The Relationship Among Entrepreneur, Participatory ... · Supply Chain Management in Mediating the...

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The International Conference on Sustainable Community Development27-29 January 2011

Abstract The purposes of this study were to review the

level of Entrepreneur, Participatory Stakeholders and Marketing

Capability toward the Supply Chain Management in Mediating

the Sustainable Competitive Advantage and to analyze those

affected factors toward the sustainable competitive advantage of

SMEs enterprise at Northern Region of Thailand. The research

tool was questionnaire survey with descriptive statistical technique

of average mean, standard deviation and inferential statistics of

Structural Equation Model. The population was the 759 SMEs

entrepreneurs at Northern Region with similar gender proportion

of male and female, the majority was age group between 41-50

years old, married, undergraduate, single proprietor and limited

partnership. There business experience of 4-6 years and 7-10

years and less than 10 employees, personal investment and

financial institution investment and entrepreneur valued the

entrepreneurship, participatory stakeholders, marketing capability

in applying strategic supply chain management in mediating the

sustainable competitive advantage a high level.

The key success factors in business operation were the

participation from senior management at all level and the adoption

of strategic supply chain management. The main logic was due

to the cooperation of both internal and external stakeholders at

SMEs business level to achieve the joint benefits and business

alliance. The alliance could be in form of jointly forecasting the

demand of product, raw materials and passing the sales data

among the members within the supply chain and the adopting

of marketing capability to support business operation in order

to mediating the sustainable competitive advantage.

Keywords: Entrepreneur, Marketing capability, Supply Chain

Management

The Relationship Among Entrepreneur, Participatory Stakeholders and Marketing Capability toward the

Supply Chain Management in Mediating the Sustainable Competitive Advantage at Northern Region,

THAILAND

Boonthawan Wingwon1 Pattarika Maneepun2

M.B.A. Program, Faculty of Management Science, Lampang Rajabhat University,

119 Lampang Matha Rd. Muang District Lampang Province, 52100, Tel: 08-1882-3465,

E-mail: [email protected]

Faculty of Business Administration, Lampang Inter-tech College,

173 Prahonyothin Rd. Muang District, Lampang Province, 52100, Tel: 08-1784-0580,

E-mail: [email protected]

1. Introduction Currently, the SMEs business in Thailand had gained

popularity due to the affect of the economic crisis forcing business

enterprises to cut back their employment which led individual to

lost job and force one to generate new business or profession

in order to strengthen one financial security. [1]. It could be

stated that SMEs business was the economic power of grass

root with the key role in new business era. [2] They created new

innovative products for both domestic and international markets,

including the initiation the economic growth of various business

fronts. Hence, the entrepreneur was valued resource over

the innovation, the capital or other factors. [3] The successful

entrepreneur would improve one’s knowledge base by integration

among those existing experiences partners and sharing new

learning experiences from the domestic business alliance and

the affected external environment, [4] the geographic conditions

and important community activities. [5]

Entrepreneur was the opportunist in freely searching for

wealth and individual reward by applying passion, determination

and personal capability in preparation one self to face the forth coming

risks and uncertainty in generating growth to owned business.

[6] In the past years, numerous new entrepreneurs had set up

owned businesses to generate the economic development and to

strengthen the competitive capability of the country. [2]. Actually,

the entrepreneurship theories could be affectively applied to real

environment. However, the current business world was more

fluctuated and highly venerable than in the past, in particular

with the external environment of economic condition which was

highly sensitive, e.g. the strengthen of Baht currency against

the exporting business. [7] It included the evolving of social

conditions, the local political unrest, global warming, the severe

competition and various new innovations. [8] Therefore, the

available options for the new business proprietors were increasingly

numerous to entertain the desire of relevant business parties.

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With the current fluctuated economic condition, together

with the limited business experiences and knowledge of entrepreneurs

were less competitive competency to successfully operate new

business. Nowadays, business required new product launch to

the market and delivered to the customer in short time frame.

The product life cycle on the other hands were getting shorter and

shorter and customers were continuing to raise their expectation.

In order to be able to compete with competitive competency,

majority entrepreneurs were valued the importance of strategic

supply chain management as they all viewed in the similar

direction that it could introduce cost reduction and increase the

business competency in the form of improvement in innovation,

communication technology and logistics, e.g. wireless internet and

the immediate delivery. All these evolvements of supply chains

resulted in the reduction of private investment of the country in

year 2009 to level 2.0 causing the crisis in property sector and

both domestic and international finance sectors, decreasing in

export sector and the slowdown of service sector. [9]

The above mentioned issues had long term outcome

on the closing down of numerous businesses and also discovered

the additional issue of obstacle withdrawal among entrepreneurs

instead of attempting to solve and cure those facing issues. For

the interview with random entrepreneurs at 5 Northern Region

provinces, it revealed that the main issues were the limited

business administration system, the effectiveness in business

finance, limited trustworthy, lack of business competency, short

of leadership and vision, lack of supply chain management and

short of coordination among internal and external stakeholders.

