Academy of Strategic Management Journal (Print ISSN: 1544-1458; Online ISSN: 1939-6104)

Research Article: 2022 Vol: 21 Issue: 4S

The Study of Innovative Management toward Competitive Advantage Of Community-Based Enterprises in Thailand

Sanitdech Jintana, Rajamangala University of Technology Thanyaburi

Korntouch Kosidphokin, Rajamangala University of Technology Thanyaburi

Citation Information: Jintana, S., & Kosidphokin, K. (2022). The study of innovative management toward competitive advantage of community-based enterprises in Thailand. Academy of Strategic Management Journal, 21(S4), 1-11.


Innovative Management, Competitive Advantage, Community-Based Enterprises


This research aims (1) to explore the innovative management toward competitive advantage of community-based enterprises (2) and analyze the influencing of innovative management toward competitive advantage in order to (3) present a guideline for developing the innovative management and competitive advantage of community-based enterprises of Thailand. The samples size of research were 283 president and vice president in community-based enterprises of Pathum Thani province in which this area encountered the significant change in both number and effective management. The instrument used in this study was a questionnaire. The statistics used in data analysis composed of frequency, percentage, mean and standard deviation. T-test, One-way ANOVA, and Multiple Regression Analysis (MRA) with coefficient of determination (R2) at statistical significance of 0.05 were used for hypothesis test. The results found that most of the community entrepreneurs in Pathum Thani Province were a moderate level of overall of the innovative management. When considering each aspect, it was found the high level of three aspects; product and service, behavior, and strategy, while the process and marketing was in a moderate level respectively. For the innovative management were significantly influencing to competitive advantage of community-based Enterprises in Pathum Thani province at the 0.05 level. Thus, the guidelines for innovative management toward competitive advantage of community-based enterprises in Thailand were 4 dimensions including the innovative management of products and services, the knowledge of modern marketing development, the supporting development of production procedures, and the development of knowledge and adjustment of paradigm in strategic management.


The condition of the changes in business world nowadays is complicated and affecting entrepreneurs to adjust the formation to be keeping up with the situation for the reason that the environment inside and outside can be affected the operation of small and medium sized enterprise and created more advantages than the competitor in the old market (Kuratko & Hodgetts, 2004). For organization to be advantaged in the competition, the organization need to be incessantly and continuously developed itself. It is significant that entrepreneurs need using strategic administration for surpassing competitors or keeping the enterprise up with the situation of the competition through strategy of long-term and short-term competition (Porter, 2012). For the reason, innovation has revealed as an answer for the significant strategy which most of enterprises desired it to be survival and growth of the enterprise. In case of using innovation in business, there will be the current development in all aspects and will bring the organization the success which will lead to the enhancing of the higher level of the competition including standardizing the sustainability of the organization and continued growing in the era of VUCA World consisted of 4 factors: 1. Volatility, 2. Uncertainty, 3. Complexity, 4. Ambiguity which are the significant factors that the organizations need to utilize for administrating for survival and growth of the organization (Innovation foresight institute, 2019).

The study of the world's businesses reveals that even many of the world's largest corporations have to adapt the organizational management to the changing environment through innovation such as the product and the service innovation. Research by Hana (2013) found that small and medium-sized businesses in the Czech Republic place a strong emphasis on bringing innovation into management. It has been seen that the introduction of innovation is essential to the organizational culture and the production to meet the needs of customers. Besides, bringing an innovation into management affects the creation of competitive advantages (Haseeb et al., 2019; Somjai et al., 2020). The study by Udriyah & Azam (2019) found that market focus and innovation had a positive influence on the competitive advantage of SMEs in Malaysia at the significant statistic.05 and can be predicted together at 46.3%. Songsom (2019) studied the innovation management in Thailand found that the ability of innovation in products and services, marketing, strategy, process, and behavioral has a positive influence on the overall competitive advantage of the enterprises statistically significant at 0.05 level.

