HUMAN CAPITAL AND BUSINESS NETWORKS DRIVING TOURISM INDUSTRY SUCCESS: THE MEDIATING ROLE OF ORGANIZATIONAL INNOVATION IN THE UPPER CENTRAL REGION OF THAILAND

Abstract

This study examines the roles of human capital, business networks, and organizational innovation in driving tourism industry success and sustainable development in the Upper Central Region of Thailand. It further investigates the complex relationships among these variables and their influence on the performance and sustainability of tourism enterprises. A mixed-methods research design was employed: quantitative data were gathered from 400 tourism SMEs via structured questionnaires, while qualitative insights were obtained through in-depth interviews with 15 key informants, including entrepreneurs and industry stakeholders. Data analysis involved descriptive statistics and Structural Equation Modeling (SEM) for quantitative measures, complemented by qualitative content analysis to interpret contextual mechanisms and challenges.

The findings indicate that human capital, business networks, and organizational innovation currently stand at a moderate level, reflecting gaps in digital proficiency, knowledge sharing, and external collaboration. All three factors significantly impact industry success, with organizational innovation identified as the strongest predictor ($\beta = 0.378, p < 0.001$), followed by human capital ($\beta = 0.315, p < 0.001$) and business networks ($\beta = 0.298, p < 0.001$). Furthermore, organizational innovation serves as a vital mediator, transforming internal capabilities and external partnerships into enhanced performance and long-term sustainability. Qualitative evidence underscores the necessity of adaptive leadership, digital adoption, and collaborative networks for organizational resilience and post-crisis recovery. Consequently, the study recommends enhancing digital literacy, fostering stakeholder synergy, and implementing innovation-driven policies to fortify the resilience and sustainability of tourism SMEs.