The causal factors influencing corporate sustainability performance: case of community SMEs in three southern border provinces, Thailand

Abstract

The business sector has started to understand and follow business management that creates a balance between economy, society, and environment for the strength, stability, and sustainability of the business and society as a whole. However, the matter remains a challenge for many organizations, especially for Small and Medium Enterprises (SMEs) businesses. This research aims 1) to analyze the direct influence of entrepreneurial orientation on the corporate sustainability performance of community enterprises in the three southern border provinces and 2) to analyze the indirect influence of entrepreneurial orientation on corporate sustainability performance through the mediator variable which is knowledge integration capability of community enterprises in the three southern border provinces. This research uses an organizational level analysis unit and uses Structural Equation Modeling (SEM) on data collection via questionnaires of 384 community enterprises in three southern border provinces. The sampling was done by multi-stages level and stratified sampling using proportions and specific selection. The results of the research showed that the results of the consistency of the structural equation modeling of the cause and effect factors affecting the corporate sustainability performance of community enterprises of three southern border provinces, consistent with the empirical data at a good level. The entrepreneurial orientation had a direct effect on knowledge integration capability with the highest influence coefficient. In addition, the entrepreneurial orientation had an indirect influence on corporate sustainability performance through knowledge integration capability.