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Community-based enterprise (CBE) export performance strategy: An analysis of Thailand’s entrepreneurial OTOP program
(2018-01-01)
Sitabutr, Vipada
;
Deebhijarn, Samart
The concept of community-based enterprises operated by small entrepreneurial groups involved in export of locally manufactured and produced products has become a globally recognized way to relieve rural poverty and urban flight. However, the factors involved in export performance strategies are less defined and can vary significantly from country to country. Production capacity for export purposes is a great challenge for developing nations, which in turn influences the quality, service standard, and production scale. Also, customer satisfaction with goods and service act as critical components to export performance. It was, therefore, the intent of this study to identify the factors and their interrelationships in Thailand’s globally recognized “One-Tambon, One-Product” (OTOP) government-sponsored export program. The main research instrument, which measured the five latent variables and 26 observed variables was a questionnaire containing a 6-point unipolar scale to measure the opinions of the 500 exporter/manufacturer sample to the survey’s items. To access the measurement model, a confirmatory factor analysis (CFA) was employed using LISREL Version 9.1 prior to the use of a structural equation model (SEM) to analyze the 8-hypotheses model. Results supported similar studies in which it has been determined that product quality plays a key role in the export customer’s trust, which has a positive impact on distribution satisfaction. Top down management policies and pricing strategies, however, appear to be limiting factors to an OTOP exporter’s success. Finally, future focus should be given to Thai OTOP village cluster competitiveness, in which greater emphasis needs to be given to basic management training, leadership skills, product standardization, maintaining uniform output, understanding costs, and cash flows.
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Thai entrepreneur and community-based enterprises’ OTOP branded handicraft export performance: A SEM analysis
(2017-01-01)
Sitabutr, Vipada
;
Pimdee, Paitoon
Thailand’s One Tambon One Product (OTOP) branded handicraft and food export program is expected in 2016 to reach nearly US$3 billion, with products coming from approximately 6,000, five-star-ranked community-based and small–medium enterprises countrywide. This study therefore examined influences of perceived quality, perceived price, trust, and satisfaction on enterprise export performance using the OTOP product brand. Structural equation modeling used LISREL Version 9.1 to conduct a confirmatory factor analysis and test the hypothesized interrelationships on the variables’ effect on export performance. The vast majority of the entrepreneurs selected by simple random sampling either owned or worked in groups that had 50 or fewer employees, which represented 472 of the survey’s 500 respondents, or 94.4%. Additional results indicated a high and positive correlation between perceived quality, perceived price, trust and satisfaction, and export performance, with the most significant factor affecting export performance being customer satisfaction. In addition, perceived quality also has a positive and direct effect on trust as well as on the exporter’s customer satisfaction. Perceived price plays a role as well and has a direct and positive impact on both customer satisfaction and a customer’s trust of the exporter. Perceived quality also affects export performance in a direct and positive way with trust having a direct and positive impact on satisfaction.

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