Sustainable economic development through strategic planning, environmental sustainability, innovation, and learning in community enterprises: evidence from Ranong Province, Thailand

Advantages in the marketplace and performance

Competitive advantages refer to a company’s unique advantages over its competitors. It is a crucial aspect in deciding a business’s success or failure. It has been discovered that competitive advantages have a positive effect on the success of businesses. For instance, Vichitdhanabadee (2010) discovered that competitive advantages significantly impacted the financial success of businesses. Similarly, competitive advantages can enhance the effectiveness of community-based organizations. According to Soedarmanto and Kartika Cahya (2018), the financial performance of community enterprises with competitive advantages is superior. Hence, community firms in the province of Ranong can enhance their performance by cultivating competitive advantages.

Strategic Orientation, GSCM Processes, Innovation Capacity, Learning Organization, Competitive Advantages, and Performance

Several research have investigated the connections between strategic orientation, GSCM practices, innovation capabilities, learning organization, competitive advantages, and performance. For instance, Marnarath and Ranong (2022) discovered that a strategic orientation toward sustainability substantially impacted GSCM procedures, which in turn positively impacted innovation capabilities and performance. Similarly, Phuthong, Anuntavoranich, Chandrachai, and Piromsopa (2022) discovered that GSCM procedures positively impacted innovation capabilities, which in turn positively impacted financial performance.

In addition, Horadal (2016) discovered that a learning organization favorably impacted innovation capability, which in turn positively impacted competitive advantages and financial performance. Similarly, Egbunike and Obi (2018) discovered that a learning organization influences competitive advantages and financial performance positively. The relationship between strategic orientation, GSCM processes, innovation capabilities, learning organization, competitive advantages, and performance is complex. Community enterprises in the province of Ranong can enhance their performance by adopting a strategic orientation toward sustainability, using GSCM principles, increasing innovation capability, becoming learning organizations, and establishing competitive advantages.

The 20-year National Strategy Framework (2017-2036) consists of six strategies. The workers and development of small and medium-sized enterprises (SMEs) help develop community enterprises and farmers’ institutions internationally. Community enterprises are small businesses essential for the economy’s development. In addition to increasing productivity by using science, research technology, and innovation in all manufacturing and services sectors, the existing and new revenue bases (Burana-at, 2021; Agic, E., Cinjarevic, M., Kurtovic, E., & Cicic, M. 2016). At the same time, it lays a solid foundation to support competitiveness enhancement in both stability and macroeconomic performance. For the development of areas, particular economic areas, geopolitics, and cities, it is possible for Thailand to use the strengths of each area and community to support the overall economic development as well as to support the distribution of wealth to different regions in the country, reducing inequality in all dimensions and strengthening the economy and society at the local level in a sustainable way. Brändle, L., Golla, S., & Kuckertz, A. (2019) said that developing a foundational economy to build a local community economy, be self-reliant, and help each other. It is a virtuous and economic system that facilitates the development of other aspects in the following area. Thailand’s economic development during the 13^th development plan accelerates the restructuring of the manufacturing sector economy to transform into economic mobility. By innovating and towards sustainable development. Focus on creating value for qualitative products and services. It also emphasizes distributing benefits to relevant sectors within the country thoroughly and concretely. It conveys the idea of transforming the country into policies and plans at various levels that support upgrading the manufacturing sector to the industries and services of the future. Both to revive the economic conditions from the COVID-19 pandemic and to drive the development of manufacturing fields that will drive Thailand’s economic growth in the next phase.

