The Causal Factors Of Innovation Management Capability Affecting The Organizational Performance Of The Agricultural Industry In Thailand

Abstract

The purposes of this research were 1) to study the influence of change management on diversity, the building potential of creative business alliances on the innovation management capability of the agricultural industry in Thailand; and 2) to study the approaches to innovation management capability affecting the organizational performance of the agricultural industry in Thailand. The research tool was a questionnaire to collect data from three-hundred and fifty-eight executives of the agricultural industry who are senior executives in the agricultural industry in Thailand with innovative agricultural industries and executives of diversified business sizes that vary by the number of employees: 50-100 people, 101-300 people, and more than 300 people. Data were analyzed with the Structural Equation Model (SEM) to develop a model as well as verify the consistency between the model with empirical data and study the influence among factors.

              The hypothesis-based research results showed that 1) the change management on diversity had a positive direct effect on innovation management capability; 2) the change management on diversity had a positive direct effect on the organizational performance through innovation management capability; 3) the building potential of creative business had a positive direct effect on innovation management capability; 4) the building potential of creative business alliances had a positive direct effect on organizational performance through innovation management capability, and 5) the innovation management capability had a positive direct effect on the organizational performance.  Confirmatory factor analysis revealed that the hypothetical model is consistent with the empirical data at a good grade or the model is highly accurate considering from the chi-square value was 65.01, it was statistically significant at 0.42 (p-value = 0.42), the relative co-square was 1.17. The Comparative Fit Index (CFI) was 1.00, the Goodness Fit Index (GFI) was 0.95, the Adjusted Goodness Fit Index (AGFI) was 0.92, and the Root Mean Square Error of Approximation (RMSEA) was 0.01. Benefits from this research can be able to explain the causal factors and outcome of innovation management capability for the organizational performance of the agricultural industry in Thailand. The results of the study can be used as a guideline for building innovation management capability that leads to better results for the organization.