To Study the Effect of Moderator of Social Skills on the Changing Between Managerial Skills and SME Performance

Somphet Thongsennheuang

http://eprints.utcc.ac.th/id/eprint/1330    

 

 

© University of the Thai Chamber of Commerce

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The Effect of Moderator of Social Skills on the Changing Between

Managerial Skills and SME Performance

SOMPHET THONGSENNHEUANG

A Thesis Submitted in Partial Fulfillment of the Requirements

For the Degree of Master of Business Administration

International College

University of the Thai Chamber of Commerce

2012

iv

Thesis Title To study the effect of moderator of social skills on the

changing between managerial skills and SME

performance

Name Ms Somphet Thongsennheuang

Degree Master of Business Administration

Major Field International Business

Thesis Advisor Dr. Phusit Wonglorsaichon

Graduate Year 2012

ABSTRACT

SMEs growth and successful development is dependent on the continuance

enhance of the entrepreneurial skills. Since entrepreneurial skills influence

implementation of sustainable growth of SMEs, the entrepreneur’s success depends

on the identification of crucial entrepreneurial skills for start-up business, as well as

for helping the business to survive and grow in the early years. The objectives of this

study are threefold (1) to study the effect of managerial skills on SME performance in

Thailand, (2) to study the effect of moderator of social skills on the changing between

managerial skills and SME performance and (3) to study the important of skill

development of entrepreneurs’ effect on SME performance in Thailand. The

conceptual framework of this study was adapted from Ibrahim and Goodwin, (1986);

Benzing et al., (2009); Baron, (2000). The model is analyzed empirically by using 400

questionnaires which were collected from entrepreneurs in small and medium

enterprises in Thailand. Structure Equation Model (SEM) is used to test the model.

Result of this study revealed that the vast majority of entrepreneurs were

female, age between 31 – 40 years, held the Bachelors degree, most of business types

are service/hotel& restaurant, most of them have age of business between 4 to 6 years,

and most of them have the number of employees between 1-10 employees. Most of

them have all agree level about management, finance, marketing, creativity, risk

taking propensity, leadership, adaptability, collaboration, communication, social

adaptability and networking.

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The main findings showed that managerial skills which consisted of

management, finance, marketing, creativity, risk taking propensity, leadership and

adaptability have positive direct effect on SME performance. Furthermore, the

findings also presented the moderator of social skills that consisted of collaboration,

communication, social adaptability and networking have effect on the changing

between managerial skills and SME performance. From the result of this study

indicated that the low level of social skill and high level of social skills has affect on

the changing between managerial skill and SME performance is mean that if the

entrepreneurs have high level of managerial skills this may contribute to the high

SME performance. Moreover, if the entrepreneurs have high level of managerial skills

and social skills may contribute to the higher SME performance and more success in

their business. Using the structural equation model (SEM), it was found that

leadership skills is the most important skills which has the highest influence to

managerial skill on SME performance with the value 84% from total.

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ACKNOWLEDGEMENT

This thesis would not have been possible without the guidance and the help of

several individuals who in one way or another contributed and extended their valuable

assistance in the preparation and completion of this study.

First and foremost, it gives me great pleasure in acknowledging the support

and help of my supervisor, Dr. Phusit Wonglorsaichon, whose sincerity and

encouragement and has been my inspiration as I hurdle all the obstacles in the

completion this research work.

I would like to express the deepest appreciation to my thesis committees; Dr.

Pisamorn Kilenthong, Dr. Suthawan chirapanda, Dr. Nattapan Buavaraporn, and Dr.

Haruthai Namprasertchai. They have made available their supports in a number of

ways which help to ease up my difficulties in doing this thesis

In addition, I would like to express my sincere to Dr. Tawkiat Noisomlee

whom made available suggestion and taught me the structural equation model which

used to analysis the data of this study.

My sincere thanks are also due to my dearest friends Mr. Patamet Boonanek

assisting me in successful completion of my thesis.

Last but not the least, this thesis is dedicated to my parents who have given me

the opportunity of an education from the best institutions and support throughout my

life.

Somphet Thongsennheuang

TABLE OF CONTENTS

Page

Abstract iv

Acknowledgements vi

Table of Contents vii

List of Tables xi

List of Figures xii

Chapter 1 Introduction

Background of the study 1

Statement of the problem 2

Research Objective 3

Research Questions 4

Scope of the Study 4

Expected Benefits of the Study 5

Operation Definition 5

Chapter 2: Literature Review 8

Model of Essential and Additional Management skills 9

Attribution Theory 9

Entrepreneurial skills 10

Managerial skill 11

Management 13

Financial 13

Marketing 14

TABLE OF CONTENTS (Continued)

Creativity 15

Risk taking propensity 17

Leadership 18

Adaptability 19

Social Skills 20

Collaboration 22

Communication 23

Social adaptability 24

Networking 25

SME performance 27

Cost Reduction 28

Customer Growth 29

Sales Growth 29

Conceptual Framework 30

Research Hypothesis 30

Chapter 3: Research Methodology 32

Research Design 33

Population and Sample Size 33

Population 33

Sample Size 33

Variables of the Research 34

Independent Variable 34

Dependent Variable 34

Moderator variable 34

Research Instrument 34

Analysis of the level of agreement 36

TABLE OF CONTENTS (Continued)

Pretest of Research Instrument 37

Validity Analysis 37

Reliability Analysis 39

Data Collection 40

Data Analysis 41

Chapter 4: Data Analysis and Result 42

Demographic Characteristic 42

Data Analysis and Findings 44

Correlation Analysis 44

Factor Analysis 47

Structural Equation Model (SEM) 51

Hypothesis Testing 56

Chapter 5: Conclusion and Discussion 64

Conclusion 64

Discussion 65

Managerial skills Effect on SME performance 66

Moderator of social skills 67

Implication of the Study 69

Implication for the entrepreneurs 69

Implication for the academic and researcher 70

Limitation of the Study 71

Future Research 71

TABLE OF CONTENTS (Continued)

REFFERENCES 71

APPENDICES 86

APPENDICS A: 87

APPENDICS B: 91

BIOGRAPHY 103

LIST OF TABLE

Table Page

Table 1.1 Definition of SMEs Thailand 1

Table 2.1 The measurement of risk taking 18

Table 2.2 The measurement of adaptability 19

Table 2.3 Social skills potentially relevant to entrepreneurs’ success 22

Table 2.4 The measurement of social skills 22

Table 2.5 The measurement of SME performance 28

Table 3.1 Number measurement of each variable 36

Table 3.2 Level of agreement 37

Table 3.3 Definition of Variables 37

Table 3.4 Item-Objective Congruence Result 39

Table 3.5 Reliability test using Cronbach’s alpha 40

Table 4.1 Respondent Characteristics 43

Table 4.2 Correlation Matrix 47

Table 4.5 Extraction of Communalities 48

Table 4.4 Total Variance Explained 49

Table 4.5 Summarized Result of Rotated analysis 50

Table 4.6 Goodness of Fit Statistic 51

Table 4.7 Parameters of Statistic 53

Table 4.8 The Standardized Total Effect, Direct Effect and Indirect Effect 54

Table 4.9 Show the Test of Main Model of Variable Collaboration 57

Table 4.10 Show the Test of Main Model of Variable Communication 58

Table 4.11 Show the Test of Main model of Variable Social adaptability 60

Table 4.12 Show the Test of Main Model of Variable Networking 61

LIST OF FIGURES

Figure Page

Figure 2.1 Model of essential and additional management skills 9

Figure 2.2 Conceptual Framework 31

Figure 4.1 The full Structural Model 55

Figure 4.3 Moderator model of collaboration 57

Figure 4.4 Moderator model of communication 58

Figure 4.5 Moderator model of social adaptability 59

Figure 4.6 Moderator model of networking 61

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CHAPTER 1

INTRODUCTION

1.1 Background of the study

The SMEs sector plays an important role in the economic growth in the world.

It is believed that SMEs contribute significantly to achieving national development.

This contribution can reflect the increase of GDP, improvement of living standards,

and the decrease of the unemployment rate. (Coric, Katavic and Kopecki, 2011).

Some other researchers believe that SMEs bring about social benefits as a result of

their greater competition and higher productivity in the economy. Therefore,

government all over the world focuses on development of the SMEs sector to support

the economic growth (Sarapaivanich, 2006). The most in – depth investigation from

the comparative historical study of the development of advanced economies over the

past century is that the organizations - not markets- drive the procedure of economic

development (Lazonick, 2002). This can be recommends that the economic

development, which leads to sustainable growth, seriously depends on the

organizational activities and the capability of the organization to manage the scare

resources, such as main capital, knowledge, ideas, entrepreneurship and human

capital. Nevertheless, achieving the sustainable growth of SMEs essentially requires

entrepreneurial skills.

As the reference of National Statistical Office Thailand, Department of public

Welfare, Department of Business Development the number of SMEs in Thailand year

2011 the total are 2,646,549 or (99.76%).

Table 1.1 Definition of SMEs Thailand

Type of Business Number of

employees

Assets Employment Assets

Manufacturing < 50 employees < 50 million (฿) 51 – 200 employees 50 – 200 million( ฿)

Wholesales < 25 employees < 50 million (฿) 26 – 50 employees 50 – 100 million (฿)

Retail < 15 employees < 30 million (฿) 16 – 30 employees 30 – 60 million (฿)

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Source: National Statistical Office Thailand, Department of public Welfare, Department of Business

Development.

According to Smilor (1997) and Kilby (1971), entrepreneurial skills refer to

those activities, or practical know- how, that are needed to establish and successfully

run a business enterprise. These may comprise such areas finance, accounting,

marketing or production. Many others want to make a different between managerial

and entrepreneurial skills. For instance, Chen et al. (1998) write that many business

school courses,” focus on commonly identified management skills, but often exempt

entrepreneurial skills such as innovation and risk- taking.” Yet Timmons, (1999)

Dean of entrepreneurship education in the USA says “Entrepreneurship is a way of

thinking, reasoning and acting that is opportunity obsessed”. Surely this is much more

than merely managing. Successfully entrepreneurs constantly develop their skills,

competences, techniques and acquire specific knowledge in order to survive and

innovate new entrepreneurial opportunities in their industries Omerzel and Antoncic,

(2008).

1.2 Statement of the Problem

Entrepreneurs who are knowledgeable are trained to compete in the era of

globalization of business in line with changes in technology and also be able to use

information communication and technology (ICT) applications in daily operations. A

radical technological change requires a dynamic entrepreneur. This is because the

skill needed to be changed and improved all the time. Continuous improving skills

should be implemented as a culture in the life of an entrepreneur. This means that

lifelong learning should be applied as a culture and not stops after graduation or

business venture success. Entrepreneurs need to be equipped with variety of skills. As

a result, enterprise education will be complementary to the opportunity for

entrepreneurs to enhance their knowledge and skills in developing and preparing

themselves for the challenges and global competition Jenning, (1994). SMEs growth

and successful development is depend on the continuance enhance of the

entrepreneurial skills. Since entrepreneurial skills influence implementation of

sustainable growth of SMEs, the entrepreneur’s success depends on the identification

of crucial entrepreneurial skills for start-up business, as well as for helping the

business to survive and grow in the early years. The crucial role of SMEs to the

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overall health of the economy is “dependent on their performance which is growth

and profitability” Sage, (1993). It has been widely agreed that there is a positive

correlation between economic growth and entrepreneurship (Acs and Audretsch,

(2003); Audretsch and Keilbach, (2003); Carree et al. (2002). Entrepreneurship has

been an important research field among economists and scholars worldwide for some

considerable time, Following Audretsch and Keilbach (2004) and Audretsch (2007),

although the excluding of small business in the neoclassical growth model, the

significant role of entrepreneurship and small business cannot be rejected in economic

growth. Practically, small firm setting- up is increasingly regarded as the source of

economic growth and employment generation Hasson, (2010). The innovation process

can suffer because of either the lack of entrepreneurial skills or research effort.

Economic history may provide example of either case. Islamic civilization at the end

of the twelfth century may be an example of the former. Indeed Mokyr (1990) argues

that it declined because it “was not capable of adding much new to the existing stock

of ideas it retrieved and applied so brilliantly”. Mokyr also discusses notorious

examples of societies, such as the Greeks and the Romans that suffered because of the

lack of entrepreneurial skills. Such a deficit may also well explain the economic

decline of the late Victorian Britain usually attributed to the inability of British

entrepreneurship in promoting the diffusion of new and advanced production

methods. The purpose of the present research was to investigate the moderating role

of social skill effect on the changing between managerial skill and SME performance.

1.3 Research Objective:

1.3.1 To study the effect of managerial skills on SME

performance in Thailand.

1.3.2 To study the effect of moderator of social skills on the

changing between managerial skills and SME

performance in Thailand.

1.3.3 to study the importance of skill development of

entrepreneurs effect on SME performance in Thailand

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1.4 Research questions

According to the objectives of this research, three major research questions

are, therefore, present as below:

1.4.1 RQ 1: What is the effect of managerial skills on SME

performance in Thailand?

1.4.2 RQ 2: How does the social skill effect on the changing

between managerial skills and SME performance?

1.4.3 RQ 4: What is the most importance of skill

development of entrepreneur’s effect on SME

performance in Thailand?

1.5 Scope of the study

1.5.1 The population: Entrepreneurs in small and medium

enterprise in Thailand.

1.5.2 In this study, questionnaires will be distributed to

entrepreneurs in Thailand in the small and medium

enterprises as retails, wholesales, services and

manufacturing sectors, which set up their business from

one year up.

1.5.3 Area Research: The research is planned to study the

entrepreneurial skills which compose of two main

variables including managerial skills and social skills.

Managerial skills compose of management, financial,

marketing, creativity, risk taking propensity and

leadership and adaptability. Moreover, social skills

compose of collaboration, communication, social

adaptability and networking which effecting on SME

performance.

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1.6 Expected Benefits of the study

Major contributions of this study are as follows:

1.6.1 The result of this study will present the most important skills of

entrepreneurs that effect to SME performance, in order to help the

entrepreneurs enhance their skills to become a great entrepreneur as well as

increase their SME performance for their long-term success. Moreover, to

enhance their competitiveness towards globalized market.

1.6.2 Information on this study can be useful for entrepreneurs

improving their capability in order to be able handle the radical change of the

economic situation.

1.6.3 Researchers can make use of these results in this study as

references use to develop the skills further and to conduct further studies.

1.7 Operation definition

This paper defines the keywords for the research as follow:

1.7.1 Entrepreneurial skills means the ability to create something new and

innovative by using their experience and networks to exploitation opportunities to

find new and better ways in which they strive to reach and meet the needs of their

customers which compose of managerial skills and social skills.

1.7.1.1 Managerial skills means the ability to admistrative people in the

organization such as planning, organizing, delegating, and coordinating and as well as

the ability to interact and work effectively with team members.

1.7.1.1.1 Management means the process combining planning, organizing,

leading controlling and task in an effective and efficient manner which undertaken by

one or more person in order to achieve objectives.

1.7.1.1.2 Finance means the ability to managing cash flow, anticipating

financial needs, preparing financial plans and reports as well as acquiring and

allocating funds for his enterprise.

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1.7.1.1.3 Marketing means the process creating, communicating, delivering,

and exchanging offerings that have value for customers, partners, and society.

Marketer is not only to satisfy customer’s need but it is also to innovate on products

and services.

1.7.1.1.4 Creativity means the development and launching of novel ideas that

is useful and valuable to customers.

1.7.1.1.5 Risk taking propensity is meaning the willingness of the owner

business to commit significant resource to opportunities that have a reasonable chance

of failure and pursues a business idea when the probability of succeeding is low

1.7.1.1.6 Leadership means the ability to influence and motivate others to

dominate their expected performance for accomplish of organizational objectives.

1.7.1.1.7 Adaptability means the willingness and ability to adjust or

developing the business concept and skills to a new task in the way to achieve the

objective.

1.7.1.2 Social skills means the ability to interact (communicate) effectively

with people come from diverse of backgrounds, attracting effective partnerships and

employees, enhancing business connection, and negotiating with others upon several

of issues.

1.7.1.2.1 Collaboration means the ability to jointly work together to complete

task in order to achieve objective in effective and efficiency manner through diversity

of behaviors such as communication, information sharing, coordination, cooperation,

problem solving, and negotiation.

1.7.1.2.2 Communication means the comprehensive discuss and

communicate idea to others verbal and written which are important to entrepreneurs in

the roles they operate.

1.7.1.2.3 Social adaptability means the ability to adapt and feel comfortable

in a diversity of people which come from different background.

1.7.1.2.4 Networking means the effective relationship with others or business

connection that can support entrepreneurs to access to information, encouragement,

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idea, financial resources, and ability to access to potential customers and opportunity

to create alliance in the terms of business.

1.7.1.3 SME performance means the ability of an object to produce the result

in dimension determine a priori relation to the goal, which measure by three

dimensions such cost reduction, customers’ growth and sales growth.

1.7.1.3.1 Cost reduction means is the process used by companies to reduce

their cost and increase their profits. Depending on a company’s service or product.

However, it is important to remember that every decision in the product development

process affects cost.

1.7.1.3.2 Customers growth means the number of customers increase

compared to the last year.

1.7.1.3.3 Sales growth means annual sales growth rate compared to the past

year which is increased or decreased.