Community enterprises the department of agriculture defines as “small entrepreneurship to creatively manage community capital for self-reliance and adequacy of families and communities (Schumaker and Lomax, 1996). A community enterprise is a business started and run by a group of people who share a common way of life. The purpose of a community enterprise is to generate income and help the families involved to become self-reliant community and inter-community” (Venkatachalam, S., Marshall, A., Ojiako, U., & Chanshi, C. S., 2019). Following the criteria announced by the Board of Promotion of Community Enterprises, the nature of community enterprises has been defined from the definition. In summary, the following are essential characteristics: 1) The community owns the business. However, outsiders may participate, with shareholdings for participation, cooperation, and assistance, but small shares give them the power to make decisions. 2) The produce comes from community processes, which may bring in some raw materials from outside but focus on making the most of local resources. 3) Creative initiatives are innovative for the community to develop the potential of the community, which has knowledge and wisdom. Suppose there is a proper learning process. Born with confidence in yourself, takes the initiative. 4) Innovate without imitating or seeking a recipe for success. There is a local wisdom base combined with universal wisdom, a local wisdom base, and a critical capital base blended with knowledge of universal wisdom or from somewhere else. 5) An integrated operation systematically links various activities, similar to a single crop, not as a single project. However, as agroforestry, i.e., there are many activities, synergy, and support. 6) There is a learning process at its core. Learning is at the heart of the development process. Without learning, there will be only imitation. Without learning, there would be no community enterprises based on knowledge but on a sense-based basis. The demands that the media in society encourage make cravings necessary for life. 7) Self-reliance as a goal Self-sufficiency is community enterprises’ first and foremost goal. If you miss this goal, you miss your target. Community enterprises will become businesses that aim for a profit before they are thought of as surviving. It’s important to develop a step by step process to achieve stability before moving on to business development (Borazon, Huang, & Liu, 2021).

Setting up a community enterprise to accomplish our goals is a great way to bring people together and work toward a common objective. It is necessary to understand the new theory’s three steps. Those members of community enterprises look primarily at income because community enterprises are not solely focused on profit creation Fornell and Larcker (1981). It does not aim for profit as much as possible but fulfills coexistence. Good health has a good quality of life for people in the community. The production of goods by community enterprises is based on an extension of local wisdom. Local ingredients are available. This important aspect has been an essential factor in the sustainability of community enterprises. Many communities will receive government support to establish career promotion groups to increase income and develop them into community enterprises. The entry of various government agencies promotes careers for that community. There needs to be more understanding of local wisdom, and many communities need to have local wisdom to support it. The problem that follows is that the community produces the goods as they are promoted and asks to be registered as a community enterprise for grants, but the goods produced are not due to their wisdom. Make it the same product—inability to compete in markets characterized by industrial products. As a result, community enterprises needed more sustainability and eventually fell away. The nature of local wisdom is often accompanied by folk sages who are knowledgeable in wisdom or, it can be said, own that wisdom. Developing the potential of the sage locals is, therefore, necessary to raise the level of knowledge to a standard. Build knowledge leadership in the community so that the professional integration of the community can be developed into a sustainable community enterprise.

Therefore, this research aims to study strategic orientation, green supply chain management, innovation capability, learning organization, and competitive advantages affecting the performance of community enterprises in Ranong province, Thailand, in transition to driving the economy through innovation and towards sustainable development. Identifying the value of local wisdom is transformative to keeping pace with change and generating sustainable income for the community.

Hypothesis 1: There is a significant relationship between Strategic Orientation and Competitive Advantages. H2: There is a significant relationship between Strategic Orientation and Community Enterprises Performance. H3: There is a significant relationship between Green Supply Chain Management and Competitive Advantages. H4: There is a significant relationship between Green Supply Chain Management and Community Enterprises Performance. H5: There is a significant relationship between Innovation Capability and Competitive Advantages. H6: There is a significant relationship between Innovation Capability and Learning Organization. H7: There is a significant relationship between Innovation Capability and Community Enterprises Performance. H8: There is a significant relationship between Learning Organization and Competitive Advantages. H9: There is a significant relationship between Learning Organization and Community Enterprises Performance. H10: There is a significant relationship between Competitive Advantages and Community Enterprises Performance.

H1: There is a significant relationship between Strategic Orientation and Competitive Advantages.

Strategic orientation is a critical component that determines a company’s competitive advantage. A strategic orientation toward sustainability, according to Poapongsakorn (2011), can assist organizations in creating a competitive edge. Firms that prioritize sustainability can distinguish themselves from their competition by implementing sustainable practices that fulfill the needs of their consumers and stakeholders. Furthermore, a strategic focus on sustainability can boost the firm’s reputation, leading to enhanced customer loyalty and improved stakeholder relationships.

