 0677 0005 0000 NA

Inno 0249 DE 0477 0030 NA NA

IE 0021 0000 NA NA

TE 0498 0030 NA NA


378

IE 0000 NA NA NA

TE 0703 NA NA NA

















equal to 0594





equal to 0594






0702 848 Supported



379





























380















Entrep 0935 0534 - 0730

Mkt Cap 0936 0620 0494 0743 0790

Inno 0964 0731 0248 0678 0614 0855

Bus Stra 0942 0645 0478 0455 0381 0498 0803

Compt Ad 0942 0700 0594 0626 0624 0702 0365 0837



Strategy








381







































382





















the success of SMEs








whole

11 References







383













453ndash482


334






601



Sussex







22

384




6-11








Rajabhat University







2009













385







Hambury





Row











21(4) 524-530









386








University






372
























Entrepreneurial


Innovation


Business Strategy

H1 H6

H2

H3

H4

H5

H7

H8

373

































hypotheses




374





































375





























research analysis

6 Data Analysis






376


973

5 Research Summary






















0594

377










8 Hypothesis Test







Compt Ad 0594 DE 0000 0258 0029 0568

IE 0579 0004 0088 0000

TE 0579 0262 0117 0568

Bus Stra 0479 DE 0600 0000 0156 NA

IE 0077 0005 0000 NA

TE 0677 0005 0000 NA

Inno 0249 DE 0477 0030 NA NA

IE 0021 0000 NA NA

TE 0498 0030 NA NA


378

IE 0000 NA NA NA

TE 0703 NA NA NA

















equal to 0594





equal to 0594






0702 848 Supported



379





























380















Entrep 0935 0534 - 0730

Mkt Cap 0936 0620 0494 0743 0790

Inno 0964 0731 0248 0678 0614 0855

Bus Stra 0942 0645 0478 0455 0381 0498 0803

Compt Ad 0942 0700 0594 0626 0624 0702 0365 0837



Strategy








381







































382





















the success of SMEs








whole

11 References







383













453ndash482


334






601



Sussex







22

384




6-11








Rajabhat University







2009













385







Hambury





Row











21(4) 524-530









386








University






373

































hypotheses




374





































375





























research analysis

6 Data Analysis






376


973

5 Research Summary






















0594

377










8 Hypothesis Test







Compt Ad 0594 DE 0000 0258 0029 0568

IE 0579 0004 0088 0000

TE 0579 0262 0117 0568

Bus Stra 0479 DE 0600 0000 0156 NA

IE 0077 0005 0000 NA

TE 0677 0005 0000 NA

Inno 0249 DE 0477 0030 NA NA

IE 0021 0000 NA NA

TE 0498 0030 NA NA


378

IE 0000 NA NA NA

TE 0703 NA NA NA

















equal to 0594





equal to 0594






0702 848 Supported



379





























380















Entrep 0935 0534 - 0730

Mkt Cap 0936 0620 0494 0743 0790

Inno 0964 0731 0248 0678 0614 0855

Bus Stra 0942 0645 0478 0455 0381 0498 0803

Compt Ad 0942 0700 0594 0626 0624 0702 0365 0837



Strategy








381







































382





















the success of SMEs








whole

11 References







383













453ndash482


334






601



Sussex







22

384




6-11








Rajabhat University







2009













385







Hambury





Row











21(4) 524-530









386








University






374





































375





























research analysis

6 Data Analysis






376


973

5 Research Summary






















0594

377










8 Hypothesis Test







Compt Ad 0594 DE 0000 0258 0029 0568

IE 0579 0004 0088 0000

TE 0579 0262 0117 0568

Bus Stra 0479 DE 0600 0000 0156 NA

IE 0077 0005 0000 NA

TE 0677 0005 0000 NA

Inno 0249 DE 0477 0030 NA NA

IE 0021 0000 NA NA

TE 0498 0030 NA NA


378

IE 0000 NA NA NA

TE 0703 NA NA NA

















equal to 0594





equal to 0594






0702 848 Supported



379





























380















Entrep 0935 0534 - 0730

Mkt Cap 0936 0620 0494 0743 0790

Inno 0964 0731 0248 0678 0614 0855

Bus Stra 0942 0645 0478 0455 0381 0498 0803

Compt Ad 0942 0700 0594 0626 0624 0702 0365 0837



Strategy








381







































382





















the success of SMEs








whole

11 References







383













453ndash482


334






601



Sussex







22

384




6-11








Rajabhat University







2009













385







Hambury





Row











21(4) 524-530









386








University






375





























research analysis

6 Data Analysis






376


973

5 Research Summary






















0594

377










8 Hypothesis Test







Compt Ad 0594 DE 0000 0258 0029 0568

IE 0579 0004 0088 0000

TE 0579 0262 0117 0568

Bus Stra 0479 DE 0600 0000 0156 NA

IE 0077 0005 0000 NA

TE 0677 0005 0000 NA

Inno 0249 DE 0477 0030 NA NA

IE 0021 0000 NA NA

TE 0498 0030 NA NA


378

IE 0000 NA NA NA

TE 0703 NA NA NA

















equal to 0594





equal to 0594






0702 848 Supported



379





























380















Entrep 0935 0534 - 0730

Mkt Cap 0936 0620 0494 0743 0790

Inno 0964 0731 0248 0678 0614 0855

Bus Stra 0942 0645 0478 0455 0381 0498 0803

Compt Ad 0942 0700 0594 0626 0624 0702 0365 0837



Strategy








381







































382





















the success of SMEs








whole

11 References







383