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CHAPTER 2

LITERATURE REVIEW

Relevant theories and other essential information will be reviewed in this

chapter. This chapter consists of:

2.1 The Model of Essential and Additional Management skills

2.2 Attribution Theory

2.3 Entrepreneurial skills

2.3.1 Managerial skills

2.3.1.1 Management

2.3.1.2 Financial

2.3.1.3 Marketing

2.3.1.4 Creativity

2.3.1.5 Risk taking propensity

2.3.1.6 Leadership

2.3.1.7 Adaptability

2.3.2 Social Skills

2.3.2.1 Collaboration

2.3.2.2 Communication

2.3.2.3 Social adaptability

2.3.2.4 Networking

2.4 SME performance

2.4.1 Cost Reduction

2.4.2 Customer Growth

2.4.3 Sales Growth

2.5 Conceptual Framework

2.6 Research Hypothesis

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2.1 Model of essential and additional management skills

The contribution to understanding the management and entrepreneurial skills

(Whetten, Cameron, 2005) has been provided by segmentation these skills into three

groups, including personal skills, interpersonal skills, and group skills, as basic

management skills, and adding several additional skills, as presented in the Figure 1

as below.

Basic management skills

Personal skills Developing Self-Awareness

Managing Personal Stress

Solving problems analytically and creatively

Interpersonal skills Building relationships by communicating supportively

Gaining power and influence

Motivating others

Managing conflict

Group skills Empowering and delegating

Building effective teams and teamwork

Leading positive change

Additional management skills

Specific communication skills Making oral and written presentations

Conducting interviews

Conducting Meetings

Figure 2.1 Model of essential and additional management skills

Source: According to Whetten, D.A. and Cameron K.S. (2005). Developing Management

Skills, 6th (International) edition, Pearson Prentice Hall – Pearson Education International (p.

18, p. 534).

Entrepreneur should be aware of the variety of necessary basic and additional

management skills that are not only desirable, but also required for successful

guidance of the company. Having that in mind he/she will have more knowledge on

how to compose his/her ideal team to consists of the team members with the

complementary skills, and void situations to hire people with similar or same skills as

his/her own ( Hamm, 2002).

2.2 Attribution theory

Attribution theory is concerned with how individuals interpret events and how

this relates to their thinking and behavior. Heider (1958) was the first to propose a

psychological theory of attribution, but Weiner and colleagues (e.g., Jones et al, 1972;

10

Weiner, 1974, 1986) developed a theoretical framework that has become a major

research paradigm of social psychology. Attribution theory assumes that people try to

determine why people do what they do, i.e., attribute causes to behavior. A person

seeking to understand why another person did something may attribute one or more

causes to that behavior. A three-stage process underlies an attribution: (1) the person

must perceive or observe the behavior, (2) then the person must believe that the

behavior was intentionally performed, and (3) then the person must determine if they

believe the other person was forced to perform the behavior (in which case the cause

is attributed to the situation) or not (in which case the cause is attributed to the other

person).

Weiner focused his attribution theory on achievement Weiner, (1974). He

identified ability, effort, task difficulty, and luck as the most important factors

affecting attributions for achievement. Attributions are classified along three causal

dimensions: locus of control, stability, and controllability. The locus of control

dimension has two poles: internal versus external locus of control. The stability

dimension captures whether causes change over time or not. For instance, ability can

be classified as a stable, internal cause, and effort classified as unstable and internal.

Controllability contrasts causes one can control, such as skill/efficacy, from causes

one cannot control, such as aptitude, mood, others' actions, and luck.

2.3 Entrepreneurial skills

Entrepreneurship is one of the main sources of growth, wealth and good

quality of life. There are many continue definitions of entrepreneurship, that are

mostly applying these words to define it: creativity, innovation, growth, risk-taking,

opportunity, development (Timmons and Spinelli, 2003). Notwithstanding there are

some of favor definitions of entrepreneurship such entrepreneurship is looking for

opportunities beyond the resources you currently control (Stevenson, 1993), the

ability of the entrepreneurship to create and build something valuable from practically

nothing (Timmons and Spinelli, 2003). Furthermore, entrepreneurship is an activity

that include the discovery and exploitation of opportunities to present new products

and services, ways of organizing, markets, processes, and raw materials through

organizing efforts that previously not existed (Shane, S. 2003). (Schumpeter, 1975)

define entrepreneur as a person that is creative in his/her pursuit of making money.

11

The entrepreneur use their experience and networks to find new and better ways in

which they strive to reach and meet the needs of their customers .These definitions

criticize method of recognizing opportunities, creation, innovation, and organization

as major components of entrepreneurship.

Skills was defined as a special competency or ability to run a task and liability,

would generate from knowledge, information, experience and general personal

preferences (Abu Mansor et al., 1999). Skills may be defined at different levels of

abstraction, mostly defined skills as abilities such intelligence, interpersonal skills.

Taxonomies presented by Katz (1955) and Mann (1965), is explicit that the technical

skills are especially concerned with people, and the conceptual skills or cognitive

skills are especially concerned with ideas and concepts. Some studies differentiate a

fourth types of skills called administrative skills, that are defined in terms of the

abilities to perform a particular type of managerial function or behavior such as

planning, negotiating, coaching. Administrative skills typically include a combination

of technical, cognitive, and interpersonal skills. According to Rae (1997),

entrepreneurial skill including such as communication skills, especially persuasion,

creativity skills, critical thinking and assessment skills, leadership skills, negotiation

skills, problem – solving skills, social networking skills and time – management

skills. However to succeed in business, the entrepreneur need to enhance knowledge

and reinforces the development of such skills.

2.3.1 Managerial skills

Managerial skills compose of six dimensions such as management, financial,

marketing, creativity, risk taking propensity, and leadership. Managerial skills defined

as an ability which can be developed and which is representing in performance, not

merely in potential, the ability to convert knowledge into practice. Various studies

referred that all managers require management skills and they are important for the

success of the managers. Livingston, (1971); Mintzberg, (1973), Katz, (1974);

Whetten and Cameron, (1980); Armstrong, (1994); Analoui and Hosseini, (2001); Bu

and Collins, (2001). Managerial skills are very important for business it can be used to

measure the level of capability and efficiency of a manager Abu Mansor et al., (1999).

Mostly any kind of business depend on three major components in one of three is

knowledge of operators in business activities for instance management, finance,

12

marketing and production Miller, (1983).Practically, management , financial and

marketing skills are the most often considered managerial skills in the study ( see

Sieh, 1990; Timmons 1985; Hens 1987; Ken, 1990; Zaidatol and Habibah 2004). In

the other hand, Whetten and Cameron (2002) separate managerial skills in three sets

such as personal skills include developing self-awareness, solving problem creatively

and managing stress. Interpersonal skills consider about communicating supportively,

gaining power and influence, motivating employees and managing conflict. Group

skills include empowering; establish effective teamwork and delegating work. The

most in-depth empirical study of managerial skills was procedure by Scullen et al.

(2003). They established a four – factor typology of managerial skills including of

technical skill, administrative skill, human skill, and citizenship behavior based on

prior work by (Mann, 1965; Katz, 1974; Coleman and Borman, 2000). Technical skill

considers about manager’s expert in particular method. Administrative skill of

manager such as planning, organizing, delegating, and coordinating. Human skill

refers to a manager’s ability to interact and work effectively with team members.

Citizenship behavior such as cooperative, loyal, and persistent which attempts to

catch other beneficial aspects of work behavior.

Managerial skills are crucial for innovation and development of firm

performance Mabey, (2003). Entrepreneur should have balance skills on people,

conceptual and technical viewpoint of entrepreneur (Jones and George, 2009; Samson

and Draft, 2009). Numerous of researcher emphasize on the improvement of

managerial skills to propel financial success and profitability for the firm (Guest,

2007; Carmeli, 2006; Samson and Draft, 2009). Guest, (2007) recommends that firm

need to develop the employees’ management skill as employees play key role in

achieving business objective. Firm performance crucially depends on relationship

between the employees and manager/entrepreneur (Nankervis et al, 2002). It needed

in improving managerial skills in order to motivate employees and carry positive

change in work attitude (Nankervis et al, 2002). A study by Rahman, (2001) and

Sharma and Gadenne, (2000) confirmed that developing in the quality of managerial

skills would lead to positive developing for SME performance.

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2.3.1.1 Management

Management defines as “the procedure of achieve organizational goals in an

effective and efficient manner through planning, organizing, leading, and controlling

(Daft, 2008). Management is alike the procedure of merging and coordinating a range

of money – resource, implement or people – to achieve the goals of an organization

(Hitt, 2007). Rahman (2001) and Sharma and Gadenne (2000) recommended that

improvement of quality of management may convey to positive development for

small businesses. Management regarding all activities and tasks undertaken by one or

more persons for the intention of planning and controlling the activities of others in

order to achieve an objective (Weihrich and koont, 1993). This skill is important for

both at the start-up business and development stage of an enterprise. At the first stage,

management of an enterprise will be process by the sole founder (owner), who

operates all process to keep the business run. As the business developing, the founder

is no longer to managing the business alone because lack of knowledge and

managerial skills. At this development stage, another factor of managerial skills is

important for the owner – manager. This stage if not combat appropriate the crisis

point will occur for small enterprises. At this period there are many barriers such as

insistency use of consultancy services, lack of quality, unwillingness to delegate

responsibilities, key personnel leaving the enterprise, personal issues concerning the

owner- manager would occur and may challenge the survival of the enterprise

(Baldwin et al., 1997). The success of ventures depends on how entrepreneurs manage

this critical resource, how to manage the human resource strategies such as retaining

talented employees by providing education and training opportunities to the

employees Vanderbyland and Kobelak, (2007).

2.3.1.2 Financial

Managing finance in an entrepreneurial venture may refer to acquiring

resources Fang et al., (2009), and controlling finances Huck and McEwen, (1991).

One of the techniques which help entrepreneurial ventures to overcome financial

constraints is bootstrapping Murphy et al., (2006).This techniques deduct external

debt by practically managing cash flows and more reliability on individual sources of

financing. The successful entrepreneurs completely comprehend the demand and

14

supply of entrepreneurial finance that assists them to narrow the “funding gap” and

stable needed start – up capital Lam, (2010).

An entrepreneur necessary to have financial management skill in order to yield

maximum results such as anticipating financial needs, preparing financial plans and

reports as well as acquiring and allocating funds for his enterprise. Most

entrepreneurial failures because they don’t have ability to manage their sources of

funds for their ventures. The derivative of knowledge in financial management is

hence an important factor for entrepreneurial success. Who believes that the core of

financial management is to assure sufficient cash in hand in order to meet essential

current and capital expenditures along with to help in maximizing growth and profits

referred by Nwachukwu, (2005). Hemalatha, (2010) also said that financial

management skill is crucial for entrepreneurs because is one of the ways to remain

profitable and solvent. A good financial management system capacitate entrepreneur

to achieve his daily financial objectives Hemalatha, (2010). McMohan (2001)

believed that the practice of preparing formal financial reports has significant impact

on business honor. Whereas, poor financial skill was the first reason cause for

business failures, particularly when the enterprise grow up Hemalatha, (2010). A

study of ventures identified the strategies which helped entrepreneurs in securing

finance. Some of these strategies include developing and capitalizing on personal

credibility, strong relationships with stakeholders, and good track record of venture

growth conducted by Zott and Huy, (2007).

2.3.1.3 Marketing

Marketing is defined as an essential activity, set of institutions, and procedure

for building, communicating, delivering, and exchanging offerings that have value for

customers, clients, partners, and society at large ( American Marketing Association in

October 2007). The marketer is not only to satisfy the current needs and wants of

customers, but also to create more value and more innovate on products and services,

anticipating and even creating their future needs and wants (Drucker, 1954 and

Frederick, 1992). Otherwise, marketing strategy needs close attention to both

customers and competitors Ozsomer and Simonin, (1999). Quite often marketers have

focused excessively on satisfying customer needs while ignoring competitors.

Therefore, marketing skill is a significant factor in entrepreneurship, is come from

15

many perspectives. The marketing orientation perspective thinks marketing skill as a

primary tool for firms to be concentrated on consumer Kohli and Jaworski, (1990).

While the Resource – based View (RBV) considers marketing skill is a part of

organizational resources Barney, (1991), the Porter’s competitive model perceives

marketing, especially the differentiation, as firm’s competitive strategies Porter,

(1985). In another way, marketing skill helps entrepreneurs to communicate and

promote potential customer about their products or services. Therefore, effective

marketing including communication skills and the ability of entrepreneurs to

determine and target their markets or customers. Marketing skill is an important factor

to all business because marketing is relevant with all other field of business such as

accounting, finance, production, engineering and human resources Ebiu, (2005).

Much of latest study we found on the marketing expertise argues that entrepreneurs

with more experience are better able to make use of information inputs, such as

marketing data and marketing management support systems, in contrast to less

experience Van Bruggen, Smidts, and Wierenga, (2001). Marketing capability or the

ability to advertise and promote products to customers helps a firm operate strategies

more effectively, such as by facilitating brand trials and distribute new product

(Boulding, Lee, and Staelin 1994; Shankar, Carpenter, and Krish namurthi, 1998).

Because advertising, and other selling tactics can help change customers’ perceptions,

marketing capability encourage product acceptance and strengthens market

positioning (Lee et al. 2000; Morgan, Vorhies, and Mason 2009).

2.3.1.4 Creativity

Sternberg and Lubart, (1999) defined creativity is the ability to produce work

which is both latest (original, unexpected) and appropriate (useful, adaptive

concerning task constraints). Youl-Lee, Florida, and Acs, (2004) argued that

entrepreneurship is an image of creativity and can be labeled as business or

entrepreneurial creativity because new businesses are original and useful”. Creativity

is also defined as the ability to think or behavior differently, to get out side of the box

that narrow solution. Frimpon, (2012). Creativity has been identified by many

researchers as related to entrepreneurship. Yar Hamidi, Wennberg and Berglund

(2008) found that high scores on creativity tests and previous entrepreneurial

experiences were both positively implicated with entrepreneurial intentions, and

argued that creativity must be discussed in models of entrepreneurial intentions.

16

Golshekoh, Gholamreza, Mirsaladin, Askary, and Alireza, (2010) also found a

positive relationship between scores on creativity tests and entrepreneurship. Fillis

and Rentschler, (2010) found a relation between creativity and motivation,

actualization and innovation. Several of studies have determined motivational traits

and creativity as crucial factors in entrepreneurial activity and success (Baum, Locke,

& Smith, 2000; Stewart & Roth, 2001). Increasing creativity and innovation was

listed as one of the five skills by entrepreneurs in Malaysia in which more training

was necessary Josoh, Ziyae, Asimiran, Kadir, (2011).

Creativity was defined as a journey beyond the accustomed into the unknown.

It is the kind of initiative out of which imaginative insights are developed

(Csikszentmihalyi, 1988, 1990; Motamedi, 1982). Amabile, (1997) defined creativity

as the production of novel that different with others such ideas, in any area of human

activity from science, to the arts, to education, to business, to daily life, that are

suitable to the problem or opportunity exhibited. This definition is especially

connected to entrepreneurship as entrepreneur appear from and support to many

different fields, where they suffer a various of problems and search for new ways to

solve them. According to these studies, creativity represent of the development and

launching of novel ideas that are useful and appropriate to the situation Woodman et

al., (1993). “An idea must have both novelty and usefulness to be considered creative”

Zhou and George (2001).

Creativity explains how visible of problems not as difficulties but only as

possibilities. It is a chain of thinking in which are related imagination, newness,

cleverness, inventing, insight, intuition, inspiration and illumination Henry, (1991).

Amabile, (1983) identified creativity to be regarded as creativity; product is a novel,

appropriate, useful and valuable response to the customers. Golshekoh, Gholamreza,

Mirsaladin, Askary, and Alireza, (2010) also found a positive relationship between

scores on creativity test and entrepreneurship. And much of studies have identified

creativity as critical factors in entrepreneurial activity and success Baum, Locke, and

Smith, (2000); Stewart and Roth, (2001).

17

2.3.1.5 Risk taking propensity

Many definitions exist about risk taking propensity. Risk taking is defined as

an intention to commit significant resources to opportunities that have a proper chance

of failure. (Covin and Slevin, 1989; Lumpkin and Dess, 1996; Morris and Jones,

1999). According to Sitkin and Weingart, (1995) defined risk taking propensity as “an

individual’s current tendency to take or avoid risks”. Previous studies have identified

risk propensity as the causal antecedent of the genuine risk behavior Sitkin and

Weingart, (1995). Brockhaus, (1980) defined risk taking propensity as “the perceived

probability of receiving rewards associated with the success of a situation that is

required by the individual before he will subject himself to the consequences

associated with failure, the alternative situation providing less reward as well as less

severe consequences than the proposed situation.” Risk taker defines as a person who

in the context of a business venture pursues a business idea when the possibility of

succeeding is low Chell, et al. (1991).

