Research Article
Suthisa Juntarbutra, Chanongk
Abstract
Small and Medium Enterprises (SMEs) are the foundation of the Thai economy and act as a major source of employment and operations for large enterprises. This research investigates the factors affecting the development of a strategic management model for SMEs in the Thai automotive parts industry. The population consisted of SME entrepreneurs in the automotive parts industry in Thailand. A questionnaire was used to collect data using purposive sampling techniques in combination with secondary data from published reports. Structural equation modeling was applied to analyze the strategic management model of small and medium enterprises in the Thai automotive parts industry. The results indicate that transformational leadership factors have a significant direct influence on business strategy and organization innovation. Moreover, transformational leadership has an indirect influence on business performance through business strategy and organizational innovation. The research findings support sustainable growth under the present competitive conditions within the Thai automotive parts industry.