Purpose- This study is to test and develop a model of how SME's entrepreneurs can enhance competitive advantage in turbulent environment. By having the absorptive capacity (ABC) that may serve as a mediator role with a variety of external knowledge sources and social Integration is a driving factor within the organization Design/methodology-This study was a survey with 270 SMEs in Thai gems and jewelry industry. SEM was used to examine the proposed model. Findings-The results indicated the important role and influence of ABC as a mediator variable between environmental turbulent and external knowledge sources on competitiveness. Besides, social integration mechanism was an important mechanism of the organization when the environment was highly turbulent, and the organization had to rely on a variety of external knowledge sources. Originality/value- The implications for findings of this research are for operators and public policy. This developed model is suitable for SME entrepreneurs. If having absorptive capacity, strengthening corporate culture and strategic alliances will be able to seize and create superior business opportunities for policy makers. It can be used as information in formulating policies that are conducive to entrepreneurs, such as import-export tax rates, creating platform, financial support and a hub. The gap between PCAB and RCAB is reduced by maintaining social integration mechanisms and will receive value from ABC.
Volume 12 | 07-Special Issue
Pages: 1499-1517
DOI: 10.5373/JARDCS/V12SP7/20202253