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The purposes of this research were to study the operational level in accordance with the McKinsey 7-s framework and total quality management of businesses in the Luangprabang-Indochina-Mawlamyine economic corridor, and to study structural equation of the McKinsey’s 7-s framework and total quality management to firm performance in the Luangprabang-Indochina-Mawlamyine economic corridor. The samples used in this study were 540 entrepreneurs in the Luangprabang-Indochina-Mawlamyine economic corridor. The tool for data collecting was questionnaires. The statistics used in this research were percentage, mean, standard deviation, pearson correlation coefficient and Structural Equation Modeling (SEM). The results showed that total quality management components have statistically significant positive impact on the firm performance of the Luangprabang-Indochina-Mawlamyine economic corridor (DE = 0.57). Followed by the McKinsey’s 7-s framework have statistically significant positive impact on the firm performance of the Luangprabang-Indochina-Mawlamyine economic corridor (DE = 0.29). In addition the McKinsey’s 7-s framework have statistically significant positive impact on the total quality management (DE = 0.80). The operation of business based McKinsey’s 7-s framework coupled with total quality management can be used as an important guideline for businesses to plan their business development to be competitive and achieve good operational results.
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