The Impact of Innovation Capability of Firms on Competitive Advantage: An Empirical Study of the ICT Industry in Thailand

The goal of the study was to see how quality management (QMA), strategy (STR), and innovative capability (INC) influence the competitive advantage of a Thai information communication technology (ICT) firm (COA). The researchers collected 431 surveys from Thailand’s owners and managers employed in ICT enterprises from the beginning of June 2021 to the end of September 2021using diverse sample strategies. A questionnaire with an index of item-objective congruence (IOC) value of 0.60-1.00 and a reliability value of 0.92–0.96 was used as the research tool. Participants in the survey were requested to fill out a seven-level opinion survey posted on Google Forms. A latent variable structural equation model (SEM) path analysis using LISREL 9.1 was used for the four latent variables, 31 manifest variables, and the five hypotheses testing. The analysis showed that all three causal variables positively affected COA, which had a total effect (TE) R2 value = 80% when combined with the other latent variables. Moreover, the values for the latent variables when ranked by total effect (TE) were STR, QMA, and INC with TE values of 0.95, 0.89, and 0.25, respectively. Finally, there were very strong influences from COA to STR (0.95), INC to QMA (0.86), and STR to QMA (0.71).