Community enterprise is the grass root economic enterprise regarding the production, products, services or further business operated by the individuals. It related in the way of livelihood and business operation both the legal and non-legal entity to contribute income, family, community, and communities’ collaboration. It has integrated the local wisdom together with the stability and certified by the law of promoting knowledge’s that integrating the activities of the community enterprise network (Office of the council of state, 2005). However, the operation of community enterprise has grown in the slow state, in term of a good administration for the whole country of the community enterprise. It can be recognized through several reports, for instance the result of the potentiality evaluation conducted by department of agriculture extension manually. The evaluation was conducted through the orientation of the community enterprise; operation plan, marketing plan, operation result, member administration, etc. The statistic has decreased distressingly, the number of community enterprise in Thailand is 97,489 enterprises from 84 groups in 2020 which have been evaluated as the excellent level which can be count as 0.08 percent. Furthermore, the number of them has been decreasing to be just 33 groups in 2021 which can be count as 0.03 percent of overall number of community enterprise in Thailand (Department of agricultural extension, 2021). The statistic has reflected the insufficiency in administration of the community enterprise and in addition, facing the pandemic of COVID-19 together with the challenges for the environment outside; economy, society, politic, law, and technology that affected the community enterprises unable to adjust themselves which leading to the terribly decreasing of the administration potentiality.

The significant problem of community enterprise is the production of unwanted product in the market together with unknowing the way in using the capital in wisdom and others in the community to develop the product for the reason that, the management of knowledge for furthering the wisdom and new era technology is still limited which affecting the enhancement of the ability in the occupation to be inefficient as it should be. There is less of value creation in product using Thai identity or local wisdom and only in the specific of producer: lacks of design and the trademark of Thai product has got lack of support from the government and various of community enterprise entrepreneurs have got lack in creativity in value creation of the community product and creating innovation, therefore, it is needed for the community enterprise entrepreneur to be developed and promoted in the aspect of creative idea for applying local wisdom and can creating value for the community products to be meeting the demand of the consumers. Innovation for community enterprise is an idea outside the box which lead to the creative ideas which advantaged in the aspects of society, the country economy, and the receiving of innovations including production, management, and marketing together with the potentiality in competitiveness which enhancing community enterprise and effecting the community economy to be strengthened and sustainable (Thammawimutti & Chuntuk, 2017).

From the mentioned situations, it indicated the significance of applying innovation in managing the obstacles in competitiveness of Thai business aligned with the important policies of Thailand such as 4.0 policies, the master plan under national strategy in 16 aspects, local economy (2018–2037) and the twelfth national economic and social development plan (2017-2021). Since researchers have been acknowledged widely on national policies and the current problems of community enterprise, it inspired to create the main objective of increasing the capacity of community enterprise and potentiality of the policies for a guideline suggestion.

Research Objectives

  1. To explore the innovative management toward competitive advantage of community-based Enterprises in Thailand
  2. To analyze the influence of innovative management toward competitive advantage
  3. To present a guideline for developing the innovative management and competitive advantage of community-based Enterprises in Thailand

Literature Review

Thailand Policy on Innovation and Enterprises

The government has realized the necessity in using digital innovation as an important composition in mobilizing country which indicated through model scheme of the country including Thailand 4.0 policy focusing on the proceeding of the economy mobilizing by innovation. In the second strategy of 20 years national strategy, it was mentioning on the Competitiveness Enhancement, which focusing on enhancing the potentiality of the country in creating comparative advantages in other aspects and applied them with technology and innovation to be conformed with the terms of economy and globalization that emphasizing on the development of agricultural support, services, and digital industries in case to increase potentiality and competitiveness including building and developing entrepreneur in the development of managing system for creating work innovation (Office of the national economic and social development council, 2018). As same as the twelfth national economic and social development plan (2017-2021), the government was paying attention to the development in agriculture and community that can leading the country from medium-income to high-income country, stable, and sustainable for the society to be cohabited peacefully. For those information, the strategy has conducted for building justice and decreasing inequality in society by paying attention to the building of community potentiality and the development of community economy which is the local economy to be strengthened and emphasizing on the development in science, technology, research, and innovation. Also focusing on the developing of innovation and utilization the mobilizing factors in all dimensions to enhance the potentialities of the country in all aspects (Office of the national economic and social development council, 2018).

