Modelling Association between Production Practices and Business Performance of Northern Thailand OTOP Using Ordinal Logistic Regression

Wiwat Singsai; Sarayut Malaipun; Pongsakorn Surin; Wichai Chattinnawat

doi:10.56225/ijgoia.v1i3.67

Authors

Wiwat Singsai Department of Industrial Engineering, Faculty of Engineering, Rajamangala University of Technology Lanna Chiangmai, Thailand
Sarayut Malaipun Department of Industrial Engineering, Faculty of Engineering, Rajamangala University of Technology Lanna Chiangmai, Thailand
Pongsakorn Surin Department of Industrial Engineering, Faculty of Engineering, Rajamangala University of Technology Lanna Chiangmai, Thailand
Wichai Chattinnawat Department of Industrial Engineering, Faculty of Engineering, Chiang Mai University, Thailand

DOI:

https://doi.org/10.56225/ijgoia.v1i3.67

Keywords:

One Tambon One Product (OTOP), correspondence analysis, supply chain, business performance

Abstract

This study presents the model representing the association of the operational management practices of the OTOP producer to the business performance and revenue growth. This study used ordinal logistic regression to analyse the collected business performance data of 101 OTOP producers located in three northern provinces of Thailand. The production and operation management practices and their levels of adoption on the Production and Stock Management, Technology and Innovation adoption, Cost and Data and IT management assessed during the site visits were statistically modelled and tested for association with business performance. The ordinal logistic regression with nominal explanatory variables was used to identify the association between the OTOP business performance measured with the revenue growth and those production and operation practices. This analysis considers the different contexts of the different OTOP product groups. The association model was demonstrated in terms of the odd ratios and event probability of gaining higher revenue growth.

References

Aaby, N., & Slater, S. F. (1989). Management influences on export performance: a review of the empirical literature 1978‐1988. International Marketing Review, 6(4), 7–26. https://doi.org/10.1108/EUM0000000001516

Agresti, A. (2003). Categorical data analysis. John Wiley & Sons.

Hosmer Jr, D. W., Lemeshow, S., & Sturdivant, R. X. (2013). Applied logistic regression (Vol. 398). John Wiley & Sons.

Kasabov, E. (2016). When an initiative promises more than it delivers: a multi-actor perspective of rural entrepreneurship difficulties and failure in Thailand. Entrepreneurship & Regional Development, 28(9–10), 681–703. https://doi.org/10.1080/08985626.2016.1234650

Leonidou, L. C. (2004). An analysis of the barriers hindering small business export development. Journal of Small Business Management, 42(3), 279–302. https://doi.org/10.1111/j.1540-627X.2004.00112.x

Leonidou, L. C., Katsikeas, C. S., & Samiee, S. (2002). Marketing strategy determinants of export performance: a meta-analysis. Journal of Business Research, 55(1), 51–67. https://doi.org/10.1016/S0148-2963(00)00133-8

McCullagh, P., & Nelder, J. A. (2019). Generalized linear models. Routledge.

Nanthasudsawaeng, K. (2019). Guidelines for Increasing Operational Efficiency for Entrepreneurs of One Tambon One Product (OTOP) in Rayong. International Conference on Interactive Collaborative Learning, 351–356.

Ogunmokun, G., & Ng, S. (2004). Factors influencing export performance in international marketing: A study of Australian firms. International Journal of Management, 21(2), 172–185.

Phadungkiati, L., Kusakabe, K., & Pongquan, P. (2011). Working for money or working for the group? Community-based women’s rural enterprises in Chainat Province under the OTOP project. SIU Journal of Management, 1(2), 39–72.

Ruengdet, K., & Wongsurawat, W. (2010). Characteristics of successful small and micro community enterprises in rural Thailand. Journal of Agricultural Education and Extension, 16(4), 385–397. https://doi.org/10.1080/1389224X.2010.515060

Sensang, P., Jomvong, T., Santianotai, R., & Chattinnawat, W. (2022). New Product Development Framework based on University-Community Engagement: Case Study of Thailand OTOP Development for Elderly Consumer. International Journal of Global Optimization and Its Application, 1(1), 1–11. https://doi.org/10.56225/ijgoia.v1i1.8

Sinkula, J. M. (1994). Market information processing and organizational learning. Journal of Marketing, 58(1), 35–45. https://doi.org/10.1177/002224299405800103

Sitabutr, V., & Deebhijarn, S. (2017). Community-based enterprise export strategy success: Thailand’s OTOP branding program. Business and Economic Horizons, 13(3), 368–382.

Sitabutr, V., & Deebhijarn, S. (2018). Community-Based Enterprise (CBE) Export Performance Strategy: An Analysis of Thailand’s Entrepreneurial OTOP Program. Asia-Pacific Social Science Review, 18(1), 91–110.

Smith, I., & Tubsree, C. (2016). Leadership development in the one tambon one product (OTOP) scheme in Thailand. HRD Journal, 7(1), 36–46.

Sousa, C. M. P. (2004). Export performance measurement: an evaluation of the empirical research in the literature. Academy of Marketing Science Review, 4(9), 1–12.

Suttipong, R., Phanphet, S., Wangmai, A., Reungsri, S., & Chattinnawat, W. (2022). Extended AHP Approach with Latent Factor and Stratum in Prioritizing and Positioning of OTOP Thailand’s Program for Elderly Market. International Journal of Global Optimization and Its Application, 1(1), 22–31. https://doi.org/10.56225/ijgoia.v1i1.10

Thammasang, S., & Poonikom, K. (2016). The Development of Indicators and Form of Knowledge Management in Production Management Case Study: Agricultural Machine Industry in the Northeast of Thailand. International Journal of Applied Engineering Research, 11(22), 10912–10922.

Tuamsuk, K., Phabu, T., & Vongprasert, C. (2013). Knowledge management model of community business: Thai OTOP Champions. Journal of Knowledge Management, 17(3), 363–378. https://doi.org/10.1108/JKM-10-2012-0321

Vanpetch, Y., & Sattayathamrongthian, M. (2019). Local Entrepreneurial Projects Failure In Thailand: The Case Of Suphanburi OTOP. Actual Economy: Local Solutions for Global Challenges, 324–331.

Voerman, J. A. (2003). The export performance of European SMEs. Labyrint Publication The Netherlands.

Zou, S., Taylor, C. R., & Osland, G. E. (1998). The EXPERF scale: a cross-national generalized export performance measure. Journal of International Marketing, 6(3), 37–58. https://doi.org/10.1177/1069031X9800600307