Hence, SMEs entrepreneurs needed to adjust strategies

to achieve business sustainability. Furthermore, the business

owners needed to analyze their business performance, to

generate new thinking and new innovative ideas from identified

opportunities in order to cope with the changing environment

and generate higher business competency and build the long

term competitive advantage.

2. Research Objectives 1. To study the level of importance of entrepreneur,

the participatory stakeholders, marketing capability toward the

supply chain management in mediating the sustainable competitive

advantage of SMEs business at Northern Region,

2. To study the affect factors toward the mediating

the sustainable competitive advantage of SMEs business at

Northern Region.

The research was carried out in survey format with 4

research scopes, i.e. (1) Subject Matters: To focus the study

on the strategic supply chain management and the mediating

competitive advantage (2) Duration: To carry out the study from

October 2010 till January 2011 for 4 months (3) Population:

To study among SMEs entrepreneurs and (4) Coverage Area:

To carry out at Lampang, Lamphun, Chiangmai, Chiangrai and

Prayao (Northern Region). The anticipated outcome from the

study were (1) To realize the level of importance of entrepreneur,

the participatory stakeholders, marketing capability toward the

supply chain management in mediating the competitive advantage

(2) To realize the affect factors toward the entrepreneur, the

participatory stakeholders, marketing capability toward the supply

chain management in mediating the sustainable competitive

advantage.

3. Literature Review The literature for this research review was based on

the concept and theory of entrepreneurship with the character

of risk taker, arbitrageur, innovator, manager and capitalist. The

first 3 characters were critical to business success while the

remaining 2 characters were with less importance. [10], However,

the business environment and the stakeholders of both internal

and external were also critical to the business [11] as variable

factors described below:

1. Entrepreneurship

Entrepreneur played the key role in supporting the

economic system. Any person paid no attention toward any

related entrepreneur activities, e.g. determination, vision,

innovator, drive, aspiration and risk management, the chance of

business success would not be materialized (Wickham, 2006,

p.9). [12] Therefore, there would not be entrepreneur if without the

person with these characters. Since the key role of entrepreneur

were the driver of the organization and direction under the

economic system.

Longenecker, Moore, Petty and Palich [13] specified

that entrepreneur was the person with the role in discovering

the market demands and initiated the business start up to meet

those demands in various dimensions and were recognized by the

society by having the risk management based on the innovation

change and economic development which was supported by the

Meyer’s concept. [14] which mentioned that the entrepreneur was

the person who integrated all forces to construct the economic

growth by developing new knowledge base as the combination

of own capability and past experience, including the learning

from local alliance in achieving business success.

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Furthermore, Zimmerer and Scarborough [15] also agreed

that entrepreneur was the person with the key role in managing

risks in private business system and was the person to locate profit

opportunity under the business risks including the recognition

from the society and relevant stakeholders for talent, determination,

creative thinking to achieve business challenge with the objective

for business growth. [16] specified that entrepreneur was

person with vision and aspiration to achieve variable objective

targets within owned heart and under influence of participatory

stakeholder. [17]

2. Stakeholder Participatory

Stakeholder participatory was the general operation of

an organization by classifying the duty of each function, division

and unit as per assigned responsibility or organization chart of

each business unit [8] of which each function or division required

to communicate and participate in activity by mean of operation

instruction and coordination either from top down, bottom up

or from same level. The working behavior with stakeholder

participatory was importance as it was the affective way of

working by pooling resources from both internal and external of

the organization with based on the business principles, failure

development or business success of such organization which could

be measurable as per key performance indicators. Any form of

success from the idea proposal, joint planning and joint operation

for the organization development required the stakeholder

participatory process. [17]

On the production process, the relevant parties consisted

of raw materials suppliers, organization or business and

customers while the stakeholder participatory consisted of the

raw materials suppliers, organization or business, customers,

staff or employees and business owner. The relevant parties of

the organization were not only those above specified, but also

included those who had direct contact with the organization either

internal or not. In addition, it also included those who had no

direct contact with the organization but had the affect toward the

organization at variable level [18] and participatory stakeholder

had affected to supply chain management strategy. [19]