However, the reports of the situation regarding to the science, technology and innovation revealed that Thailand still lack the preparation for keeping up with the changes and handling the competition which is entering to the era of future economy without knowledge, awareness, information, personnel, infrastructure, and enabling factors effecting behind to accomplish the product and service innovation as the report for international competitiveness ranking. Thailand has ranked at 28th place in the aspect of economic performance and business efficiency. Moreover, the country has ranked at 21st place and for the potentiality in innovation and the 50th place in the group of ASEAN country (International Institute for Management Development, 2021). Meanwhile, the global innovation index (The Global Innovation Index: GII, 2020) has ranked Thailand in the potentiality of innovation in overall at 44th place chasing Singapore, Malaysia, and Vietnam. Importantly, Thailand needs to pay more attention in developing the potentiality of innovation for the reason that it is the significant fundamentality in competition.

The Concept of Innovative Management

Innovation means the operation of current product or service or rectifying it significantly including the current procedure and marketing together with the operation of the business in the organization and the relation in both internal and external of the organization (Tiwari, 2008). For the minimum condition of the innovation, it needs to be brand new or developing it significantly in the different way for the organization. Innovation can be divided into 4 types: 1. Product Innovation 2. Process Innovation 3. Marketing Innovation and 4. Organizational Innovation (Oslo Manual, 2018; Edison, Ali & Torkar, 2013)

The potentiality in innovative management has been investigated for ages, as the fact that it is the ability of the organization in inventing new thing and got accepted to be one of the factors which determining the survival of the organization and succeeding in long-term. The components using in the evaluating of innovative potentiality which focusing only in some aspects such as paying attention in the evaluation of innovation only in production (Sethi et al., 2001; Rainey, 1999). The innovative management can be evaluated in 2 aspects including: the potentiality in behavior and the potentiality in strategy which the evaluation of innovative potentiality can lead to the neglecting of other aspects: innovative potentiality in behavior, marketing, and strategy which is the narrow study and difficult to compare with the other research and can lead to the biased conclusion (Wang & Ahmed, 2004). Therefore, this research conducted integrating the concepts of Wang & Ahmed (2004) and evaluating the innovative potentiality on 5 components as follows:

  • Product innovativeness; motivating employees to comment, invent, or sample creatively for meeting the demand of customer, presenting brand new product and service that launched to the market sooner that the competitor together with improving and developing the product and service invariably.
  • Market innovativeness; the improving or creating of the concept in marketing operation covered all components of the market which including the determining the new market which has got new forms of the potentiality in presenting product, service, and market entering methods.
  • Process innovativeness; the improving or creating the procedure in operating in case to increase the efficiency of the work together with the concept in administration and technology utilized.
  • Behavioral innovativeness; the creation of innovative culture which incurred the new idea and innovation by the expression of the individual, team and executive. The innovation mentioned is the fundamental factors of the result in creating innovation and the organization can bring on the potentiality and capacity of the employees in order to promote the business operation to be conformed to the context in the present and for the employee to be keeping up with the situation and agility.
  • Strategic innovativeness; the act of the organization determining the strategic and operation plan of the organization which compatible and promoting the creation of the organization innovation together with preparing the system or the process in sampling mistakes, failures and risks in all step of consideration systematically through the techniques such as scenario management and the ability in coordinate the behavior of the employees to be conformed with the environment of the organization competition.

Competitive Advantage

Porter (2012) has presented the concept of competitive strategy which is the important beginning of the business operation which needs to be completely understood regarding the environment and competitors all the sequence time using strategies for creating competitive advantages which has determined by Porter in 5 aspects as followed:

  • Low–Cost Leadership: The business that has low capital whether in raw material or others related will be advantaged in the differentiation of the product prices and services with the capital that lower than competitors
  • Differentiation: The business needs to create the innovation of product and service to be as an identity of the organization which might lead to the differentiation in the operating process in organization or the values of the product and service in the perspective of consumers.
  • Fucus: The business needs to create the innovation of product and service which can responding to the market which has target group separated in specific, obvious and small group (Niche Market).
  • Flexibility: The business needs to be flexible in adjusting to meet the demand of the consumer such as the agility in responding, capital adjustment, selling pattern, and so on.
  • Innovation: The creation in innovation or the developing of the product existed to be the brand-new product but still improving the previous product that will lead to the competitive advantages.