It is believed that entrepreneurs prefer to take moderate risks in situation

where they have some degree of control and skill in realizing profit, compare to

situations which involve both extremes of risk and uncertainty are not preferred

(McClelland, 1961; McClelland and Winters, 1969). Numerous studies of economics

and entrepreneurship literatures indicated risk- taking as the key factors of

entrepreneur’s characteristics (Palmer, 1971; Kilby, 1971;Sarachek, 1978; Mill,

1984;Cunningham and Lischeron, 1991,Ho and Koh, 1992;Koh, 1996; Cromie,

2000). Willingness to take risks is identified a quality of most successful

entrepreneurs as noted by MacCrimmon and Wehrung (1986). In the literature on

entrepreneurship, therefore, entrepreneurs are typically characterized as having a

greater propensity to take risks than other people (Cromie, 2000; Thomas and

Mueller, 2000; Teoh and Foo, 1997). Risk management could be referred to the

process employed by entrepreneurs in order to effectively mange unexpected events

and prevent loss Williams (1995). The researcher examined the risk taking propensity

of entrepreneurs and showed that the success entrepreneurs take a retentive approach

during making business decisions such as market expansion and offering discounts. A

case study of Loch et al. (2008) revealed that unpredictable factors referred to as

unknown which are crucial to new venture success.

18

Table 2.1 the measurement of risk taking

Name Measure items of risk taking

Miller/Covin,

Slevin (1989)

1. In general, the top managers of my firm have… A strong

proclivity for low risk projects (with normal and certain rate of

return)

2. In general, the top managers of my firm believe that… Owning

to the nature of the environment, it is best to explore it

gradually vie cautious, incremental behavior

3. When confronted with decision- making situations involving

uncertainty, my firm. . . Typically adopts a cautious, “ wait-

and-see” posture in order to minimize the probability of

making costly decisions

2.3.1.6 Leadership

Leadership has been defined by many people in various ways often base on

specific discipline and personal experiences (Rosenbach, 2003; Hartog et al., 1997).

One of such definitions which defined leadership as “an interaction between members

of a group. Leaders are agents of change; persons whose acts affect other people’s

acts affect them. Leadership occurs when one group member modifies the motivation

or competencies of others in the group Gibson et al. (2003). And leadership also

defined as a process of both leaders and followers engaging in mutual influence to

achieve a shared purpose. It is all about getting people to work together to make

things happen that might not otherwise occur, or to prevent things from happening

that would ordinarily take place Rosenbach (2003). Leadership was defined as the

acceptance by peers as someone to follow McKenzie (1999). Samson and Draft, 2009

also referred a leader as the ability to motivate employees to dominate their expected

performance. Self- confident leader stimulate people to behave in certain ways

(Robbin and Coulter, 2004 -2005). Leadership is the ability to persuade and motivate

the others to achieve organizational goals. Leadership influences minds of

subordinates and they follow their leaders duly inspired by their personalities.

According to Northouse (2004) “Leadership is a process whereby an individual

influences a group of individuals to achieve a common goal.” Lousier and Achua

(2004) indicated that leadership as a procedure between leaders and followers for

accomplish of organizational objectives through changes. On the other hand

leadership defined as the procedure of influence between a leader and followers to

achieve group, organizational and societal goals.

19

Leadership and motivation go together, the same as employees get inspiration

from leaders likewise leaders also influence and motivate others to face organizational

challenges. Leadership involves persuading other people to set aside for a period of

time their individual concerns and to pursue a common goal that is important for the

responsibilities and welfare of a group. Leadership is inducement, not administration;

persons who can require others to do their bidding because of their power are not

leaders. Leadership only happens when others willingly adopt, for a period of time,

the goals of a group as their own Hogan et.al. (1994). A number of leaders collapse

for personal rather than economic reasons or structural. They may be skilled in a

specific area, such as accounting, marketing, or sales. They fail because they can no

longer rely solely on their own skills and effort; that is, they have been promoted into

positions that require them to work through others to be successful Hogan et at.

(1994). Leaders are typically responsible for overall organizational effectiveness as

measured by production, efficiency, quality, flexibility, satisfaction, competitiveness

and organizational development Gibson et al. (2003).

2.3.1.7 Adaptability

In the small business context, adaptation has been referred to as “the

entrepreneur’s willingness and ability to change or adjust the business concept as the

venture develops. (Stoica and Schindehutte, 1999). Adaptability is “a concept that has

its roots in biology and relates to the ways in which living systems achieve”. (Stoica

and Schindehutte, 1999). On the other hand, adaptability is broadly defined as

generalization of knowledge and skills to a new task (Ployhart and bliese, 2006).

Table 2.2 The measurement of adaptability

Name The measurement of adaptability

Schindehutte, 1999

1. I constantly introduce new processes (e.g. technology,

distribution, management systems, etc.) to improve my

business.

2. My business always looks for new business or markets

to enter

3. When my competitors develop a new product or a new

business method, my business quickly responds to it

and adopts it

20

2.3.2 Social skills

Social skills were defined as the ability of individual to successfully interpret

and manage social interactions Witt and Ferris, (2003). Personal with strong social

skills also incline to experience positive social interactions Riggio and Zimmerman,

(1991). Social skills or the ability to effective interaction with others helps personal to

show favorable self images, which is necessary at the relationship development stage.

Marlowe (1986) described social intelligence as the ability to understand the thoughts,

feelings, and behavior of people, including oneself, in interpersonal, situations and to

act appropriately with other people. Moreover, personals with strong social skills are

found to be more satisfactory and more successful at preservation intimate, high

quality relationships Riggio and Zimmerman, (1991). Social skills mention to

entrepreneurs’ overall success in interacting with others Baron and Markman (2003).

Even though a comprehensive of study identify that expertise in social skills strongly

affect personals outcomes in many business contexts, social skills may have

extraordinarily valuable to entrepreneurs Segrin and Kenney, 1995; Tsui, (1998);

Wayne and Kacmar, (1991). Various of the tasks entrepreneurs must achieve

associate beginning point and management of many social interactions for instance

raising external fund, creating enthusiasm and commitment in employees,

communicating effectively with people come from diverse of backgrounds, attracting

effective partnerships and employees, enhancing business connection and

relationships, building strong creditability and legitimacy, and negotiating with others

upon a various of issues. Besides, entrepreneurs must procedure overall of this

environments that are highly uncertain situation and unstructured (Carter, Gartner,

and Reynolds, 1996; Gartner, 1988; Holt, 1992).

The researchers have assessed entrepreneurs’ social skills in the literature.

Found that effective communication skills are especially important during the initial

stage of venture creation due to this period, legitimacy is more likely to lead to

divergent expectations between entrepreneurs and venture capitalists (Cable and

Shane, 1997). Entrepreneurs’ social skills are also found to play a key significant in

improving their individual financial success Baron and Markman (2003). Determining

the success or failure of new ventures Ensley, Peterson, and Amason, (2002).

Enhancing financial performance of Chinese new ventures Baron and Tang, (2009).

Entrepreneurs with high degree of social skills might be more successful in gaining

21

the trust and confidence of persons with whom they deal which will motivate these

personals to more easily share information with the entrepreneurs. As a result,

entrepreneurs strong in social skills may gain greater enter to valuable information

and be better able to apply such knowledge to analyze new profit opportunities.

Numerous findings and proposals in the literature on entrepreneurship show that

entrepreneurs’ social skills can affect their performance and success. Moreover, the

previous studied, had reviewed the extensive body of literature on social skills with

two criteria: relevance of each social skill to consequence in business and relevance to

work performed by entrepreneurs. Four specific social skills were specified as being

most closely allied to entrepreneurs’ success Weber and Harvey, (1994). Having

many studied identified social skills that relevant to entrepreneurs’ success. From the

recent survey, for the high – growth companies were started by at least two founders

that possess excellent social skills

Social skill is the moderator variable that converts people’s intentions into

observer evaluation, recommendation by Hogan and Shelton’s (1998). Social skill

should thus have a facilitating effect, contributing to the demonstration of positive

personality effect on performance. However, low social skill not only might keep

personality from exhibiting favorable effect, it could actually contribute to decreased

job performance among individuals very high in certain traits. The perception that

social skill acts as a moderator is consistent with previous theoretical arguments that

emotional intelligence moderates the impact of the environment on work behavior

Jordan, Ashkanasy, & Hartel, (2002). Recent theoretical and empirical work implies

specifically of a Conscientiousness x Social Skill interaction. Goleman, (1998)

suggested that Conscientiousness without social skill may lead to problems. In other

words, when highly conscientious people lack social skills, working with them may

be particularly difficult. Worker high in Conscientiousness are better performers than

workers low in conscientiousness Barrick & Mount, (1991).

22

Table 2.3 Social Skills Potentially Relevant to Entrepreneurs’ Success

Social skills Description Examples of potential relevance to

entrepreneurial success

Social

perception

Ability to perceive accurately

the emotions, traits, motives

and intention of others

Making presentation to investors and customers,

attracting and selecting partners and employees,

conducting negotiations

Impression

management

Tactics designed to induce

liking and a favorable first

impression by others

Obtaining financing, with customers and suppliers

Persuasion and

social influence

Ability to change others’s

attitudes and/or their

behavior in desired directions

Obtaining financing, recruiting key employees,

dealing with customers and suppliers, conducting

negotiations

Social

adaptability

Ability to adapt to, or feel

comfortable in, a wide range

of social situations

Establishing business relationships with

strangers(i.e., cold calls), and working with people

from diverse backgrounds

Table 2.4 the measurement of social skills

Name Measure item of social skills

Ferris, Witt, and

Hochwarter (2001)

1. I find it easy to put myself in the position of others.

2. I am keenly aware of how I am perceived by others.

3. In social situation, it is always clear what to say and do

4. I am particularly good at sensing the motivations and hidden

agenda of others

5. I am good at making myself visible with influential people in my

organization

6. I am good at reading others’ body language

7. I am able to adjust my behavior and become the type of person

dictated by any situation.

2.3.2.1 Collaboration

The very important characteristic is collaboration that was defined as the

ability to jointly complete tasks with others. Collaboration is also known as group

skills McKenzie, (1999). According to Arends, (2004) the members in the group

working together should understand and respect each other on behalf of work

effectively. The base meaning of this word Collaboration is to work and joint together

as noted by Dougherty and Larson, (2005). And Kagin, (2000) also defined

collaboration as a mutually beneficial and defined relationship entered in to by two or

more organizations to achieve results they preferable to achieve together than lonely.

Huxham, (2000) defined collaboration as a “working relationship between two or

more individuals.” Collaboration is widely defined as the interaction between two or

more persons and can beset a diversity of behaviors such as communication,

23

information sharing, coordination, cooperation, problem solving, and negotiation.

(From intelligence community collaboration, baseline study report, 1999, as cited in

Winkler and Walozek, (2004). According to Shah, (2010) collaboration is an

interactive, active and often a mutually beneficial process. Chrislip and Larson

propose a little bit different but also useful definition: It is a mutually profitable

relationship between both sides who work toward same goals by sharing

responsibility and authority for achieving results. Collaboration happens when a

group of autonomous stakeholders of a problem scope employ in an interactive

procedure, using share rules, criterion, and structures, to operate and decide on issues

regarded that scope. Wood, (1991).

2.3.2.2 Communication

The necessary for business professionals to have effective communication

skills in order to be successful has become conventional wisdom within both

institutions Gibson, (2002); Graduate Management Admission Council, (2007);

Schultz, (2006) ; Thill and Bovee, (2005). Study recommendations included specific

emphasis on Communication is a concept of interpersonal relationships in both formal

and informal settings referred by (American Accounting Association Committee on

the Future Structure Content, and Scope of Accounting Education, 1986). The best

idea can break if it’s not communicated effectively as articulated by Hattersley and

McJannet, (2005). Communication defined as the ability to communicate thought and

opinion to another, both verbal and written Marx et al. (1998); Barrier (1995).

Entrepreneurs need excellent communication skills to succeed in their business.

Communication skills are important to entrepreneurs in the roles they operate.

Interpersonal, informational and decisional roles are a good example Mintzberg’s,

(1973). However, even though managerial tasks may have changed the challenge with

advance in technology, workforce diversity, globalization and the emphasis of

working in teams accentuates entrepreneurs require to communicate effectively

Linstead et al., (2004). For example, those entering the profession are expected to

have good personal communication which later builds to effective relationship in mid-

career, and establishing trust, credibility and high integrity as they progress to the

latter part of their careers Cohen, (2005). Currently leadership practice implies a

people – centred approach where open communication and the frank expression of

24

opinions whether about work processes or about the superior’s leadership style is

encouraged Mullins, (2001).

As it is observed that many studies asked graduates, managers and teachers

explain effective communication as one of the most important areas which needs

development between workers and graduates (Maes, Weldy and Icenogle, 1997;

Morreale, Osborn and Pearson, 2000; Holly J. Payne, 2005). It is generally considered

that managers from many corporations including listening, speaking, group

contribution and interaction of information as most significant for business students

(Porterfield and Forde, 2001: Holly J. Payne, 2005). On the other hand, numerous of

studies describe the important of interaction (communication); a few show the

significant of communication skill that goes ahead of social skills by containing

affective, cognitive, and behavioral essential. Communication capabilities mostly

explain that one has of a communicator who has interaction objectives at both a

suitable and useful level (Spitzberg and Cupach, 1984: Holly J. Payne, 2005).

According to a HRFocus (2000) survey, Communication was a first consideration in

resolution of problems and realization of beneficial strategies resulting from these

business combinations. Paterson (2000) reported result of a Price water house

Cooper’s survey that indicated that relevant post deal communication was significant

composition to gain employee commitment in mergers and acquisitions. As reported

by Beta Gamma Sigma (2005), a survey sponsored by the Graduate Management

Admission Council (GMAC) revealed “strong communication and interpersonal skills

as the most important characteristic sought by employers of MBA graduates. The

National Association of Colleges and Employers NACE, (2007) noted that written

and verbal communication skills were at the top of candidates’ skills preferred by

employers. Several studies suggest that trust is related to effective communication

Paulraj and Chen, (2005); Parker et al., (2006); Styles et al., (2008), and is positively

affected by effective communication Fynes et al., (2005); Sanzo et al., (2007).

2.3.2.3 Social adaptability

Social adaptability was defined as the ability to adapt to, or feel comfortable in

a wide range of social situations from diverse back-grounds Baron and Markman,

(2003). People high in social adaptability are able to talk to virtually anyone about

almost anything, can introduce themselves to strangers with relative easy, and readily

25

adjust to a wide range of new social situation. They able to adapting their behavior in

order to blend comfortably into almost any social context. In large body of research

findings suggests that persons high in such abilities attain greater success and more

rapid promotions in many different contexts than those low in such abilities. Indeed, it

has even been found that professors high in social adaptability receive higher ratings

from their classes that those low in social adaptability. Social adaptability appears to

be relevant to activities operated by entrepreneurs which are crucial to the success of

their new ventures. For example, in the first stage of business, entrepreneurs have to

make many cold calls on strangers these persons totally unfamiliar with the

entrepreneurs, and entrepreneurs attempt to form business relationships. Baron and

Markman, (2000).

2.3.2.4 Networking

Networking was defined as the ability of the entrepreneur to work effectively

with and through other group member Samson and Draft, (2009). One of the common

mistakes, new entrepreneurs usually avoiding delegating responsibilities to others

White, (2005). According to Carson et al. (1995), networking is an activity in which

the entrepreneur builds and manages personal relationships with particular individuals

in their environment. To become a successful entrepreneur, building teams and

developing networks are important Samson and Draft, (2009).

Network has been described as a factor that increases ethnic entrepreneurs’

business performance (Kariv et al., 2009). The right correct connection at the right

time and place can encourage entrepreneurs to be success in the field of increase

knowledge, level of skills, evaluation, added value and competitive advantage

(Coleman, 1990). Networking was defined as an important social skill where the

entrepreneur has ability and skill to effectively attract with others (Baron and Shane,

2005). While created and maintaining the relationship with connection entrepreneur

can be accessed to information, support and other resource from the network. (Baron

and Shane, 2005; Eddleston et al., 2004) have been said that “By being part of the

network the value of the situation, organization or group increases as more and more

people bring more expertise and other valuable characteristics to the network.

Network much has been written as a theory, why it is important and the value of

networking, Taylor, (2006). Different types of networking such social competence

26

Koniordos, (2005) and business networking, as well as networking as social capital

Coleman, (1990); Burt, (2002). Private-public sector networks involved in small and

medium –sized tourism enterprises for sustainable development networks Halme and

Fadeeva, (2000). Networking relationship provides a stronger platform on which the

entrepreneur can establish the business to reach the goal Lipnack and Stamps, (1993).

Networking support in terms of the basic structure of the connection that include

informal relationship such as family and friends and formal relationships such as

community groups, ethnic, religious affiliations, government organizations and other

small business entrepreneurs Greenhaus and Callanan, (1994). Networking events

provides the good opportunities for entrepreneurs to make relationship with other

entrepreneurs to enhance business connection to access to information,

encouragement, idea, financial resources, ability to access to potential customers and

opportunity to create alliance in the terms of business Greehaus and Callanan, (1994);

Mcdade and Spring, (2005).

The networks within which entrepreneurs and their firm are embedded have

been found to provide accurate information and advice, which can be used to take

market decisions. For instance, entrepreneurial organizations have been found to

access information about customers from their networks and use this information to

improve their pricing structures and tailor their communication O’Donnell and

Cummins 1999; Shaw, (1998). Entrepreneurs are normally doing their own business

and sense of independent, it is very necessary for entrepreneur to have motivation to

enter into entrepreneurship. Thus, to build business connection and enhance contact

on a business level might not easy as it seems Curran and Blackburn, (1994).