3. Supply Chain Management Strategy

The current supply chain management participatory

was extended to include the cooperation at industry level and

supply chain level in order to generate benefits and business alliance

by means of demand forecast of products and raw materials

and the pass on of sales data among members of supply chain

[19] including the flow of activities which could be assessed, be

improved, be redesigned for improvement be compiled with speed

and accuracy. [20] The supply chain management linked vision,

mission, strategies, and performance evaluation for sustainable

business at current and in the future. Hsiao and Melody [21]

revealed that the organization with the supply chain management

had the production cycle and the inventory level lower than their

competitor by 50%. [22]

Nevertheless, the consideration should be applied to

the organization capability, personnel capability, capital structure,

financial capability, security, production time table and the

information capability by mean of jointly administration with focus

on the profit, benefits and joint investment in physical resource,

human resource and the introduction of IT as the operation tool

[23] to build the competitive advantage [24] which consisted of

both economic expansion and economic shrinkage. The logistics

operation was the mean to measure the fast delivery, the order

taking and the immediate response, the flexibility to reliable meet

the delivery of customer / trading partner once delay (Green,

Whitten and Inman, 2008), [25] the quality of process, the lower

of delivery cost, the appropriate inventory level, lower manpower

cost and lower the administrative cost over the product sales

[26]and supply chain management strategy had affected to

competitive advantage. [27]

4. Marketing Ability

Marketing ability was the main function of business

with the responsibility in distribution products and services to

customers, starting from the study, analysis of demand and

generating demand in future. [28] including the sale promotion

for the products to reach customers. The marketing decision

involved marketing strategy with 4 P’s, i.e. Product, Price, Place

and Promotion. Marketer must analyze the customer demand,

plan, investigate and control to ensure that the marketing plan

was in line with customer demand as per the following steps.

[29] (1) The operation was the data exhibited the sales volume

and marketing performance (2) Marketing research was the

analysis of marketing data of consumer toward the business

products and services. [27] The marketing research assisted the

management in planning and decision in marketing, competitor

analysis and strategy as the business operation tool. [30] and

as the base in developing marketing strategy by relied on the

external information, e.g. the economic change, politic, social

and technology. The marketing performance could be measured

by the sales volume, market share, [25] customer satisfaction,

customer royalty, corporate trustworthiness, the increase in new

customer and the increase in market share [26] and marketing

ability had affected to competitive advantage. [31]

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5. Sustainable Competitive Advantage

The increase of competitive advantage consisted of (1)

low production unit cost (2) product or service differentiation over

competitor and (3) speed of response time. [31] The business

would achieve success relied on the organization structure and

competition of such business [31] with key factors as (1) Threat

from the new competitors in the industry (2) Threat from the

replaceable products or services (3) Power of negotiation with

raw material suppliers (4) Power of negotiation with customers

and (5) Competition condition within the industry. These 5 factors

were the industry elements for developing strategy for business

success in the long term. The competitive advantage needed

to have product differentiation over competitors and with higher

perceived value among customers, i.e. worth money, with benefit

and with high sentimental value that other product brand or

service providers could not achieved. Therefore, on top of the

product / service value, it must also different from competitors

or difficult to imitate and furthermore, the product / service must

not be able to be replaced. [32] which meant that customer must

faced switching cost, i.e. if customer wanted to move from existing

product to new competitive product, custom must face the

emotion upset toward the financial risk or the social recognition

risk. Hence, the literature review on intangible variables related

to (1) entrepreneur (2) participatory stakeholders (3) marketing

capability (4) supply chain management and (5) sustainable

competitive advantage.

Figure 1 Research Conceptual Framework

3

had direct contact with the organization either internal or not. In addition, it also included those who had no direct contact with the organization but had the affect toward the organization at variable level [18] and participatory stakeholder had affected to supply chain management strategy. [19]

3. Supply Chain Management StrategyThe current supply chain management

participatory was extended to include the cooperation at industry level and supply chain level in order to generate benefits and business alliance by means of demand forecast of products and raw materials and the pass on of sales data among members of supply chain [19] including the flow of activities which could be assessed, be improved, be redesigned for improvement be compiled with speed and accuracy. [20] The supply chain management linked vision, mission, strategies, and performance evaluation for sustainable business at current and in the future. Hsiao and Melody [21] revealed that the organization with the supply chain management had the production cycle and the inventory level lower than their competitor by 50%. [22]