From the concept, the researcher has used the principle of the components affecting the procedure creating competitive advantages which including 1. Low–cost leadership, 2. Differentiation, 3. Flexibility, and 4. Innovation which expecting to be affected the innovation management.

Conceptual Framework

The conceptual framework for research is as figure 1.

Figure 1 Conceptual framework

Research Hypotheses

H1: Innovative management significantly influences the competitive advantage of community-based enterprises in Thailand.

From the study of the related literatures, the results indicated that the utilizing of innovation in management can create advantages in competitiveness in large scale from the study of Hana (2013) who conducted the study of “Competitive Advantage Achievement through Innovation and Knowledge”, the result of the study indicated that, 1. Small and medium enterprises in Czech republic have pay attention in using innovation in management in the perspective of using innovation is necessary for the organization culture and 2. The utilization of innovation in management has affected the advantages creation in competition significantly at the level of 0.05 and for the study of Udriyah & Azam (2019), the result shows that market orientation and innovation had positive and significant effects on competitive advantage, partially. Market orientation and innovation give contributions to the competitive advantage of 46.3% and Songsom (2019), the results revealed that innovativeness in terms of product and service, marketing, strategies, process and behavior positively affected competitive advantage of the SMEs in Songkhla Province, Thailand at a significant level of 0.5.

Research Methods

The research was conducted using mixed-method design between quantitative research and qualitative research. The group of sampling in this researches the participants including chief and vice-chief of the community enterprise in the number of 283 people and for the period in gathering information was two months from March until May in 2019. For the research instruments, the research was conducted using questionnaires which has passed the evaluation of the content validity and tested for the reliability of the instrument which has alpha coefficient equaled to 0.953.

The study area was Patum Thani Province, there were several criterions to recruit this area 1) the number of community enterprises have continued to decline. 2) Lack of the sustainable management and inefficient administration, 3) the urban extension in Pathum Thani province causing the society change and reducing the potential of people collaboration.

Furthermore, the researchers have gathered the information using in-depth interview from the personnel of public sector related to development of community enterprise and academicians in the field of community business development in the number of 16 person which using semi-structure interviews as the research instrument.)

The research was analyzed using descriptive and inferential statistics which processing the result in instant software regarding the sociology research and the statistics using in analyzing information were frequency, percentage, mean, standard deviation, t-test, one way analysis of variance, and multiple liner regression analysis using coefficient of determination: R2 and determining the statistical significance in the level of 0.05. For the in-depth interview gathered, the researchers used descriptive information in the phenomenon or concrete object and interpreting the information for creating the conclusion of the guidelines in innovative management and creating competitive advantages for community enterprise in Pathum Thani.

Research Results

The Innovative Management toward Competitive Advantage Exploration

The results indicated that most of community enterprises in Pathum Thani province answered questionnaire have conducted the innovative management in the average of medium stage and after the considering in individual, the results revealed that the community enterprises which can be grouped in the high level of innovativeness in 3 aspects which can be arranged from highest to lowest as first product and service and second, behavior and strategy respectively and for the medium stage of innovativeness, there were 2 aspects including process and market (as can be seen in table 1).

Table 1
The innovative management toward competitive advantage exploration
  Innovative management   S.D. Meaning Ranking
1 Product Innovativeness 3.74 1.03 High 1
2 Market Innovativeness 2.61 1.04 Medium 5
3 Process Innovativeness 3.11 1.25 Medium 4
4 Behavioral Innovativeness 3.55 1.18 High 2
5 Strategic Innovativeness 3.42 1.19 High 3
  Averages 3.29 1.14 High -

For the information gathered from in-depth interview of the informants in the numbers of 16 person, the results indicated that the community enterprises in Pathum Thani province have problems and obstacles in innovative management as revealed in the table 2.

