LEAN MANAGEMENT FACTORS AND COMPETENCY OF SMES AFFECTING BUSINESS EFFICIENCE IN THE NORTHEASTERN OF THAILAND

Abstract

This research aimed to study the relationship between Entrepreneur Competency, Lean Management, Lean Practice and Business Efficiency of medium and small enterprises SMEs and to create performance forecasting equations of SMEs. The population of this study was 119 Entrepreneurs of SMEs in the Northeast of Thailand: Udon Thani, Nong Khai, Nong Bua Lam Phu and Bueng Kan. The statistics used to analyze the data were frequency, percentage, mean, standard deviation and the stepwise multiple regression. The results showed that: 1) The Entrepreneur Competency, Lean Management, Lean Practices and Business Performance were positive related to the performance of SMEs at the statistical significant level of 0.01 and 2) Creating the forecasting equation by using the performance of SMEs as the criterion variable: the forecasting equations with the regression coefficient in raw scores and standard scores were Entrepreneur Competency and Lean Management. These factors were the entrepreneurial factors affected the performance of SMEs which could be predicted the Business Efficiency of SMEs at 47.60 percent with statistical significance at the .01 level that can be used to create forecast equations as follows Forecasting equation in raw scores as the following: Y= 1.11 + 0.41(X₁) + 0.34(X₂) Forecasting equation in standard scores as the following: Z= 0.41(X₁) + 0.36(X₂)