Thai SMEs Research Articles

Improvement of Productivity by Using Means of Lean Manufacturing, Just in Time, and Production Technology in Thai SMEs Manufacturing Industry

This study investigated the current situations, opportunities, and obstacles in manufacturing industry, and to create a model for improving the efficiency while reducing the levels of inventory. This study gathered information from in-depth interview using snowball sampling from 20 manufacturing companies in Thailand. The results revealed that the organization has implemented lean production principles as a strategic initiative to mitigate losses. The implementation of comprehensive work manuals, offered in diverse languages such as Thai, Burmese, Japanese, and English, serves as an additional mechanism to mitigate losses by ensuring clarity and understanding among the workforce. Furthermore, the integration of modern technologies, encompassing machine technology, robotics and artificial intelligence, is actively pursued to streamline production processes and consequently reduce losses. The results presented that companies refrain from adopting Just-In-Time production systems due to operational challenges associated with fulfilling customer orders. Specifically, frequent machine shutdowns for adjustments are necessitated, leading to elevated unit costs. Manufacturing companies in Thailand continue to harbor potential for growth, despite the inevitable rise in employee wages leading to increased operational costs. To navigate this challenging landscape, companies must remain adaptive, responding not only to shifts in customer preferences but also to advancements in technology, proactive examination of customer needs prior to initiating the production process, a paradigm shift from low-cost production to the premium-grade products addresses the demands of customers seeking superior product quality, and the process of broadening customer bases both overseas and globally, and the analysis of distinct customer groups in identifying new target demographics.

The influence of innovative organizational culture on innovativeness in Thai SMEs: The mediating effects of human resource management and innovative skills

The influence of innovative organizational culture on innovativeness in Thai SMEs: The mediating effects of human resource management and innovative skills

Impact of marketing capabilities on competitive advantage: A case of thai sme durian exporters

Purposes of this study were to highlight the role of durian exporters’ marketing capabilities in achieving competitive advantage among Thai SMEs, and to describe the significance of a competitive advantage in achieving marketing goals by examining marketing capabilities. One hundred SME exporters were randomly selected from the list of firms listed on the Association of the Durian Exporters. Ninety-six questionnaires were included in this study. The PLS-SEM Program was used to analyze the collected data which was collected by using a mail questionnaire distributed to SME exporters. Results from data analysis were: 1) it indicated that all marketing capabilities, including product, price, distribution, and promotional capabilities, impacted competitive advantage; and 2) five competitive advantage forces were found to have statistically significant impacts. Moreover, the analysis confirmed that marketing capabilities and competitive advantages were related. Implications from this study were: 1) exporters find their endeavors to develop marketing strategies to achieve competitiveness in the global market; and 2) exporters could focus on distribution capabilities to survive and to expand their product to gain a competitive advantage in the marketplace. The limitation of this study was that this study did not involve quality assurance and variety of the durian, which would affect price capacity.

How Could Digital Transformation Help Medium-Sized Enterprises Access Thailand’s New Capital Market Financing (LiVEx) to Support Sustainable Growth in the Digital Economy Era?

In today’s modern era, digital transformation serves as a crucial element for organizations to gain a competitive edge and optimize their operating systems. However, medium-sized enterprises in Thailand face difficulties in accessing capital market financing, despite its significance in promoting the development of small- and medium-sized enterprises according to the 13th National Economic and Social Development Plan. One potential solution to this issue is digital transformation, which can help these enterprises achieve their strategic business objectives and find a reliable source of funding while enhancing their reputation and credibility, thereby contributing to the growth of the economy as a whole. This study utilized a mixed-methods approach to explore how digital transformation can assist medium-sized enterprises in accessing LiVEx, a new capital market for Thai SMEs. We conducted extensive research and interviewed 12 senior executives across three groups, government agencies, LiVEx-listed companies, and social associations, to develop a questionnaire and conceptual model. Data collected from 360 individuals working in medium-sized enterprises in Thailand collected using an online questionnaire were then analyzed, using CFA and SEM techniques to validate the model. Our study emphasizes the importance of digital literacy, digital usage, and digital advocacy in the success of digital transformation in accessing Thai capital market financing. These findings serve as a valuable knowledge repository for future research.

