The Causal Factors Influencing Innovation Performance of Small and Medium Enterprises in Nakhon Ratchasima Province

Abstract

The purposes of this research were to study 1) the performance levels of entrepreneurial orientation, differentiation strategy and innovation performance and 2) the influences of the entrepreneurial orientation on the innovation performance of small and medium enterprises (SMEs). Questionnaires were used as research instrument to collect data from a sample of 238 SMEs, using purposive, non-probability sampling. Data were analyzed by inferential statistics from a structural equation model. The result related to the level of operation in entrepreneurial orientation indicated that risk taking was at a high level ( X =3.96). Regarding the level of operation in differentiation strategy, marketing of new products and new services was at a high level ( X =3.78). Regarding the level of operation in innovation performance, research and development effort was at a high level ( X =3.51). The outputs from the structural equation model showed that the model was fit to the empirical data (Ƶ2 /df = 1.807, TLI =0.914, CFI = 0.920, RMSEA = 0.047). Entrepreneurial orientation did not have a direct effect on innovation performance and entrepreneurial orientation using differentiation strategy had an indirect relationship on innovation performance.