Factors influencing the development of competitive capabilities of border trade entrepreneurs

Abstract

This study investigates the factors influencing export competitiveness in border trade by focusing on Thai entrepreneurs engaged in trade with Cambodia. This study employs structural equation Modeling (SEM) to examine the relationships between consumer culture and lifestyle, foreign environmental factors, and export competitiveness. The data were collected from 200 establishments across various industries, primarily in the food, beverage, and tobacco sectors. The results indicate that the foreign environment factor significantly influences export competitiveness (β = 0.613, p < 0.001), while consumer culture and lifestyle play a crucial role in shaping foreign environment perceptions (β = 0.77, p < 0.001). However, consumer culture and lifestyle do not directly affect export competitiveness, highlighting that entrepreneurs prioritize market expansion without altering product offerings to accommodate local preferences. This study confirms that Thai products are well-received in Cambodia because of their established reputation and consumer trust. Additionally, border trade presents opportunities for Thai businesses to capitalize on infrastructure development and economic growth in neighboring countries. These findings support the theory of planned behavior by emphasizing the importance of market analysis, motivational factors, and operational preparedness in trade decision-making. From a practical standpoint, this study offers key policy recommendations, including entrepreneurial knowledge development, cross-border collaboration through special economic zones (SEZs), customs system enhancement, and the adoption of electronic platforms to streamline trade processes. These measures aim to improve trade efficiency and economic cooperation between Thailand and Cambodia.