Driving policy support for open eco-innovation enterprises in Thailand: A probit regression model

Open eco-innovation, which involves collaborative processes to develop environmentally sustainable solutions with diverse stakeholders, heavily relies on collaboration. This study aims to address this research gap in open eco-innovation by (1) examining perceived support and participation in an open innovation program for SMEs, predicting the outcomes of open eco-innovation, and (2) providing a foundation for a targeted public policy program. A sample of 495 SMEs in Thailand was analyzed using multiple probit regressions to understand how different forms of support and participation in open innovation programs affect the probability of open eco-innovation. Findings indicate that SMEs with uncertain internal open innovation programs are more likely to decrease the predicted probability of open eco-innovation. For instance, Thai SMEs investing in R&D and network activities may lack a clear pathway to enhance their eco-innovation capabilities, resulting in reduced R&D alliances and joint ventures. Practically, it is advised that SMEs carefully consider the advantages and disadvantages of open innovation before developing eco-innovation capabilities. Moreover, the study offers empirical evidence on the open innovation activities that influence SMEs' engagement in open eco-innovation. From a policy perspective, policymakers should prioritize creating a supportive environment, such as enhancing green cooperation. The originality of this paper lies in the use of a probit regression model to analyze factors influencing open eco-innovation and a logic model to provide actionable steps for promoting it.

Knowledge Management for Thai SMEs Exporting Thai Local Products from Thailand to China during COVID-19

Nowadays, with the development and growth of internet technology, famous Thai products can be easily purchased in China. Chiang Mai is known as the city of coffee but cannot find out where to buy it on Chinese e-commerce platforms. This research study seeks to provide as comprehensive a description as possible of the Business to the Consumer market and the current logistics of transporting coffee products between China and Thailand, use information collection, and find potential channels. The potential pattern to provide viable solutions for relevant Thai SMEs to enter the Chinese coffee bean market in the "COVID-19" pandemic condition. This research uses intelligence search to determine exported suitable coffee products from Chiang Mai, Thailand to Hangzhou, China. This research use activity-based costing to compare the cost every step and time. Find out which is the suitable logistics pattern.

Factors influencing employee engagement: Evidence from Thai SMEs

Factors influencing employee engagement: Evidence from Thai SMEs

The relationships among transformational leadership, sustainable leadership, lean manufacturing and sustainability performance in Thai SMEs manufacturing industry

PurposeThe purpose of this paper is to examine the structural relationship model among transformational leadership, sustainable leadership (SL), lean manufacturing practices and sustainability performance.Design/methodology/approachThe data were collected from the middle and senior managers working in small and medium enterprises of Thai manufacturing industry. Regarding the quantitative approach, the data were collected by means of survey from 598 respondents from 374 companies. Qualitative data were collected from 40 participants by participant observation, non-participant observation and in-depth interview.FindingsThe model reported that lean manufacturing has a partial mediate effect on the relationship between transformational leadership and sustainability performance, and between SL and sustainability performance. The structural model is different in automotive and nonautomotive companies, and the structural model is different among the companies which implemented lean program for less than five years and above five years. The data from in-depth interview informed that lean practices are appropriate for automotive industry though with less implementation in other industries. Firms pay most attention on customer involvement with some attention on employee and supplier involvement. Managers give advices and exchange ideas with their followers rather than inspiring and giving opportunities to make decision.Research limitations/implicationsThe findings may also enable Thai managers to realize that lean practices are appropriate for any industry. The first thing to do before launching lean program to all process is that the company should buy-in the understanding of managers about lean concept and implementation. Willingness with well understanding and realizing importance of lean program will lead to superior results, especially operational, economic and sustainable performance.Originality/valueThe reliability and validity measurements confirmed that both SL and environmental and social performance are appropriate for manufacturing industries. This study provides evidence of the positive relationship between SL and lean manufacturing, lean manufacturing and sustainability performance, as well as the partial mediate effect of lean manufacturing on the relationship between SL and sustainability performance, which are the additional contributions to research in academic field. The results confirmed the positive relationship between transformational leadership and lean manufacturing. The results reported that there is difference of lean practices between automotive and nonautomotive companies, and between companies which implemented lean program less than five years and above five years. The structural relationship result reported that transformational leadership has effects on lean manufacturing whereas SL has no effect on lean manufacturing, which asserted the previous study in which one leadership model is more appropriate for success within lean implementations.

