The Effect of Internal and External Resources on Innovative Capabilities in Thai Firms

Abstract

Innovation is an important organisational feature that helps firms to cope with the pressures of various business environments as well as to increase their performance. However, previous studies have paid limited attention to investigating the effect of internal and external resources on innovation in Thai firms. Therefore, this study aimed to determine the factors of technological resources, commercial resources and industry competitiveness that affect the innovative capabilities of 1043 Thai firms. This paper analysed R&D intensity (referred to as a technological resource), export intensity (referred to as a commercial resource) and number of competitors (referred to as industry competitiveness). The empirical analysis of this study showed that the levels of export intensity and R&D intensity are positively and significantly related to firms’ innovative capabilities. Conversely, the number of competitors is not significantly related to firm innovative capabilities. The findings in this study will increase understanding of the necessary resources for Thai firms to increase innovative capabilities, which are export intensity and R&D intensity.

Keywords: Innovative Capabilities, Export Intensity, R&D Intensity, Technological Intensity and Thai firms.