Value Chain Management and Business Performance of One Tambon One Product Businesses in the Southernmost Province of Thailand

Abstract

Efficient value chain management and good business performance are needed by all business entrepreneurs. The objectives of the study were to 1) develop and validate a causal relationship model between the value chain management and business performance with empirical data and 2) determine the value chain management approaches to enhance business performance. This research was carried out using both quantitative and qualitative research methods. Data collection was done through questionnaire distribution to 308 OTOP entrepreneurs in Thailand coupled with an in-depth interview with 20 OTOP entrepreneurs. Analysis of quantitative data was performed using basic statistics and structural equation model analysis, while analysis of qualitative data was done using content analysis and then presented in descriptive writing. The findings of the study revealed that the developed relationship model between value chain management and business performance was consistent with empirical data. Primary and support activities in the value chain had direct positive effects on business performance. The guidelines for value chain management to enhance business performance were still focused on all activities in the value chain.