The causal relationship path model of factors influencing the development of value-added potential in products of small and medium-sized enterprises (SMEs) in Phetchaburi province

Abstract

The objectives of this research are (1) To study the level of value-added product development potential of small and medium-sized enterprises (SMEs) in Phetchaburi Province. (2) To study the analysis of the confirmatory components of the development of value-added potential in products of small and medium-sized enterprises (SMEs) in Phetchaburi Province, and (3) To study the causal structure relationship path model of factors influencing the development results of value-added potential in products of SME entrepreneurs in Phetchaburi Province. (1) to study the level of value-added potential development in products of SME entrepreneurs in Phetchaburi Province; (2) to study the confirmatory factor analysis of the development of value-added potential in products of SME entrepreneurs in Phetchaburi Province; and (3) to study the causal structure path model of the factors influencing the outcome of the development of value-added potential in products of SME entrepreneurs in Phetchaburi Province. The target population of this research is SME entrepreneurs in Phetchaburi Province, covering the manufacturing, service, and agricultural industries, which are important in strengthening the local economy. The research instrument was a questionnaire. Descriptive statistics such as percentage, mean, and standard deviation were used for data analysis, as well as structural equation modeling (SEM) to analyze the causal relationship paths and confirm the consistency of the developed model with the empirical data.

          The findings revealed that 1) the level of value-added development potential in products of SMEs in Phetchaburi Province, assessed across factors of (1)new product development, (2) market demand, (3) skills and knowledge of SME operators, (4) readiness for change, and (5) government policy, was at a high level; 2) CFA results showed alignment between the developed model and empirical data, with all five factors significantly explaining the latent variables, thus accurately reflecting the causal structure of factors influencing value-added potential in products; and 3) path analysis results indicated that new product development was directly and indirectly influenced by key factors, primarily market demand, skills and knowledge of operators, and government policy. Among these, market demand exerted the greatest direct influence on fostering innovative and higher-value product development, enabling SMEs in Phetchaburi Province to effectively compete in the market.