Abstract

The purpose of this research was to explore the operating conditions of Small and Medium-sized Enterprises (SMEs) and their effects on the rating of products in Thailand’s One Tambon One Product (OTOP) program. The sample group in the research was the 330 owners or executives of Small and Medium-sized Enterprises that produced for the OTOP program and their products were rated 3-5 stars. A questionnaire was used to collect data. The statistics used for data analysis were Percentage, Mean, Standard Deviation. Chi-Square, and one-way ANOVA, while Scheffe Analysis was used for multiple comparisons. The study found there were 19 operating conditions of the SME producers of OTOP program found affecting the rating of their 3-5 star products including; Marketing Operating Conditions - such as packaging, main target market, marketing promotion, Production Operating Conditions - such as production policy, production plan, standard certifications, raw material management, production methods, product development, member selection, production cost, Financial Operating Conditions - such as initial investment, working capital, working capital management model, main operational objectives, operational strategy, assignment of duties and responsibilities, employee performance indicators, and the member remuneration, which were all found statistically significant at the .05 level.

Highlights

  • One Tambon One Product Project (OTOP) is a governmental program that was designed by Thailand’s former Prime Minister Thaksin Shinawatra, to bring prosperity to local communities by creating more jobs for local people, leading to a more stable and continuous income, and eventually self-reliance

  • It was found that the Chi-square values of the relationship between operating conditions and the rating of OTOP products of Small and Medium-sized Enterprises (SMEs) in Thailand are as follows (Table 4)

  • It was found there were 19 operating conditions of the SMEproducers in the OTOP program affecting the rating of their 3-5 star products with statistical significance at the .05 level, including; packaging, main target market, marketing promotion, production policy, production plan, standard certifications, raw material management, production methods, product development, production cost, initial investment, working capital, working capital management model, main operational objectives, operational strategy, assignment of duties and responsibilities, employee performance indicators, member remuneration, and member selection

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Summary

Introduction

One Tambon One Product Project (OTOP) is a governmental program that was designed by Thailand’s former Prime Minister Thaksin Shinawatra, to bring prosperity to local communities by creating more jobs for local people, leading to a more stable and continuous income, and eventually self-reliance. This concept was inspired from the operation of Oita Prefecture, a province in the southern part of Kyushu, Japan, which focuses on making a social change in a way that their people will earn higher incomes through The Gross National Satisfaction Society instead of the Gross National Product, which is currently used. Third – “Human-Resource Development” – A promotion of a creative spirit in people for them to fight their way through life with determination and courage [1]

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