This document examines the relationship between administrative innovation, technical innovation, and competitive advantage in electronics businesses in Thailand. It defines the key variables and presents results from previous research. Table 1 defines administrative innovation as new management systems and processes, and technical innovation as new products, services, or production methods. Table 2 shows the measures and validation of survey responses, including factor loadings and reliability coefficients. Table 3 reports that previous research found administrative and technical innovation have a significant positive relationship with competitive advantage.

1. Khorntawatt
Sakhonkaruhatdej
Ph.D.
Business
Administration
Administrative
Innovation,
Technical
Innovation,
Competitive
Advantage,
Competitive
Environment,
and
Firm
Performance
of
Electronics
Business
in
Thailand
(Review
of
Business
Research,
volume
12
Nov.
1,
2012)
Table
1
Definition
and
Examples
Dependent
Variable
Definition
Examples
Sources
D. V. 1
Business
Competitive
Advantage
- Advantage over competitors gained by
offering consumers greater value, either
by means of lower prices or by providing
greater benefits and service that justifies
higher prices.
- competitive advantage is the
antecedent of increasing firm
performance
- It is concerned with the interplay between
the types of competitive advantage, i.e.,
cost and differentiation, and the scope of
the firm’s activities.(Broadly or narrow)
- Low cost competition and product
differentiation become valuable strategies
for helping firms compete in the market.
Ussahawanitchakit (2012)
I.V. 1
Administrative
- - The main component of organizational
innovation and it refers to a new
- New management system, administrative
process, and staff development program.
Ussahawanitchakit (2012)

2. Innovation management system, administrative
process, and staff development program.
- - It occurs in an administrative
component and affects a social system of
an organization via organizational
members and their relationships,
including rules, roles, procedures, and
structures related to the communication
and exchange between organizational
members.
I.V. 2
Technical
innovation
- Defined as an adoption of new ideas
pertaining to new products or
services, and an introduction of new
elements in an organization’s
production process or service
operations. It occurs in the operating
component and affects the technical
system of an organization through the
equipment and methods of operations
used to transform raw materials or
- New ideas pertaining to new products or
services, and an introduction of new
elements in production process or service
operations.
Ussahawanitchakit (2012)

3. information into products or services.
- It changes and applies new
procedures and processes that
initiate new products or services
within the organization in the volatile
markets and environments that
influence the speed and flexibility of
production and the quality of
production.

4.
Table
2
Measurement
and
Results
Dependent
Variable
Measurement
(Methodology)
Results Sources
D.V. 1
Business
Competitive
Advantage
- Measure Validation:
Confirmatory Factor
Analysis, a value that higher
than 0.40, was adopted.
- Reliability of the
measurements was
evaluated by Cronbach
alpha coefficients, > than
0.70.
- Factor Loadings : .85 - .91
- Cronbach alpha : 0.82
Ussahawanitchakit (2012)
I.V. 1
Administrative
Innovation
- Measure Validation:
Confirmatory Factor
Analysis, a value that higher
- Factor Loadings : .83 - .89
- Cronbach alpha : 0.82
Ussahawanitchakit (2012)

5.
than 0.40, was adopted.
- Reliability of the
measurements was
evaluated by Cronbach
alpha coefficients, > than
0.70.
I.V. 2
Technical
innovation
- Measure Validation:
Confirmatory Factor
Analysis, a value that higher
than 0.40, was adopted.
- Reliability of the
measurements was
evaluated by Cronbach
alpha coefficients, > than
0.70.
- Factor Loadings : .91 - .95
- Cronbach alpha : 0.84

6.
Table
3
Relationship
between
D.V.
and
I.V.
D.V. 1
Competitive advantage
Sources
I.V. 1
Administrative
Innovation
(Ordinary
least squares
regression
analysis)
Administrative Innovation has a
significant positive relationship with
competitive advantage. (b1 = 0.46,
p < 0.01; b6 = 0.50, p , 0.01)
Ussahawanitchakit (2012)
I.V. 2
Technical
innovation
Technical innovation has an
important positive association with
competitive advantage (b2 = 0.41, p
< 0.01; b7 = 0.54, p < 0.01),
Ussahawanitchakit (2012)

7. technical innovation becomes a
critical driver of determining
competitive advantage.