What determine the innovation performance of Sports SMEs in Thailand?

The study can add to the existing literature on SMEs, service innovation, and dynamic capabilities by the identified mechanism. The way in which service innovation can be improved in SMEs has been explained in this research. The managerial and theoretical guidelines have been offered to achieve the competitive advantages based on service. This has been achieved by showing the way in which ACAP (dynamic knowledge capability) can be encouraged through internal and external collaboration. The study has used the SEM-PLS to analyse the data. The final sample comprises of 100 firms and response rate is 14.5 percent. It has been shown by the findings that both innovation types are derived through the similar mechanisms of knowledge. The positive influence created on product innovation by ACAP has been confirmed by previous research. The performance of service innovation can be influenced positively through use of external knowledge via RACAP. Therefore, the performance of service innovation can be achieved by an SME in manufacturing sector when it possesses the ability to use the relevant knowledge gained from external sources. Moreover, it must have the capability of assimilating and utilizing the acquired knowledge. It has been suggested by this research that employee collaboration should be ensured by SMEs in the process of service innovation. However, future studies can analyse the way in which the adoption of this mind set can be established by the manufacturing SMEs.