The Role of Innovation Capabilities and Competitive Advantage as Mediating Variables Between the Relationship of Technology and Success of Startup Businesses in Thailand
Main Article Content
Abstract
Startup businesses are important for economic development, especially in developing countries. These businesses use technology to drive their successful operations. This research study examined the influence of innovative capabilities and competitive advantage as mediating variables in the relationship between technology and the success of startup businesses in Thailand. The Resource-based View Theory (Barney, 1991) was used as the theoretical basis for the study. The population studied consisted of startup business entrepreneurs in Thailand. A sample of 579 startup businesses was chosen through a probabilistic sampling method through simple random sampling from all types of startup business. Path analysis was used for data analysis, with results of the study showing the influence of innovative capabilities and competitive advantage as mediating variables in the relationship between technology and the success of startup businesses in Thailand. This new knowledge has driven the government to develop strategies and policies to create and grow startup businesses. It has also encouraged startup business entrepreneurs to focus on building competitive advantages and innovation in their businesses and to continuously develop technology for the survival and growth of their businesses.
Article Details
References
Abdelkader, I. B., & Mansouri, F. (2013). Competitive Conditions of the Tunisian Banking Industry: An Application of the Panzar–Rosse Model. African Development Review, 25(4), 526-536.
Afolayan, A., Plant, E., White, G. R., Jones, P., & Beynon-Davies, P. (2015). Information technology usage in SMEs in a developing economy. Strategic Change, 24(5).
Aftab, J., Abid, N., Sarwar, H., Amin, A., Abedini, M., & Veneziani, M. (2024). Does corporate social responsibility drive financial performance? Exploring the significance of green innovation, green dynamic capabilities, and perceived environmental volatility. Corporate Social Responsibility and Environmental Management, 31(3), 1634–1653.
Ahn, S., Kim, K. S., & Lee, K. H. (2022). Technological capabilities, entrepreneurship and innovation of technology-based start-ups: The resource-based view. Journal of Open Innovation: Technology, Market, and Complexity, 8(3), 156.
Al. Othman, F. A., & Sohaib, O. (2016). Enhancing innovative capability and sustainability of Saudi firms. Sustainability, 8(12), 1–1.
Al-Abed, M. S., Ahmad, Z. A., & Adnan, M. A. (2014). Technology transfer performance and competitive advantage: evidence from Yemen. Asian Social Science, 10(3), 195.
Alghamdi, O., & Agag, G. (2024). Competitive advantage: A longitudinal analysis of the roles of data-driven innovation capabilities, marketing agility, and market turbulence. Journal of Retailing and Consumer Services, 76, 103547.
Arruda, C., Nogueira, V., Cozzi, A., & Costa, V. (2014). Causas da mortalidade de startups brasileiras. Núcleo de Inovação e Empreendedorismo, Fundação Dom Cabral, 33.
Aydiner, A. S. (2020). A Model for Digital Business Governance for Strategic Growth and Innovation with Dynamic Capabilities. In Strategic Outlook for Innovative Work.
Bakri, B., ZM, A. A., Defitri, S. Y., & Mu'min, H. (2024). The Effect of AI Technology, Innovation Readiness, and Digital Entrepreneurship on Competitive Advantage in Start up in Jakarta. West Science Interdisciplinary Studies, 2(04), 841-850.
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-120.
Barney, J. B., & Hesterly, W. S. (2010). VRIO framework. Strategic Management and Competitive Advantage, 68-86.
Battistella, C., De Toni, A. F., & Pessot, E. (2017). Open accelerators for start-ups success: A case study. European Journal of Innovation Management, 20(1), 80-111.
Benitez, J., Castillo, A., Llorens, J., & Braojos, J. (2018). IT-enabled knowledge ambidexterity and innovation performance in small US firms: The moderator role of social media capability. Information & Management, 55(1), 131-143.
Berger, R. (2016). Digital factories–The renaissance of the US automotive industry. Think Act beyond Mainstream.
Blank, T. H. (2021). When incubator resources are crucial: Survival chances of student startups operating in an academic incubator. The Journal of Technology Transfer, 46(6), 1845-1868.
Bloch, P. H., Brunel, F. F., & Arnold, T. J. (2003). Individual differences in the centrality of visual product aesthetics: Concept and measurement. Journal of Consumer Research, 29, 551–565.
Brealey, R. A., Myers, S. C., & Allen, F. (2013). Principles of Corporate Finance (The Mcgraw-Hill/Irwin Series in Finance, Insurance, and Real Estate) (The Mcgraw-hill/Irwin Series in Finance, Insureance, and Real Estate) PDF.
