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

Pinyapat Nakpibal Et Al

doi:10.17762/pae.v58i1.968

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.

Highlights

A community enterprise is a community about the production of products, provision of services, or other activities performed by a group of people within the relationship that have a common way of life and come together to operate such businesses to generate income and self-reliance of family, community, and between communities
The research found that 1) the overall competitiveness of community enterprise was in a high level
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)

Summary

Introduction

A community enterprise is a community about the production of products, provision of services, or other activities performed by a group of people within the relationship that have a common way of life and come together to operate such businesses to generate income and self-reliance of family, community, and between communities. To achieve the competitiveness of community enterprise, the central region should have components such as leadership, knowledge management, and the development of human capital of community enterprise.[3] Community enterprise is the community that deals with product production, service provision, human capital development, leadership, knowledge management, and community creation to raise the quality of life of the people and supporting the economic development of the country forwards. This is why the research team is interested in studying the causal relationship pattern of factors affecting the competitiveness of community enterprise in the central region to develop leadership, knowledge management, and human capital development that can create a competitive advantage for community enterprise

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