H2: There is a significant relationship between Strategic Orientation and Community Enterprises Performance.

According to research, a strategic focus on sustainability can improve the success of community enterprises. Community enterprises with a strategic orientation toward sustainability perform better financially and socially, according to Calgaro, Pongponrat, and Naruchaikusol (2009) and Taghipour, Akkalatham, Eaknarajindawat, and Stefanakis (2022). Moreover, a strategic emphasis on sustainability can assist community firms differentiate themselves from rivals, resulting in increased consumer loyalty and strengthened stakeholder relationships.

H3: There is a significant relationship between Green Supply Chain Management and Competitive Advantages.

Green supply chain management (GSCM) methods can give organizations a competitive advantage. GSCM practices are favorably connected with corporate financial success, according to Poontai (2019) and the Climate Bonds Initiative (2022). GSCM techniques can assist organizations in gaining a competitive edge by increasing environmental performance, lowering expenses, and boosting their reputation. Furthermore, applying GSCM processes can help organizations comply with environmental standards while also lowering their exposure to environmental risks.

H4: There is a significant relationship between Green Supply Chain Management and Community Enterprises Performance.

GSCM practices can also improve the performance of community enterprises. GSCM techniques, according to Wiraphanphong (2020), have a beneficial impact on the financial performance of community companies. Adopting GSCM techniques can assist community enterprises in lowering costs, improving environmental performance, and improving their reputation. Furthermore, employing GSCM techniques can help community enterprises comply with environmental rules and mitigate environmental concerns.

H5: There is a significant relationship between Innovation Capability and Competitive Advantages.

The ability to innovate is a vital component that determines a company’s competitive edge. According to Hoa (2019), corporate financial performance is favorably related to innovation capability. Businesses can gain a competitive advantage through producing new and improved products, processes, and services. Furthermore, the capacity to innovate can help firms stay ahead of their competition by adjusting to market developments and fulfilling the changing needs of their clients.

H6: There is a significant relationship between Innovation Capability and Learning Organization.

Innovation capabilities can also positively influence the performance of community enterprises. Developing innovation capability can help community enterprises develop new and better products, processes, and services that meet the needs of their customers. Moreover, innovation capability can help community enterprises stay ahead of their competitors by adapting to changes in the market and meeting the changing needs of their customers (Chansuchai, 2019).

H7: There is a significant relationship between Innovation Capability and Community Enterprises Performance.

Innovation capability and being a learning organization are interrelated concepts. Innovation capability is essential for community enterprises to develop new and better ways of doing things. Being a learning organization facilitates continuous learning and improvement, which is essential for community enterprises to adapt to changes in the market and meet the changing needs of their customers (Chotsuwan, 2017).

H8: There is a significant relationship between Learning Organization and Competitive Advantages.

A learning organization can provide a competitive advantage to businesses. Being a learning organization can help businesses develop new and innovative solutions to problems, adapt to changes in the market, and continuously improve their operations. Moreover, a learning organization can facilitate the development of new skills and knowledge, leading to improved productivity and employee satisfaction (Hair et al., 2010).

H9: There is a significant relationship between Learning Organization and Community Enterprises Performance.

Innovation capability is an essential factor that influences the performance of community enterprises. Developing innovation capability can help community enterprises develop new and better products, processes, and services that meet the needs of their customers. Moreover, innovation capability can help community enterprises stay ahead of their competitors by adapting to changes in the market and meeting the changing needs of their customers (Chotsuwan, 2017).

H10: There is a significant relationship between Competitive Advantages and Community Enterprises Performance.

Competitive advantage is a critical factor that influences the performance of community enterprises. Developing competitive advantages can help community enterprises differentiate themselves from their competitors, leading to increased customer loyalty and improved stakeholder relationships. Moreover, competitive advantages can enable community enterprises to reduce costs and improve their operations, leading to improved financial performance (Climate Bonds Initiative, 2022).

This literature review examined the relationship between strategic orientation, GSCM practices, innovation capability, learning organization, competitive advantages, and performance of community enterprises in Ranong Province, Thailand. The review found that a strategic orientation towards sustainability, GSCM practices, innovation capability, being a learning organization, and developing competitive advantages can improve the performance of community enterprises. Moreover, the literature review identified the interrelationship between these factors and the critical role they play in enhancing the competitiveness and sustainability of community enterprises.