Çağlıyan, V., Attar, M., & Abdul-Kareem, A. (2022). Assessing the mediating effect of sustainable competitive advantage on the relationship between organisational innovativeness and firm performance. Competitiveness Review: An International Business Journal, 32(4), 618–639.
Cefis, E., & Marsili, O. (2019). Good times, bad times: innovation and survival over the business cycle. Industrial and Corporate Change, 28(3), 565-587.
Chamsuk, W., Fongsuwan, W., & Takala, J. (2017). The effects of R&D and innovation capabilities on the thai automotive industry part’s competitive advantage: a sem approach.
Chang, Y. C., Chen, M. H., Lin, Y. P., & Gao, Y. S. (2012). Measuring regional innovation and entrepreneurship capabilities: The case of Taiwan science parks. Journal of the Knowledge Economy, 3, 90-108.
Chitturi, R., Raghunathan, R., & Mahajan, V. (2008). Delight by design: The role of hedonic versus utilitarian benefits. Journal of Marketing, 72(3), 48–63.
Dereli, D. D. (2015). Innovation management in global competition and competitive advantage. Procedia-Social and behavioral sciences, 195, 1365-1370.
Dessyana, A., & Riyanti, B. P. D. (2017). The influence of innovation and entrepreneurial self-efficacy to digital startup success. International Research Journal of Business Studies, 10(1), 57-68.
Donkor, J., Donkor, G. N. A., Kankam-Kwarteng, C., & Aidoo, E. (2018). Innovative capability, strategic goals and financial performance of SMEs in Ghana. Asia Pacific Journal of Innovation and Entrepreneurship, 12(2), 238-254.
Dubickis, M., & Gaile-Sarkane, E. (2015). Perspectives on innovation and technology transfer. Procedia-Social and Behavioral Sciences, 213, 965-970.
Ferreira, J., Coelho, A., & Moutinho, L. (2020). Dynamic capabilities, creativity and innovation capability and their impact on competitive advantage and firm performance: The moderating role of entrepreneurial orientation. Technovation, 92, 102061.
Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18, 39–50.
Forsman, H. (2011). Innovation capacity and innovation development in small enterprises. A comparison between the manufacturing and service sectors. Research Policy, 40(5), 739-750.
Fraser, H. M. (2012). Design works: How to tackle your toughest innovation challenges through business design. University of Toronto Press.
Galli, B. J. (2019). The value of marketing in project environments from three key perspectives. International Journal of Service Science, Management, Engineering, and Technology (IJSSMET), 10(1), 1–18.
Gibson, C. B., Gibson, S. C., & Webster, Q. (2021). Expanding our resources: Including community in the resource-based view of the firm. Journal of Management, 47(7), 1878-1898.
Global digital growth, 2020, digital- 2020- global PDF.(wearesocial-net.s3-eu-west-1.amazonaws.com)
Goksoy, A., Vayvay, O., & Ergeneli, N. (2013). Gaining competitive advantage through innovation strategies: an application in warehouse management processes. American Journal of Business and Management, 2(4), 304-321.
Gold, A. H., Malhotra, A., & Segars, A. H. (2001). Knowledge management: an
organizational capabilities perspective. Journal of Management Information
Systems, 18(1), 185–214.
Guo, G., & Lin, Q. (2017). Consumers become more or less ethnocentric? A meta-analysis on level of consumer ethnocentrism. International Journal of Business and Management, 12(2), 145-150.
Haddad MI, Williams IA, Hammoud MS, et al.: Strategies for implementing innovative in small and medium-sized enterprises. World Journal of Entrepreneurship. Management and Sustainable Development: WJEMSD. 2019; 16(1): 12–29.
Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2010). Multivariate data analysis (7th ed.). Englewood Cliffs: Prentice Hall.
Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2019). Multivariate data analysis: Pearson new international (8th ed.). Cengage Learning EMEA.
Hair, J. F., Ringle, C. M., & Sarstedt, M. (2011). PLS-SEM: Indeed, a silver
bullet. Journal of Marketing Theory and Practice, 19(2), 139-152.
Hanaysha, J. R., Al-Shaikh, M. E., Joghee, S., & Alzoubi, H. M. (2022). Impact of innovation capabilities on business sustainability in small and medium enterprises. FIIB Business Review, 11(1), 67-78.
Hu, L. T., & Bentler, P. M. (1999). Cutoff criteria for fit indexes in covariance structure analysis: Conventional criteria versus new alternatives. Structural Equation Modeling: A Multidisciplinary Journal, 6(1), 1-55.