Table 2
The problems and obstacles of innovative management from in-depth interview
S. No Innovative Management Problems and Obstacles
1 Product Innovativeness 1. Did not extend the product and service from the wisdom to innovation
2. The product does not represent the identity of the community
2 Market Innovativeness 1. Inefficiency in online marketing
2. Cannot adjusting to online marketing
3. Did not conduct the analysis of the target group in market
3 Process Innovativeness 1. The procedure in production does not meet the standard of food and drug administration
2. The inefficient procedure in working, delaying and the product does not conform with the demand of the market together with the large amount of waste from the production
3. Did not apply technology or innovation in production due to lacking of budget in investment.
4 Behavioral Innovativeness 1. The group members did not adjust oneself in working conformed the changes in technology
2. The changes of the community becoming city caused the behavior of the citizen to be changed
3. Problems in the capitals in thinking and knowledge in adjusting to the innovative management business
5 Strategic Innovativeness 1. Leader lacks the vision in creating the growth of business
2. The lacks of planning the concrete strategy
3. The unsystematic of member administration which leading to the conflicts in the group

The Influencing of Innovative Management toward Competitive Advantage

From the hypothesis evaluation there were the innovative management in 2 variants including strategic and product and service which influenced the competitive advantages of community enterprise in Pathum Thani province in the medium level and has multiple correlation at 0535 and can be used in predicting the variant at 28.6 percent in the statistical significance of 0.05 and has standard error of the prediction equal ±0.273 as concluded in table 3.

Table 3
Regression analysis of the innovative management affecting the level of advantages in community enterprise
Model Unstandardized Coefficients Standardized Coefficients t Sig. Collinearity  Statistics
B Std. Error Beta Tolerance VIF
(Constant) 2.021 0.213   9.481 .000*    
1. Product Innovativeness 0.266 0.074 0.302 3.574 .000* 0.361 2.77
2. Market Innovativeness 0.025 0.051 0.03 0.483 0.629 0.663 1.509
3. Process Innovativeness -0.05 0.064 -0.079 -0.772 0.441 0.245 4.085
4. Behavioral Innovativeness 0.007 0.071 0.01 0.093 0.926 0.239 4.188
5. Strategic Innovativeness 0.199 0.069 0.304 2.872 .004* 0.23 4.349
R=0.535, R2=0.286,  Adjusted R Square=0.273,  Durbin-Watson=1.777

From the result of hypothesis testing in each aspect, the researchers have concluded the factors in each aspect of innovative management into 2 variants including strategic innovativeness and product and service innovativeness which can be concluded as figure 2.

Figure 2 The influences of innovative management in business affecting the advantages in the competition of community enterprise in Pathum Thani province

Guideline Suggestion for Developing the Innovative Management and Competitive Advantage of Community-Based Enterprises in Thailand

For the result gathered from the groups of community enterprise and in-depth interview, the researchers have analyzed using SWOT analysis and TOWS matrix respectively and then presented the guideline in developing innovative management for creating advantages in community enterprise in Pathum Thani province. The guidelines can be divided into 4 aspects as follows:

  • First Aspect: The aspect of product and service in innovative development, there need to be enhancing the product and service which reflecting the diversity of cultures and races in Pathum Thani province to be more highlighted and enhancing the production of the product created from local wisdom to be the brand-new of national qualified innovation and promoting the development of product innovation along with services conformed with the demand of new era.
  • Second Aspect: The aspect of the development of new era marketing knowledge by developing innovative marketing management online channel and supporting market for selling community product along with developing the knowledge regarding procedure in marketing in case to create the remarkable and unique image.
  • Third Aspects: The aspect of supporting the development of innovative production which developing the innovation in production to be more efficient. There need to be supporting the knowledge regarding efficient innovation in production such as kaizen, lean, total quality management, and zero waste agriculture which can increase the competitiveness of community enterprise together with promoting the administration of raw material in case to manage the capital and efficient planning in production.
  • Forth Aspects: The aspect of knowledge development and paradigm adjustment regarding strategic management which need to be building the network of community enterprise in term of exchanging the innovative knowledge in managing business and focusing on paradigm of the chief to be having the vision in adjusting to the changes of environment along with promoting strategic planning for efficient management in business.