Nevertheless, the consideration should be applied to the organization capability, personnel capability, capital structure, financial capability, security, production time table and the information capability by mean of jointly administration with focus on the profit, benefits and joint investment in physical resource, human resource and the introduction of IT as the operation tool [23] to build the competitive advantage [24] which consisted of both economic expansion and economic shrinkage. The logistics operation was the mean to measure the fast delivery, the order taking and the immediate response, the flexibility to reliable meet the delivery of customer / trading partner once delay (Green, Whitten and Inman, 2008), [25] the quality of process, the lower of delivery cost, the appropriate inventory level, lower manpower cost and lower the administrative cost over the product sales [26]and supply chain management strategy had affected to competitive advantage. [27]

4. Marketing Ability Marketing ability was the main function of

business with the responsibility in distribution products and services to customers, starting from the study, analysis of demand and generating demand in future. [28] including the sale promotion for the products to reach customers. The marketing decision involved marketing strategy with 4 P’s, i.e. Product, Price, Place and Promotion. Marketer must analyze the customer demand, plan, investigate and control to ensure that the marketing plan was in line with customer demand as per the following steps. [29] (1) The operation was the data exhibited the sales volume and marketing performance (2) Marketing research was the analysis of marketing data of consumer toward the business products and services. [27] The marketing research assisted the management in planning and decision in marketing, competitor analysis and strategy as the business operation tool. [30] and as the base in developing marketing strategy by relied on the external information, e.g. the economic change, politic,

social and technology. The marketing performance could be measured by the sales volume, market share, [25] customer satisfaction, customer royalty, corporate trustworthiness, the increase in new customer and the increase in market share [26] and marketing ability had affected to competitive advantage. [31]

5. Sustainable Competitive Advantage The increase of competitive advantage consisted

of (1) low production unit cost (2) product or service differentiation over competitor and (3) speed of response time. [31] The business would achieve success relied on the organization structure and competition of such business [31] with key factors as (1) Threat from the new competitors in the industry (2) Threat from the replaceable products or services (3) Power of negotiation with raw material suppliers (4) Power of negotiation with customers and (5) Competition condition within the industry. These 5 factors were the industry elements for developing strategy for business success in the long term. The competitive advantage needed to have product differentiation over competitors and with higher perceived value among customers, i.e. worth money, with benefit and with high sentimental value that other product brand or service providers could not achieved. Therefore, on top of the product / service value, it must also different from competitors or difficult to imitate and furthermore, the product / service must not be able to be replaced. [32] which meant that customer must faced switching cost, i.e. if customer wanted to move from existing product to new competitive product, custom must face the emotion upset toward the financial risk or the social recognition risk. Hence, the literature review on intangible variables related to (1) entrepreneur (2) participatory stakeholders (3) marketing capability (4) supply chain management and (5) sustainable competitive advantage.

Figure 1 Research Conceptual Framework

Hypo thesis Assumption H: 1 Entrepreneur affected toward Participatory

Stakeholder H: 2 Entrepreneur affected toward Supply Chain

Management

H:7

H:5

H:6

H:8

H:4

H:3

H:1

H:2

Marketing Ability

Supply chain Management Entrepreneur Sustainable

Competitive Advantage

Participatory Stakeholder

Hypo thesis Assumption

H: 1 Entrepreneur affected toward Participatory

Stakeholder

H: 2 Entrepreneur affected toward Supply Chain

Management

H: 3 Entrepreneur affected toward Marketing Ability

H: 4 Participatory Stakeholder affected toward Supply

Chain Management

H: 5 Marketing Ability affected toward Supply Chain

Management

H: 6 Participatory Stakeholder affected toward Sustainable


H: 7 Supply Chain Management affected toward

Sustainable Competitive Advantage

H: 8 Marketing Ability affected toward Sustainable


4. Research Methodology The research was carried out in questionnaire survey

format with 5 measurable factors were developed from the literature

review with Cronbach’s Alpha .899. The questionnaires were

distributed via postal service among 200 SMEs entrepreneurs per

each province as names registered and listed at Provincial Trade

Office. The total 1,000 questionnaires were disseminated to 5

different provinces of the Northern Region and with responded

back of 759 within one month time frame representing 75.90%.

Data was checked and replaced in case of loss with Adjacent

Mean and be proceeded to data compilation and analysis by

conceptual structure equation model by PLS-Graph 3.0

program. [33]

5. Research Outcome The majority of entrepreneurs were similar in gender

proportion of male and female representing 49.30% and 50.70%,

with the majority were in age group between 41-50 years old,

with married marital status, with business established in Lampang

Lamphun provinces and followed by Chiangrai, Chiangmai

and Prayao provinces at similar proportion. The majority had

undergraduate educational level, with single proprietor and limited

partnership, with service business and followed by commercial

business, with business experience of 4-6 years and 7-10 years

and with less than 10 employees, with personal investment and

financial institution investment.

