Business model development for installation of rubber floor mats to support productivity in dairy farming

Abstract

Purpose. Ribbed smoked sheet (RSS) rubber gradually loses its quality as it is stored after production. Rubber floor mats are recommended as a marketable upstream production in the Thailand rubber industry to help add economic value to low-graded RSS. However, limited attention in research has been paid to business development, particularly on practical models focusing on the demand perspectives. This study helped fill the knowledge gap by analysing factors influencing labour production in dairy farming and proposing a business model based on productivity analysis. The aim of the project was to create a practical business model for cattle rubber floor mats made of low-graded RSS rubber used for nourishing and housing management to promote labour productivity in dairy farming. Methodology / approach. The study used mixed-methods research. A theoretical framework was developed concerning rubber floor mats used in dairy farming, which helped improve the nourishing and housing management of dairy cattle and promote labour productivity. This research adopted Osterwalder’s business model canvas to examine the demand and supply elements of dairy cattle floor mats made of low-graded rubber. It also used the knowledge-based entrepreneurship concept to scrutinise knowledge-based business development. A questionnaire survey was used to collect data required for multiple regression analysis of labour productivity using the Ordinary Least Square (OLS) method. It also used semi-structured interviews to scrutinise the subjective experiences of farmers. A focus group discussion was conducted to investigate academics and rubber promotional authorities concerning potential technology and the possibility of transfer of production technology to promote knowledge-based business development. Results. The empirical evidence presented in this paper confirmed that rubber floor mats could help enhance cattle nourishment, dairy housing management and labour productivity. Regional knowledge transfer network was revealed as a driver of knowledge-based development for assisting local upstream rubber farmers in pursuing eco-innovation in rubber production, aligning with the national initiatives of Industry 4.0 and Bio-Circular-Green economy (BCG) concepts. Originality / scientific novelty. The originality of this paper is that it presents the results of an empirical study using mixed methods for the first time aiming at clarifying practical elements of the supply and demand sides’ components of the Osterwalder`s Business Model Canvas for developing a business model delivered as a knowledge-based business model for the production of dairy cattle floor mats made of low-graded RSS rubber to help guide practical downstream rubber business development. The qualitative results, together with the quantitative analysis of labour productivity, are based on the perceptions of local farmers in Thailand regarding the use of rubber floor mats on the farm; previous studies scientifically prove its positive relation to an increase in dairy cattle nourishing, hence the daily productivity. Practical value / implications. The novel business model canvas could promote the practical cattle floor mats business development. University engagement and public support were included as the critical drivers in this knowledge-based business model. The model implementation could help encourage rubber farmers and smallholders in upstream rubber production to move towards downstream business development and become knowledge-based entrepreneurs in value-added rubber floor mats production. It could also guide the agricultural policymakers to benchmark and evaluate their policy targeting innovative knowledge-based business development for rubber extension.