Webster, (1976) also said that, “entrepreneurs can use relationships. Relationships

refer to connecting points that, by way of relation, mutual interest or kinship, occur on

a deeper level than mere connections. Networks are a set of nodes, which consist

diverse group of people, organization, and business field that combined their attempt,

tools and project suggestion Crawford and Hafsteinsson, (1996). Typically

entrepreneurs prefer to rely on their networks to encourage and improve their business

motivation to reach the goal. Therefore, networking is very important for

entrepreneurs that need strong networks to provide them the accurate sensational,

technical, implement and logistical support or offer access when needed.

27

2.4 SME performance

Typically, SME performance measures include self-reported, judgmental

evaluations of profitability e.g., Kim (2003); Narver and Slater (1990), market share,

percentage of new product sales and ROI e.g., Matsuno, Mentzer, and Ozsomer

(2002), market growth (Kim 2003), and overall performance of the business unit and

overall performance relative to major competitors e.g., Jaworski and Kohli (1993);

Pulendran, speed, and Widing,( 2003).

The terms of “growth”, “success” and “performance” are often very closely

similar. The definitions of these terms look like to be obscure and blind. Traditionally,

they are measured by financial such as turnover, or by increased the figure of

employees e.g. Chell and Baines, 1998; Maki and Pulkkinen, (2000); Perren, (2000);

Gray, (2002); Georgellis et al., (1999); Murphy et al., (1996). Laitinen, (2002) defines

performance as “the ability of an object to produce results in a dimension determined

a priori, in relation to a target”. This performance has traditionally been measure in

financial terms; the most typically used measures of performance are efficincency

(ROI), growth (increase in sales) and profit Laitinen, (2002); De Toni and Tonchia,

(2001); Murphy et al., (1996); Murphy et al., (1996). Laitinen, (2002) has been argued

that financial measure in one side are not sufficiency for making decisions in modern

firms and thus, firm performance should be measured both financial and non-

financial measurement. Non- financial measurement usually measure by time,

flexibility, quality of manufacturing and entrepreneurial satisfaction Cooper and Artz,

(1995); Neely et a, 1995; De Toni and Tonchia, (2001). In various researches of

entrepreneurship, much attraction on factors affects firm performance. Most of factors

that typically use for investigate include the personality of the entrepreneur, the

business environment, opportunities, previous performance Bouchikhi, (1993).

Innovation, planning and entrepreneurial culture Georgellis et al., (1999). SME

performance significantly depends on relationship between workers and managers

Nankervis et al, (2002). Entrepreneurs are playing the key role in achieving the best

performance Carmeli, (2006). The productivity and efficiency depend on manager’s

capability, skill and performance Carmeli, (2006).

28

Table 2.5 The measurement of SME performance

Name The measurement of SME performance

Sarapaivanich and

Kotey, (2006)

1. Profitability

2. Growth on sale

3. Return on assets

4. Cash flow

5. Lifestyle

6. Independence

2.4.1 Cost reduction

CEO of a firm facing an important strategic decision. There are two strategic

competion initiatives on the CEO’s desk. The chief operating officer notes that some

of the companies have adopted a Six Sigma program which suggests that the route to

higher profitability is through improving efficiencies and cutting cost (Pande,

Neuman, and Cavanagh 2000). On the other hand, marketer would prefer to increase

profit by building revenues through improvements to customer service, customer

satisfaction, and customer retention (Johnson and Gustafsson 2000). From these

recommendations, it appears in two ways such as the operating process would quality

in terms of internal processes while the marketing views quality in terms of external

customer relations. Although some quality improvements may increase revenues and

decrease cost at the same time, efforts to improve customer-perceived quality usually

increase profits through revenue expansion, and efforts to improve the efficiency of

internal process tend to increase profits through cost reduction. “In many markets,

firms complete over time by expending resource with the purpose of reducing their

cost. Sometimes the cost reducing investment operates directly on cost. In many

examples, they take the form of developing new product that delivers what customers

need more cheaply. Therefore, product development can have the same ultimate effect

as direct cost reduction. In fact, if one thinks the product is as the services which

deliver to the customer (in the way that Lancaster pioneered), then product

development is often just cost reduction “Spence, (1984).

29

2.4.2 Customers growth

Customers are valuable assets for the firm, sales growth to a customer is an

important indicator of the health of a customer relationship, and managers are often

evaluated on this metric. Customer’s growth is an increase in the size or in the number

of customers. We find that an increase in the number of different types of ties with a

customer results in an increase in sales to the customer and a decrease in sales

volatility to the customer. A supplier can use private information about a customer to

identify opportunities for creating value for the customer. Private information about a

customer’s operating environment can help a supplier understand the customer’s

idiosyncratic needs and its offerings to meet a customer’s needs Tuli, Kohli, and

Bharadwaj, (2007). This is valuable for a customer because it enhances its ability to

respond to new and/or unexpected development in its markets. Finally, a supplier in

multiplex relationship can obtain private information about a customer’s buying

process and key purchase influences and criteria e,g., Palmtier, (2007). This is likely

to enable a supplier to influence the preferences of key decision makers, thus

increasing its odds of growing sales to a customer Dhar, Menon and Maach (2004).

2.4.3 Sales growth

Year-on-year percentage sales growth was the natural choice of performance

measurement. Most firms value sales growth. The popular business press contains

many examples of companies that focus on sales growth as a key to profitability. For

instance, Emerson Electric is well known for its string of 40 consecutive years of

increased earnings. When asked for the secret, the CEO Chuck Knight replied, You

can’t just cut, cut, cut, cut…You simply must have sales growth to get sustainable

performance at the bottom line” Fortune, (1998). Growth in sales measures of firm

performance that reflects how well an organization relates to their product-

environment Hofer and Schendel, (1978). The growth of the firm is normally measure

by its size which can, in order be tested on it changes in turnover, total sum of the

balance sheet or numbers of employees Virtanen, (1999). Sometimes growth can be

estimate by market share Murphy et al., (1996) or market value of the firm Virtanen,

(1999). In small and medium enterprise growth sometimes can be measured by the

number of orders or contracts Gray, (1998). Sales growth target play a major role in

the perceptions of the entrepreneur. Using surveys, Hub bard and Bromiley (1994)

30

find growth sales is the most common objective. Eliasson (1976) reports that planning

systems regally begin with sales targets. Kaplan and Norton (1992, 1993, and 1996)

argue that firm must use a wide variety of goals, including sales growth, to effectively

achieve their financial objectives. Some literatures study the association between

profitability and market share Gale, (1972); Mancke, (1974); Buzzell, Gale and

Sultan, (1975); Henderson, (1980); Venkatraman and Prescott, (1990).

2.5 Conceptual Framework

1. Independent variable: Managerial skills which consist of management, financial,

marketing, creativity, risk taking propensity, leadership and adaptability.

2. Dependent variable: SME performance which measured by cost reduction,

customer growth and sales growth.

3. Moderator variable: Social skills which consist of collaboration, communication,

social adaptability and networking.

2.6 Research Hypothesis

Firm performance crucially depends on relationship between the employees

and manager/entrepreneur Nankervis et al, (2002). It needed in improving managerial

skills in order to motivate employees and carry positive change in work attitude

Nankervis et al, (2002). Therefore, a study by Rahman (2001) and Sharma and

Gadenne (2000) confirmed that developing in the quality of managerial skills would

lead to positive developing for SME performance.

Hypothesis 1: Managerial skills have direct positive effect on SME performance.

Entrepreneurs’ social skills are also found to play a key significant in

improving their individual financial success Baron and Markman, (2003) and social

skills are critical for SME performance in today’s workplace, in the present and future

business entrepreneurs are emphasizing the development of social skill in order to

development their performance Nealy, (2005). Social skill should thus have a

facilitating effect, contributing to the demonstration of positive personality effect on

performance. Therefore, in this study developing.

Hypothesis 2: The moderators of social skills have effect on the changing between

managerial skills and SME performance.

31

Figure 2.2 Conceptual Framework

\

H1 H2

H1

11

H2

32

CHAPTER 3

RESEARCH METHODOLOGY

The study of the effect of moderator of social skills on the changing between

managerial skills and SME performance. This study used relevant research method

such as research design, population and sample size, research questionnaires ,research

instrument, data collection, how instrument manage and how the information

organized and analyzed which will be described in detail about the research

methodology as followings :

3.1 Research Design

3.2 Population and Sample size

3.2.1 Population

3.2.2 Sample size

3.3 Variables of the Research

3.3.1 Independent Variable

3.3.2 Dependent Variable

3.3.3 Moderator Variable

3.4 Research Instrument

3.5 Pretest of Research Instrument

3.5.1 Validity Analysis

3.5.2 Reliability Analysis

3.6 Data Collection

3.7 Data Analysis

33

3.1 Research Design

This study aims to study the effect of moderator of social skills on the

changing between managerial skills and SME performance entrepreneurs and the

effect of the managerial skills on the SME performance. The research methodology of

this study will use the “Quantitative research” to survey research method collecting

primary data according to the objective of the study. The research instrument is

questionnaires.

3.2 Population and sample size

3.2.1 Population

The populations for this study are entrepreneurs or owners of business in the

Small and medium enterprise sector. The primary data using in this research

conducted from sample groups who are owner business of small and medium

enterprise in the fields of business such as retails, wholesales, services, manufacturing

and others in Thailand. The reason for choosing these groups of people for sampling

because main objective of this research is to study the effect of moderator of social

skill on the changing between managerial skill and SME performance, which study of

the entrepreneur who had setup their business at least one years. Therefore, choosing

the entrepreneur to be the research sampling is the most appropriate for this study.

According to the survey result by National Statistical Office Thailand,

Department of public Welfare, and Department of Business Development in 2011, it

has approximately 2,646,549 of Thai small medium and enterprises. The formula is

illustrated as the following topic.

3.2.2 Sample Size

(1) The sample size for entrepreneurs was calculated based on Yamane’s formula

(Yamane, 1967).

n=

Where, n = the sample sizez

N = the size of population

34

e = the error of 5 percentage points

So, the sample size for the study has been calculated according to the

recommendation as follows:

n =

n = 399.939 rounded up to 400 samples

Consequently, according with N= 2,646,549, e = 5% (at 95% confidence level), from

calculation, the number of sample in this research is 400 respondents.

3.3 Variables of the Research

After the reviewing various literatures and research journals, the following

variables was utilized for the study.

3.3.1 Independence variable: Managerial skills

Managerial skills are consisted of management, financial, marketing,

creativity, risk taking propensity, leadership and adaptability.

3.3.2 Dependent Variable: SME performance

In this study, dependent variable was measured by, (%) of cost reduction, (%)

growth of customers and (%) growth of sales. The data was collected to calculate

these performances which were at least one year in the business.

3.3.3 Moderator variable: Social skills

Social skills are consisted of collaboration, communication, social adaptability

and networking.

3.4 Research Instrument

Questionnaire was designed based on objectives and conceptual framework of

the study. The questionnaire was developed base on knowledge of literature review,

the exclusive use of closed questions was considered important to fulfill that objective

Zikmund, (2000). The questionnaires had 48 questions and were distributed for 400

questionnaires among small and medium enterprise in Thailand. These questionnaires

35

distribute to entrepreneurs or businessmen in the type of business such as retails,

wholesales, services, manufacturing and so on. The question was divided in to 4

sections in order to covering objective of the research as follow:

First section is presented the basis individual information about the

entrepreneurs and the type of business, age of business; number of employees in the

business, the data collecting was used descriptive statistical analysis.

In the second, third and fourth section of questionnaire, they were used Likert

scale in order to measurement. In this study, it used five response categories which

were often believed to represent and interval level of measurement Reips and Funke,

(2008). A Likert item is simply a statement which the respondent is asked to evaluate

according to any kind of subjective or objective criteria; generally the level of

agreement or disagreement is measured. Hence the format of a typical five-level

Likert item shows as follow:

1. Strongly agree 5 scores

2. Agree 4 scores

3. Neither agree or disagree 3 scores

4. Disagree 2 scores

5. Strongly disagree 1 scores

The descriptions of mean were separated the interval scale as 5 intervals by

uses the formula as follow:

= 0.8

It means items with scores fall between the ranges of:

4.21 - 5.00 are considered as the strongly agree

3.41 – 4.20 are considered as agree

2.61 – 3.40 are considered as neutral

1.81 – 2.60 are considered as disagree

1.00 -1.80 are considered as strongly disagree

36

Section 1: Demographic

This section is for the entrepreneur’s background according to the

respondent’s basic individual information, which includes: gender, age, education

level, type of business. Items are in nominal and ordinal scales and are provided in

range of choices. On the other hand, for age of business and number of employees

allow the respondents indicate the numbers.

Table 3.1 Number measurement of each variable

3.4.1 Analysis of the level of agreement

An analysis demonstrates the degree of agreement of the respondents on

management, finance, marketing, creativity, risk taking propensity, leadership,

adaptability, collaboration, communication, social adaptability, and networking being

shown in Table 3.2

Based on the table 3.2, the results indicated that the respondents totally agree

with management, finance, marketing, creativity, risk taking propensity, leadership,

adaptability, collaboration, communication, social adaptability and networking which

the mean value of management is 4.007 and SD is 0.765, which with the mean value

of finance is 3.845 and SD is 0.861 with the mean value of marketing is 3.772 and SD

is 0.870 which the mean value of creativity is 3.952 and SD is 0.847 with the mean

value of risk taking propensity is 3.862 and SD is 0.89 with the mean value of

leadership is 3.905 and SD is 0.801, with the mean value of adaptability is 3.97and

SD is 0.793, with the mean value of collaboration is 4.045 and SD is 0.794, with the

Variable Dimensions Measure Referent

Section 2:

Managerial skill

Management 4 items Moss and Laing (1990)

Finance 4 items Zaidatol (2004)

Marketing 4 items Zaidatol (2004)

Creativity 4 items Moss and Laing (1990)

Risk taking 4 items Yusof, Sandhu & Jain (2007)

Leadership 4 items Nirenberg (2003)

Adaptability 3 items Stoica & Schindhutte (1999)

Section3 :

Social adaptability

Collaboration 4 items Croker, Higgs & Trede (2007)

Communication 5 items Moss &Laing (1990); Nichols & Gray (2003)

Social adaptability 3 items Riggio (1986)

Networking 3 items De Klerk, 2006; Krackardt, (1987)

Section 4:

SME performance

Cost reduction 1 items G. Davies, R. Chun and M.A Kamins, (2010)

Customer’s growth 1 items G. Davies, R. Chun and M.A Kamins, (2010)

Sales growth 1items G. Davies, R. Chun and M.A Kamins, (2010)

37

mean value of communication is 4.042 and SD is 0.784 ,with the mean value of social

adaptability is 4.263 and SD is 0.76 and the last with the mean value of networking is

3.89 and SD is 0.854

Table 3.2 Level of agreement of management, finance, marketing, creativity, risk

taking propensity, leadership, adaptability, collaboration, communication, social

adaptability and networking.

Factor Mean Std.

Deviation

Level of Agreement

Management 4.007 0.765 Agree

Finance 3.845 0.861 Agree

Marketing 3.772 0.870 Agree

Creativity 3.952 0.847 Agree

Risk taking propensity 3.862 0.89 Agree

Leadership 3.905 0.801 Agree

Adaptability 3.97 0.793 Agree

Collaboration 4.045 0.794 Agree

Communication 4.042 0.784 Agree

Social adaptability 4.263 0.76 Agree

Networking 3.89 0.854 Agree

Table 3.3 Definition of Variables

Latent Variables Observed Variables

MGS Managerial skills AVGMGT MGT1 – MGT4

AVGFIN FIN1 – FIN4

AVGMKT MKT1 – MKT4

AVGCTT CTT1 –CTT4

AVGRTP RTP1 – RTP4

AVGLDS LDS1 –LDS4

AVGAD AD1 – AD3

SS Social skills AVGCB CB1 – CB4

AVGCM CM1 – CM5

AVGSA SA1 – SA3

AVGNW NW1 – NW3

PFM Performance AVGCOSTREDU COSTREDU

AVGGROWTHCU GROWTHCU

AVGGROWTHSA GROWTHSA

3.5 Pretest of the Research Instrument

3.5.1 Validity Test

The Item-Objective Congruence used to measure the validity of questionnaire.

Rovinelli and Hambleton, (1977). IOC is the process where content experts rate

individual items on the degree to which they do or do not measure specific objectives

38

listed by the test developer. The context experts will evaluate each item by giving the

rating of 1(mean clearly measure); -1 (mean clearly not measuring); 0 (mean degree

to which it measure the content area is unclear). The IOC form of this study will be

presented to three experts to evaluate. The items which IOC rate need to be greater

than 0.75 to be considered valid, the items which IOC rate below 0.75, need to be

revised and analyzed for improve their validity or discarded. The index of IOC

developed by Hair et at. (2006) will use as follows:

Where

IOC = Index of Item Objective Congruence

Ci = Score of comment from expert

N = Number of expert

The IOC test was done by three persons of the experts in English and Thai

language reviewing, making corrections and giving scores.

