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

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.