Community enterprises in Ranong Province can improve their performance by integrating environmental considerations into their supply chain process, developing new and better ways of doing things, facilitating continuous learning and improvement, and developing unique advantages that set them apart from their competitors. Furthermore, community enterprises need to adopt a holistic and integrated approach to sustainability to create long-term value for their stakeholders.

However, it is essential to note that the literature review is limited to the context of community enterprises in Ranong Province, Thailand. Therefore, caution should be taken when generalizing the findings to other regions or types of enterprises. Further research is needed to confirm the relationships found in this literature review and to explore other factors that may influence the performance of community enterprises.

Ethical considerations

This research has been approved by the Suan Sunandha Rajabhat University and the approval number for the project is COE. 2-474/2022. A detailed explanation of the project was provided to the participants willing to participate in the study, and written consent was obtained from them. The researcher told them that all their information would remain anonymous and would not be used for other purposes.

Study population

The study participants were community enterprise operators with businesses located in Ranong province, Thailand. The researchers collected data using a recruitment process that involved accessing the list of registered community enterprise operators from the Division of Community Enterprise Promotion. The researchers collaborated with local authorities, community organizations, and relevant stakeholders to facilitate the participant recruitment process. To be eligible, participants had to be officially registered with the Division of Community Enterprise Promotion within the Department of Agriculture Promotion. From the larger group of community enterprise participants, the researchers selected a subsample of 460 community enterprise operators for a more in-depth examination, using systematic sampling to ensure that the chosen subset is representative of the broader population of community enterprise operators in Ranong Province.

The researchers concentrated on analyzing samples of community enterprise operators in the province of Ranong. To assess the Structural Equation Model, the sample size was estimated using multivariate techniques (SEM). The sample size was found to be 20 times the observed variables used to determine samples in the algorithm, or a 1:20 ratio. The minimal sample size necessary to examine the data using the SEM technical equipment was determined to be 460 community enterprise operators in Ranong province.

Data collection

Participants

A total of 460 participants completed the questionnaires and were interviewed to enrich the dataset.

Questionnaire

The researchers collected data using a combination of qualitative and quantitative research techniques. They created a questionnaire by examining several ideas, theories, and studies pertaining to supply chain management, innovative capabilities, competitive advantage, and performance of community firms.

The questionnaire was created by the following procedures:

The process of developing the questionnaire for this study was thoroughly planned. The researchers took a meticulous journey encompassing various steps to ensure the reliability and relevance of the questions (Pranee et al., 2023). We conducted an extensive exploration of relevant concepts, theories, and past studies, distilling each query into a practical definition that served as the foundation for questions included in the questionnaire. Each question was then evaluated and revised to ensure that they were clear, relevant, and unbiased. To enrich the dataset, researchers conducted in-depth interviews to provide a more comprehensive exploration of the research topic. By integrating questionnaire data and insights gleaned from in-depth interviews, we were able to provide a holistic perspective that captured both the quantitative and qualitative dimensions of the research inquiry.

The researchers conducted quality checks on the questionnaires by consulting an expert to determine their content validity.

The questionnaire details are as follows: The questionnaires were administered at various locations, including community enterprise offices and online platforms. Participants were instructed to finish tasks within 30 minutes to ensure constancy in response times. To encourage open and reflective answers free from external influence or coercion, the environment was carefully selected.

The reliability and construct validity of the questionnaires were verified by analyzing affirmative elements. Confirmatory factor analysis revealed that the focus of the research was on green supply chain management strategies, innovation capabilities, learning organization, competitive advantage, and operational effectiveness. The tables present various fit indices for the Default Model. Key findings include a CMIN/DF of 49.770, indicating a poor fit, while the NFI and CFI values of .976 suggest a good fit. Parsimony may be an issue, with PNFI and PCFI values of .130. The RMSEA value of.326 points to a poor fit. The Default Model’s AIC is 149.540, higher than the Saturated Model’s 54.000, and the ECVI is .326, also higher than the Saturated Model’s.118. Hoelter Index values are 28 (.05 significance) and 43 (.01 significance), suggesting limited sample size adequacy. Overall, the model presents a mix of good and poor fit indices, with parsimony being a potential issue.