Huang, K. F. (2011). Technology competencies in competitive environment. Journal of Business Research, 64(2), 172-179.
Huang, N. E. (2014). Hilbert-Huang transform and its applications (Vol. 16). World Scientific.
IVCA-EY (2019). Year-to-date PE/VC investments in India at a new all-time high of US$36.7 billion: IVCA-EY Report, Press release on 10 September 2019. Retrieved from: https://www.ey.com/en_in/news/2019/09/year-to-date-pe-vcinvestments-in-india-at-new-all-time-high-of-us-dollar-36-7-billion-ivca-ey-report.
Jin, S. H., & Choi, S. O. (2019). The effect of innovation capability on business performance: A focus on IT and business service companies. Sustainability, 11(19), 5246.
Jones, E. L. (2003). The European miracle: environments, economies and geopolitics in the history of Europe and Asia. Cambridge University Press.
Jorgensen, J. J., Zuiker, V. S., Manikowske, L., & LeHew, M. (2022). Impact of Communication Technologies on Small Business Success. Journal of Small Business Strategy, 32(3), 142-157.
Kaewsuwan, N., & Kajornkasirat, S. (2023). Factors affecting success in information technology utilization in business operations of agri-tech startups in Southern Thailand. International Journal of Innovative Research and Scientific Studies, 6(3), 594-606.
Kaplan, R. S., & Norton, D. P. (1996). Using the balanced scorecard as a strategic management system.
Khalique, M., Bontis, N., Shaari, J. A. N. B., Yaacob, M. R., & Ngah, R. (2018). Intellectual capital and organisational performance in Malaysian knowledge-intensive SMEs. International Journal of Learning and Intellectual Capital, 15(1), 20-36.
Kleis, L., Chwelos, P., Ramirez, R. V., & Cockburn, I. (2012). Information technology and intangible output: The impact of IT investment on innovation productivity. Information Systems Research, 23(1), 42-59.
Lahovnik, M., & Breznik, L. (2014). Technological innovation capabilities as a source of competitive advantage: A case study from the home appliance industry. Transformations in Business & Economics, 13(2), 144-160.
Lang, T. M., Lin, S. H., & Vy, T. N. T. (2012). Mediate effect of technology innovation capabilities investment capability and firm performance in Vietnam. Procedia-Social and Behavioral Sciences, 40, 817-829.
Leonidou, L.C., Leonidou, C.N., Fotiadis, T.A. and Zeriti, A. (2013), "Resources and capabilities as drivers of hotel environmental marketing strategy: Implications for competitive advantage and performance", Tourism Management, Vol. 35, pp. 94-110.
Lestari, E. R., & Ardianti, F. L. (2019, April). Technological capability and business success: The mediating role of innovation. In IOP Conference Series: Earth and Environmental Science (Vol. 250, p. 012039). IOP Publishing.
Lestari, S. D., Leon, F. M., Widyastuti, S., Brabo, N. A., & Putra, A. H. P. K. (2020). Antecedents and consequences of innovation and business strategy on performance and competitive advantage of SMEs. The Journal of Asian Finance, Economics and Business, 7(6), 365-378.
Lim, K., Chesbrough, H., & Ruan, Y. (2010). Open innovation and patterns of R&D competition. International Journal of Technology Management, 52(3/4), 295-321.
Liu, J., Xu, W., Zhang, J., Zhou, Z., Pham, D.T., 2016. Industrial cloud robotics towards sustainable manufacturing. In: Materials; Biomanufacturing; Properties, Applications and Systems; Sustainable Manufacturing, vol. 2 p.V002T04A017. https://doi.org/10.1115/MSEC2016-8733.
López‐Gamero, M. D., Zaragoza‐Sáez, P., Claver‐Cortés, E., & Molina‐Azorín, J. F. (2011). Sustainable development and intangibles: building sustainable intellectual capital. Business Strategy and the Environment, 20(1), 18-37.
Marei, A., Abou-Moghli, A., Shehadeh, M., Salhab, H., & Othman, M. (2023). Entrepreneurial competence and information technology capability as indicators of business success. Uncertain Supply Chain Management, 11(1), 339-350.
Marshall, M. I., & Wiatt, R. (2019). Small Business Values Survey. Purdue Institute for Family Business, Purdue University.
Matloob, S., Limón, M. L. S., Montemayor, H. M. V., Raza, A., & Rodriguez, J. C. C. (2023). Does Strategic Change Enhance the Relationship between Firms’ Resources and SMEs Performance in Pakistan? Sustainability, 15(3), 1808.
