A study of factors determining enterprise integration capabilities for sustainable competitive advantage of the Thai food industry

  • Rattanachotithavorn, S., Triukose, S., Chandrachai, A., Keeratipibul, S.

Abstract

The purpose of the research is to identify potential factors that enhance, not only profitability, but also sustainability for the Thai food-processing industry. In this research, the author conducted a study on the integration of innovation, marketing, management, and dynamic capability for sustainable competitive advantage, namely the “Enterprise Integration Capability (EIC) model”. The analysis was carried out on a sample of 333 Thai enterprises in the food-processing industry by multi-stage random sampling method. Utilizing the analysis of Structural Equation Modelling (SEM) as a research tool, an Enterprise Integration Capability model was generated. The model, consisting of four main factors, which are innovation, marketing, management, and dynamic capability, shows that the empirical data is concordant with theoretical research. Analysis of the model shows Chi–square = 58.36, Degree of freedom = 52, GFI = 0.98, AGFI = 0.94, RMSEA = 0.019 and P-value = .253. The results indicate that innovation, marketing, management, and dynamic capability give rise to sustainable competitive advantage, which, in turn, positively relate to the sustainable competitive advantage of the firm. Concluded from the study is that the strongest factors in the order of influence on sustainable competitive advantage are dynamic capability, management capability, marketing capability, and innovation capability measured at 0.53, 0.35, 0.13, and 0.03, respectively.

Published
2020-06-06