Relationship Between Innovative Organization and the Performance of Small and Medium Enterprises

Abstract

The aims of this research were to study the relationship between organizational culture, organizational creativity, organizational innovation and the performance of small and medium enterprises in Thailand. This research employed both the quantitative and qualitative research methodologies. The research sample for the quantitative study consisted of 300 entrepreneurs who were the small and medium enterprises in Thailand and were employed by stratified random sampling. A questionnaire was designed and used to collect data and a structural equation model analysis was applied for the data analysis. In the qualitative study, data were collected via in-depth interviews from the experts and stakeholders in SMEs and content analysis was used to analyze with a synthesis of interview results. The findings revealed that the causal relationship model of innovative organizational performance of SMEs in Thailand was consistent with empirical data and had the ability to predict the good acceptable. The influencing of the factors affecting performance of SMEs showed that the organizational culture had positive direct effect on organizational creativity and organizational innovation, while organizational culture had indirect effect on SMEs performance through organizational creativity and organizational innovation. Moreover, organizational creativity had positive direct effect on organizational innovation and performance of SMEs, and organizational innovation had a positive direct effect on SMEs performance.

Keywords—Innovative Organization, Performance, Small and Medium Enterprises