R&D Spending, Competitive Advantage, and Firm Performance in Thailand
Investment in research and development (R&D) plays a pivotal role in enhancing Thai firms’ competitiveness and overall performance. Evidence from 151 private companies indicates that R&D spending does not directly influence firm performance but exerts a significant positive effect when mediated by competitive advantage. Firms that channel R&D investments toward developing unique products, improving production efficiency, and responding swiftly to market needs tend to strengthen their strategic positioning and achieve higher performance outcomes as measured by the Balanced Scorecard framework. Grounded in the resource-based theory, the findings underscore that valuable, rare, and inimitable resources derived from R&D activities foster sustained competitive advantages, which in turn drive firm success. These insights highlight the need for Thai companies to align R&D objectives with competitive strategies and for policymakers to reinforce R&D support mechanisms to enhance national and corporate competitiveness.