A causal relationship model of factors affecting competitiveness of community enterprise in the central region

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Pinyapat Nakpibal et al.

Abstract

The purpose of this research were 1) to investigate the competitiveness of community enterprise, 2) to measure an agreement, and 3) to find a structural model of knowledge management, transformational leadership, and human capital development affected to community enterprise’s competitiveness. Multiphase mixed methods research applying quantitative research to extend qualitative results was used for research design. The qualitative target group was selected using purposive sampling whereas the quantitative sampling group was used two-stage random sampling. Questionnaires were used for measurement design. Qualitative data were classified and analyzed using content analysis and analytic induction. Quantitative data were analyzed by descriptive statistics and the developed model was validated by using LISREL program. The research found that 1) the overall competitiveness of community enterprise was in a high level. The interview result shown that the transformational leadership adopted the Sufficient Economy philosophy of “to do one thing at a time”, encouraged members to have a positive attitude of sharing idea. The leader should seeking for new knowledge and sharing benefits equally, applying local resources and wisdom to human capital making product development such as chili paste from mushroom, herbal product, etc. 2) The competitiveness of community enterprise’s empirical data had statistical agreement x^2=339.19,df=90,P-value=.00, most index were close to .90. The interview result found the successful of business came from product differentiate strategy. The product must be unique and stand out from competitors such as herbal compress, ikat silk, snack from rice, etc. There was also a cost leadership strategy be used. 3) The competitiveness of community enterprise was directly influenced by 3 factors; knowledge management (Direct Effect or DE=.26) transformational leadership (DE=.39) and human capital development (DE=.34) whereas indirect effects came from a transformational leadership by knowledge management (Indirect Effect or IE=.89) and human capital development (IE=.76). Therefor the model developed was acceptable and good to be used for forecast the competitiveness of community enterprise in the central region. The form of the 3 factors that affect to the competitiveness was 3L Model for SMEs Competitiveness based on the developing of members’ abilities; supported knowledge, upgraded skill, etc. The head of community enterprise must emphasized on mission and goal setting, kindness, participation of members, motivation, employing competitive advantages of product differentiate, niche marketing, and cost leadership.

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