Interviews

Our approach to gathering information and insights into our series of community enterprise descriptions involves structured interviews with active participants in various community enterprises (Supattra et al., 2023). We carefully designed interview questions to capture the key aspects of each participant’s involvement and experience. These interviews were semi-structured, allowing for flexibility while ensuring consistency in the collected information. We reached out to participants through various communication channels based on their preferences and provided an overview of the purpose of the interviews and the topics that will be covered. Consent to participate was obtained from everyone before proceeding with the interviews. The participants shared their experiences, motivations, and roles within their respective community enterprises during the interviews. We gathered detailed information on the duration of their active participation, specific responsibilities held, and the impact of their contributions. We also gathered insights into their community enterprises’ strategic orientation, including clear visions or long-term plans. Our inquiries into sustainability practices prompted participants to elaborate on how their community enterprises incorporate sustainability into their strategic orientations. We solicit specific examples to illustrate how these practices have given enterprises a competitive advantage and have contributed to their overall success. We also included questions on implementing green supply chain management practices, asking participants to share concrete examples of how these practices have benefited their operations. We assessed innovation capability by asking participants to share examples of innovative initiatives or projects within their community enterprises. The data collected from the interviews were carefully analyzed, and common themes, patterns, and insights were identified. These findings were used to evaluate participants’ experience and their community enterprises’ strategic orientation, sustainability practices, innovation capability, and overall impact. Ethical considerations were upheld throughout the data collection and analysis process, and participants’ privacy and consent were respected.

From the questionnaire survey, a subset of 460 community enterprise operators were chosen for the interview process. A specified number of participants were involved in both the questionnaires and interviews. Quantitative and qualitative data collection are what dual engagement provided, resulting in a more robust approach. The interviews were conducted for approximately [30-45 minutes] to fully explore the comments of each participant. A specific environment was used to create a private and peaceful atmosphere for the participants to interact. Only the researcher(s) and the participant were present during the interviews to ensure a focused and secure conversation, which allowed the participants to speak openly. A guided yet flexible discussion was facilitated by the semi-structured interview format, enabling participants to offer intricate insights.

Data analysis

The study utilized both model fit indices and descriptive statistics to assess the fit of the research model to the data and provide insights into the participants’ perceptions (Figures 1 and 2). The key model fit indices, summarized in Table 1, offer information on the goodness-of-fit and predictive accuracy. In contrast, Table 2 presents the analysis results of variables related to the level of strategic focus on different factors. The descriptive statistics offer an overview of the participant’s responses to each variable, providing insights into their perceptions and viewpoints on strategic orientation, practices, and outcomes in the context of community enterprises.

Figure 1. Research conceptual framework.

Figure 2. Standardized structural equation model Influencing the Operational Effectiveness of Community Enterprises.

Model fit index analysis

The model fit indices provide information on how well the research model fits the data and the predictive accuracy of the model. These indices help evaluate the goodness-of-fit of the proposed model. Structural equation modeling software was used to conduct the model fit analysis is structural equation modeling (SEM). The model fit indices in Table 1 included CMIN/DF, NFI, CFI, PNFI, PCFI, RMSEA, AIC, ECVI, and Hoelter. These indices collectively assess model fit, complexity, and predictive accuracy.

Descriptive statistics analysis

Descriptive statistics were used to summarize and analyze the characteristics of the variables under investigation. The statistics included the mean and standard deviation, providing insights into the central tendency and variability of the data. Data was analyzed using IBM SPSS Statistics, version 27 (IBM Corp., Armonk, NY, USA).

Future research

Future research could expand on the findings of this study by employing a longitudinal study design, using a larger sample size, including a more diverse range of geographic locations, examining the role of social capital and networks, and analyzing the impact of government policies and interventions. Such research would provide a more thorough understanding of the elements that contribute to the sustainable growth of community enterprises and guide future policy interventions targeted at encouraging sustainable economic development in the region.