Green Supply Chain Management Practices in SME Manufacturers : Key Drivers and Organizational Performance

This research is aimed at investigating the drivers influencing the adoption of green supply chain management practices (GSCM practices), whilst also exploring the linkage between the GSCM practice and organizational performance of SME manufacturers in the food industry. For the study, qualitative research was conducted by first reviewing the academic literature and then, obtaining comments from experts in the field, with the purpose of developing of a survey instrument. The questionnaires were sent to entrepreneurs or representatives of Thai SMEs applying GSCM practices in the food industry, with 148 valid responses being returned. PLS-SEM was applied to assess the measurement model, which indicated that the reliability and validity were acceptable. To test the relationship among the drivers, GSCM practices and organizational performance were evaluated based on the structural model. The findings reveal that regulations, customer pressure, socio-cultural responsibility as well as competitive pressure have a positive significant effect on the implementation of GSCM practices for Thai SME food manufacturers. It is concluded that, Thai SMEs in food manufacturing could gain significantly higher organizational performance from GSCM practices in four different dimensions including environmental, economics, intangible, and operational performance.

People Management for Sustainable SMEs

The study identifies people management practices among sustainable SMEs that adopt the Thai philosophy of sufficiency economy. The study adopts multi-data collection methods. 'Grounded theory' is adopted as the approach for data analysis. Emerging people management practices are: 1) identifying core competencies consistent to Thai values; 2) being genuinely concerned for employees; 3) offering life skills training for employees; 4) providing opportunities for employees to suggest ideas and encourage them to take part in decision makings; 5) growing own managers; 6) encouraging employees to contribute to the society and environment. This paper is among the first that explore the relationships between people management practices and corporate sustainability in Thai SMEs and propose theoretical assertions between them for future theory building.

Innovation catalysts for industrial waste challenges: Sri Lankan and Thai cases

Abstract We explore the specific challenges that Asian developing countries experience with their industrial waste from manufacturing. We collected empirical data in Sri Lanka and Thailand through four workshops, 16 interviews and in-situ observations within Sri Lankan garment manufacturers, academics and NGOs; and Thai SMEs of wood, metal, plastic, automobile part and glass. Whereas garment manufacturing is the single biggest export industry in Sri Lanka, the Thai economy operates with wider industry sectors. The synthesis of the identified challenges is fed into a set of innovation catalysts along with sustainability consideration points that will support future innovation concept generation. The findings would allow a better understanding of current waste problems and navigate the starting point to tackle the waste problems for academia and industry in both countries. The study lays the foundation for further investigation into sustainable value creation through creative waste innovations.

Regulatory And Business Environments In Cambodia: Case Studies Of Cambodia And Thailand Sme Investors’

This research paper aims to study challenges over regulatory frameworks and business conditions for Thai SMEs in Cambodia. The paper presents the legal frameworks relating to investment promotion to Cambodia that helps facilitate the increase of foreign and local investment in Cambodia. There are vital challenges for investments in Cambodia, including regulatory and business burdens, corruption by unclear regulations, a lack of policies to support SMEs, culture and preference of Cambodian consumers. The paper provides recommendations for the development of regulations and business environments in Cambodia, including 1) establish stable policies that can specifically support SMEs growth; 2) reform financial support to SMEs to ensure suitability and benefits; and 3) improve the registration system and create a unified registration system for both local SMEs and Thai SMEs.Keywords: SMEs, Regulation, Business condition, Cambodia, Thailand

