Mallika Subongkod, Chanyaphak Lalaeng
The research aimed to develop a structural equation model of business performance effectiveness of community enterprises in Chumphon province and describe causal relationship of factors like production management skills, marketing skills, leadership skills, participation skills and networking skills that influence business performance effectiveness of community enterprises in Chumphon province. A questionnaire was used to collect data from 385 community enterprise entrepreneurs in Chumphon province. Probability random sampling technique was used to select the sample. Data were analyzed using structural equation modeling (SEM).
The study result revealed that the structural equation model was consistent with the empirical data while production management skills, leadership skills, participation skills and networking skills had an influence on business performance effectiveness of community enterprises in Chumphon province, except marketing skills did not have an influence on business performance effectiveness of community enterprises in Chumphon province. The study result is useful for supporting resource-based view theory which discovered that community enterprise entrepreneurs having production management skills, leadership skills, participation skills and networking skills contributed to business performance effectiveness of community enterprises in Chumphon province such as sales, profit, number of customers, and internal development in a better level. Besides, the study result is practically useful for community enterprises by giving importance to marketing skills and explicit planning for developing community enterprises in Chumphon province to achieve sustainability accordingly.