Here is an index evaluation (Revinelli and Hambletion, 1977):

Over 0.75 – the items are valid

Equal 0.75 – the items with objective congruence

Below 0.75 – the items are invalid

39

Table 3.4 Item – Objective congruence result

Item Variable IOC results

1 Managerial skills

Management 0.833

Finance 1

Marketing 1

Creativity 1

Risk taking propensity 0.833

Leadership 0.916

2 Social skills

Collaboration 0.916

Communication 0.866

Social adaptability 1

Adaptability 0.833

3 SME performance

Cost reduction 1

Customer’s growth 1

Sale growth 1

According to table 3.5.1, index of IOC of this study are all above on 0.75.

Which finance, marketing, creativity, social adaptability, cost reduction, customer’s

growth and sales growth are 1, collaboration is 0.961, communication is 0.866,

management, risk taking propensity and adaptability is 0.833. All variable got the

high score in this study.

3.5.2 Reliability Test

The most commonly method to test instruments’ reliability is used Cronbach’s

alpha which is based on the average correlation of items within a test if the items are

standardized. The commonly accepted rule of thumb for describing internal

consistency using Cronbach’s alpha, the greater number of items in the test means the

measurement scale more consistency is excellent, during the 0.9 and 0.8 means good,

during the 0.8 to 0.7 means acceptable, during the 0.7 to 0.6 means questionable,

during the 0.6 to 0.5 means poor, below the 0.5 means unacceptable Fink and

Jaruwacgirathanakul, (2005).

40

Table 3.5 Reliability test using Cronbach’s alpha

Factor No of

Item

Cronbach’s

alpha

(find)

Management 4 0.860

Finance 4 0.862

Marketing 4 0.835

Creativity 4 0.830

Risk taking

propensity

4 0.862

Leadership 4 0.873

Adaptability 3 0.796

Collaboration 4 0.870

Communication 5 0.882

Social adaptability 3 0.845

Networking 3 0.853

3.6 Data collection

In this study, it uses the questionnaire as a survey method, through the many

ways to collect the research data as follow:

The percent response is 80%, which mean distributed 500 and responded 400

from SME entrepreneur in Thailand. Which 150 was collected from SME seminar,

150 was collected from new entrepreneur creation (NEC) and 100 were online

questionnaires.

The data was collected from 400 questionnaires in Thai languages which

distribute to the entrepreneurs in Thailand and some of them would mail

questionnaires because save times and cost. The questionnaires consist of 4 sections,

section 1 comprised questions eliciting demographic and basic individual’s

information about the entrepreneurs. Section 2 was the information related to

managerial skills, section 3 was the information related to social skills and the last is

related to SME performance.

41

3.7 Data analysis

3.7.1 Descriptive analysis or Demography :

Descriptive analysis is used to describe the main features of a data

collection, in that descriptive statistic aim to summarize a sample to learn

about the population.

3.7.2 Factor Analysis :

Factor analysis is a statistical method used to describe variability among

observed, correlated variables in terms of a potentially lower number of unobserved

variables called factors.

3.7.3 Confirmation and correlation analysis:

The confirmatory factor analysis (CFA) and correlations are conducted to

evaluate the underlying structure based on the data using statistical program

3.7.4 Structural Equation Analysis:

Structure Equation Model (SEM) is used to examine the postulated hypothesis

(research questions). The purpose of LISREL 8.8 is to evaluate the goodness of fit, as

the absolute fit indices like chi = square (X) 2

, goodness of fit (GFI), average

goodness of fit (AGFI), and root mean square error of approximation (RMSEA) were

used. Besides, the goodness of fit also use the increment and decrement indices such

as norm fit index (NFI), non-norm fit index (NNFI), comparative fit index (CFI), and

norm chi-square(x) 2

are used to assess the goodness-of-fit.

3.7.5 Moderator effect analysis

Moderator effect analysis by used the mean of weighting score from 5 points

Likert scale at 3.6 Sanzov and Vázquez, (2011), to divide the sample into two groups.

(If mean < 3.7 is considered to be low group; if mean > 3.7 is considered to be high

group). In this study data total are 400, which 181 are low group and 219 are high

group. Therefore, the hypothesis of moderator testing is the structural equation model

of these 2 groups are different by testing the model, lamda X matrix, lamda Y matrix,

Gamma matrix and Beta matrix.

42

42

CHAPTER 4

DATA ANALYSIS AND RESULTS

This chapter presents the results of analysis and the interpretation of the data

obtained from the research questionnaires, which has been designed base on the

conceptual framework. Both descriptive and the statistical tools were used to analyze

the findings of the study. The following matters have been discussed.

4.1 Demographic Characteristic

4.2 Data Analysis and Findings

4.2.1 Correlation Analysis

4.2.2 Factor Analysis

4.2.3 Structural Equation Model (SEM)

4.3 Hypothesis Testing

4.3.1 Moderator effect analysis

4.1 Demographic characteristic

In the table, there are 6 main items were considered on the statistic, which are

gender, age group, education, type of business, age of business and number of

employees.

In the first category, the most participated are female with 53.3 % while

percentages of males participated by 46.5 % which is slightly lower than that female.

In terms of age, the most respondents for age category are between 31 – 40

years old being 37.8 % of the total number of respondents while respondents between

25 – 30 years old, 41 – 50 years old, and older than 50 years old being 32.8 %, 23,3%,

and 6.3 %, respectively.

43

In terms of education level the most entrepreneurs who got Bachelor degree

participated by 61.5 %, following by 20 % of Master Degree/ PhD holders, by 14.8 %

of High school/lower degrees holders, and by 3.8 % of people whose education being

non formal education.

In terms of type of business, the most respondents for service/ hotel &

restaurants participated by 32.6 % of the total number of respondents, following by

30.3 % of retailing, by 17.7 % of manufacturing, by 13.7 % of wholesales, and by 5.7

% of other type of businesses.

Considering the age of business of the respondents, the most respondents for

age of business range between 4 to 6 years participated by 31.3 %, following by 31 %

being between 1 to 3 years, while respondents age of business being 7 to 9 years, 10

to 12 years, 13 to 15 years and more than 15 years being 10.1 %, 14.3 %, 4% and 9.9

%, respectively.

In terms of number of employees, the most respondents which have the

number of employees range between 1- 10 employees being 76.8% of the total

number of respondents, following between 11 to 20 employees, 21 to 30 employees,

31 to 40 employees, and more than 40 employees being 10.7 %, 4.4 %, 1.4 % and 8.2

%, respectively.

Table 4.1: Respondent characteristics

Characteristics Number of

Samples (400)

Percentage

Gender Male 186 46.3 %

Female 214 53.2 %

Age 25 – 30 131 32.6 %

31 – 40 151 37.6 %

41 – 50 93 23.1 %

More than 50 25 6.2 %

Education Non formal education 15 3.7 %

High school/lower 59 14.7 %

Bachelor’s degree 246 61.2 %

Master’s degree/PhD 80 19.9 %

Type of Business Retailing 122 30.3 %

Wholesaling 55 13.7 %

Service/Hotel& restaurant 131 32.6 %

Manufacturing 71 17.7 %

Others 13 5.7 %

Age of Business 1 - 3 years 124 31 %

4 – 6 years 125 31.3 %

7 – 9 years 40 10.1 %

10 – 12 years 57 14.3 %

44

13 – 15 years 16 4 %

More than 15 years 38 9.9 %

Number of Employees 1 – 10 employees 306 76.8 %

11 – 20 employees 42 10.7 %

21 – 30 employees 17 4.4 %

31 – 40 employees 5 1.4 %

More than 40 employees 30 8.2 %

4.2 Data Analysis and Findings

The data analysis was included the progress of model adjustment, correlation

analysis, hypothesis testing and summary of the hypothesis result.

4.2.1 Correlation Analysis

Correlation is a statistical tool to measure strength of relationship between two

variables. It can be used to measure a liner relation between two or more variables. A

sign and an absolute vale correlation coefficient are used to describe a direction and a

magnitude of the relationship between two variables. However, usages of correlation

in this study are listed as follows:

4.2.1.1 A value of the correlation coefficient is ranges between -1 to 1.

4.2.1.2 The greater the absolute value of correlation coefficient, the

stronger relationship.

4.2.1.3 The weakest relationship is indicated by correlation coefficient

equal to 0.

4.2.1.4 The positive correlation means if one variable becomes bigger,

the other variable tends to directly become bigger too (direct relation).

4.2.1.5 The negative correlation means if one variable becomes bigger,

the other variable tends to inversely become smaller (inverse relation).

A correlation matrix in table 4.2 shows relationship among

management, finance, marketing, creativity, risk taking propensity, leadership,

adaptability, collaboration, communication, social adaptability and networking. An

interpretation of the correlations is based on a significant of the correlation among the

independent variables.

45

The management (MGT) based on the correlation matrix as tabulated in Table

4.2, and the correlation is significant at 0.01 levels. It has positive correlation with

finance ( r= 0.678, p= 0.01), marketing (r= 0.650, p= 0.01), creativity ( r= 0.625, p=

0.01), risk taking propensity (r= 0.571, p= 0.01), leadership (r= 0.66, p= 0.01),

adaptability (r= 0.551, p=0.01), collaboration (r= 0.601, p= 0.01), communication (r=

0.620, p= 0.01), social adaptability (r= 0.540, p= 0.01) and networking (r= 0.565, p=

0.01).

The finance (FIN) has significant correlation at 0.01 levels. The finance has

positive correlation with marketing (r= 0.612, p= 0.01), creativity (r= 0.535, p= 0.01),

risk taking propensity (r= 0.460, p= 0.01), leadership ( r= 0.583, p= 0.01), adaptability

( r= 0.464, p=0.01), collaboration (r= 0.492, p= 0.01), communication (r= 0.569, p=

0.01), social adaptability (r= 0.44, p= 0.01) and networking ( r= 0.429, p=0.01).

The marketing (MKT) has significant correlation at 0.01 levels. The marketing

has positive correlation with creativity (r= 0.671, p= 0.01), risk taking propensity (r=

0.543, p = 0.01), leadership (r = 0.682, p= 0.01), adaptability (r = 0.582, p= 0.01),

collaboration (r = 0.619, p = 0.01), communication (r = 0.627, p = 0.01), social

adaptability (r = 0.481, p = 0.01) and networking (r= 0.555, p= 0.01).

The creativity (CTT) has significant correlation at 0.01 levels. The creativity

has positive correlation with risk taking propensity (r= 0.623, p=0.01), leadership (r=

0.666, p= 0.01), adaptability (r= 0.606, p= 0.01), collaboration (r= 0.586, p=0.01),

communication (r= 0.557, p= 0.01), social adaptability (r= 0.528, p= 0.01) and

networking (r= 0.552, p= 0.01).

The risk taking propensity (RTP) has significant correlation at 0.01 levels. The

risk taking propensity has positive correlation with leadership (r= 0.651, p= 0.01),

adaptability (r= 0.575, p= 0.01), collaboration (r= 0.596, p= 0.01), communication (r=

0.560, p= 0.01), social adaptability (r= 0.516, p= 0.01), and networking (r= 0.545, p=

0.01).

The leadership (LDS) has significant correlation at 0.01 levels. The leadership

has positive correlation with adaptability (r= 0.649, p= 0.01), collaboration (r= 0.725,

p= 0.01), communication (r= 0.668, p=0.01), social adaptability (r=0.542, p= 0.01)

and networking (r= 0.638, p= 0.01).

46

The adaptability (AD) has significant correlation at 0.01 levels. The

adaptability has positive correlation with collaboration (r= 0.622, p= 0.01),

communication (r= 0.597, p= 0.01), social adaptability (r= 0.565, p=0.01) and

networking (r= 0.656, p= 0.01).

The collaboration (CB) has significant correlation at 0.01 levels. The

collaboration has positive correlation with communication (r= 0.726, p= 0.01), social

adaptability (r= 0.532, p= 0.01), and networking (r= 0.764, p= 0.01).

The communication (CM) has significant correlation at 0.01 levels. The

communication has positive correlation with social adaptability (r= 0.643, p= 0.01)

and networking (r= 0.678, p= 0.01).

The social adaptability has significant correlation at 0.01 levels. The social

adaptability has positive correlation with networking (r= 0.601, p= 0.01).

Conclusively, the correlation matrix revealed that all the variables specified

above were related and significant with each other such as the management related

with finance, marketing, creativity, risk taking propensity, leadership, adaptability,

collaboration, communication, social adaptability and networking. While the finance

related with marketing, creativity, risk taking propensity, leadership, adaptability,

collaboration, communication, social adaptability and networking. Moreover, the

marketing related with creativity, risk taking propensity, leadership, adaptability,

collaboration, communication, social adaptability and networking. Furthermore, the

creativity related with risk taking propensity, leadership, adaptability, collaboration,

communication, social adaptability and networking. In addition, the risk taking

propensity related with leadership, adaptability, collaboration, communication, social

adaptability and networking. While the leadership related with adaptability,

collaboration, communication, social adaptability and networking, moreover, the

adaptability related with collaboration, communication, social adaptability and

networking. The collaboration related with communication, social adaptability and

networking. The communication related with social adaptability and networking.

Lastly, the social adaptability related with networking.

47

Table 4. 2 Correlation matrix

MGT FIN MKT CTT RTP LDS AD CB CM SA NW

MGT 1

FIN 0.678 1

MKT 0.650 0.612 1

CTT 0.625 0.535 0.671 1

RTP 0.571 0.460 0.543 0.623 1

LDS 0.660 0.583 0.682 0.666 0.651 1

AD 0.551 0.464 0.582 0.606 0.575 0.649 1

CB 0.601 0.492 0.619 0.586 0.596 0.725 0.622 1

CM 0.620 0.569 0.627 0.557 0.560 0.668 0.597 0.726 1

SA 0.540 0.440 0.481 0.528 0.516 0.542 0.565 0.532 0.643 1

NW 0.565 0.429 0.555 0.552 0.545 0.638 0.656 0.674 0.678 0.601 1

Note: ** Correlation is significant at the 0.01 level (2-tailed).

4.2.2 Factor Analysis

Factor analysis is the techniques use linear combinations of variables to

interpret sets of observations on many variables. It familiars to uncover the latent

structure dimensions of a set of variables. It deducts attribute space from a bigger

number of variables to a smaller number of factors. In principal components, the

intrinsic interest is in the observed variables. The combination of variables is

primarily a tool for simplifying the interpretation of the observed variables. In factor

analysis, the intrinsic interest is in the underlying factors, the observed variables are

relatively of little interest. Linear combinations are formed to derive the factors.

In this study, the factor analysis shows in table 4.6. The variable to be tested

by factor analysis is managerial skills which consist of seven components:

management, finance, marketing, creativity, risk taking propensity, leadership and

adaptability.

Table 4.3, it provides the information about how much the variance in items

explained. The communalities’ value with less than 0.3, it is represented that the item

does not fit well with other items in its components (Hair et al., 1998). In this study

the communalities in the table 4.6 range from 0.599 to 0.863. While components of

management have value range from 0.599 to 0.719, finance components range from

0.706 to 0.792, marketing components range from 0.660 to 0.789, creativity

components range from 0.653 to 0.739, risk taking propensity components range from

0.701 to 0.863, leadership components range from 0.641 to 0.758 and lastly

48

adaptability components range from 0.702 to0.722 where all the degree of confidence

in the factor solution is permissible.

Table 4.3 Extraction of communalities

Variables Components Initial Extraction

Management MGT1 1.00 0.719

MGT2 1.00 0.677

MGT3 1.00 0.695

MGT4 1.00 0.599

Finance FIN1 1.00 0.706

FIN2 1.00 0.792

FIN3 1.00 0.759

FIN4 1.00 0.781

Marketing MKT1 1.00 0.660

MKT2 1.00 0.789

MKT3 1.00 0.735

MKT4 1.00 0.731

Creativity CTT1 1.00 0.702

CTT2 1.00 0.667

CTT3 1.00 0.739

CTT4 1.00 0.653

Risk taking

propensity

RTP1 1.00 0.752

RTP2 1.00 0.780

RTP3 1.00 0.701

RTP4 1.00 0.863

Leadership LDS1 1.00 0.666

LDS2 1.00 0.758

LDS3 1.00 0.719

LDS4 1.00 0.641

Adaptability AD1 1.00 0.711

AD2 1.00 0.722

AD3 1.00 0.702

Table 4.4 shows the information about the initial eigenvalues (statistic for each

factor before) and rotation sums of squared loadings (after the components were

extracted) for each factor.

The before rotation of the component, management accounted the percentage

of variance for 45.676% while after rotation accounted the percentage of variance for

11.836. Finance accounted the percentage of variance for 6.721% while after rotation

accounted the percentage of variance for 11.338 %. Marketing accounted the

percentage of variance for 4.926% while after rotation accounted the percentage of

variance for 10.137 %. Creativity accounted the percentage of variance for 3.988 %

while after rotation accounted the percentage of variance for 9.892 %. Risk taking

propensity accounted the percentage of variance for 3.576% while after rotation

49

accounted the percentage of variance for 9.545 %. Leadership accounted the

percentage of variance for 3.235 % while after rotation accounted the percentage of

variance for 9.387 % and adaptability accounted the percentage of variance for

3.137% while after rotation accounted the percentage of variance for 9.123 %.