Meredith, J. R., & Shafer, S. M. (2013). Operation management. Singapore: John Wiley & Sons.
Mikalef, P., Boura, M., Lekakos, G., & Krogstie, J. (2019). Big data analytics capabilities and innovation: the mediating role of dynamic capabilities and moderating effect of the environment. British Journal of Management, 30(2), 272–298.
Miller, D. (1988). Relating Porter's business strategies to environment and structure: Analysis and performance implications. Academy of Management Journal, 31(2), 280-308.
Muthén, L. K., & Muthén, B. O. (2017). MPlus: statistical analysis with latent variables User's guide (8 ed.). Los Angeles, CA: Muthén & Muthén.
National Innovation Agency (Public Organization). (2022). About the National Innovation Agency (Public Organization). Retrieved 10 October 2022 from www.nia.or.th.
Nikkei Asia , Thailand AIMS To DupLicate singapore model for startups,dealstreetasia,cento report 2022.Retrieved from https://asia.nikkei.com/Business/Startups/Thailand-aims-to-duplicate-Singapore-model-for-startups.
Niyawanont, N. (2023). The influence of start-up entrepreneurship and disruptive business model on firm performance. Entrepreneurial Business and Economics Review, 11(1), 57-76.
O’Cass, A., & Sok, P. (2014). The role of intellectual resources, product innovation capability, reputational resources and marketing capability combinations in firm growth. International Small Business Journal, 32(8), 996-1018.
Otto, J. et al. (2014). Why cyber-physical production systems need descriptive engineering approach–a case study in plug & produce. Procedia Technology, 2014(15), 295-302.
Oura, M. M., Zilber, S. N., & Lopes, E. L. (2016). Innovation capacity, international experience and export performance of SMEs in Brazil. International Business Review, 25(4), 921-932.
Pavic, S. C. L. K., Koh, S. C. L., Simpson, M., & Padmore, J. (2007). Could e‐business create a competitive advantage in UK SMEs? Benchmarking: An International Journal, 14(3), 320-351.
Pavlenko, D. S., Kubatko, O. V., & Ziabina, Y. A. (2020). Economic, social and technological factors of startup’s Success.
Pham, T. T., & Hampel-Milagrosa, A. (2022). Viet nam’s ecosystem for technology startups.
Prabhu, J., & Jain, S. (2015). Innovation and entrepreneurship in India: Understanding jugaad. Asia Pacific Journal of Management, 32, 843-868.
Pramono, R., Sondakh, L. W., Bernarto, I., Juliana, J., & Purwanto, A. (2021). Determinants of the small and medium enterprises progress: A case study of SME entrepreneurs in Manado, Indonesia. The Journal of Asian Finance, Economics and Business, 8(1), 881-889.
Rauter, R., Globocnik, D., Perl-Vorbach, E., & Baumgartner, R. J. (2019). Open innovation and its effects on economic and sustainability innovation performance. Journal of Innovation & Knowledge, 4(4), 226–233.
Raza, d. A., matloob, d. S., shah, d. M. H., & sarki, d. I. H. (2023). Leadership styles and sustainable competitive performance in Pakistani SMEs: an industry 4.0 perspective. Bulletin of Business and Economics (BBE), 12(3), 138-149.
Ruiz-Ortega, M. J., & García-Villaverde, P. M. (2008). Capabilities and competitive tactics influences on performance: Implications of the moment of entry. Journal of Business Research, 61(4), 332-345.
Sait, S., Muharam, F., Thoo, A., Sulaiman, Z., Zakuan, N., & Tan, L. (2018). Impacts of Technology Assessments on Firm Performance. AIP Conference Proceedings 2018, p. 020009-1-020009-10.
Santisteban, J., Mauricio, D., & Cachay, O. (2021). Critical success factors for technology- based startups. International Journal of Entrepreneurship and Small Business, 42(4), 397-421.
Saura, J. R., Palos-Sanchez, P., & Grilo, A. (2019). Detecting indicators for startup business success: Sentiment analysis using text data mining. Sustainability, 11(3), 917.
Shoosanuk, A. (2021). Competitive advantage and organizational performance: perspectives from the resource-based perspective theory. Lawasri Journal, 5(2), 119-134.
Sierra-Morán, J., Cabeza-García, L., González-Álvarez, N., & Botella, J. (2024). The board of directors and firm innovation: A meta-analytical review. BRQ Business Research Quarterly, 27(2), 182–207.
Skordoulis, M., Ntanos, S., Kyriakopoulos, G. L., Arabatzis, G., Galatsidas, S., & Chalikias, M. (2020). Environmental innovation, open innovation dynamics and competitive advantage of medium and large-sized firms. Journal of Open Innovation: Technology, Market, and Complexity, 6(4), 195.
