A Planning-Centric Capability Model for SME Sustainability: Evidence from Food and Beverage Entrepreneurs in Northeastern Thailand

Small- and medium-sized enterprises (SMEs) in the food and beverage industry play an important role in advancing business sustainability in emerging economies. However, many resource-endowed SMEs remain unable to translate their potential into sustainable business outcomes. This study examines the factors influencing the business sustainability of food and beverage SMEs in Northeastern Thailand and explains how organizational capabilities are hierarchically structured to create sustainable competitive advantage. A mixed-methods design was employed. Qualitative in-depth interviews with entrepreneurship-incubation experts and entrepreneurs revealed that SME sustainability problems were closely associated with weak planning practices, limited market knowledge, informal financial systems, and insufficient product development capability. These insights informed the development of the research instrument. Quantitative data were then collected from 401 entrepreneurs in the three highest-GPP provinces: Nakhon Ratchasima, Khon Kaen, and Ubon Ratchathani. Structural equation modelling was used to test causal relationships among strategic planning, finance and accounting, leadership, business knowledge, product development, external factors, and business sustainability. The model demonstrated acceptable fit and explained 92% of the variance in business sustainability. Strategic planning emerged as the strongest direct driver, supported by business knowledge and product development as complementary capabilities. Finance, leadership, and external factors showed no significant direct effects. The study proposes a Planning-Centric Sustainability Model and contributes to Resource-Based View, Competency-Based View, and Dynamic Capabilities perspectives in emerging economies.