Towards Sustainable Downstream Production: Upstream Innovation and Business Model Development for Low-Graded Ribbed Smoked Sheet Natural Rubber in Thailand

Abstract

Objective: This study from Thailand examined business model development to help transform low-graded ribbed smoked sheet (RSS) rubber into cow shoe production targeting dairy farming. With the Industry 4.0 concept of the knowledge-based economy in the central focus, the research objective was to examine both the supply and demand sides for developing a practical knowledge-based cow shoe business model. Methods: This qualitative research adopted the concepts of knowledge-based entrepreneurship (KBE) and Osterwalder's business model canvas to guide the investigative design. It used documentary analysis, in-depth interviews, and a focus group discussion as the data collection instruments. The data analysis technique was a generic interpretive approach allowing the researchers to analyze the data by constructing codes, categories, and result conceptualization based on the underpinning conceptions of KBE and the business model canvas. Results: This study confirmed cow shoe production as a potential downstream business for rubber production in Thailand with the possibility of KBE characterization of innovation, growth, and competitive advantage. Cow shoes could be sold throughout the year for cattle nourishing routines to ease the pain from hoof and claw trimming. Critical success factors for KBE development in this business included creating production technology transfer networks, promoting financial and knowledge support from rubber promotional authorities and regional universities, and developing a sustainable ecosystem for rubber production to be linked in the value chain with rubber biofuel and cattle farming industries. Conclusion: Considering that innovative rubber production was often suggested at the policymaking level, this paper has filled the knowledge gap by delivering a novel practical framework, supported by empirical evidence, to promote KBE in cow shoe business development as a sustainable downstream business.