Slepov, V. A., Burlachkov, V. K., Danko, T. P., Kosov, M. E., Volkov, I. I., Grishina, O. A., & Sekerin, V. D. (2017). The country's economic growth models and the potential for budgetary, monetary and private financing of gross domestic product growth.
Startup India (2019). STARTUP INDIA KIT. October, 2019. Retrieved from: https://www.startupindia.gov.in/content/dam/invest-india/Templates/public/ Startup%20India%20Kit_v5.pdf.
Subrahmanya, M. B. (2007). Development strategies for Indian SMEs: promoting linkages with global transnational corporations. Management Research News, 30(10), 762-774.
Sultan, S., & Mason, M. (2010). Competitive advantage of SMEs.
Teixeira, E. G., Moura, G. L. D., Lopes, L. F. D., Marconatto, D. A. B., & Fischmann, A. A. (2021). The influence of dynamic capabilities on startup growth. RAUSP Management Journal, 56, 88-108.
Teo, T. S. H., Srivastava, S. C., & Jiang, L. (2008). Trust and electronic government
success: an empirical study. Journal of Management Information Systems,
(3), 99–132.
Tripopsakul, S., & Asavanant, K. (2017). Entrepreneurial orientation, firm resources, and business performance: The evidence from STEP data. International Journal of Economic Research, 14(12), 231-241.
Udriyah, U., Tham, J., & Azam, S. J. M. S. L. (2019). The effects of market orientation and innovation on competitive advantage and business performance of textile SMEs. Management Science Letters, 9(9), 1419-1428.
Venkatraman, N., & Ramanujam, V. (1986). Measurement of business performance in strategy research: A comparison of approaches. Academy of management review, 11(4), 801-814.
Verma, R., & Jayasimha, K. R. (2014). Service delivery innovation architecture: An empirical study of antecedents and outcomes. IIMB Management Review, 26(2),105–121. doi: 10.1016/j.iimb.2014.03.002.
Vorhies, D. W., & Morgan, N. A. (2005). Benchmarking marketing capabilities for sustainable competitive advantage. Journal of Marketing, 69(1), 80-94.
Wan, J., Cai, H., & Zhou, K. (2015, January). Industrie 4.0: enabling technologies. In Proceedings of 2015 international conference on intelligent computing and internet of things (pp. 135-140). IEEE.
Wang, C. L., & Ahmed, P. K. (2004). The development and validation of the organisational innovativeness construct using confirmatory factor analysis. European Journal of Innovation Management, 7(4), 303-313.
Waqas, M., Honggang, X., Ahmad, N., Khan, S. A. R., Ullah, Z., & Iqbal, M. (2021). Triggering sustainable firm performance, supply chain competitive advantage, and green innovation through lean, green, and agile supply chain practices. Environmental Science and Pollution Research, 1-22.
Warom Ronnam Wong, Prapassorn Wan Sathit, & Chaiwat Baibai. (2022). The relationship between social capital and entrepreneurial characteristics to gain competitive advantage. Santi Studies Review Journal, MCU, 10(5)., 2284-2297.
Weihong, X., Yongjian, W., Luan, J., & Guangyu, Z. (2010, July). A study on the relationship between IT capabilities, organization structure and enterprise performance: Empirical research through the manufacturing enterprises in PRD. In 2010 International Forum on Information Technology and Applications (Vol. 3, pp. 373-376). IEEE.
Weinman, J. (2012). Cloudonomics: The Business Value of Cloud Computing. Hoboken,NJ: Wiley.
Weinmann, J. (2015). Digital Disciplines: Attaining Market Leadership via the Cloud, Big Data, Social, Mobile, and the Internet of Things. Wiley CIO.
Wilcox, K., Kim, H. M., & Sen, S. (2009). Why do consumers buy counterfeit luxury brands? Journal of Marketing Research, 46(2), 247-259.
Yam, R. C., Lo, W., Tang, E. P., & Lau, A. K. (2011). Analysis of sources of innovation, technological innovation capabilities, and performance: An empirical study of Hong Kong manufacturing industries. Research Policy, 40(3), 391-402.
Yanuarti, I., & Dewi, H. 2019. Startup Bisnis Sebagai Alaternatif Investasi. ULTIMA Management, 10(2), 81–96.
Zhang, M., & Hartley, J. L. (2018). Guanxi, IT systems, and innovation capability: The moderating role of pro-activeness. Journal of Business Research, 90, 75-86