Factors Affecting Business Success of Small & Medium Enterprises (SMEs) in Thailand
TL;DR: In this article, the authors attempted to identify factors that are affecting business success of small and medium enterprises (SMEs) in Thailand and found that SMEs characteristics, customer and market, the way of doing business, resources and finance, and external environment are the most significant factors for SMEs in Thailand.
Abstract: This study attempted to identify factors that are affecting business success of small and medium enterprises (SMEs) in Thailand The intention of this study is to provide the understanding on how people should start their business by looking at all the factors affecting business success hence help to reduce the risk of failure and increase chances of success The study examined eight factors that influence the SMEs business success These factors are: SMEs characteristic, management and know-how, products and services, Customer and Market, the way of doing business and cooperation, resources and finance, Strategy, and external environment The theoretical framework has been drawn out and questionnaire was designed based on the factors chosen Eight hypotheses were developed to find out factors that are affecting Business Success of SMEs in Thailand The entire hypotheses were successfully tested with SPSS and five hypotheses were accepted The regression analysis result shown that the most significant factors affecting business success of SMEs in Thailand were SMEs characteristics, customer and market, the way of doing business, resources and finance, and external environment
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TL;DR: In this article, a survey has been prepared to collect the data from managers of SMEs and analyzed with the help of Partial Least Square (PLS)-Structural Equation Modeling (SEM).
Abstract: Technology adoption is always a difficult task for Small and Medium-sized Enterprises (SMEs) due to lack of resources and other market issues. Many technology challenges adversely affect the sustainable business performance of SMEs. However, the incorporation of Industry 4.0 can overcome various technology issues. The goal of Industry 4.0 is to attain an advanced level of operational effectiveness and productivity, as well as a higher level of automatization. Thus, the objective of this study is to identify the role of Industry 4.0 to promote sustainable business performance in SMEs in Thailand. A survey has been prepared to collect the data from managers of SMEs and analyzed with the help of Partial Least Square. The questionnaire was used to collect the data and questionnaires were distributed by using simple random sampling. A total of 500 questionnaires were distributed amongst the managerial staff of SMEs located in Thailand. From these distributed questionnaires, 280 were returned and 270 valid responses were found. Data were analyzed by using Partial Least Square (PLS)-Structural Equation Modeling (SEM). Findings reveal that Industry 4.0 is a key to the growth of sustainable business performance among SMEs. Elements of Industry 4.0 such as big data, Internet of Things and smart factory have a positive role in promoting information technology (IT) implementation, which contributes to sustainable business performance. Moreover, organization structure and process strengthen the positive relationship between Industry 4.0 and IT implementation.
229 citations
222 citations
01 Jan 2015
TL;DR: In this paper, the authors analyzed the factors influencing the growth rate of small and medium-sized enterprises (SMEs) in Algeria and explored the extent to which their success or failure depends on the wider business climate.
Abstract: The study presented in this paper analyzes the factors influencing the growth rate of small and medium-sized enterprises (SMEs) in Algeria and explores the extent to which their success or failure depends on the wider business climate. This study also examines different internal factors that may be responsible for the unstable and limited growth ofSMEs. Our research reveals that the growth of SMEs in Algeria is hampered by several interrelated factors, which include business environmental factors that are beyond the SMEs’ control and internal factors of the SMEs. The external factors include the legal and regulatory framework, access to external financing, and human resources capacities. The internal factors comprise entrepreneurial characteristics, management capacities, marketing skills, and technological capacities.
127 citations
TL;DR: In this article, the authors developed a theoretical model to provide insights about the association between innovation practices and the SMEs' performance and survival while underlining the auxiliary role of external support in such a relationship.
Abstract: Global epidemic crises, such as the coronavirus (COVID-19), usually expose small and medium enterprises (SMEs) to various kinds of challenges and may put their lives at risk. This study aims to develop a theoretical model to provide insights about the association between innovation practices and the SMEs’ performance and survival while underlining the auxiliary role of external support in such a relationship. Online questionnaire has been used to collect the data from 259 randomly selected SME managers in Saudi Arabia, and the data was analyzed using the SmartPLS3 software. The structural equation modeling results showed that the innovation practices adopted by SMEs to face the repercussions of COVID-19 had a positive impact on the performance and likelihood of business survival. PLS-SEM bootstrap results indicated that external support aids strengthen the positive impact of SMEs’ innovation practices on business survival rather than its performance. The study has several significant practical implications for SME managers, governments, and policy makers that have been stated.
88 citations
TL;DR: In this article, a cross-sectional survey of 439 managers in small and medium-sized enterprises (SMEs) in Thailand was conducted to investigate the relationship between 23 sustainable leadership practices and financial performance.