Table 4.4 Total Variance Explained

Component

Initial Eigenvalues Rotation Sums of Squared Loadings

Total

% of

Variance

Cumulative

% Total

% of

Variance

Cumulative

%

Management 12.333 45.676 45.676 3.196 11.836 11.836

Finance 1.815 6.721 52.397 3.061 11.338 23.174

Marketing 1.330 4.926 57.323 2.737 10.137 33.311

Creativity 1.077 3.988 61.311 2.671 9.892 43.203

Risk taking

propensity

.966 3.576 64.887 2.577 9.545 52.748

Leadership .873 3.235 68.122 2.535 9.387 62.136

Tables 4.5 factor analysis to confirm the measurement variables of each factor.

This research contributed 7 factors, which consist of management, finance, marketing,

creativity, risk taking propensity, leadership and adaptability

Result revealed that AVGMGT1, AVGMGT2, AVGMGT3, and AVGMGT4

are rotated significantly in component one and are grouped in management (MGT)

factor. The factor loading for MGT factor has loading of 0.661, 0.659, 0.694 and

0.475 respectively for AVGMGT1, AVGMGT2, AVGMGT3 and AVGMGT4.

Secondly, AVGFIN1, AVGFIN2, AVGFIN3 and AVGFIN4 are rotated

significantly in component two and are grouped in finance (FIN). The factor loading

for FIN has loading of 0.645, 0.823, 0.690 and 0.758 respectively for AVGFIN1,

AVGFIN2, AVGFIN3 and AVGFIN4.

Thirdly, AVGMKT1, AVGMKT2, AVGMKT3 and AVGMKT4 are rotated

significantly in component three and are grouped in marketing (MKT). The factor

loading for MKT has loading of 0.537, 0.728, 0.702 and 0.649 respectively for

AVGMKT1, AVGMKT2, AVGMKT3 and AVGMKT4.

Fourth, AVGCTT1, AVGCTT2, AVGCTT3 and AVGCTT4 are rotated

significantly in component four and are grouped in creativity (CTT). The factor

50

loading for CTT has loading of 0.605, 0.684, 0.738 and 0.623 respectively for

AVGCTT1, AVGCTT2, AVGCTT3 and AVGCTT4.

Fifth, AVGTRP1, AVGRTP2, AVGRTP3 and AVGRTP4 are rotated

significantly in component four and are grouped in risk taking propensity (RTP). The

factor loading for RTP has loading of 0.802, 0.803, 0.721 and 0.610 respectively for

AVGTRP1, AVGRTP2, AVGRTP3 and AVGRTP4.

Sixth, AVGLDS1, AVGLDS2, AVGLDS3 and AVGLDS4 are rotated

significantly in component six and are grouped in leadership (LDS). The factor

loading for LDS factor has loading of 0.550, 0.723, 0.616 and 0.471 respectively for

AVGLDS1, AVGLDS2, AVGLDS3 and AVGLDS4.

Lastly, AVGAD1, AVGAD2 and AVGAD3 are rotated significantly in

component seven are grouped in adaptability (AD) factor. The factor loading for AD

factor has loading of 0.722, 0.729 and 0.720 respectively for AVGAD1, AVGAD2

and AVGAD3.

Table 4.5 Summarized result of rotated analysis

No. Component Variable Factor loading

Factor

1

Factor 2 Factor 3 Factor 4 Factor 5 Factor 6 Factor 7

1 Management AVGMGT1 .661

AVGMGT2 .659

AVGMGT3 .694

AVGMGT4 .475

2 Finance AVGFIN1 .645

AVGFIN2 .823

AVGFIN3 .690

AVGFIN4 .758

3 Marketing AVGMKT1 .537

AVGMKT2 .728

AVGMKT3 .702

AVGMKT4 .649

4 Creativity AVGCTT1 .605

AVGCTT2 .684

AVGCTT3 .738

AVGCTT4 .623

5 Risk taking

propensity

AVGRTP1 .802

AVGRTP2 .803

AVGRTP3 .721

AVGRTP4 .610

6 Leadership AVGLDS1 .550

AVGLDS2 .723

AVGLDS3 .616

AVGLDS4 .471

7 Adaptability AVGAD1 .722

AVGAD2 .729

AVGAD3 .720

51

4.2 .3 Structural Equation Model (SEM)

Base on the Goodness of fitness statistic, compared with the standard value,

the analysis model was sufficiently matched with the conceptual framework of this

study. It is clearly shows that the Chi-Square as 40.13, with p-value as 0.1, which was

absolutely more than the standard as more than 0.05

Secondly, the Goodness of Fit Index (GFI) represents overall degree of fit

without adjusting for degree of freedom. GFI values range from 0 to 1, with one for

the best possible fit. The Goodness of fitness of this research is 0.98. The Adjusted

Goodness of Fit Index (AGFI) is a variant of GFI which uses mean squares instead of

total sums of squares. This study was 0.96 were almost approached to 1, which

explains an acceptable.

The standardized root mean square (RMR) is the standardized difference

between the observed covariance and predicted covariance. The standard need SMR

approached to 0. RMR is zero indicates the model perfect fit with the conceptual

framework. The RMR of this study was 0.66. For the standard of root mean square

error approximation (RMSEA) is one of the most important fit indices, RMSEA also

needed to approach to 0. In this study RMSEA was 0.029. The result represents a

good fit in this study. That is means the result is congruence with the empirical study.

Table 4.6 Goodness of Fit Statistic

FIT Index Acceptable threshold levels Value

Chi-square

p-value > 0.05

Chi-square:

40.13

P-value = 0.102

Chi-square/df < 3 1.337

(RMSEA) Root Mean Square Error of

Approximation

Values < 0.05 0.029

(GFI) Goodness of Fit Index Values > 0.95 0.98

(AGFI) Adjusted Goodness of Fit Index Values > 0.95 0.96

(RMR) Root Mean Square Residual Good model have small

RMR 0.029

52

Note: 1 df = Degree of Freedom

2. p= Normal Theory Weighted Least Squares Chi-Square

Table 4.7 shows the parameters of statistic analysis. There are 3 parts in this

section: LAMBDA-X, LAMBDA-Y and GAMMA. LAMBDA-X tells the weight of

how the X side, namely, the X side is the latent variable managerial skills, or MGS.

Then as the observed variables could measure the related latent variables. MGS has

seven observed variables. The management (AVGMGT) had weight of 1.00 (st=

1.00) of the measurement on managerial skills, which indicated that the level of

positive side of management could present 100 % of positive level of managerial

skills. The finance (AVGFIN) had weight of 0.88 (st= 0.68, SE= 0.05 and t= 16.92) of

the measurement on managerial skills, which could be described that the level of

positive side of finance could present the 68% of the positive level of managerial

skills. The marketing (AVGMKT) had weight of 1.06 (st= 0.82, SE= 0.06 and t=

17.48) of the measurement on managerial skills, which could be described that the

level of positive side of marketing could present the 82% of positive level of

managerial skills. The creativity (AVGCTT) had weight of 1.05 (st= 0.81, SE=0.06,

t= 17.33) of the measurement on managerial skills, which could be describe that the

level of positive side of creativity could present the 81% of positive level of

managerial skills. The risk taking propensity (AVGRTP) had weight of 0.98 (st= 0.76,

SE=0.06, t= 15.69) of the measurement on managerial skills, which could be describe

that the level of positive side of risk taking propensity could present the 76 % of the

positive level of managerial skills. The leadership (AVGLDS) had weight of 1.07 (st=

0.83, SE= 0.06, t= 17.72) of the measurement on managerial skills, which could be

describe that the level of positive side of leadership could present the 83% of the

positive level of managerial skills. The adaptability (AVGAD) had weight of 0.94

(st= 0.73, SE= 0.06, t= 14.97) of the measurement on managerial skills, which could

be describe that the level of positive side of adaptability could present the 94 % of the

positive level of managerial skills.

Secondly, for the parameters of statistic on LAMBDA-Y, there were 3

observed variables, which compose as 3 dimensions of SME performance first for

cost reduction, second for growth of customers and third for growth of sales. The cost

reduction (COSTREDU) had weight of 0.57 (st= 0.56, SE= 0.04, t= 12.62) of the

measurement on SME performance, which indicated that the level of positive side of

53

cost reduction could present the 56% of positive level of SME performance. The

growth of customers (GROWTHCU) had weight of 0.93(st= 0.92, SE= 0.03, t=

27.35) of the measurement on SME performance, which indicated that the level of

positive side of growth of customers could present the 93% of positive level of SME

performance. The growth of sales (GROWTHSA) had weight of 1.00 (st= 0.99) of the

measurement on SME performance, which indicated that the level of positive side of

growth of sales could present the 99% of positive level of SME performance.

Finally, for GAMMA parameters, which was present the weight of exogenous

variables, or the managerial skills in this study, could measure the related endogenous

variable (which were SME performance in this study). The managerial skills (MGS)

had weight of 0.34 (st= 0.27, SE=0.07, t= 5.14) of measurement on SME

performance, which could be described that the level of positive side of managerial

skills could present 34% of positive level of SME performance.

Table: 4.7 Parameters of Statistic table

Variables Factor Loading

b Std.

Solution

SE t

Measurement Model

LAMBDA-Y

PFM

COSTREDU

GROWTHCU

GROWTHSA

0.57

0.93

1.00

0.56

0.92

0.99

0.04

0.03

---

12.62

27.35

---

LAMBDA-X

MGS

AVGMGT

AVGFIN

AVGMKT

AVGCTT

AVGRTP

AVGLDS

AVGAD

1.00

0.88

1.06

1.05

0.98

1.07

0.94

0.77

0.68

0.82

0.81

0.76

0.83

0.73

---

0.05

0.06

0.06

0.06

0.06

0.06

---

16.92

17.48

17.33

15.69

17.72

14.97

GAMMA

MGS

PFM 0.34 0.27 0.07 5.14

Note: LAMBDA = relationship between observed variables; BETA=

relationship to dependent variables; GAMMA= relationship from independent

54

variables; b= LISREL Estimate (Maximum Likelihood); St = completely standardized

solution; SE = error; t= regression co efficiency.

The analysis was using LISREL 8.8 (Joreskog and Sorbom 2006) to

accomplish. The fit between the structural model and data was evaluated by means of

three standard indices: goodness-of fit (GFI), adjusted goodness-of fit (AGFI), and

root mean square error of approximation (RMSEA) which will be discussed in the

following point.

The researcher can develop a lot structural equation to construct the structural

model and can be used for testing the hypothesis. The structural equation of this

research can be shown in table 4.10

Table 4.8, the managerial skills have positive direct effect to cost reduction at

5.89, and have positive direct effect to growth of customers at 13.32 and also have

both positive indirect effects to growth of sales, therefore, managerial skills have

significant in structural model.

Table 4.8 The standardized total effect, direct effect and indirect effect

Effect

Cause

COSTREDU GROWTHCU GROWTHSA

TE IE DE TE IE DE TE IE DE

MGS

5.89 0 5.89 13.32 0 13.32 16.25 0 16.25

Note: TE = effect DE = direct total effect ID = indirect effect

55

Figure 4.1 the full structural model

The full structural model shown in Figure 4.1 represents for the final model

of the managerial skills effect on SME performance in Thailand. It was derived from

one hypothesis since the proposed measurement relationships were consistent with the

data.

Abbreviation Definition

AVGMGT average of management

AVGFIN average of finance

AVGMKT average of marketing

AVGCTT average of creativity

AVGRTP average of risk taking propensity

AVGLDS average of leadership

MGS managerial skills

PFM performance

COSTREDU cost reduction

GROWTHCU growth of customers

GROWTHSA growth of sales

Figure 4.2 demonstrates the structural model parameters and summarizes the degree

to which the data fit the model where abbreviations were showed as above

56

4.3 Hypothesis Testing

The summary of path analysis for hypothesis testing or relationship among

the latent variables was presented as following:

Hypothesis 1: Managerial skills have direct positive effect on SME

performance.

According table 4.8 the value is significant and has positive effect on SME

performance.

The result expressed that Managerial skills have significant direct positive

effect (DE =5.89, T-value > 1.96) on cost reduction. Also, Managerial skill have

significant direct positive effect (DE =13.32, T-value > 1.96) on growth of customers.

Moreover, Managerial skill have significant direct positive effect (DE =16.25, T-

value > 1.96) on growth of sales. However, cost reduction was influenced less than

the other performance.

Therefore, Managerial skills have significant direct positive effect on SME

performance in Thailand. To prove this substantive hypothesis, it is necessary to

accept this hypothesis.

4.3.1 Moderator Effect Analysis

The aim is to compare 2 groups of social skill called group1 high

collaboration group 2 low collaboration; group 1 high communication and group 2

low communications, group 1 high social adaptability and group 2 low social

adaptability, group 1 high networking and group 2 low networking. They are fit with

the empirical study. The hypothesis of moderator testing is the structural equation

model of these 2 groups are different by testing the model, Lamda X matrix, Lamda Y

matrix, Gamma matrix and Beta matrix. This study tested the moderator effect of 4

social skills such collaboration, communication, social adaptability and networking

which are separated into 2 groups.

Hypothesis 2: Collaboration skills have effect on the relationship between

Managerial and SME performance.

57

Figure 4.3 Moderator model of collaboration.

Table 4.9: Show the test of main model of variable collaboration

hypothesis χ2 df χ

2/df P-Value GFI RFI NFI RMR

Hform 78.66 63 1.248 0.08818 0.97 0.96 0.99 1.25

HлX 87.43 69 1.267 0.06636 0.97 0.96 0.97 1.22

HлXлY 102 87 1.172 0.00935 0.96 0.96 0.96 8.65

HлXлYг 106.8 72 1.483 0.00486 0.96 0.95 0.96 11.81

Note: p-value >0.05, RMR 0

The moderator effect of collaboration variable can be tested by testing the

congruence between the structural models of two groups of High and Low

collaboration. Firstly, these models were tested the congruence of structural model

form as mention in 1st hypothesis of Hform. If the result shows that these model are not

fit according to the fit model indict, it can be summarized that these model are not

similar. In opposite, if the result shows that these models are fit, they would be tested

more by testing the congruence of Lamda X matrix, Lamda Y matrix and Gamma

matrix to confirm the congruence of model. The testing has been indicated in table 4.9

and explained as below;

1. Hform : Form of High collaboration group and Low collaboration group are same.

58

According to the result, the result passes the criteria. Then, these forms need to

test the congruence of matrix Lamda X.

2. HлX : Matrix X of High collaboration group and Low collaboration group

According to the result, the result passes the criteria. Then, these forms need to

test the congruence of matrix Lamda Y.

3. HлXЛy : Matrix Y of High collaboration group and Low collaboration group are

same .

The result of P-value is lower than 0.05, it expressed that the hypothesis was

rejected. Therefore, the collaboration skills effect on the relationship between

managerial skills and SME performance.

Hypothesis 3: Communication skills has effect on the relationship between

Managerial and SME performance

Figure 4.4 Moderator model of communication.

Table 4.10: Show the test of main model of variable communication

Hypothesis χ2 df χ

2/df P-Value GFI RFI NFI RMR

Hform 58.09 58 1.001 0.47 0.95 0.97 0.98 0.8

HлX 60.94 64 0.952 0.58541 0.95 0.97 0.98 0.75

HлXлY 63.73 66 0.965 0.55647 0.94 0.97 0.98 3.29

HлXлYг 63.92 67 0.954 0.58 0.94 0.97 0.98 3.76

59

The result of the moderator effect of communication testing was shown in

table 4.10 and explained the detail of testing as below;

1. Hform: Form of High communication group and Low communication group are

same.

According to the result, the result passes the criteria. Then, these forms need to

test the congruence of matrix X.

2. HлX : Matrix X of High communication group and Low communication group

According to the result, the result passes the criteria. Then, these forms need to test

the congruence of matrix Y.

3. HлXЛy : Matrix Y of High communication group and Low communication

group are same

The result of RMR was not close to 0, it expressed that the hypothesis was

rejected. Therefore, the communication skills effect on the relationship between

managerial skills and SME performance.

Hypothesis 4: Social adaptability skills have effect on the relationship

between Managerial and SME performance

Figure 4.4 Moderator model of social adaptability.

60

Table 4.11: Show the test of main model of variable social adaptability

Hypothesis χ2 df χ

2/df P-Value GFI RFI NFI RMR

Hform 59.05 58 1.018 0.43679 0.94 0.97 0.98 0.75

HлX 63.55 64 0.992 0.49238 0.94 0.97 0.98 0.77

HлXлY 63.55 66 0.962 0.5628 0.94 0.97 0.98 3.61

HлXлYг 63.67 67 0.950 0.59266 0.94 0.97 0.98 3.77

The result of the moderator effect of social adaptability testing was show in

table 4.11 and explained the detail of testing as below;

1. Hform: Form of High social adaptability group and Low social adaptability

group are same.

According to the result, the result passes the criteria. Then, these forms need to

test the congruence of matrix X.

2. HлX : Matrix X of High social adaptability group and Low social adaptability

group are same.

According to the result, the result passes the criteria. Then, these forms need to

test the congruence of matrix Y.

3. HлXЛy: Matrix y of High social adaptability group and Low social adaptability

group are same.

The result of RMR was not close to 0, it expressed that the hypothesis was

rejected. Therefore, the social adaptability effect on the relationship between

managerial skills and SME performance.

Hypothesis 5: Networking skills has effect on the relationship between

Managerial and SME performance.

61

Figure 4.5 Moderator model of networking.