How contribute strategic corporate brand management model? : Thai SMEs context

Strategic corporate brand management (SCBM) and corporate performance are especially meaningful to become a new support management concept for SMEs today. However, SMEs less is served to how SCBM conceptualizing brought in order that it may produce the high effectiveness CP and their conceptualizing has not been still investigated appropriately, especially the SMEs of Thailand context. This paper seeks to develop a conceptual model for SCBM towards on SMEs corporate performance in Thailand. Drawing on reconsidering and analyzing the theoretical and empirical research are addressed the model. Based on the result provide that SCBM concentrating on the SMEs corporate performance pointedly the effect of distinctiveness, closely with firm characteristics, entrepreneurship, corporate brand element and competitive environment. The developed model devoted to great recognize the role of SCBM and how to enlarge the assistance of Thai SMEs corporate performance. Moreover, this paper increases to the previous research in which the attachment between other factors with SCBM was synthesized. The model advances to SCBM study by essence one of the SMEs development notions. In sum, it is recommended that Thai SMEs’ entrepreneur should be accentuating more for their firm characteristics, entrepreneurship, corporate brand element, competitive environment and strategic corporate brand management. Furthermore, it should be address an evidence empirical study for a major gap in the area of SCBM.
 Keywords: Strategic corporate brand management, corporate performance, SMEs, Thailand.
 

Thai SMEs Herbal Cosmetics in Elderly Market

This research aims for study of Thai SMEs herbal cosmetics customers and their competitors that related to market situation in elderly market. Moreover this research is to analyst the relationship between customers, competitors and market situation. The 402 samples were drawn from 10,014,705 elderly whose samplings were calculated followed Taro Yamane method and all samplings were done using survey technique. Data were collected using questionnaire designed and analysis under SPSS for frequency, percentage, mean, standard deviation and distribution, the analyzing relationship using canonical correlation. The analysis of Thai SMEs herbal cosmetics in elderly market have tested the relationship between customer & competitors and the marketing factors, the outcomes were customer factors have related to herbal market situation in moderate range. Thai SMEs herbal cosmetics’ competitors have related to its market situation in moderate range except the supportive from government has effected in high range. The relationship between elderly customers of Thai SMEs herbal cosmetics and its competitors have related to their market situation in moderate range.

Thai SMEs Herbal Cosmetics in Elderly Market

This research aims for study of Thai SMEs herbal cosmetics customers and their competitors that related to market situation in elderly market. Moreover this research is to analyst the relationship between customers, competitors and market situation. The 402 samples were drawn from 10,014,705 elderly whose samplings were calculated followed Taro Yamane method and all samplings were done using survey technique. Data were collected using questionnaire designed and analysis under SPSS for frequency, percentage, mean, standard deviation and distribution, the analyzing relationship using canonical correlation. The analysis of Thai SMEs herbal cosmetics in elderly market have tested the relationship between customer & competitors and the marketing factors, the outcomes were customer factors have related to herbal market situation in moderate range. Thai SMEs herbal cosmetics’ competitors have related to its market situation in moderate range except the supportive from government has effected in high range. The relationship between elderly customers of Thai SMEs herbal cosmetics and its competitors have related to their market situation in moderate range.

How Contribute Strategic Corporate Brand Management Model? : Thai SMEs Context

Strategic corporate brand management (SCBM) and corporate performance are especially meaningful to become a new support management concept for SMEs today. However, SMEs less is served to how SCBM conceptualizing brought in order that it may produce the high effectiveness CP and their conceptualizing has not been still investigated appropriately, especially the SMEs of Thailand context. This paper seeks to develop a conceptual model for SCBM towards on SMEs corporate performance in Thailand. Drawing on reconsidering and analyzing the theoretical and empirical research are addressed the model. Based on the result provide that SCBM concentrating on the SMEs corporate performance pointedly the effect of distinctiveness, closely with firm characteristics, entrepreneurship, corporate brand element and competitive environment. The developed model devoted to great recognize the role of SCBM and how to enlarge the assistance of Thai SMEs corporate performance. Moreover, this paper increases to the previous research in which the attachment between other factors with SCBM was synthesized. The model advances to SCBM study by essence one of the SMEs development notions. In sum, it is recommended that Thai SMEs’ entrepreneur should be accentuating more for their firm characteristics, entrepreneurship, corporate brand element, competitive environment and strategic corporate brand management. Furthermore, it should be address an evidence empirical study for a major gap in the area of SCBM. Keywords: Strategic Coporate Brand Management, Coporate Performance, SMEs, Thailand

Exploring business intelligence and its depth of maturity in Thai SMEs

Increased complexities in making effective and timely business decisions in highly competitive markets have driven organisations worldwide to adopt business intelligence (BI) technologies. Large en...

