The Role of Digital Technology Adoption on Competitive Advantage and Firm Performance: Evidence from Fruit and Vegetable Processing SMEs in Thailand
DOI:
https://doi.org/10.69650/jcdrhs.2025.748Keywords:
Entrepreneurial Orientation, Digital Intellectual Dynamics, Competitive Advantage, Firm Performance, SMEsAbstract
The objective of this study was to investigate the relationships between Entrepreneurial Orientation (EO) and Digital Intellectual Dynamics (DID) and their effects on Competitive Advantage (CA) and Firm Performance (FP) under the context of fruit and vegetables processing small and medium enterprises (SMEs) in Thailand. Specifically, this research seeks to answer four key questions: 1) How does an entrepreneurial mindset influence CA and FP?, 2) What role does digital technology play in enhancing CA and FP?, 3) How do the development and sustainability of CA contribute to long-term business success?, 4) What are the key factors influencing the FP of SMEs? A qualitative approach, utilizing semi-structured in-depth interviews, was employed with 10 participants, including one business owner, eight managers, and one department head. Stratified random samples ensured a representative sample from three industrial groups per the Standard Industrial Classification: 1) C103 - fruit and vegetable processing (four cases), 2) C104 - vegetable oil production (one case), and 3) C106 - grain and root plant-based manufacturing (five cases). Firms met inclusion criteria for business characteristics and digital technology adoption in Digital Human Dynamics (DHUM), Digital Social Dynamics (DSOC), and Digital Structure Dynamics (DSTR). Interviews were transcribed verbatim, analyzed via content analysis, and supported by NVIVO Software. Triangulation ensured validity. Ethical approval was obtained from Naresuan University (COA No. 083/2023).
The findings indicated that EO enhances DID, allowing entrepreneurs to better integrate digital technologies into operations, thereby improving supply chain management and market responsiveness. Both EO and DID contribute to strengthening CA, with digital solutions improving efficiency and stakeholder relationships. CA positively affected FP, as businesses that adopted digital tools and embraced adaptability were more successful in meeting customer needs and maintaining high product standards. Furthermore, EO and DID indirectly enhanced FP through CA, with key factors such as innovation, strategic alliances, and digital talent development playing a crucial role. Entrepreneurs should focus on proactiveness, leveraging digital tools and government policies for sustainable growth, while managing risks, encouraging innovation, and collaborating with competitors. In addition, promoting a culture of digital expertise, enhancing communication, and facilitating product sharing can strengthen competitiveness and improve overall performance.
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