Table 4.12: Show the test of main model of variable networking

Hypothesis χ2 df χ

2/df P-Value GFI RFI NFI RMR

Hform 69.01 63 1.095 0.28142 0.96 0.95 0.97 0.49

HлX 72.59 69 1.052 0.36 0.96 0.96 0.97 0.47

HлXлY 74.98 71 1.056 0.35054 0.96 0.96 0.97 3.51

HлXлYг 76.51 72 1.062 0.33592 0.96 0.96 0.97 6.59

The result of the moderator effect of variable networking testing was shown in

table 4.12 and explained the detail of testing as below:

1. Hform: Form of High networking group and Low networking group are same.

According to the result, the result passes the criteria. Then, these forms need to

test the congruence of matrix X.

2. HлX : Matrix X of High networking group and Low networking group are

same.

According to the result, the result passes the criteria. Then, these forms need to

test the congruence of matrix Y.

3. HлXЛy : Matrix y of High networking group and Low networking group are

same .

62

The result of RMR was not close to 0, it expressed that the hypothesis was

rejected. Therefore, the networking effect on the relationship between managerial

skills and SME performance.

Summary of moderator analysis

The hypotheses were supported. The result of the moderator analysis testing

which compared of 2 groups of social skills low and high groups that effect to the

changing between managerial skill and SME performance. The research found that

social skill was more strongly and positively related to performance and believed that

the higher an individual’s score on an inventory of social skill, the higher the person’s

ratings on SME performance measures, (Ferris, G.R, Witt, L.A., & Hochwarter, W.A

(2001) and Ferris and Witt (2003). Therefore, the entrepreneurs who have higher

social skills, these may achieve the higher SME performance compared with the

entrepreneurs who have lower social skills may achieve lower SME performance.

63

CHAPTER 5

CONCLUSION AND DISCUSSION

This chapter presents the summary, discussion of the findings, and

recommendation. Finally, the limitations of the study and suggestions for future

research are presented. The main topics have been presented as the following:

5.1 Conclusion

5.2 Discussion

5.2.1 The effect of managerial skills on SME performance in Thailand

5.2.2 The effect of moderator of social skills on the changing between

managerial skills and SME performance

5.3 Implication of the study

5.3.1 Implication for the entrepreneurs

5.3.2 Implication for the academician and researcher

5.4 Limitation of the study

5.5 Future research

5.1 Conclusion

The main purposes of this study were (1) to study the effect of managerial

skills on SME performance in Thailand. (2) to study the effect of moderator of social

skills on the changing between managerial skills and SME performance. (3) to study

the important of skill development of entrepreneurs effect on SME performance in

Thailand. The major findings reported in chapter 4 can summarized as below.

64

There were 400 questionnaires collected from respondents and were found to

be usable for the study. The great majority of the participants are female which

represents 53.3% while males participated by 46.5 % which is slightly lower than

female. Furthermore, most of them have age between 31 – 40 years old approximately

37.8%. Moreover, 61.5 % of them are also hold the Bachelors degree. The greatest

proportions of them are having a business of services/hotels and restaurants by 32.8%

which the age of their business are between 4 to 6 years by 31.3 %. The vast majority

of numbers of employees are between 1-10 employees approximately 76.8%.

This research found that managerial skills which consist of management,

finance, marketing, creativity, risk taking propensity, leadership and adaptability have

positive direct effect on SME performance. An examination of the standardized path

coefficients among variables showed that managerial skills have statistically

significant positive effect on cost reduction, growth of customers and growth of sales

which are equivalent 5.89, 13.32 and 16.25 respectively. Furthermore, the findings

represent the main objective which the moderators of social skills that consist of

collaboration, communication, social adaptability and networking have effect on the

changing between managerial skills and SME performance. This means that if the

entrepreneurs have high score of managerial skills, the business performance might

not success if the entrepreneurs have low score of social skills. In turn, if the

entrepreneurs have high score of both skills may contribute to the success of their

business. In this research also found that leadership skills is the highest influence the

value is 84 % which represents that leadership skill the most important to

entrepreneurs to improve their managerial skills in order to developing their SME

performance.

5.2 Discussion

In this section, the outcomes of the survey are discussed in relation to the

objectives of the study. The research aimed to develop the model of the moderator

effect of social skills on the relationship between managerial skills and SME

performance in Thailand. The model was tested using Structural Equation Model.

Specifically, the results indicated that the proposed model had a sufficient fit to the

data and the inclusion among factors significantly. Findings showed that managerial

skills that consist of management, finance, marketing, creativity, risk taking

65

propensity, leadership and adaptability have direct effect on SME performance.

Furthermore, the findings represent that the moderator of social skills which consisted

of collaboration, communication, social adaptability and networking had effect on the

changing between managerial skills and SME performance. For instance, according to

the previous survey, Inc, magazine reported that 57% of their samples of 500 high-

growth private U.S companies were started by at least two founders. To the extent that

these partners possess excellent social skills, face-to-face interactions between them

should be facilitated, in turn, may contribute to the success of their business. Tarpley,

F.A and Schwartz, R G, (1986). This experienced, who has funded a large number of

successful new companies, rates close and effective teamwork or high collaboration

between founding partners as a crucial component in the entrepreneurs’ success.

Heilemann, (1998). The findings of this research also found that the result was

congruent with Tarpley, F.A; Schwartz, R G, (1986) Tarpley; F.A and Schwartz, R G,

(1986).

5.2.1 The effect of managerial skills on SME performance in Thailand

The purpose of this study is to study the effect of managerial skills on SME

performance in Thailand. According to the literature review, managerial skills defined

as an ability which can be developed and which is manifested in performance, not

merely in potential, the ability to translate knowledge into practice. Livingston,

(1971); Mintzberg, (1973), Katz, (1974); Whetten and Cameron, (1980); Armstrong,

(1994); Analoui and Hosseini, 2001; Bu and Collins, (2001). Furthermore, managerial

skills are crucial for innovation and development of SME performance Mabey,

(2003). Numerous of researchers emphasize on the improvement of managerial skills

to propel financial success and profitability for the SME performance Guest, (2007);

Carmeli, (2006); Samson and Draft, (2009). Mostly any kind of business depends on

three major components in one of three that is knowledge of operators in business

activities such as management, finance, marketing and production Miller, (1983).

In this research, managerial skills consisting of management, finance,

marketing, creativity, risk taking propensity, leadership and adaptability. The outcome

of this research reveals that management, finance, marketing, creativity, risk taking

propensity, leadership and adaptability have mean value which can represent the agree

66

level of agreement. Depended on the Matrix statistic data, the relationship between

managerial skills and its seven dimensions, presented the value of LISREL estimates,

there were one dimension which had the highest relationship with managerial skills; it

could express leadership skills could be consider the most important skills of

managerial skills which presented the 83 % of positive level of managerial skills.

Therefore, if the entrepreneurs would like to develop the managerial skills that should

be considered the leadership to obtain the highest SME performance. Management

had the value as 77%, finance had the value as 68 %, creativity had the value as 81%,

risk taking propensity had the value as 76 %, and adaptability had the value as 73%.

For the relationship between independent variable with dependent variable,

they had the significant positive relationship. SME performance could present 27% of

positive level of managerial skills. Therefore, it can conclude that the managerial

skills have direct positive effect on SME performance in Thailand.

5.2.2 The effect of moderator of social skills on the changing between

managerial skills and SME performance

For the second objective is to study the effect of moderator of social skills on

the changing between managerial skills and SME performance. According to the

literature review, social skills defined as an individual’s ability to successfully

interpret and manage social interactions Witt and Ferris, (2003). Even though a

comprehensive of study identify that expertise in social skills strongly affect personals

outcomes in many business contexts, social skills may have extraordinarily valuable

to entrepreneurs Segrin and Kenney, 1995; Tsui, 1998; Wayne and Kacmar, (1991).

Moreover, also found that Entrepreneurs’ social skills play a significant role in

developing their SME performance to be success Baron and Markman, (2003).

Having identified several social skills that may be relevant to entrepreneur’s success,

by examine some of the mechanisms by which these skills work. Numerous findings

and proposals in the literature on entrepreneurship indicate that entrepreneur’s social

skills can influence their success. For instance, it has been found that entrepreneurs

whose companies are successful engage in more communication with others, and are

more effective in this activity, than entrepreneurs whose companies fail. Duchseneau

and Gartner, (1990). And another important context in which social skills can

contribute to entrepreneurs’ success regarding to the formation of business alliances

67

Deeds and Hill, (1999). Like alliances are growing sources of competitive advantage

for emerging firms Deeds and Hill, (1996). Entrepreneurs frequently recognize that

alliances particularly ones with strong, existing companies can enhance their odds of

survival from identify market inefficiencies, create new products or services, capture

market share, gain access to financial resources and acquire legitimacy Schoonhoven,

Eisenhardt and Lymman, (1990). Absolutely, business alliances have been found to be

positively related with the rate of new product development and the creation of

shareholder wealth for new ventures Park and Kim (1997). The result of this study

demonstrates that the moderator of social skills has effect on the changing between

managerial skills and SME performance. In this research, social skills involve of

collaboration, communication, social adaptability and networking. According to the

result of testing hypothesis and together refer with the information above, it represent

that all dimensions of social skills have effect on the relationship between managerial

skills and SME performance.

According to the result of previous researched regarding to the social skills,

entrepreneurs in the West Bank believe the most important small and medium

enterprise (SME) success items are personality of the entrepreneurs and social

competence, which include honesty and good social skills. In addition, both

personality and managerial skills shared by the top positions with all the surveyed

groups in the previous study. This finding coincides with a previous studies by

Shahwan (1992, 2003); Sabri, (2008); Sayre and Al-Botmeh (2009). Many researches

have been done on the importance of soft skills in the workplace (Klaus, 2010; Maes,

Weldy, & Icenogel, (1997); Mitchell et al., (2010); Nealy, (2005); Smith, (2007). A

study found that 75% of long-term business success depends on people skills, while

only 25% depends on technical knowledge Klaus, (2010). Another study represent

that hard skills contribute only 15% to one’s success, where as 85% of success is due

to soft skills Watts & Watts, 2008, as cited in John, (2009). They rate soft skills as

number one in importance for entry – level success on the business Wilhelm, (2004).

From the previous study, Communication is an important interpersonal skills in

today’s global business environment John, (2009); Timm, (2005). It is often assumed

that communication is a fundamental skill that everyone does well and knows.

68

5.3 Implication of the study

The outcomes of this study demonstrated a successful utility of the Attribution

theory support the findings, regarding the way people interpret the behavior of others.

It is highly probable the entrepreneur perceives he/she in a manner compatible with

the general social attitude. He/she has to act in accordance with a certain behavioral

pattern that can fulfill the expectations of others.

Leadership which the value is 84 %. It presented the highest influence of

managerial skills among seven components. The managerial skills have direct positive

effect on SME performance. It shows that if the entrepreneurs have the good

leadership skills such as the ability to lead teams, ability to coach others, ability to

motivate their followers. Besides, they can encourage people to make contributions,

encourage creativity, have a positive attitude, to listen and communicate effectively.

Moreover, they also have the focus on critical issues, to continually develop their own

leadership style and so on. Entrepreneurs can improve their leadership skill from

attend the leadership training or attend the entrepreneurship training.

5.3.1 Implication for the entrepreneurs

Knowledge from this study can be used to develop the managerial

skills and social skills of entrepreneurs in many aspects which can be

classified as follows:

1. Entrepreneur need to develop their managerial skills as their competitive

orientation by emphasizing marketing and leadership skill and proactive

activities in order to enable them to create and capture the opportunities in

global markets. Leadership relates to the entrepreneur’s belief that they can

manage and sustain the high level of performance through effective planning.

This dimension also refers to their confidence in performing to their job,

determining their own business success, and the feeling of being superior in

order to create a competitive advantage in the SME in Thailand. More than that

they can compete with other competitors in various countries. Model obtained

from this study can be utilized to a multifaceted approach for the management

team of the entrepreneurs of the SME in Thailand.

69

2. The implication to the entrepreneurs, face the intense competition in market,

this study can provide the guideline of “skills development “to entrepreneurs

which can be applied in ordering of a level of important of each skill can be

implemented to improve strategy of the business in order to increase the SME

performance and the business competitive advantage.

3. The image of the successful entrepreneur as a promoter of the long-term-

vision, a team player, a cross-border network developer, a person that

integrates professional skills with creativity. In order to meet such

expectations, entrepreneurs should extensively use of skills development that

enhances the managerial skills and social skills of their management team.

4. Managerial skills and social skills help the entrepreneurs manage their business

performance in the way of planning, organizing, leading, coordinating, control

and believe in team. These skills are important for the success. Therefore, the

entrepreneurs should prepare themselves before they start up their new

business or in the business developing stage, they should take a course training

of entrepreneurs in order to learn how to develop their managerial skill and

social skills that is related to their business.

5.3.2 Implication for the academic and researcher

1. The empirical findings of the present research confirm that the model

of the effect of moderator of social skills on the changing between

managerial skills and SME performance is fitted for testing of

managerial skills effect on SME performance in Thailand. Application

and adaption of the model based on the findings from this study offers

academician and researchers who are interested in the field of

managerial skills and social skills effect on the SME performance. This

model can also be well used in other area.

2. Academicians and researchers should focus on the managerial skills

and social skills factors which effect on SME performance. It can be

extend more various variables into the skills of the entrepreneurs’

constructs which could help other researchers understand more about

the managerial skills effect on SME performance.

70

5.4 Limitation of the study

1. In this study, dimensions of the managerial skills only focus on

management, finance, marketing, creativity, risk taking propensity,

leadership, and adaptability. For social skills only focus on

collaboration, communication, social adaptability and networking

2. The questionnaire of this study was designed from the journals that had

reviewed which some questions quite difficult to understand for the

entrepreneurs who were in the lower bachelor’s degree; therefore,

some questions might be distorted.

3. Lack of cooperation from entrepreneurs because they were extremely

concerned about the disclosure of their business and they were

inconvenient because of timeless.

5.5 Future research

For the future research regarding to the result is recommended to

extend to study more into other.

1. In this study, managerial skills combine of seven skills such as management,

finance, marketing, creativity, risk taking propensity, leadership and

adaptability. For social skills consist of four skills such as collaboration,

communication, social adaptability and networking. Actually, managerial

skills and social skills consist of others important skills have not mention in

this study, which are also very important factors that affect the SME

performance. Thus, it should be considerable for the future research.

2. Samples of the future research should be extended more area such as

entrepreneurs of SME in other countries. Additionally, it could more clearly

explain about the skills of entrepreneurs, such as the entrepreneurs of SME in

each country separately.

3. Researchers should study more the skills of entrepreneurs, which managerial

skills should be developed together with social skills, such as entrepreneurs

should developing leadership together with collaboration, or leadership

together with networking and so on, those can yielded the higher performance.

71

71

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86

APPENDICES

87

APPENDIX A

ITEM- OBJECTIVE CONGRUENCY (IOC) FORM

TOPIC: to study the effect of moderator of social skills on the changing between

managerial skills and SME performance in Thailand.

The Research Objectives:

Objectives of this study were explored as follows;

1.3.1 To study the effect of managerial skills on SME

performance in Thailand.

1.3.2 To study the effect of moderator of social skills on the

changing between managerial skills and SME

performance.

1.3.3 To study the importance of skill development of

entrepreneurs effect on SME performance in Thailand.

Please see whether the research questions match with the objective or not? Kindly tick

(√) in the box against each question

+1 If that question is matched with the research objective

0 If you are not sure of or cannot make a decision

-1 If that question is not match with the research objective

Section 1: Demographic

No. Demographic +1 0 -1

1 Gender

2 Age

3 Education level

4 Type of business

5 Age of business

6 How many employees in your business

88

Section 2: Managerial skills

9.1 Management +1 0 1

9.1.1 I have ability to develop tactics and strategies for

achieving organizational objectives

9.1.2 I have ability to assign responsibility and

authority appropriately and effectively

9.1.3 I have ability to Schedule own work activities so

that deadlines are met and work goals are

accomplished in a timely manner

9.1.4 I am frequency bring conflicts into the open and

use it to arrive at constructive solutions

9.2 Financial +1 0 1

9.2.1 I have ability to interpret financial situation

9.2.2 I have ability to prepare income/daily expenses

reports

9.2.3 I have ability to preparing budget plans

9.2.4 I have ability to calculate gross and net profits

9.3 Marketing +1 0 1

9.3.1 I have ability to identifying customers’ needs

9.3.2 I have ability to preparing marketing plans

9.3.3 I emphasize the use of various selling tactics to

increase my sales

9.3.4 My business undertakes market research in order

to identify market opportunities

9.4 Creativity +1 0 1

9.4.1 I am Frequently introduces new ideas

9.4.2 In my business, people are encouraged to think

and behave differently

9.4.3 I think that I am a creative person

9.4.4 My business constantly introduces new

product/services in order to serve new

customers/markets

9.5 Risk taking propensity +1 0 1

9.5.1 I am willingly tries out new ideas in spite of

possible loss or failure

9.5.2 I think that I am a high risk taker

9.5.3 I can accept my mistakes

9.5.4 I like to do things that others may not think of

9.6 Leadership +1 0 1

9.6.1 I have the ability to lead teams to find creative

solutions and overcome problems

9.6.2 I have the ability to coach others to develop their

own leadership skills

9.6.3 I have the ability to keep the focus on critical

issues when leading implementation

89

Section 3: Social skills

9.6.4 I am continually develop my own leadership style

9.7 Adaptability

9.7.1 I constantly introduce new processes (e.g.

technology, distribution, management systems,

etc.) to improve my business.

