Influence of Entrepreneurial Orientation and Total Quality Management on Organizational Performance of Pharmaceutical SMEs in Thailand with moderating role of Organizational Learning

Abstract

Krisada Chienwattanasook, Kittisak Jermsittiparsert

Performance is a serious concern for manufacturing SMEs, especially for pharmaceutical SMEs in Thailand. Specifically, pharmaceutical SMEs face challenges regarding the enhancing performance by application of total quality management and entrepreneurial orientation. This study envisioned to assess the entrepreneurial orientation and total quality management on organizational performance of pharmaceutical organizations in Thailand. This study also aimed to test the moderating role of organizational learning.To study the proposed association of variables, the data was gathered from the owners and managers of Thai pharmaceutical small and medium firms. This study concluded that entrepreneurial orientation and total quality management are the factors that significantly enhance the performance of pharmaceutical organizations in Thailand. Findings of the study demonstrate that organizational learning significantly moderate the relationship of TQM with performance of pharmaceutical organizations but it does not moderate the link of entrepreneurial orientation. The theoretical contribution of the present study lies in its use of organizational learning as a moderator of the relationships of entrepreneurial orientation, total quality management, and pharmaceutical SMEs’ performance..From the practical perspective, the key contribution of this study is that pharmaceutical SMEs in Thailand may clearly appreciate the benefits of devoting greater attention to the implementation of entrepreneurial orientation, total quality management, and organisational learning to attain a sustained competitive advantage