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6. Research Summary and Conclusion

From Figure 2, it revealed that the factor toward the

entrepreneur’s most business success was the supply chain

management representing 43.00% and had direct affect toward

the coefficient path equal to 0.412 with R2 value of 0.371, the

sustainable competitive advantage representing 37.00% and had

4

H:3 Entrepreneur affected toward Marketing Ability

H: 4 Participatory Stakeholder affected toward Supply Chain Management

H: 5 Marketing Ability affected toward Supply Chain Management

H: 6 Participatory Stakeholder affected toward Sustainable Competitive Advantage

H: 7 Supply Chain Management affected toward Sustainable Competitive Advantage

H: 8 Marketing Ability affected toward Sustainable Competitive Advantage

4. Research Methodology The research was carried out in questionnaire

survey format with 5 measurable factors were developed from the literature review with Cronbach’s Alpha .899. The questionnaires were distributed via postal service among 200 SMEs entrepreneurs per each province as names registered and listed at Provincial Trade Office. The total 1,000 questionnaires were disseminated to 5 different provinces of the Northern Region and with

responded back of 759 within one month time frame representing 75.90%. Data was checked and replaced in case of loss with Adjacent Mean and be proceeded to data compilation and analysis by conceptual structure equation model by PLS-Graph 3.0 program. [33]

5. Research Outcome The majority of entrepreneurs were similar in

gender proportion of male and female representing 49.30% and 50.70%, with the majority were in age group between 41-50 years old, with married marital status, with business established in Lampang Lamphun provinces and followed by Chiangrai, Chiangmai and Prayao provinces at similar proportion. The majority had undergraduate educational level, with single proprietor and limited partnership, with service business and followed by commercial business, with business experience of 4-6 years and 7-10 years and with less than 10 employees, with personal investment and financial institution investment.

6. Research Summary and Conclusion

Figure 2 Analysis Outcome of Conceptual Structure Framework From Figure 2, it revealed that the factor toward

the entrepreneur’s most business success was the supply chain management representing 43.00% and had direct affect toward the coefficient path equal to 0.412 with R2

Figure 2 Analysis Outcome of Conceptual Structure Framework

Table 1 Testing Result of Hypothesis Assumption

direct affect toward the marketing ability representing 31.00%

and with the coefficient path equal to 0.309 and with R2 value

of 0.312 and also had direct affect toward participatory

stakeholders with the coefficient path equal to 0.515 and with

R2 value of 0.265 subsequently.

5

value of 0.371, the sustainable competitive advantage representing 37.00% and had direct affect toward the marketing ability representing 31.00% and with the

coefficient path equal to 0.309 and with R2 value of 0.312 and also had direct affect toward participatory stakeholders with the coefficient path equal to 0.515 and with R2 value of 0.265 subsequently.

Table 1 Testing Result of Hypothesis Assumption Research

HypothesisCoefficient path t-stat p-value Conclusion

Entrep →Particip 0.515 14.752 0.000 Support Entrep →Stratscm rcProd&ServQlty 0.277 7.2344 0.000 Support Entrep →Mar 0.309 8.5035 0.000 Support Particip→ Stratscm 0.471 14.2102 0.000 Support Mar → Stratscm 0.332 9.6182 0.000 Support Particip→ Compet 0.200 3.8122 0.000 Support Stratscm → Compet 0.412 7.1909 0.000 Support Mar→ Compet 0.095 2.7123 0.009 Reject

Remark: Entrep = Entrepreneur / Particip = Participatory Stakeholders / Stratscm = Supply Chain Management / Mar = Marketing Ability / Compet = Sustainable Competitive Advantage Remark: Accepted at p-value ≤ 0.10

From Table2, the analysis of affect variables with relationship revealed that

Entrepreneur had direct affect toward the participatory stakeholders with the coefficient path value of 0.515 which was acceptable with the p-value = 0.000

Entrepreneur had direct affect toward the supply chain management with the coefficient path value of 0.277 which was acceptable with the p-value = 0.000 Entrepreneur had direct affect toward the marketing ability with the coefficient path value of 0.309 which was acceptable with the p-value = 0.000 and Participatory stakeholders had direct affect toward supply chain management with the coefficient path value of 0.471 which was acceptable with the p-value = 0.000

Marketing ability had direct affect toward the supply chain management with the coefficient path value of 0.200 which was acceptable with the p-value = 0.000 and Participatory stakeholders had direct affect toward sustainable competitive advantage with the coefficient path value of 0.370 which was acceptable with p-value = 0.000

Supply chain management had direct affect toward sustainable competitive advantage with the coefficient path value of 0.412 which was acceptable with p-value = 0.000 with the exception of Marketing ability had no affect toward the sustainable competitive advantage which was not in line with the hypothesis assumption.