The research’s results indicated that most community enterprises in Pathum Thani province have the average medium stage of innovative management as expected based on the literatures about lower ranking in the potentiality of business management from many international competitiveness ranks (International Institute for Management Development, 2021). Also, the department of agriculture extinction indicated the number of the community enterprise in Thailand has decreased to be 33 groups from 84 groups in which can be count as 0.03 percent of overall number of community enterprise in Thailand. This research’s statistic has reflected to the insufficiency of administration on community enterprises during the pandemic of COVID-19 together with the challenges of external factors (environment, economy, and society) that need the community enterprises unable to adjust themselves for the urban expansion to Patum Thani province. Additionally, the comparison of the study results and the results in other countries have confirmed that the innovativeness of small and medium enterprise in terms of product and service, marketing, strategies, process and behavior has an average of medium level (Hana, 2013; Songsom, 2019). To accomplish the determined target of the organization together with paying attention in using innovation in management perspective is necessary for the organizational culture and the producing of product to be satisfied with the needs of customers.

Hypothesis testing found that first the innovative business management in products and services have a positive influence on competitive advantage. The influencing variables are the group of products and services are in demand of the market followed by technology and innovation leadership Crossan & Apaydin (2010); Porter (2012) discussed about the process of creating a competitive advantage, it requires product innovation or product development to be new and marketable by having a quality standard those customers willing to pay. Second, the strategic innovative business management has a positive influence on competitive advantage. The influencing variables are business environment analysis before planning a business strategy, systematic and rapid organizational structure development, and emphasizing participatory work systems. Wang & Ahmed (2004); Rahab (2012) stated that the organization's strategy and action plans must be coordinated and supported the organization's innovation. There should have a system or process of trial, error, failure, and risk of making any decisions systematically and in accordance with the competitive environment of the organization.

From the above discussion, it can be seen that this study is consistent with most of the previous researches. Most of the community enterprises do not have a high level of innovative business management which passed over five years of 20-year national strategic plan, the Thailand 4.0 policy, and the master plan under the national strategy. There were still unable to upgrade or drive economy through innovation at the fundamental economy level, which is a critical issue for government agencies to accelerate the development of innovative business management.

Research Suggestions

From the findings of the study, the researchers viewed as proper to suggest the related institute in terms of the significant policy as follows:

  • The institutions related to the development of community enterprise need to be clear in the direction and creating the plan of the development in community business as a guideline in operation and target in development of community enterprise to be efficient in innovative management in all dimensions whether in product, marketing, production process and the planning of strategy by developing the personnel of public sector to be expert in developing knowledge regarding innovative management together with the creating of participatory in education institute in transferring knowledge to community enterprise
  • In the aspect of administration and potentiality of public sector institute and the institute related to the center of community enterprise there needs to be promoting of administrative resources in region and local level for allocating the budget and personnel to be sufficient in conducting project in developing community enterprise.
  • In the aspect of policy implementation, there needs to be transmitting of the policy regarding community enterprise development for the officers to understand the targets and guidelines in developing local economy using digital innovation followed 20-year national strategy, Thailand 4.0 policy, the master plan under national strategy in 16 aspects, and local economy (2018–2037) including the promoting of the integration of related institution especially, the department of agriculture, community development department, department of commerce, industry office, department of skill development which the potentiality of each institution can be combined for developing the community enterprise to be acquired innovative management and competitive advantages.


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Received: 08-Dec-2021, Manuscript No. ASMJ-21-10102; Editor assigned: 10- Dec -2021, PreQC No. ASMJ-21-10102 (PQ); Reviewed: 23- Dec -2021, QC No. ASMJ-21-10102; Revised: 28- Dec -2022, Manuscript No. ASMJ-21-10102 (R); Published: 10-Jan-2022

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