The effects of entrepreneurial orientation and enterprise characteristics toward Khon Kaen SMEs’ growth

Abstract

       This research aimed to develop a causal structural relationship model of entrepreneurial characteristics and establishment characteristics that affect the growth of SMEs in Khon Kaen Province and to compare the relationship model of entrepreneurial characteristics and establishment characteristics that affect growth classified by type and size of enterprises in Khon Kaen Province. The data in the first part of the study came from interviews and assessments of factors affecting the growth of enterprises from 15 experts and entrepreneurs. The second part was obtained from a questionnaire on practices or realities in enterprises from 200 entrepreneurs. The preliminary data of the variables were analyzed using the SPSS program and the structural equation model was analyzed using the LISREL program.

       The research results found that all variables had a positive influence on the outcome variable, i.e., entrepreneurial characteristics had a direct influence on establishment characteristics and had an indirect influence on growth through establishment characteristics. It was also found that establishment characteristics had a direct influence on growth, with important establishment characteristics being proactive organizations, marketing strategies, and organizational innovation. This shows that when entrepreneurs have more entrepreneurial characteristics, it directly affects the efficiency of work in the establishment, leading to development of business performance and growth in the establishment.