Content area
Background and Objective: Thailand's Lower Northeastern Region, also known as the Nakhon Chai Buri Province Cluster, encompasses the provinces of Nakhon Ratchasima, Chaiyaphum, Buriram, and Surin City. This region is home to a thriving network of 232,001 community enterprises. However, a national workshop involving government agencies and community representatives identified key challenges hindering further growth. Despite their substantial potential to contribute to Thailand's economy and social fabric, community enterprises face limitations such as a lack of appropriate management strategies, Limited brand image, Difficulty in attracting and empoweringcommunity members, and Limited access to national and international markets. However, to developeffective strategies that address these challenges, a deeper understanding of the operational environmentof community enterprises is necessary. This study aims to develop targeted management strategies to support Community Enterprises in Thailand's Lower Northeastern Region. Methodology: This research is Qualitative research emphasizing community participation. Key informants include the president of the community enterprise and members of the community enterprise. Nakhon Chai Burin Province group, totaling 16 people, including those involved, (Participants) consisting of officials of the Provincial Agriculture Office, or District Agriculture Office, or DistrictDevelopment Officer, One person per province, totaling Four people, totaling 20 informants, usingthe method of selecting by the Purposive sampling. Data collection involved in-depth interviews, was developed and assessed for content validity by three experts, achieving a Content Validity Index (CVI) of 1.00. Main Results:These management strategies are guidelines for efficient and effective management to develop and promote the coexistence in developing the potential and performance of community enterprises to strengthen the sufficiency economy and promote a happy life. Conclusions: The strategies for developing in the Development of Community enterprises focus on four aspects: 1) Utilizing a Variety of Resources and product standards responds to consumer needs for sales, 2) Integration for product development to mitigate the risk of lack of technology and the negative impact of many products of the same type, 3) Government and Agency support to address the modern technology for development focusing on products and 4) The supporter of relevant quality products, OTOP standards, and various resources to counteract the threat to the world economy and consumer demand. These strategies can help Guide your community enterprise in leveraging its strengths, addressing weaknesses, capitalizing on opportunities, and mitigating threats to achieve sustainable growth and success.
Abstract
Background and Objective: Thailand's Lower Northeastern Region, also known as the Nakhon Chai Buri Province Cluster, encompasses the provinces of Nakhon Ratchasima, Chaiyaphum, Buriram, and Surin City. This region is home to a thriving network of 232,001 community enterprises. However, a national workshop involving government agencies and community representatives identified key challenges hindering further growth. Despite their substantial potential to contribute to Thailand's economy and social fabric, community enterprises face limitations such as a lack of appropriate management strategies, Limited brand image, Difficulty in attracting and empoweringcommunity members, and Limited access to national and international markets. However, to developeffective strategies that address these challenges, a deeper understanding of the operational environmentof community enterprises is necessary. This study aims to develop targeted management strategies to support Community Enterprises in Thailand's Lower Northeastern Region.
Methodology: This research is Qualitative research emphasizing community participation. Key informants include the president of the community enterprise and members of the community enterprise. Nakhon Chai Burin Province group, totaling 16 people, including those involved, (Participants) consisting of officials of the Provincial Agriculture Office, or District Agriculture Office, or DistrictDevelopment Officer, One person per province, totaling Four people, totaling 20 informants, usingthe method of selecting by the Purposive sampling. Data collection involved in-depth interviews, was developed and assessed for content validity by three experts, achieving a Content Validity Index (CVI) of 1.00.
Main Results:These management strategies are guidelines for efficient and effective management to develop and promote the coexistence in developing the potential and performance of community enterprises to strengthen the sufficiency economy and promote a happy life.
Conclusions: The strategies for developing in the Development of Community enterprises focus on four aspects: 1) Utilizing a Variety of Resources and product standards responds to consumer needs for sales, 2) Integration for product development to mitigate the risk of lack of technology and the negative impact of many products of the same type, 3) Government and Agency support to address the modern technology for development focusing on products and 4) The supporter of relevant quality products, OTOP standards, and various resources to counteract the threat to the world economy and consumer demand. These strategies can help Guide your community enterprise in leveraging its strengths, addressing weaknesses, capitalizing on opportunities, and mitigating threats to achieve sustainable growth and success.
Keywords: Community Development, Community Enterprises, sufficiency economy, management strategies, OTOP, the Lower Northeastern Region of Thailand
1. Introduction
The 1997 Asian financial crisis, also known as the "Tom Yum Kung Crisis," had a noteworthy effect on Thailand, triggering a deep economic recession. In response to this crisis, the Ministry of Interior tasked the Department of Community Development with promoting the Sufficiency Economy philosophy. This philosophy emphasizes self-reliance, community ownership and management, and public participation. It encourages communities to come together and form professional groups, such as Community Enterprises (CEs) (Thansettakij, 2020; Department of Agricultural Extension, 2019; Blišťanová&Tirpáková, 2021). The initiative has shown positive results. In fiscal year 2021, CEs across the country experienced a substantial 7.8% increase in total revenue from product sales compared to the previous year. Overall sales reached a staggering 278,565,418,936.11 baht (7,598,621,142.46 USD) (Department of Community Development, Ministry of Interior, 2022).
