The research study was carried out to investigate the actual business performance model in herbal medicine business in Thailand. The conceptual framework was developed from resource-based theory of herbal medicine community enterprise, and other contemporaneous research in herbal medicine business performance. Accordingly, the study considered the importance of the factors of marketing channel, competitive advantage, logistics integration and innovative management. In this direction, the study employed a quantitative research approach. Questionnaire was used for data collection. Data were collected from 340 entrepreneurs of herbal community enterprise. Finally, data were analyzed using structural equation modeling (SEM) to examine the actual herbal business performance of the organizations studied through all operational links in the marketing channel, competitive advantage, logistics integration and innovative management. Results of the study found that marketing channels had a positive effect on herbal business performance. Competitive advantage also had a positive effect on herbal business performance. Furthermore, logistics performance had a positive effect on herbal business performance. Finally, similar results were found in case of innovative management which shows the positive effect on herbal business performance.