Innovative Local Leadership and Community Enterprise Development: A Participatory Governance Approach in Maha Sarakham Province, Thailand
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Keywords:
entrepreneurial characteristics, business innovation, operational success, SMEs, Thailand, entrepreneurship developmentAbstract
This study investigates the relationship between entrepreneurial characteristics, business innovation, and operational success among small and medium-sized manufacturing enterprises (SMEs) in the Upper Northeastern Region of Thailand. A quantitative research design was employed using a structured questionnaire administered to 350 entrepreneurs, selected through stratified sampling based on Taro Yamane’s formula with a 0.05 margin of error. Data were analyzed using descriptive statistics and multiple regression analysis via the Ordinary Least Squares (OLS) method. The findings revealed that four entrepreneurial characteristics—creativity, innovativeness, risk acceptance, and expertise had statistically significant positive effects on operational success, while perseverance did not. Together, these characteristics explained 61.0% of the variance in operational success (Adjusted R² = .610). Additionally, innovativeness, perseverance, and creativity were the strongest predictors of business innovation, explaining 70.4% of its variance (Adjusted R² = .704). Business innovation also had a significant positive effect on operational success, accounting for 44.1% of the variance (Adjusted R² = .441). However, when tested as a mediating variable, business innovation did not significantly mediate the relationship between entrepreneurial characteristics and operational success. These findings underscore the importance of fostering entrepreneurial creativity, innovation, and expertise to enhance the competitiveness and sustainability of SMEs. The results provide practical insights for policymakers and support agencies aiming to design entrepreneurship development programs that strengthen innovation capacity and operational performance in regional enterprises.
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