Academy of Strategic Management Journal (Print ISSN: 1544-1458; Online ISSN: 1939-6104)

Abstract

Biodiesel Industry in Thailand: The Roles of Actors in Networks

Author(s): Somjai Nupueng, Hussen Niyomdecha, Suchart Chansamran, Phattarawan Tantong, Eusebius Pantja Pramudya

 This paper assesses how public actors managed biofuel policy focused on biodiesel, and it can be effective in contributing to sustainability in biodiesel production related to networks. The Triad Network Model was applied to analyse the extent of public and private governance perspectives on the policy networks, economic networks and societal networks in the biodiesel industry. We used qualitative study in-depth interviews as the main method of interviewing involved actors in the biodiesel industry, both its feedstock as well as the crude palm oil industry and government agencies. We found that the sustainability of biodiesel production cannot be designed by a unique. The implementation of biodiesel policies was frequently adjusted based on the security of supply of main feedstock such as FFB and CPO, as well as competitive product industries such as palm cooking oil. In terms of sustainable production or environmental consideration, the roles of involved actors in economic and societal networks have limited interaction. The government agencies in the policy network have taken the most actions, both directly and indirectly. The main challenges in driving the biodiesel industry to sustainable targets based on possible feedstock are keeping stable policies, determining biodiesel policy on palm oil production balance for biodiesel production and palm cooking oil, making and implementing policies with consistence, and considering transparency. The biodiesel policy in Thailand should be in synergy with economic, social, and environmental goals and be concerned with the collaboration of involved actors on the tried network of biodiesel industry.

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