Abstract: Many managers and researchers alike are asking: What does an enterprise need to do to generate a proper balance between economic, social, and ecological objectives while gaining superior corporate financial performance, resilience, and sustainability? Several leadership concepts for enhancing organizational sustainability have emerged in recent years, but none provides an integrative approach, with the exception of Sustainable Leadership (SL). However, empirical research examining the effects of various SL practices on financial performance and other business outcomes is lacking. This article addresses this gap by empirically investigating the relationships between 23 SL practices and financial performance. Using a cross-sectional survey, data stem from 439 managers in small and medium-sized enterprises (SMEs) in Thailand. Of the 23 SL practices in SL, 16 were significantly associated with corporate financial performance. Four SL practices, in particular—amicable labor relations, valuing employees, social responsibility, plus strong and shared vision—were significant drivers, and positive predictors, of enhanced long-term firm performance. Lastly, implications, limitations, and future directions are discussed.
78 citations
Cites background from "Factors Affecting Business Success ..."
...The characteristics and determinants of growth in SMEs have been the focus of much debate among researchers and practitioners [43]....
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TL;DR: Porter as mentioned in this paper presents a comprehensive structural framework and analytical techniques to help a firm to analyze its industry and evolution, understand its competitors and its own position, and translate this understanding into a competitive strategy to allow the firm to compete more effectively to strengthen its market position.
Abstract: Michael Porter presents a comprehensive structural framework and analytical techniques to help a firm to analyze its industry and evolution, understand its competitors and its own position, and translate this understanding into a competitive strategy to allow the firm to compete more effectively to strengthen its market position. The introduction reviews a classic approach to strategy formulation, one that comprises a combination of ends and means (policies), factors that limit what a company can accomplish, tests of consistency, and an approach for developing competitive strategy. A competitive strategy articulates a firm's goals, how it will compete, and its policies for achieving those goals. Competitive advantage is defined in terms of cost and differentiation while linking it to profitability. Part I, "General Analytical Techniques," provides a general framework for analyzing the structure of an industry and understanding the underlying forces of competition (and hence profitability). Five competitive forces act on an industry: (1) threat of new entrants, (2) intensity of rivalry among existing firms, (3) threat of substitute products or services, (4) bargaining power of buyers, and (5) bargaining power of suppliers. Looking at industry structure provides a way to consider how value is created and divided among existing and potential industry participants. One competitive force always captures essential issues in the division of value.There are three generic competitive strategies for coping with the five competitive forces: (1) overall cost leadership, (2) differentiation, and (3) focus. There are risks with each strategy. A firm without a strategy is "stuck in the middle." This framework for examining competition transcends particular industry, technology, or management theories. Building on this framework, techniques are presented for industry forecasting, analysis of competitors, predicting their behavior, and building a response profile. Essential for a competitive strategy are techniques for recognizing and accurately reading market signals. Implications of structural analysis for buyer selection and purchasing strategy are presented. Game theory provides concepts for responding to competitive moves. Using the concept of strategic groups, structural analysis can also explain differences in firm performance (profitability), provide a guide for competitive strategy, and predict industry evolution. Part II, "Generic Industry Environments," shows how firms can use the analytical framework to develop a competitive strategy in industry environments, which reflect differences in industry concentration, state of industry maturity, and exposure to international competition. These environments determine a business's competitive strategic context, available alternatives, and common strategic errors. Five generic industry environments are examined: fragmented industries (where level of industrial concentration is low), emerging industries, transition to industry maturity, declining industries, and global industries. In each, the crucial aspects of industry structure, key strategic issues, characteristic strategic alternatives (including divestment), and strategic pitfalls are identified. Part III, "Strategic Decisions," draws on the analytical framework to examine important types of strategic decisions confronting firms that compete in a single industry: vertical integration, major capacity expansion, and new business entry. Additional use of economic theory and administrative consideration of management and motivation helps a company to make key decisions, and gives insight into how competitors, customers, suppliers, and potential entrants might make them. Appendix A discusses use of techniques for portfolio analysis applied to competitor analysis. Appendix B provides approaches to conducting an industry study, including sources of field and published dat
12,533 citations
Book•
30 Jun 1994
TL;DR: In this paper, the authors introduce the key characteristics of the small business sector and examine the specific problems that face small business owners, showing how the business environment for the smaller firm differs from that of larger companies, and how far their success or failure depends on the wider economic climate.
Abstract: This text introduces the key characteristics of the small business sector. Looking at core business functions, it examines the specific problems that face the small business owner. It shows how the business environment for the smaller firm differs from that of larger companies, and studies how far their success or failure depends on the wider economic climate. It also looks at the different locations, whether urban or regional, and the effect of small businesses on the outside community. In addition, the book studies the internal organization of small companies, encompassing discussions of employment, entrepreneurship, management strategies, organizational cultures, finance and the variety of challenges the small business owner faces in each of these questions.
4,040 citations
"Factors Affecting Business Success ..." refers background in this paper
...For instance, Storey (1994) has compiled the results of previous studies focused on the birth, growth and death of small firms, on the basis of which he presents some normative “dos and don’ts” lessons for small firms....
