COMPETITIVE ADVANTAGE AND INNOVATION PERFORMANCE OF MSMES: THE EFFECTS OF GOVERNMENT SUPPORT, ENTREPRENEURIAL COMPETENCIES, AND CREATIVE SELF-EFFICACY

Information from the abstract

Drawing on the Resource-Based View (RBV) and self-efficacy theory, this study investigates the effects of government support, entrepreneurial competencies (EC), and creative self-efficacy (CSE) on competitive advantage and innovation performance among micro, small, and medium enterprises (MSMEs). While existing literature explores MSME performance, few studies have integrated government mechanisms with psychological capital and competencies within a unified framework, especially in developing economies. Survey data were collected through questionnaires from 519 MSMEs registered under the One Tambon One Product (OTOP) program in Thailand. Structural equation modeling was employed to test the hypotheses empirically using LISREL. The findings indicated that government support has a substantial impact on EC and CSE. In addition, EC has positive direct relationships with CSE, competitive advantages, and innovative performance. Although CSE does not directly affect competitive advantage, it indirectly influences competitive advantage through innovation performance. Theoretically, this study addresses the research gap by extending the RBV to demonstrate how integrating intangible resources (EC) and psychological capital (CSE) fosters competitive advantage. In practice, the findings provide significant insights for governments and policymakers to foster EC and CSE, thereby helping MSMEs improve their innovation performance and competitive advantage.

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Related topics: Intellectual Capital and Performance Analysis · Innovation and Knowledge Management · Corruption and Economic Development