Table 2 Affections of Antecedent Variables of Entrepreneur, Participatory Stakeholders, Marketing Ability toward Supply Chain Management in Mediating the Sustainable Competitive Advantage

Antecedent Dependent variable R2 Affect

Particip Entrep Stratscm Mar Compet Particip 0.266 DE N/A N/A 0.471 N/A 0.200 IE N/A N/A 0.000 N/A 0.000 TE N/A N/A 0.471 N/A 0.200 Stratscm 0.434 DE 0.471 N/A N/A 0.332 0.412 IE 0.000 N/A N/A 0.000 0.000 TE 0.471 N/A N/A 0.332 0.412 Mar 0.312 DE N/A N/A 0.332 N/A 0.095 IE N/A N/A 0.000 N/A 0.000 TE N/A N/A 0.332 N/A 0.095 Compet 0.371 DE 0.200 0.000 0.412 0.095 0.370 IE 0.000 0.114 0.000 0.000 0.000 TE 0.200 0.114 0.412 0.095 0.370

Remark: TE = total affect, DE = direct affect, IE = indirect affect.

The analysis outcome of conceptual structure framework revealed that the factor toward the

Remark: Entrep = Entrepreneus / Particip = Participatory Stakeholedrs / Stratscm = Supply Chain Management / Mar = Marketing

Ability / Compet =Sustainable Competitive Advantage

Remark: Accepted at p-value < 0.10

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From Table2, the analysis of affect variables with

relationship revealed that

Entrepreneur had direct affect toward the participatory

stakeholders with the coefficient path value of 0.515 which was

acceptable with the p-value = 0.000

Entrepreneur had direct affect toward the supply chain

management with the coefficient path value of 0.277 which was

acceptable with the p-value = 0.000

Entrepreneur had direct affect toward the marketing

ability with the coefficient path value of 0.309 which was acceptable

with the p-value = 0.000 and Participatory stakeholders had direct

affect toward supply chain management with the coefficient path

value of 0.471 which was acceptable with the p-value = 0.000

5

value of 0.371, the sustainable competitive advantage representing 37.00% and had direct affect toward the marketing ability representing 31.00% and with the

coefficient path equal to 0.309 and with R2 value of 0.312 and also had direct affect toward participatory stakeholders with the coefficient path equal to 0.515 and with R2 value of 0.265 subsequently.

Table 1 Testing Result of Hypothesis Assumption Research

HypothesisCoefficient path t-stat p-value Conclusion

Entrep →Particip 0.515 14.752 0.000 Support Entrep →Stratscm rcProd&ServQlty 0.277 7.2344 0.000 Support Entrep →Mar 0.309 8.5035 0.000 Support Particip→ Stratscm 0.471 14.2102 0.000 Support Mar → Stratscm 0.332 9.6182 0.000 Support Particip→ Compet 0.200 3.8122 0.000 Support Stratscm → Compet 0.412 7.1909 0.000 Support Mar→ Compet 0.095 2.7123 0.009 Reject

Remark: Entrep = Entrepreneur / Particip = Participatory Stakeholders / Stratscm = Supply Chain Management / Mar = Marketing Ability / Compet = Sustainable Competitive Advantage Remark: Accepted at p-value ≤ 0.10

From Table2, the analysis of affect variables with relationship revealed that

Entrepreneur had direct affect toward the participatory stakeholders with the coefficient path value of 0.515 which was acceptable with the p-value = 0.000

Entrepreneur had direct affect toward the supply chain management with the coefficient path value of 0.277 which was acceptable with the p-value = 0.000 Entrepreneur had direct affect toward the marketing ability with the coefficient path value of 0.309 which was acceptable with the p-value = 0.000 and Participatory stakeholders had direct affect toward supply chain management with the coefficient path value of 0.471 which was acceptable with the p-value = 0.000

Marketing ability had direct affect toward the supply chain management with the coefficient path value of 0.200 which was acceptable with the p-value = 0.000 and Participatory stakeholders had direct affect toward sustainable competitive advantage with the coefficient path value of 0.370 which was acceptable with p-value = 0.000

Supply chain management had direct affect toward sustainable competitive advantage with the coefficient path value of 0.412 which was acceptable with p-value = 0.000 with the exception of Marketing ability had no affect toward the sustainable competitive advantage which was not in line with the hypothesis assumption.