9.7.2 My business always looks for new business or

markets to enter

9.7.3 When my competitors develop a new product or

a new business method, my business quickly

responds to it and adopts it

10.1 Collaboration +1 0 1

10.1.1 I have cooperation among the people at work

10.1.2 We are in teamwork and group problem solving

10.1.3 I create the conditions for brainstorming the

strategic issues and actions

10.1.4 I create credible processes for collaborating

10.2 Communication +1 0 1

10.2.1 I am usually Listens closely to people at work

10.2.2 I have ability clearly presents information both

orally and in writing

10.2.3 I have the ability to communicate ideas effectively

to employees

10.2.4 I am frequency consistent communication of

mission statement and objective explicitly

10.2.5 I have ability to communicate effectively with

customers

10.3 Social adaptability +1 0 1

10.3.1 I can easily adjust to being in just about any social

situation

10.3.2 I can be comfortable with all types of people that

from the same or different backgrounds as myself

10.3.3 I have no problems introducing myself to

strangers

10.4 Networking +1 0 1

10.4.1 I have the ability to Develops cooperative

relationships within and outside of the

organization

10.4.2 I have the Competence in business relationship

and share business information

10.4.3 I have ability to committed to the development of

people in my business network

90

Section 4: SME performance

SME performance +1 0 1

11.2 Cost reduction over the last year (%)

11.3 Growth of customers over the last year (%)

11.4 Growth of sales over the last year (%)

Approve by

……………………………………………

Date………./……………./……………

91

APPENDIX B

Survey Questionnaire

To whom it may concern,

As part of MBA (Master of Business Administration) student in International

Business program at the University of Thai Chamber of Commerce, Bangkok,

Thailand. I am doing a research entitle “to study the effect of moderator of social

skills on the changing between managerial skills and SME performance in Thailand”

I would be very grateful if you could participate in this study by doing this

questionnaire. All provide data will be used only for statistical propose of my thesis.

The result of this study will be bringing to measure performance of SMEs in

Thailand. Your provided information will be treated as confidential and will not cause

any trouble or tracing back to your business. All information will be used for this

research only.

If you find any difficulty or have any queries, please kindly contact me via emails :

kimanh87@hotmail.com.

Thank you for your valuable time and corporation.

Yours sincerely,

Ms Somphet Thongsennheuang

MBA in International Business

92

Questionnaires

Could you please answer these following questions? Please mark (√) in the ( ) as one

answer, please complete all the questions.

Remark: This survey questionnaire has 4 sections:

Section 1: Demographic

Section 2: Managerial skills

Section 3: Social skills

Section 4: SME performance

Thank you very much for your support

Ms. Somphet Thongsennheuang

Global MBA

University of the Thai Chamber of Commerce

93

Part 1: PERSONAL DATA

Section 1: Demographic

Note: Please write down your answer or check (√) in the………that related with your

answer.

1. Gender

___ (1) Male ___ (2) Female

2. Age

___ (1) 25 – 30 years old ___ (2) 31- 40 years old ___ (3) 41 – 50 years

___ (4) more than 50

3. Education level

___ (1) Non Formal Education ___ (2) High School/ Lower

___ (3) Bachelor’s degree ___ (4) Master’s degree/ PhD.

4. Type of Business

___ (1) Retailing ___ (2) Wholesaling ___ (3) Service / Hotel &

Restaurant

___ (4) Manufacturing ___ (5) other (please identify)………

5. Please indicate the age of your business _____ years

6. Please indicate how many employees in your business ________ employees

Section 2: Managerial skills

7. Please indicate the degree to which you agree/ disagree with the following

statement. (Please mark (√) in the boxes ( ) as one answer in the following

scale :

1 = strongly disagree, 2 = Disagree, 3 = Neutral, 4 = Agree, 5 = strongly agree

94

7.1 Management (MGT) 1 2 3 4 5

7.1.1 I have ability to develop tactics and strategies

for achieving organizational objectives

7.1.2 I have ability to assign responsibility and

authority appropriately and effectively

7.1.3 I have ability to Schedule own work activities so

that deadlines are met and work goals are

accomplished in a timely manner

7.1.4 I am frequency bring conflicts into the open and

use it to arrive at constructive solutions

7.2 Financial (FIN) 1 2 3 4 5

7.2.1 I have ability to interpret financial situation

7.2.2 I have ability to prepare income/daily expenses

reports

7.2.3 I have ability to preparing budget plans

7.2.4 I have ability to calculate gross and net profits

7.3 Marketing (MKT) 1 2 3 4 5

7.3.1 I have ability to identifying customers’ needs

7.3.2 I have ability to preparing marketing plans

7.3.3 I emphasize the use of various selling tactics to

increase my sales

7.3.4 My business undertakes market research in

order to identify market opportunities

7.4 Creativity (CT) 1 2 3 4 5

7.4.1 I am Frequently introduces new ideas

7.4.2 In my business, people are encouraged to think

and behave differently

7.4.3 I think that I am a creative person

7.4.4 My business constantly introduces new

product/services in order to serve new

customers/markets

95

7.5 Risk taking propensity (RTP) 1 2 3 4 5

7.5.1 I am willingly tries out new ideas in spite of

possible loss or failure

7.5.2 I think that I am a high risk taker

7.5.3 I can accept my mistakes

7.5.4 I like to do things that others may not think of

7.6 Leadership (L) 1 2 3 4 5

7.6.1 I have the ability to lead teams to find creative

solutions and overcome problems

7.6.2 I have the ability to coach others to develop their

own leadership skills

7.6.3 I have the ability to keep the focus on critical

issues when leading implementation

7.6.4 I am continually develop my own leadership

style

Section 3: Social skills

8. Please indicate the degree to which you agree/ disagree with the following

statement. (Please mark (√) in the boxes ( ) as one answer in the following scale :

1 = strongly disagree, 2 = Disagree, 3 = Neutral, 4 = Agree, 5 = strongly agree

8.1 Collaboration(CB) 1 2 3 4 5

8.1.1 I have cooperation among the people at work

8.1.2 I am in teamwork and group problem solving

8.1.3 I create the conditions for brainstorming the

strategic issues and actions

8.1.4 I create credible processes for collaborating

8.2 Communication(CM) 1 2 3 4 5

8.2.1 I am usually Listens closely to people at work

8.2.2 I have ability clearly presents information both

orally and in writing

8.2.3 I have the ability to communicate ideas

96

effectively to employees

8.2.4 I am frequency consistent communication of

mission statement and objective explicitly

8.2.5 I have ability to communicate effectively with

customers

8.3 Social adaptability (SA) 1 2 3 4 5

8.3.1 I can easily adjust to being in just about any social

situation

8.3.2 I can be comfortable with all types of people that

from the same or different backgrounds as myself

8.3.3 I have no problems introducing myself to

strangers

8.4 Networking (N) 1 2 3 4 5

8.4.1

I have the ability to Develops cooperative

relationships within and outside of the

organization

8.4.2

I have the competence in business relationship

and share business information

8.4.3 I have ability to committed to the development of

people in my business network

Section 4: SME performance

9. Please indicate your SME performance in percent (%) that fit with your answer

compare to last year.

9.1 Cost reduction over the last year______ (%)

9.2 Growth of customers over the last year_____ (%)

9.3 Growth of sales over the last year ______ (%)

97

แบบสอบถาม

เรยนคณทาน

แบบสอบถามฉบบนมวตถประสงคเพอการวจย ทกษะทางสงคมทมผลตอการแปลเปลยนระหวางทกษะการ

บรหารจดการ และ การด าเนนงานของธรกจขนาดกลางและขนาดยอม. แบบสอบถามนจดท าขนเพอใช

ประกอบการศกษาและเปนสวนหนงของวทยานพนธ หลกสตรบรหารธรกจมหาบณฑต สาขาธรกจระหวาง

ประเทศ (Global MBA) มหาวทยาลยหอการคาไทย ผวจยขอขอบพระคณในความรวมมอของทานทสละเวลา

ตอบค าถามแบบสอบถามน ทงนขอมลของทานทงหมดจะน ามาใชเพองานวจยเทานนและจะถกเกบเปน

ความลบไมมการเปดเผยทมาใดๆ ทงสน.

หมายเหต : แบบสอบถามนแบงเปน 4สวนดงน:

สวนท 1: ขอมลดานประชากร

สวนท 2: ทกษะการบรหารจดการ

สวนท 3: ทกษาทางสงคม

สวนท 4: ผลการด าเนนงาน

ขอบคณคะ

SOMPHET THONGSENNHEUANG

ID: 11904007

98

สวนท 1ขอมลพนฐาน

กรณาตอบค าถามใหสอดคลองกบขอมลของคณ โปรดท าเครองหมาย √ลงใน □ หนาขอความทตรงกบความ

เปนจรง

1. เพศ

___ (1) ชาย ___ (2) หญง

2. อาย

___ (1) 25 – 30 ป ___ (2) 31 – 40 ป ___ (3) 41 – 50 ป

___ (4) 50 ปขนไป

3. การศกษา

___ (1) การศกษานอกโรงเรยน ___ (2) มธยมตน/ปลาย ___ (3) ระดบปรญญาตร

___ (4) ระดบปรญญาโท/เอก

4. ประเภทธรกจ

___ (1) ธรกจขายปลก ___ (2) ธรกจขายสง ___ (3) ธรกจบรการ/

โรงแรมและรานอาหาร ___ (4) ธรกจการผลต ___ (5) อนๆ (โปรดระบ)……….

5. กรณาระบระยะเวลาการด าเนนธรกจ ____ ป

6. กรณาระบจ านวนพนกงานในธรกจของคณ ____ ป

99

สวนท 2: ทกษะการบรหารจดการ

7. กรณนาระบขอบเขตทเหนดวยหรอไมเหนดวยกบค าถามแตละขอโดยการท าเครองหมาย √ ลงใน□

1 = ไมเหนดวยอยางยง, 2 = ไมเหนดวย, 3 = เปนกลาง, 4 = เหนดวย, 5 = เหนดวยอยางยง

7.1 การจดการ 1 2 3 4 5

7.1.1 ฉนมความสามารถพฒนาชนเชงและกลยทธของธรกจ เพอให

บรรลวตถประสงคขององคกร

7.1.2 ฉนมความสามารถมอบหมายความรบผดชอบและกระจาย

อ านาจอยางเหมาะสมและมประสทธภาพ

7.1.3 ฉนสามารถจดตะรางกจกรรมงานของตวเองเพอใหงานส าเรจ

และ บรรลเปาหมายตรงตามเวลา

7.1.4 ฉนมกจะน าความขดแยงทเกดขนมาน าเสนอเพอน าไปสการ

แกไขปญหาอยางสรางสรรค

7.2 การเงน 1 2 3 4 5

7.2.1 ฉนมความสามารถในการวเคราะหสถานการทางการเงน

7.2.2 ฉนมความสามารถในการจดท ารายงาน เกยวกบรายไดและ คาใชจาย

7.2.3 ฉนมความสามารถในการจดท าแผนงบประมาณ

7.2.4 ฉนมความสามารถในการค านวณผลก าไรขนตนและก าไรสทธ

7.3 การตลาด 1 2 3 4 5

7.3.1 ฉนมความสามารถวเคราะหความตองการของลกคา

7.3.2 ฉนมความสามารถจดท าแผนการตลาด

7.3.3 ฉนมกจะเนนการใชกลยทธการขายตางๆ เพอเพมยอดขาย

7.3.4 ธรกจของฉนรบรองการวจยการตลาดเพอวเคราะหโอกาสทางการตลาด

100

7.4 ความคดสรางสรรค 1 2 3 4 5

7.4.1 ฉนมกจะน าเสนอแนวความคดใหมๆอยเสมอ

7.4.2 ในธรกจของฉน พนกงานมกจะไดรบการสนบสนนใหคดและท างานในรปแบบทแตกตาง

7.4.3 ฉนคดวาฉนเปนคนทมความคดสรางสรรค

7.4.4 ธรกจของฉนมกจะน าเสนอผลตภณฑและการบรการรปแบบใหมๆอยางตอเนอง เพอตอบสนองกบลกคาใหม/ตลาด

7.5 ความเสยง 1 2 3 4 5

7.5.1 ฉนเตมใจทจะทดลองแนวความคดใหมๆ ถงแมจะมความเสยงในการลมเหลว

7.5.2 ฉนคดวา ฉนเปนคนทมความกลาเสยงสง

7.5.3 ฉนสามารถยอมรบความผดพลาดของฉน

7.5.4 ฉนชอบท าในสงทคนอนอาจจะไมเคยคด

7.6 ความเปนผน า 1 2 3 4 5

7.6.1 ฉนมความสามารถในการน าพาทมงาน หาแนวทางการแกไขปญหาอยางสรางสรรค

7.6.2 ฉนมความสามารถในการฝกอบรมคนอนๆ เพอพฒนาทกษะความเปนผน าของตวเขา

7.6.3 ฉนมความสามารถทจะน าพาทมงาน ใหมงเนนในประเดนทส าคญในการด าเนนงาน

7.6.4 ฉนพฒนารปแบบความเปนผน าของฉนอยางตอเนอง

7.7 การปรบตว 1 2 3 4 5

7.7.1 ฉนมกจะน าเสนอกระบวนการท างานใหมเสมอ (เชน เทคโนโลย , การกระจายสนคา, ระบบการจดการ ฯลฯ) เพอปรบปรงธรกจของฉน

7.7.2 ฉนมกจะมองหาโอกาสทางธรกจใหมๆ เพอตอยอดธรกจและขยายธรกจใหมเสมอ

7.7.3 เมอคแขงไดพฒนาผลตภณฑหรอธรกจใหม ธรกจของฉนกจะตอบสนองอยางรวดเรวและน ามาพฒนากบบรษทของฉน

101

สวนท 3: ทกษะทางสงคม

8.กรณนาระบขอบเขตทเหนดวยหรอไมเหนดวยกบค าถามแตละขอโดยการท าเครองหมาย √ ลงใน□

1 = ไมเหนดวยอยางยง, 2 = ไมเหนดวย, 3 = เปนกลาง, 4 = เหนดวย, 5 = เหนดวยอยางยง

8.1 การรวมมอ 1 2 3 4 5

8.1.1 ฉนสามารถใหความรวมมอในการท างานเปนทม

8.1.2 ฉนสามารถรบฟงปญหาในการท างานเปนทมเพอแกไขปญหารวมกน

8.1.3 ฉนสามารถก าหนดเงอนไขเพอระดมความคด ในแผนกลยทธ และแผนการปฏบตของการท างาน

8.1.4 ฉนคดคนกระบวนการการท างานรวมกน เพอสรางความไววางใจตอกน

8.2 การสอสาร 1 2 3 4 5

8.2.1 ฉนรบฟงความคดเหนของพนกงานของฉนอยางใกลชด

8.2.2 ฉนสามารถน าเสนอขอมลทงการพดและการเขยนไดอยางชดเจน

8.2.3 ฉนสามารถสอสารความคดของฉนกบพนกงานไดอยางมประสทธภาพ

8.2.4 ฉนมการสอสารเกยวกบภาระหนาทและวตถประสงคในการท างานอยางตอเนองและชดเจน

8.2.5 ฉนสามารถสอสารกบลกคาไดอยางมประสทธภาพ

8.3 การปรบตวทางสงคม 1 2 3 4 5

8.3.1 ฉนสามารถปรบตวใหเขากบทกสถานการณในสงคมไดอยางงายดาย

8.3.2 ฉนสามารถปรบตวใหท างานอยรวมกบบคคลทมวฒภาวะแตกตางกน

8.3.3 ฉนสามารถสรางมนษยสมพนธกบบคคลอนในสงคมไดงาย

8.4 เครอขาย 1 2 3 4 5

8.4.1 ฉนมความสามารถในการพฒนาความสมพนธ ความรวมมอทง

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ภายในและภายนอกองคกร

8.4.2

ฉนมความสามารถในการสรางความสมพนธทางธรกจและแลกเปลยนขอมลธรกจรวมกน

8.4.3 ฉนมความสามารถทจะมงมนพฒนาคนในเครอขายธรกจของฉน

สวนท 4: ผลการด าเนนงานของธรกจ

9. กรณนาระบ (%) ผลการด าเนนงานของธรกจคณใหตรงกบความจรงมากทสดโดยเปรยบเทยบกบผล

การด าเนนงานปทผานมา.

9.1 การลดตนทน ตอปเทยบเทากบ _______ (%)

9.2 อตราการเตบโตของลกคาตอปเทยบ เทากบ ________ (%)

9.3 อตราการเตบโตของยอดขายตอปเทยบเทากบ ________ (%)

ขอบคณส าหรบความรวมมอของคณ

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BIOGRAPHY

Miss. Somphet Thongsennheuang was born on July 08, 1987 at Savannakhet province

of Laos. She received her Bachelor Degree of Business Administration majoring in General

Management from Ubon Ratchathani University, Thailand in 2010.

She had worked as a program coordinator for University of the Thai Chamber of

Commerce (International College) for 3months and had worked for Dao- Heuang Group

Company in Laos for 3months.