The factors affecting the performance of small and medium manufacturing enterprises in Thailand

Abstract

SMEs have an essential role in driving the economics of Thailand, especially the manufacturing sector. Manufacturing SMEs are regarded as a significant sector for long-term development because they can play an important role in sustainable economic development, which can reduce the dependency on foreign investment. However, manufacturing SMEs suffer from low performance compared to SMEs in the service and trade sector. Therefore, this research aimed to study the factors affecting the performance of manufacturing SMEs based on organizational resource theory, such as the resource-based view and population ecology theory. The research design was mix-method, composed of multiple linear regression and in-depth interviews. The quantitative methods used identified the factors affecting the performance of manufacturing SMEs, and the qualitative method aimed to confirm, expand, and explain the reasons why these factors have an influence on firm performance. In the last chapter, the findings from the two methodologies will be discussed and recommendations for government agencies will be presented.