Table 2 Affections of Antecedent Variables of Entrepreneur, Participatory Stakeholders, Marketing Ability toward Supply Chain Management in Mediating the Sustainable Competitive Advantage

Antecedent Dependent variable R2 Affect

Particip Entrep Stratscm Mar Compet Particip 0.266 DE N/A N/A 0.471 N/A 0.200 IE N/A N/A 0.000 N/A 0.000 TE N/A N/A 0.471 N/A 0.200 Stratscm 0.434 DE 0.471 N/A N/A 0.332 0.412 IE 0.000 N/A N/A 0.000 0.000 TE 0.471 N/A N/A 0.332 0.412 Mar 0.312 DE N/A N/A 0.332 N/A 0.095 IE N/A N/A 0.000 N/A 0.000 TE N/A N/A 0.332 N/A 0.095 Compet 0.371 DE 0.200 0.000 0.412 0.095 0.370 IE 0.000 0.114 0.000 0.000 0.000 TE 0.200 0.114 0.412 0.095 0.370


The analysis outcome of conceptual structure framework revealed that the factor toward the

Table 2 Affections of Antecedent Variables of Entrepreneur, Participatory Stakeholders, Marketing Ability toward Supply Chain

Management in Mediating the Sustainable Competitive Advantage

Marketing ability had direct affect toward the supply chain

management with the coefficient path value of 0.200 which was

acceptable with the p-value = 0.000 and Participatory stakeholders

had direct affect toward sustainable competitive advantage with

the coefficient path value of 0.370 which was acceptable with

p-value = 0.000

TSupply chain management had direct affect toward

sustainable competitive advantage with the coefficient path value

of 0.412 which was acceptable with p-value = 0.000 with the

exception of Marketing ability had no affect toward the sustainable

competitive advantage which was not in line with the hypothesis

assumption.

The analysis outcome of conceptual structure framework

revealed that the factor toward the entrepreneur’s most business

success was supply chain management representing 43.00%

which had direct affect and coefficient path value equal to 0.412

and with R2 value of 0.371. The marketing capability and the

Table 3 Analysis of Discriminant Validity

participatory stakeholders had direct affect toward the sustainable

competitive advantage with coefficient path value equal to 0.095

and 0.200 with R2 value of 0.371 by having the supply chain

management as the mediator to the success.

6

entrepreneur’s most business success was supply chain management representing 43.00% which had direct affect and coefficient path value equal to 0.412 and with R2

value of 0.371. The marketing capability and the participatory stakeholders had direct affect toward the

sustainable competitive advantage with coefficient path value equal to 0.095 and 0.200 with R2 value of 0.371 by having the supply chain management as the mediator to the success.

Table 3 Analysis of Discriminant Validity Construct Construct CR R2 AVE

Entrep Particip Mar Strat-scm Compet Entrep 0.758 - 0.348 1.000 Particip 0.768 0.266 0.361 0.515 1.000

Mar 0.82 0.312 0.450 0.481 0.341 1.000 Strat-scm 0.801 0.434 0.335 0.520 0.614 0.492 1.000 Compet 0.836 0.371 0.423 0.474 0.485 0.366 0.581 1.000

Remark: Figure value in main diagonal was AVE meant the indicator for Discriminate Validity measurement of construct Table 3 revealed the composite reliability (CR) with value higher than 0.50 indicated that all questions in measureable indicators were reliable with validity and correlation value of each indicator within the same variables had higher value than the correlation value of each indicator with different variables indicated the high discriminant validity.

7. Research Outcome DiscussionThe majority of entrepreneurs was similar in

gender proportion of male and female, and age group between 41-50 years old of the most, married, business established in Lampang and Lamphun provinces and followed by Chiengrai, Chiengmai and Prayao provinces at similar proportion. The majority had undergraduate educational level, with single proprietor and limited partnership as per the study of Hatten which concluded that entrepreneurs must be the leader of changes and would bring the progress to the society by utilizing own capability, of family members and of networks to build entrepreneur society which in turn would managed business growth together with the understand of adapted methodology from own experience and strategy as entrepreneurs. [34] Baum and Locke, [35] Beaver and Jennings, [36] The majority of businesses were in service sector which was the business that not required large capital investment with business experience of 4-6 years and 7-10 years and with less than 10 employees and with personal investment and financial institution investment. The most affect factor toward the entrepreneur business success was the supply chain management. The corporation was to generate benefits and business alliance by jointly forecast the demand of products, raw materials and the passing of data among members in the supply chain. [19] in order to build the sustainable competitive advantage.

