STRUCTURAL MODEL OF DIGITAL INNOVATION CAPABILITY INFLUENCING BUSINESS SUSTAINABILITY OF SMES IN THE UPPER CENTRAL REGION OF THAILAND
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Abstract
The transformation of digital technologies has significantly reshaped the nature of business competition, particularly for small and medium-sized enterprises (SMEs), which are required to adapt to the digital economy. However, the mere adoption of digital technologies may not be sufficient if organizations lack strategic capabilities and innovation capacity. This study aims to achieve four objectives: 1) to examine the effects of digital entrepreneurial orientation and dynamic capabilities on digital innovation capability; 2) to investigate the influence of digital innovation capability on digital business model innovation and digital customer engagement; 3) to explore the impact of digital business model innovation and digital customer engagement on business success; and 4) to develop a structural model of these relationships in the context of the Upper Central region of Thailand, which consists of both agro-industrial and regional industrial sectors with diverse economic structures and digital readiness. This study adopts a conceptual research approach by synthesizing relevant literature, theories, and prior studies to develop a structural model and research propositions for future empirical testing. The findings indicate that digital entrepreneurial orientation and dynamic capabilities serve as upstream drivers that significantly contribute to the development of digital innovation capability. This capability functions as a key mechanism in driving digital business model innovation and digital customer engagement, ultimately leading to business success. The proposed model systematically explains the relationships among variables, demonstrates theoretical consistency, and provides a robust foundation for future empirical validation.
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