Utilize Structural Equation Model (SEM) to Explore the Relationship between Network Management and Competitive Advantage: the Mediating Effect of Innovation: the Case Study of Food Processing in the Southern Thailand
Keywords:
Network Management, Innovation, Competitive Advantage of the OrganizationAbstract
The purpose of this research was to study (1) the influence of network management consisting of Government network Private network of educational institutions And community networks that have an impact on innovations include Product innovation Process innovation Marketing innovation and organizational innovation (2) The influence of innovation which is Product innovation Process innovation Marketing innovation and organizational innovation affect the Competitive Advantage. (3) study the influence of innovation As a link between network management and competitive advantage. This research is quantitative. 929 SMEs in the food processing industry in the southern region are registered on the database of the Office of Small and Medium Enterprises (OSMEP). The sampling group was proportionally selected by implementing tiered sample groups within 14 southern provinces of Thailand, accounting for 200. The 200 units are a minimum requirement for structural equation model analysis. In this study, data was analyzed with PLS SEMS. The result found that the causal relationship model that influences the performance of the processed food industry in southern Thailand is congruent with Model Fit, SRMR = 0.041 criteria. The Company's measurement model equates harmony SRMR ≤ 0.08. Due to the causal factors, it found that Network management influences innovation, Innovation has an influence on competitive advantage. And network management has a positive indirect influence on the competitive advantage through the variable separator is innovation the research results will help the organization to manage the network and must focus on network management. In order to lead to sustainable innovation and competitive advantage of the organization.
References
Barney, J. B. (1991). Firm resources and sustained competitive advantage. Journal of Management, 1(7), 99-120.
Chanaboon, S. (2017). Statistics and data analysis in primary health research. Khon Kaen: Khon Kaen Provincial Health Office.
Choklamlid, M. (2017). Thai food innovation 4.0 golden opportunities for SMEs to expand foreign trade. Economic base. Searched on March 28, 2017, from: http://www.thansettakij.com/content/137324.
Christopher, M. (2016). Logistics and supply chain management. Harlow: Pearson Education Limited.
Engchuan, C. (2018). Network management capabilities for sustainable performance of community based tourism networks group in the south of Thailand. (Doctoral dissertation) Silpakorn University, Nakhon Pathom.
Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2017). A primer on partial least squares structural equation modeling (PLS-SEM). (2nd ed.). Los Angeles: SAGE Publications.
Hareebin, Y., Aujirapongpan, S., & Siengthai, S. (2016). The network-based capability and innovative capabilities of small and medium-sized enterprises (SMEs). Executive Journal, 36(2), 79-88.
Hult, G. T. M., Snow, C. C., & Kandemir, D. (2003). The role of entrepreneurship in building cultural competitiveness in different organizational types. Journal of Management, 29(3), 401-426.
Kaewmanee, T., & Chiyachantana, C. (2018). The role of innovation to the success of small and medium-sized home furniture & decoration business. Journal of MCU Peace Studies, 6(2), 606-618.
Kasorn, K., Khanchanapong, T., & Srivoravilai, N. (2014). the effect of market and learning orientations on competitive capabilities of the Thai automobile industry. Suthiparithat. 28(85), 117-144.
Kline, R. B. (2011). Methodology in the social sciences. Principles and Practice of Structural Equation Modeling (3rd ed.). New York, NY.: Guilford Press.
Lees, N., & Lees, I. (2018). Competitive advantage through responsible innovation in the New Zealand sheep dairy industry. International Food and Agribusiness Management Review, 21(4), 505-524.
Minarelli, F., Raggi, M., & Viaggi, D. (2013). Network for innovation as a way to enhance competitiveness: An overview of Italian food SMEs entering networks. In 2nd AIEAA conference “Between crisis and development: which role for the bio-economy, Bologna, Italy.
Moliterno, T. P., & Mahony, D. M. (2011). Network theory of organization: A multilevel approach. Journal of Management, 37(2), 1-46.
Nuryakin, U. M. Y. (2018). Competitive advantage and product innovation key success of batik SMEs marketing performance in Indonesia. Academy of Strategic Management Journal, 17(2), 1-17.
Paulus, P. (2000). Groups, teams and creativity: The creative potential of idea‐generating. Applied Phycology: An International Review, 49(2), 237-262.
Phuangrod, K. (2015). Development of innovativeness among small and medium enterprises in the five southern border provinces Thailand : Case study in food and beverage industry. (Doctoral dissertation) Prince of Songkla University, Songkla.
Pommi, C., & Wanarat, S. (2015). A structural equation modeling of supply chain management and trade partnership on competitive advantage. MUT Journal of Business Administration, 12(2), 35-53.
Porter. M. E. (1990). The competitive advantage of nations. New York: The Free Press.
Poungperksuk, W., & Srinaruwan, P. (2018). Developing measurement of intellectual capital in SMEs food industry in Thailand. Human Resource and Organization Development Journal. 11(1), 59-82.
Preedakorn, P., & Landhitirnt, S. (2018). Developing effective business networking: Case studies of foreign networks of apparel and clothing business. The Journal of Humanities and Social Sciences of the Chulachomklao Royal Military Academy. 5(2018), 95-130.
Rehman, N. U. (2017). A complementary relationship between networks and organizational innovation activities: Evidence from chile. Journal of Innovation Economics & Management, 23(2), 83-106.
Sadikoglu, E., & Zehir, C. (2010). Investigating the effects of innovation and employee performance on the relationship between total quality management practices and firm performance: An empirical study of Turkish firms. International Journal of Production Economics, 127(1), 13-26.
Satayaphat, P., Invoke, B., & Woonson, B. (2012). Potential of entrepreneurs and the organizational innovation toward for competitiveness of small and medium enterprises. The 6th Rambhai Barni research conference 19-20 December, 2012.
Schilling , M.A. (2008). Strategic m a n a g e m e n t of technological innovation. 2nd ed. New York: McGraw-Hill Education.
Slater, S. F. (1996). The challenge of sustaining competitive advantage. Industrial Marketing Management, 25(1), 79-86.
Suksawang, P. (2014). The basics of structural equation modeling. Princess of Naradhiwas University Journal of Humanities and Social Sciences, 6(2), 136-145.
Tapjarern, C., & Popaitoon, S. (2019). Entrepreneurial orientation, knowledge absorptive capacity and firm performance: An empirical study from the medical device industry in Thailand. (Doctoral dissertation) Mahasarakham university, Mahasarakham.
Teanravisitsagool, P. (2017). Innovation leads the future of Thailand. Supporting documents for the Annual 2017. Bangkok:National Science and Technology Development Agency.
Török, Á., Tóth, J., & Balogh, J. M. (2019). Push or Pull? The nature of innovation process in the Hungarian food SMEs. Journal of Innovation & Knowledge. 4(4), 234-239.
Wingwon, B. (2012). Effects of entrepreneurship, organization capability, strategic decision making and innovation toward the competitive advantage of SMEs enterprises. Journal Management & Sustainability, 2(1), 137-150.
