Effects of Change Capability and Knowledge Management on Financial Performance: SMEs in Meat Processing and Preservation Industry, Northeast Thailand
Keywords:
Change Capability, Knowledge Management, Financial Performance, Small and Medium Enterprises, Meat Processing and Preservation IndustryAbstract
Thai small and medium enterprises (SMEs) have played an important role for a long time as they are fundamental for Thailand’s economy because they provide the mechanisms for the sustainable development of the current economy of the country. This research tests and explains the factors of change capability and knowledge management affecting the financial performance of SMEs in the meat processing and preservation industry, Northeast Thailand. The sample was collected from 117 firms using a mailed questionnaire method. Structure equation modeling (SEM) was employed. The results show that for SMEs in the meat processing and preservation industry, Northeast Thailand, the factors of change capability and knowledge protection had significant positive effects on financial performance, with p<.01 and p<.05, respectively. The effect size obtained was 49%. The factor of knowledge transfer; however, had no effect on financial performance. The findings suggest that in this industry it is important to focus on a companies’ own change capability (.82) to survive in the long term, to protect commercial knowledge (.72) and to be aware of transferring knowledge outside of the firms.
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