STRUCTURAL EQUATION MODEL OF CAUSAL FACTORS INFLUENCING ON SME PERFORMANCE IN THAILAND

Abstract

The goals of this study are to 1) investigate the relationship between high-performance work system, organizational culture, human capital, and organizational citizenship behavior and SME performance, and 2) establish and validate the consistency of the causal model of high-performance work system, organizational culture, human capital, and organizational citizenship behavior and SME performance. The Office of Small and Medium Firms Promotion database contains 545 small and medium enterprises, divided into three categories: (1) 110 retail and wholesale businesses, (2) 204 service businesses, and (3) 231 manufacturing organizations. According to the findings, 1) The variables of high-performance work system, organizational culture, human capital, and organizational citizenship behavior and SME performance have the same direction correlation with a low to high degree of correlation, and 2) the causal model of high-performance work system, organizational culture, human capital, and organizational citizenship behavior and SME performance is consistent with empirical data as follows: 2 = 51.880 , p = 0.075 , df = 48 , GFI = 0.980 , AGFI = 0.940 , RMR = 0.006. Finally, high-performance work system, organizational culture, human capital, and organizational citizenship behavior factors, with effect sizes of .37,.34,.40 and.46, respectively, have a direct effect on SME performance variables with a statistical significance of .01.