453ndash482


334






601



Sussex







22

384




6-11








Rajabhat University







2009













385







Hambury





Row











21(4) 524-530









386








University






376


973

5 Research Summary






















0594

377










8 Hypothesis Test







Compt Ad 0594 DE 0000 0258 0029 0568

IE 0579 0004 0088 0000

TE 0579 0262 0117 0568

Bus Stra 0479 DE 0600 0000 0156 NA

IE 0077 0005 0000 NA

TE 0677 0005 0000 NA

Inno 0249 DE 0477 0030 NA NA

IE 0021 0000 NA NA

TE 0498 0030 NA NA


378

IE 0000 NA NA NA

TE 0703 NA NA NA

















equal to 0594





equal to 0594






0702 848 Supported



379





























380















Entrep 0935 0534 - 0730

Mkt Cap 0936 0620 0494 0743 0790

Inno 0964 0731 0248 0678 0614 0855

Bus Stra 0942 0645 0478 0455 0381 0498 0803

Compt Ad 0942 0700 0594 0626 0624 0702 0365 0837



Strategy








381







































382





















the success of SMEs








whole

11 References







383













453ndash482


334






601



Sussex







22

384




6-11








Rajabhat University







2009













385







Hambury





Row











21(4) 524-530









386








University






377










8 Hypothesis Test







Compt Ad 0594 DE 0000 0258 0029 0568

IE 0579 0004 0088 0000

TE 0579 0262 0117 0568

Bus Stra 0479 DE 0600 0000 0156 NA

IE 0077 0005 0000 NA

TE 0677 0005 0000 NA

Inno 0249 DE 0477 0030 NA NA

IE 0021 0000 NA NA

TE 0498 0030 NA NA


378

IE 0000 NA NA NA

TE 0703 NA NA NA

















equal to 0594





equal to 0594






0702 848 Supported



379





























380















Entrep 0935 0534 - 0730

Mkt Cap 0936 0620 0494 0743 0790

Inno 0964 0731 0248 0678 0614 0855

Bus Stra 0942 0645 0478 0455 0381 0498 0803

Compt Ad 0942 0700 0594 0626 0624 0702 0365 0837



Strategy








381







































382





















the success of SMEs








whole

11 References







383













453ndash482


334






601



Sussex







22

384




6-11








Rajabhat University







2009













385







Hambury





Row











21(4) 524-530









386








University






378

IE 0000 NA NA NA

TE 0703 NA NA NA

















equal to 0594





equal to 0594






0702 848 Supported



379





























380















Entrep 0935 0534 - 0730

Mkt Cap 0936 0620 0494 0743 0790

Inno 0964 0731 0248 0678 0614 0855

Bus Stra 0942 0645 0478 0455 0381 0498 0803

Compt Ad 0942 0700 0594 0626 0624 0702 0365 0837



Strategy








381







































382





















the success of SMEs








whole

11 References







383













453ndash482


334






601



Sussex







22

384




6-11








Rajabhat University







2009













385







Hambury





Row











21(4) 524-530









386








University






379





























380















Entrep 0935 0534 - 0730

Mkt Cap 0936 0620 0494 0743 0790

Inno 0964 0731 0248 0678 0614 0855

Bus Stra 0942 0645 0478 0455 0381 0498 0803

Compt Ad 0942 0700 0594 0626 0624 0702 0365 0837



Strategy








381







































382





















the success of SMEs








whole

11 References







383













453ndash482


334






601



Sussex







22

384




6-11








Rajabhat University







2009













385







Hambury





Row











21(4) 524-530









386








University






380















Entrep 0935 0534 - 0730

Mkt Cap 0936 0620 0494 0743 0790

Inno 0964 0731 0248 0678 0614 0855

Bus Stra 0942 0645 0478 0455 0381 0498 0803

Compt Ad 0942 0700 0594 0626 0624 0702 0365 0837



Strategy








381







































382





















the success of SMEs








whole

11 References







383













453ndash482


334






601



Sussex







22

384




6-11








Rajabhat University







2009













385







Hambury





Row











21(4) 524-530









386








University






381







































382





















the success of SMEs








whole

11 References







383













453ndash482


334






601



Sussex







22

384




6-11








Rajabhat University







2009













385







Hambury





Row











21(4) 524-530









386








University






382





















the success of SMEs








whole

11 References







383













453ndash482


334






601



Sussex







22

384




6-11








Rajabhat University







2009













385







Hambury





Row











21(4) 524-530









386








University






383













453ndash482


334






601



Sussex







22

384




6-11








Rajabhat University







2009













385







Hambury





Row











21(4) 524-530









386








University






384




6-11








Rajabhat University







2009













385







Hambury





Row











21(4) 524-530









386








University






385







Hambury





Row











21(4) 524-530









386








University






386








University






effect of entrepreneurial, marketing capabilities ... o… · the purpose of research was to study...

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