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Original Research

SUCCESSFUL FACTORS OF PALM OIL INDUSTRY IN THAILAND

THIBET CHANTHAWONG 1, NATTAPONG TECHARATTANASED 2, BUNDIT PUNGNIRUND 3, PLEUMJAI SINARKORN 4, and JIRAPHORN SAWASDIRUK 5.

Vol 18, No 09 ( 2023 )   |  DOI: 10.5281/zenodo.8379751   |   Author Affiliation: Suan Sunadha Rajabhat University, Thailand 1,2,3,4,5.   |   Licensing: CC 4.0   |   Pg no: 1065-1075   |   Published on: 26-09-2023

Abstract

The oil palm is considered as an economic crop associated with many Industry in terms of not only producing oil for consumption or in the food industry but also being processed into other products especially in relation to the energy sector which is currently used as an important ingredient of diesel base oil. The palm oil industry has continuously faced the problem of oversupply whereas oil palm farmers and palm oil industry entrepreneurs have faced unpredictable changes in market conditions causing unstable price of products. Additionally, high demand of raw material for palm oil processing plants drives an increase of the production cost and the entrepreneurs have not yet been able to effectively create and develop their marketing competitive potential and expansion of their products in both domestic and international markets. These are therefore the causes of business opportunity loss. This research study aims to 1) explore the variable level of competitive potential, entrepreneurial potential, management innovation, 8Ps marketing strategy and success of palm oil industry in Thailand, 2) examine the influence of the following variables; competitive potential, entrepreneurial potential, management innovation, 8Ps marketing strategy affecting the success of the palm oil industry in Thailand, and 3) develop a successful model of the palm oil industry in Thailand. The mixed research methodology was applied between quantitative and qualitative ones. In view of the quantitative term, the sample group comprised 400 palm oil entrepreneurs in Thailand with the sample size calculated by 20-time criteria of the observed variables and stratified random sampling. Data collection was conducted through questionnaires that were later analyzed by the structural equation modelling. For the qualitative term, an in-depth interview was made with 20 palm oil entrepreneurs and specialists in Thailand, the primary informants. The research findings revealed that 1) the variables; competitive potential, entrepreneurial potential, management innovation, 8Ps marketing strategy, and success of palm oil industry in Thailand are all at a high level, 2) competitive potential, entrepreneurial potential, management innovation and 8Ps marketing strategy influenced the success of palm oil industry in Thailand at .05 statistical significance level, and 3) the successful model developed by the researcher was namely “SPIP Model” (S = 8Ps Marketing Strategy, P = Entrepreneurial Potential, I = Management Innovation, P = Competitive Potential). Furthermore, the qualitative findings also revealed that to operate the palm oil industry in Thailand successfully, the entrepreneurs need to be aware of the competitive potential of this captioned industry particularly its market power from qualified palm oil to create a positive image to customers. The findings of this research can be further applied as a guideline to define the palm oil industry policy to promote sustainable success of palm oil industry in Thailand.


Keywords

Successful Factors/ Palm Oil Industry/Thailand.