Development of Business Management System Leveraging on Social Capital: A Case of Hub Mae Win Community Enterprise, Mae Wang Sub-District, Chiang Mai Province

Abstract

This study examined the community business pattern based on the social capital of Hub Mae Win Community Enterprise, leading to the development of a suitable business management system for the community. Participatory Action Research (PAR) was conducted using the mixed method of quantitative and qualitative research. Preliminary findings indicated that the community enterprise did not have an organizational structure and that each member worked independently, using time-consuming and costly production processes resulting in low-quality products. Despite the homogeneity of the group, the community leaders and members failed to leverage on the social capital to work together effectively to achieve common goals for the organization. Working with the organization, the researchers recommended the development of a management system that is anchored on relationship building and trust. The system is divided into four parts - 1) management: organizational structure establishment, 2) production: job assignment based on knowledge and skills, 3) marketing: online and offline distribution channels, and 4) accounting and finance: income-expenditure account creation, and compensation allocation. The respondents showed higher level of satisfaction after they had utilized the developed management system particularly on the aspects of community unity, love, solidarity, and harmony, and community business transparency.