||An Influence of Supplier Partnership on Competitiveness of SMEs: Moderating Roles of Entrepreneurial Orientation and Dynamic Capability.
||An Influence of Supplier Partnership on Competitiveness of SMEs: Moderating Roles of Entrepreneurial Orientation and Dynamic Capability.
||Institute of International Management (IIMBA--Master)
SME’s competitive advantage improvement
SMEs are structured as a core element to foster and accelerate Thai economic growth, employment, enterprise and business establishments(Upalanala, 2007). However, more than half of new business disappear in the first year due to the failure to stand up to competition because they lack of vital resources (Chanchart, 2011), and the rise in degree of competition in the market forces SMEs to compete simultaneously in many dimensions. With this, they should be learning about how to build stronger relationships with suppliers, which is to build partnership with supplier in order to acquire knowledge-based resources gained from partnership development within this study, we apply resource-based view into the study as SMEs-supplier partnership is treated as a network resource for enhancing competitive advantage of the SMEs. With regard to this, we tend to study whether there is a positive relationship between environment uncertainty and SME-supplier partnership, and the result of this study confirms its positive significance. Moreover, we apply social capital theory to explain further about the value creation gained by SMEs from developing partnership such as knowledge and information that is shared by supplier and SMEs in term of an improvement in SME’s competitive advantage and with this study’s result also confirm its significantly positive relationship. Additionally, we include an effect of entrepreneurial orientation in term of firm-risk taking and internal locus of control aspects, together with an effect of dynamic capability in term of organizational responsiveness capacity and absorptive capacity. Accordingly, the result of this study SMEs entrepreneur seem to possess risk taking characteristics, and that negatively moderate the partnership development while the same result provided with internal locus of control that its characteristic negatively moderate SME’s competitive advantage improvement. Furthermore, in term of dynamic capability, it is founded that organizational responsiveness capacity does not moderate SMEs to develop partnership with supplier perceiving environmental uncertainty, while absorptive capacity help positively moderate SMEs to achieve an improvement in competitive advantage.
TABLE OF CONTENTS IV
LIST OF TABLES VIII
LIST OF FIGURES X
CHAPTER ONE INTRODUCTION 1
1.1 Research Background and Motivation. 1
1.1.1 Environmental and Competitive Dynamism. 1
1.1.2 Environmental Partnering Pressure and Partner Formation. 1
1.1.3 Nature and competitiveness of SMEs. 3
1.2 Research Objectives and Contributions. 7
1.3 Research Structure. 9
CHAPTER TWO LITERATURE REVIEW 11
2.1 Theoretical Background. 11
2.1.1 Competitive Dynamics Theory. 11
2.1.2 Resource-Based View (RBV). 12
2.1.3 Social Capital Theory. 13
2.2 Definitions of Relevant Research Variables. 15
2.2.1 Environmental Uncertainty. 15
2.2.2 SMEs-Supplier Partnership. 16
2.2.3SME’s Competitive Advantage Improvement. 20
2.2.4 Entrepreneurial Orientation. 22
2.2.5 Dynamic Capability. 27
2.3 Developments of Research Hypotheses. 31
2.3.1 The Relationship between Environmental Uncertainty and SMEs-Supplier Partnership. 31
2.3.2 The Relationship between SMEs-Supplier Partnership and SME’s Competitive Advantage Improvement. 33
2.3.3 The Moderating Effect of Firm-Risk Taking between Environmental Uncertainty and SMEs-Supplier Partnership. 34
2.3.4 The Moderating Effect of Internal Locus of Control between SMEs-Supplier Partnership and SME’s Competitive Advantage Improvement. 36
2.3.5 The Moderating Effect of Organizational Responsiveness Capacity between Environmental Uncertainty and SMEs-Supplier Partnership. 37
2.3.6 The Moderating Effect of Absorptive Capacity between SMEs-Supplier Partnerships on SME’s Competitive Advantage Improvement. 39
CHAPTER THREE RESEARCH DESIGN AND METHODOLOGY 41
3.1 Conceptual Framework. 41
3.2 Summary of Hypotheses. 42
3.3 Questionnaire Design and Measures. 42
3.3.1 Environmental Uncertainty. 43
3.3.2 SMEs-Supplier Partnership. 44
3.3.3 Firm-Risk taking. 45
3.3.4 Internal Locus of Control. 46
3.3.5 Organizational Responsiveness Capacity. 46
3.3.6 Absorptive Capacity. 46
3.3.7 SME’s Competitive Advantage Improvement. 47
3.4 Control Variables. 48
3.5 Sample and Data Collection. 49
3.6 Data Analysis. 52
3.6.1 Characteristic of Respondents. 52
3.6.2 Confirmatory Factor Analysis. 52
3.6.3 Reliability Test& Validity Test. 53
3.6.4 Pearson Correlation Analysis. 53
3.6.5 Hierarchical Regression Analysis. 53
CHAPTER FOUR RESEARCH RESULTS 55
4.1 Data Collection. 55
4.2 Descriptive Analysis. 56
4.2.1 Characteristics of Respondents. 56
4.2.2 Mean and Variance of Measures. 58
4.3 Common Method Variance Test. 65
4.4 Validity and Reliability Test. 66
4.4.1 Environmental Uncertainty. 67
4.4.2. SMEs-Supplier Partnership. 68
4.4.3. SME’s Competitive Advantage Improvement. 70
4.4.4 Firm-Risk Taking. 71
4.4.5 Internal Locus of Control. 72
4.4.6 Organizational Responsiveness Capacity. 72
4.4.7 Absorptive Capacity. 73
4.5 Confirmatory Factor Analysis. 74
4.5.1 Environmental Uncertainty. 75
4.5.2 SMEs-Supplier Partnership. 77
4.5.3 SME’s Competitive Advantage Improvement. 79
4.5.4 Firm-Risk Taking. 80
4.5.5 Internal Locus of Control. 81
4.5.6 Organizational Responsiveness Capacity. 82
4.5.7 Absorptive Capacity. 83
4.5.8 Full Measurement Model of Confirmatory Factor Analysis. 85
4.6 Pearson Correlation. 88
4.7 Hierarchical Multiple Regression. 90
CHAPTER FIVE CONCLUSION AND SUGGESTIONS 94
5.1 Discussion and Conclusion. 94
5.1.1 Discussion. 94
5.1.2 Theoretical Implications. 101
5.1.3 Managerial Implication. 103
5.2 Limitation and Future Directions. 103
Appendix 1: Sample Questionnaire 112
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