In addition, the supply chain management had direct affect toward the marketing ability representing 31.00%. This direct affect was in line with the study of Zeng, Xie and Tam, [29] which described that the business operation was the information indicated the sales volume, the marketing performance and the marketing research.

It was the marketing data of consumers toward the business products and services. [27] The most effective factor toward the entrepreneurs’ success in business was the supply chain management. These reasons were both internal and external stakeholders corporate in industrial level and supply chain management level.

Anyway, the supply chain management had direct affect toward the participatory stakeholders of both internal and external as per the study of Renn and Schweitzer [37] which indicated that the working behavior with stakeholder participatory was importance as it was the affective way of working by pooling resources from both internal and external of the organization with based on the business principles, failure development or business success of such organization which could be measurable as per key performance indicators. Any form of success from the idea proposal, joint planning and joint operation for the organization development required the stakeholder participatory process.

8. Research Recommendation The supporting units of SMEs business should

have advisory platform or meeting conference to exchange opinions among entrepreneurs to aware of the competition impact and should have informative data on economic status, economic trend and current competition environment to support entrepreneur for proactive marketing planning.

For the extension of this research, the researcher should have mechanism in supporting entrepreneur in specific business that concise, practical and tangible for actual operation or the sample of success from the research outcome.

9. Acknowledgements Researchers would like to express appreciation

to the management of Rajabhat Lampang University and Intertech College Lampang for value the importance and grant financial supports for this survey research and would like to also recognize every peer reviews in providing


Remark: Figure value in main diagomal was AVE meant the indicotor for Discriminate Validity measurement of construct

71


Table 3 revealed the composite reliability (CR) with

value higher than 0.50 indicated that all questions in measureable

indicators were reliable with validity and correlation value of

each indicator within the same variables had higher value than

the correlation value of each indicator with different variables

indicated the high discriminant validity.

7. Research Outcome Discussion The majority of entrepreneurs was similar in gender

proportion of male and female, and age group between 41-50

years old of the most, married, business established in Lampang

and Lamphun provinces and followed by Chiengrai, Chiengmai

and Prayao provinces at similar proportion. The majority had

undergraduate educational level, with single proprietor and

limited partnership as per the study of Hatten which concluded

that entrepreneurs must be the leader of changes and would

bring the progress to the society by utilizing own capability, of

family members and of networks to build entrepreneur society

which in turn would managed business growth together with the

understand of adapted methodology from own experience and

strategy as entrepreneurs. [34] Baum and Locke, [35] Beaver

and Jennings, [36] The majority of businesses were in service

sector which was the business that not required large capital

investment with business experience of 4-6 years and 7-10 years

and with less than 10 employees and with personal investment

and financial institution investment.

The most affect factor toward the entrepreneur business

success was the supply chain management. The corporation

was to generate benefits and business alliance by jointly forecast

the demand of products, raw materials and the passing of data

among members in the supply chain. [19] in order to build the

sustainable competitive advantage.

In addition, the supply chain management had direct

affect toward the marketing ability representing 31.00%. This

direct affect was in line with the study of Zeng, Xie and Tam, [29]

which described that the business operation was the information

indicated the sales volume, the marketing performance and the

marketing research.

It was the marketing data of consumers toward the

business products and services. [27] The most effective factor

toward the entrepreneurs’ success in business was the supply

chain management. These reasons were both internal and

external stakeholders corporate in industrial level and supply

chain management level.

Anyway, the supply chain management had direct

affect toward the participatory stakeholders of both internal and

external as per the study of Renn and Schweitzer [37] which

indicated that the working behavior with stakeholder participatory

was importance as it was the affective way of working by pooling

resources from both internal and external of the organization with

based on the business principles, failure development or business

success of such organization which could be measurable as per

key performance indicators. Any form of success from the idea

proposal, joint planning and joint operation for the organization

development required the stakeholder participatory process.

8. Research Recommendation The supporting units of SMEs business should have

advisory platform or meeting conference to exchange opinions

among entrepreneurs to aware of the competition impact and

should have informative data on economic status, economic trend

and current competition environment to support entrepreneur for

proactive marketing planning.

For the extension of this research, the researcher

should have mechanism in supporting entrepreneur in specific

business that concise, practical and tangible for actual operation

or the sample of success from the research outcome.

9. Acknowledgements Researchers would like to express appreciation to

the management of Rajabhat Lampang University and Intertech

College Lampang for value the importance and grant financial

supports for this survey research and would like to also recognize

every peer reviews in providing comments and recommendations

for the completeness of this research study.

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