The impact of leadership on workplace innovation in Thai and Vietnamese SMES

It is accepted that SMEs play an important role in economic growth in many Asian countries. For example, Vietnamese SMEs represent 97% of the number of businesses of the country; employ 77 percent of the workforce and account for 80% of the retail market. Similarly, Thai SMEs have significantly contributed to the Thai economy and account for 99% of all business establishment, nearly 75% of total employment, and nearly 40% of total GDP. Yet the question of whether small firms are more or less advantageous in their ability to be more innovative is still unclear. In Asia, SMEs have possessed a number of strengths that could contribute to their capacity to innovate. The study compares the perceptions toward leadership, work value ethics and workplace innovation in Thai and Vietnamese SMEs. A survey was completed by 696 respondents drawn from Thai and Vietnamese SMEs. The survey was comprised of the Design Leadership Questionnaire (DLQ), the Workplace Innovation Scale (WVE) and the Work Values Ethic (WVE) instrument. The Cronbach’s alpha values for each instrument were α - 0.911 (Design Leadership), α - 0.913 (Workplace Innovation), and α -0.798 (Work Value Ethic). T-test results found that there was a statistically significant difference in the mean scores of Leadership behaviour and all of its dimensions. Also, the significant differences are found in the mean scores of Workplace Innovation and all of its dimensions between Thai and Vietnamese respondents. However, there was no difference in the perception toward Work Values Ethic between the respondents of these two countries. The findings provide empirical evidence to advance our understanding of the impact of work values on leadership behaviour and workplace innovation and assists in developing Government policy to further SME leadership behaviour for Thai and Vietnamese managers to lead their subordinates towards innovation practices.

Role of intermediaries in accelerating the transformation of inter-firm networks into Triple Helix networks : a case study of SME-based industries in Thailand

This paper explores the roles innovation intermediaries play in stimulating triple helix networks in Thai SMEs. Typically, knowledge networks can be classified into three forms: vertical value chain; horizontal/industrial chain; and diagonal/triple helix networks. The first two inter-firm networks evolve into triple helix network upon policy intervention via intermediaries. Intermediaries play sponsoring role at policy level by channeling resources to industry; brokering role at strategic level by linking triple helix actors; and boundary spanning role at operational level by providing services that facilitate knowledge circulation. Data were collected from the ceramic and furniture industries to test the significance of the ways the triple helix process is intermediated. The sponsoring role of intermediaries is found to be crucial for promoting the development of triple helix network in the case of these industries. The experiences of the two cases further suggest that market-led intermediaries would be more effective in promoting triple helix network development than government-funded intermediaries.

Small Medium Enterprises Insurance Credit Risk Management

Thai SMEs have played a vital role in the Thailand economy. However, SME has structure of short term financial characteristics as they depend mostly on short term loan. Thus, we have to be aware of financial distress of SMEs. The study has examined empirical evidence from Thailand insurance industries to identify differences between financial profiles of financially distressed SMEs and non-financially distressed SMEs. We have developed and tested a multiple discriminant analysis model to distinguish between financially distressed SMEs and non-financially distressed SMEs using three categories of financial ratios: liquidity, leverage and profitability. The results show that distressed firms SMEs had lower liquidity, higher leverage and lower profitability ratios than non-financially distressed SMEs. Study tested the statistical significance of the differences between financially distressed SMEs and non-financially distressed SMEs. The financial ratios of distressed firms were taken into the analysis to develop the prediction model. Keywords: SMEs, financially distressed SMEs, non-financially distressed SMEs, liquidity, leverage, and profitability