BUSINESS ADAPTATION AND DIGITAL TRANSFORMATION: DRIVING COMPETITIVE ADVANTAGE IN THAI SMALL AND MEDIUM ENTERPRISES
DOI:
https://doi.org/10.14456/aamr.2026.15Keywords:
Digital Transformation, Competitive Advantage, Business Adaptation, Organizational Culture, Small and Medium EnterprisesAbstract
As digital disruption profoundly reshapes the global market, Small and Medium-sized Enterprises (SMEs) must urgently reconfigure their operational paradigms to sustain long-term viability. This study investigates the complex structural mechanisms linking business adaptation, business strategy, and organizational cultural transmission to competitive advantage, specifically emphasizing the mediating role of digital transformation. Employing a quantitative cross-sectional design, empirical data were gathered from 311 active members of the Young Entrepreneur Chamber of Commerce (YEC) across Thailand. The measurement model's construct validity was rigorously confirmed through Confirmatory Factor Analysis (CFA), followed by Structural Equation Modeling (SEM) to evaluate the hypothesized causal pathways. The robust empirical findings reveal that business adaptation acts as the foundational catalyst, significantly driving both business strategy and cultural transmission. Crucially, digital transformation serves as a powerful mediator that translates these strategic and cultural readiness factors into a sustained competitive advantage. This research provides vital empirical evidence that digital transformation is not merely a technological upgrade but a holistic strategic imperative. To achieve sustainable economic growth, policymakers and SME leaders must synergistically align adaptive organizational cultures with robust digital strategies to navigate hyper-competitive business environments effectively.
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