The achievement of export performance of small and medium enterprises (SMEs) in Thailand

Abstract

Today, international trade is very important thanks to small and medium enterprises‟ role in the economy through the boost of employment from their advantages on business opportunity. However, small and medium enterprises have their own disadvantage with respect to size, resources, and management capability that impede their opportunity to export. Yet, there are few practical research works about achievement of export performance of small and medium enterprises (SMEs) in Thailand. Most studies involve foreign markets in developed countries, countries in emerging markets, and developing countries. Therefore, this subject should be seriously investigated in order to develop a body of knowledge from recent research and build a sustainable development approach for Thailand‟s export sector of small and medium enterprises so they can improve their business performance.

The objectives of this research were to analyze the relationship between entrepreneurial orientation and export performance; to analyze the relationship between entrepreneurial orientation on reducing export barriers, which promote export performance; and to analyze the relationship between reducing export barriers and export performance of small and medium enterprises in Thailand as per the research framework. The study firstly employed a qualitative analysis approach through interviews in order to identify inquiry data according to the context of Thailand, which will result in more valuable and reliable research. Then, quantitative analysis was largely used. And it is a phenomenon study based on data collected by questionnaires which are used to evaluate the degree of effect of the independent variables on export performance of small and medium enterprises.

The sampling size for this research is 224 samples. A purposive sampling technique for industrial group is used. The instrument for the sampling is a questionnaire applying 10 levels of the Thurstone Scale for Attitude Measurement (Thurstone, 1929). This research employs statistical data analysis; for example, percentage, mean, standard deviation, and utilizes the LISREL (Linear Structural Relations) program version 8.52 for the validity of causal analysis of Structural Equation Modeling (SEM) and examination of causal relationship model of The Achievement of Export Performance of Small and Medium Enterprises (SMEs) in Thailand, which is developed with empirical data.

The results obtained are Organization export performance is directly affected by entrepreneurial orientation. Therefore, if small and medium enterprises in Thailand fostering entrepreneurial orientation mainly focus on innovativeness, proactiveness, and risk taking, their organization export performance will be enhanced. Export performance also is indirectly affected by entrepreneurial orientation through internal export barriers reduction as well. That is, if small and medium enterprises in Thailand fostering entrepreneurial orientation by emphasizing the three factors, internal environment barriers (informational barriers, resource barriers, and marketing barriers) will be reduced, which will enhance an organization‟s export performance. Moreover, organization export performance is directly affected by internal export barriers reduction. In other words, small and medium enterprises‟ export performance will be enhanced in Thailand if they reduce internal environment barriers through cooperation among related public and private sectors for the promotion and determination of development policies that focus on export SMEs efficiency and determination of development policies that fit the needs of small and medium enterprises on the three factors by primarily emphasizing informational barriers reduction policy, resource barriers reduction policy, and marketing barriers reduction policy, respectively. This is beneficial to the overall economy by creating a competitive advantage for the country.