CREATIVE ECONOMY, DYNAMIC CAPABILITIES, AND COMPETITIVE ADVANTAGE AFFECTING THE BUSINESS PERFORMANCE OF SMES IN THE TEXTILE MANUFACTURING INDUSTRY OF THAILAND
DOI:
https://doi.org/10.14456/aamr.2024.28Keywords:
Creative Economy, Dynamic Capabilities, Competitive Advantage, Business Performance, SMEsAbstract
This research aimed to analyze the structure and relationships, and to study the path of effects between the creative economy, dynamic capabilities, and competitive advantage affecting the performance of small and medium-sized enterprises (SMEs) in Thailand's textile manufacturing industry. A questionnaire was used for data collection with small and medium enterprise operators in the Thai textile manufacturing industry who are registered as legal entities and are SME members. In this study, confirmatory factor analysis and causal model analysis were used for statistical analysis. The major findings indicated that the analysis of the structural model’s fit to empirical data revealed that the model was consistent with observed data. Considering the magnitude of the direct effect of predictor variables on organizational performance, it was found that the creative economy had a positive direct effect with a coefficient of 0.356 at the .01 level of significance. The capability for innovation directly affected business performance with a positive effect coefficient of 0.526 at the .01 level, and competitive advantage also directly impacted business performance with a positive effect coefficient of 0.612 at the .01 level as well. All predictor variables in the model could explain 78.0% of the variance in business performance and 60.0% of the variance in competitive advantage, respectively.
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