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


Strategies for Value Added Creation in Thai Rice Industry

Author(s): Nattaya Srihabut, Tanawat Jariyapoom, Taweesak Roopsing

Aim: This research aims to develop structural equation model of strategies for value added creation in Thai rice industry.

Methodology: The mixed research methods were used. The qualitative research was conducted with the in-depth interview techniques to find factors to develop into a model. The next sequence was the quantitative research collecting data from a sample of 500 people who were entrepreneurs in Thai rice industry to develop and analyze the model. Lastly, the qualitative research was conducted with group discussion techniques to verify the validity of the model.

Finding: The results provided new bodies of knowledge that rice entrepreneurs were able to apply them to enhance for value added creation in Thai rice industry to increase of sustainable competitive efficiency in global market. The developed model consisted of 4 main elements which were crucial for strategies for value added creation in Thai rice industry and prioritized as follows: resource, market orientation, innovativeness, and knowledge management. The results of the hypothesis testing it was found that (1) Market orientation has directly influenced both the innovativeness and the knowledge management significantly at the .001 level (2) Knowledge management has directly influenced the resource significantly at the .001 level. (3) Resource has directly influenced the innovativeness significantly at the .001 level.

Conclusion: The results of the simulation analysis revealed that to be consistent with the empirical data as follow 0.078 of Chi-Square probability, 1.160 of Relative Chi-Square (CMIN/DF), 0.962 of Goodness of Fit (GFI), and 0.018 of Root Mean Square Error of Approximation (RMSEA). Different sizes of businesses differently played important roles to the elements.

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