The influence of entrepreneurial capability and innovation capability on sustainable organization performance: Evidence of community enterprise in Thailand

Abstract

The purpose of this study is to examine the influence of entrepreneurial capability and innovation capability on sustainable organization performance, as well as to explore the role of innovation capability as a mediator in the relationship between entrepreneurial capability and sustainable organization performance. Using questionnaires to collect data from community enterprises in Phuket, Thailand. The respondents were presidents and vice-presidents of their respective community enterprises. The analysis was conducted using (AMOS-SEM) approach. The results reveal that entrepreneurial capability plays a robust role in promoting innovation capability and sustainable organization performance. Furthermore, innovation capability has a positive influence on sustainable organization performance. Additionally, innovation partially mediates the relationship between entrepreneurial capability and sustainable organization performance. Entrepreneurial capability (EC) is influenced by several key factors, including Leadership and Management, Active Learning and Analysis, and Passion and Self-Achievement. These elements contribute to an individual's ability to identify and capitalize on opportunities, drive innovation, and create value in their ventures. While Innovation capability (IC) is determined by Management Potential, Process Potential, and Technology Potential. Sustainable Organization Performance (SOP) is measured by Economic Performance, Social Performance, and Environmental Performance. Consequently, the results of this research provide guidelines for policymakers to create an enabling environment for community enterprises to thrive, promote entrepreneurship and innovation, and contribute to sustainable organization performance.