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Journal Article•
TL;DR: In this article, the authors provide a comprehensive and structured approach for strategy formulation by inviting readers to look into the profound impact of environmental forces in general, and of competitors in particular, on the success of businesses.
Abstract: Competitive Strategy: Techniques for Analyzing Industries & Competitors By Michael E Porter The Free Press, New York, 1980, Pages: 397, Price: $25.33 ISBN-10:0684841487; ISBN -13:978-0684841489Competitive Strategy - Techniques for Analyzing Industries and Competitors aims to provide a comprehensive and structured approach for strategy formulation by inviting readers to look into the profound impact of environmental forces in general, and of competitors in particular, on the success of businesses.OVERVIEW OF THE BOOKCompetitive Strategy - Techniques for Analyzing Industries and Competitors posits that organizational actions are externally controlled and constrained. Survival of the organization lies in creating a best fit between environment and resources of the organization. Hypothesis supports the idea that environmental factors play decisive role in putting up threats and opportunities for the organizations. In addition, structure of industry and environmental forces keep on evolving, thereby forcing organizations to consistently interact and respond according to the changing environmental conditions. However, organizations do not remain passive in this process, rather they can be proactive to understand and predict changes in industries. Porter, in this book, provides set of tools and techniques to make strategic choices among various options posed by environment.Porter is of the view that every firm competing in industry holds a competitive strategy. The process of formulation of strategy in an organization takes place in two ways:* Explicit strategy formulation that is based on the planning process; and* Implicit strategy formulation that is evolved as an outcome of organization's functional activities.Porter takes the position that it is always doubtful to have implicit process as source of best strategy; hence, he attributes the explicit process of strategy formulation as a best way of taking maximum benefits for the firm.FINDING THE COMPETITIVE ENVIRONMENTThe essence of the book is to provide a framework of relating a company to its environment. Framework encompasses a best fit between firm's resources and environment. The book has been written from two dimensions. On one end it highlights importance of understanding industry structure and developing in-lined strategies to deal with it. Another dimension of the book, which is rather more interesting and productive, is to propose frameworks and tools for industry analysis and crafting strategy. The book, thus, successfully asserts philosophical insights and provokes thinking of business pundits to look into industry dynamics with a different perspective on one hand, and proposes standardized generic tools for systematic analysis on the other.Accordingly the book is divided into three parts.First part encapsulates general analytical techniques for understanding environmental forces, dynamics of industry evolution and dimensions of competitive strategies.Included in Part II is the application of generic business strategies in various forms of industries, in line with structural determinants, sources and impediments of respective industrial segments/forms.Finally Part III establishes multiple options for a firm in its dealing with environmental forces. The book considers Vertical Integration, capacity expansion and entry into new business as available strategic decisions for the firms.SCANNING THE COMPETITIONCompetition has always been central to the managerial decisions. Rising intensity of competition has continued until present era. This book however presented new spheres of looking into competition. Contemporary writers raised important points in strategy formulation for coping with competitive forces of the industry. Porter has given a systematic and rigorous tool to answer to these questions. Porter also signaled a new direction and provided thought for economic models. …
3,892 citations
"Factors Affecting Business Success ..." refers background or methods in this paper
...Published by Canadian Center of Science and Education 185 differentiation, and focused Michael Porter (1985). Cost leadership-based companies have tight controls on their operational costs, have efficient production, are volume producers or focused on tonnage....
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...Most of the Thailand SMEs adopted Porter’s Generic Strategies by Michael Porter; they are cost leadership, differentiation, and focused....
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...Beside that, companies must compete based on their strength and specialization which is classified as cost leadership, Published by Canadian Center of Science and Education 185 differentiation, and focused Michael Porter (1985)....
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TL;DR: In this paper, the authors investigate the EO of small businesses and find that a main-effects-only analysis provides an incomplete picture of performance, and they find that when combined with EO (a three-way interaction model) the configurational approach explains variance in performance over and above a contingency model (two-way interactions) and a main effects-only model.
2,800 citations
TL;DR: In this paper, the authors develop the concept of strategic network, as a tool to understand those cooperative relationships and their role in the strategy of the firm, and show that strategic networks are but a "mode of organization" and analyze the economic conditions of existence of a network.
Abstract: In parallel with a theoretical acceptance of the importance of the laws of competition to formulate strategy, the realization is growing that cooperative behavior among firms is at the root of many success stories in today's management. This situation calls for an effort to develop a theoretical framework to study both aspects of firm behavior (cooperative and competitive) as compatible, complementary aspects of a unique reality. Indeed, the cooperative relationships of a firm can be the source of its competitive strength.
This paper develops the concept of strategic network, as a tool to understand those cooperative relationships and their role in the strategy of the firm. There are three main tasks of the paper: first, to show that strategic networks are but a ‘mode of organization’; second, to study the economic conditions of existence of a network; finally, to analyze the conditions of existence of a network from the point of view of its internal consistency. In a final section some of the most obvious strategic implications of the framework are outlined.
2,457 citations