Community Enterprises (CEs), called Small and Micr°Community Enterprises (SMEs), are businesses operated by individuals who share a common bond, typically based on geographic location, ethnicity, or interests. These enterprises engage in diverse activities, such as production, service provision, and other income-generating work. CEs can be registered or unregistered entities, but their primary goal remains to generate income and foster self-reliance among participating individuals, communities, and groups. They operate within a network and take advantage of financial and non-financial resources like knowledge, local traditions, skills, and natural assets. Notably, CEs are managed by community members, embodying the principle of "businesses by and for the people" (Department of Agricultural Extension, 2019). The initiative has demonstrated encouraging results. In fiscal year 2021, CEs nationwide witnessed a 7.8% increase in total revenue from product sales compared to the previous year. Overall sales reached a staggering 278,565,418,936.11 baht (Department of Community Development, Ministry of Interior, 2022).
The Lower Northeastern Region of Thailand, also known as the Nakhon Chai Burin Province Cluster, comprises the provinces of Nakhon Ratchasima, Chaiyaphum, Buriram, and Surin City. This region boasts a network of community enterprises, numbering 232,001 (Strategic Management Group, Lower Northeastern Provinces Group 1, 2021). In fiscal year 2020, these enterprises generated a combined income of 15,069,475,327 baht (Integrated Provincial Group Executive Committee, Regional Provincial Strategic Management Group Lower Northeast 1, 2021). However, a workshop involving government agencies and community representatives from all over the country identified several challenges hindering further growth. While community enterprises hold significant potential to contribute to the Thai economy and social fabric, they face issues such as Marketing challenges (Naipinit et al., 2016), Lack of appropriate management strategies Limited brand image Difficulty in attracting and empowering community members (JSuryani et al., 2021), Limited access to national and international markets (Juhász& Wagner, 2013; Songkhramsri, 2021) Developing effective strategies requires understanding the operational environment of these enterprises, including their internal capabilities and access to accurate information. This information is crucial for synthesizing management strategies tailored to the specific needs and potential of individual Community Enterprises (Nitiwattana, 2015).
From a review of related literature, therefore, the researcher is interested in studying aims to develop management strategies for community enterprises in the Lower Northeastern Region of Thailand, which will result in a robust community economic system and success in developing the competitiveness and performance of community businesses to grow into business operators with maximum efficiency and sustainable effectiveness.
Objective
This study aims to develop targeted management strategies to support Community Enterprises in Thailand's Lower Northeastern Region.
2. Methodology
This research is Qualitative research emphasizing community participation. Key informants include the president of the community enterprise and members of the community enterprise. Nakhon Chai Burin Province group, totaling 16 people, including those involved, (Participants)consisting of officials of the Provincial Agriculture Office, or District Agriculture Office, or District Development Officer, One person per province, totaling Four people, totaling 20 informants, using the method of selecting by the Purposive sampling.
2.1 Data collection
The In-depth interview covering questions including the history and development of community enterprises, the Structure and function, Carrying out activities, Comprehensive management planning, Structuring, the group leader's command style, control, and support fromgovernment agencies and Relevant localities. The instruments had been developed and examined for qualification with the content validity index (CVI) by three experts, and the CVI rate was 1.00.
The Focus group, with community participation, to brainstorm opinions and jointly analyze impacts from the external environment, potential level, and management of community enterprises, with details Consisting of the Strengths of Community enterprises, can be further developed. Weaknesses of community enterprises that must be jointly improved and corrected. Opportunities for community enterprise to development and Obstacles or limitations of operations.
2.2 Data analysis
The researcher used the SWOT analysis technique to find strengths, weaknesses, opportunities, and threats, analyzed relationships in matrix form with the TOWS matrix technique,and used the content analysis technique to summarize the research results according to the issues to be studied. Accuracy and reliability of information The researcher used triangulation on the researcher side or data collector (Investigator Triangulation) By checking each researcher whether the findings were the Received the same or different. (Denzin, 1989) Then, the Results and Data will be the forwarded to the informant's providers, namely, leaders and members of community enterprise groups and those involved in re-examining together to obtain results and True information.
3. Literature review
3.1 Community Enterprise
"Community Enterprise" typically refers to an organization or business benefiting a specific community or group of people community modeled after The One Village One Product project was initiated by the Governor of Oita Prefecture, Mr. MorihikoHiramatsu, in 1979. He found that the local government lacks a young population and is suffering from inadequate infrastructure and a lack of assistance from the central government. To prevent young people from leaving their homes to work elsewhere. Therefore, such a project was born to create Incentives for people to love their land. Create a plan to influence industries that use knowledge and advanced technology to help improve. Change the economic structure of the province for maximum efficiency. Each village produces a product, and Quality is something to be proud of and suitable for the topographic conditions of the local climate. At least one product does not have to be a commodity of the local culture, such as folk games, traditions, and important days may be applied to develop it into a cultural tourist attraction, Including developing existing natural tourist attractions. Any village that has the potential to produce more than one product can do so (Ngamlamom, 2017).
In Thailand, Community enterprises Occur from the community economy approach or the sufficiency economy approach to develop continuously and systematically. Word of Community enterprise, be used as Community business can be substituted because the community is not the state (Office of Knowledge Management and Development (Public Organization), (2021)). Not a juristic person under the Civil Law and Commercial, the support is therefore not Systematic or unified and Affects the operational problems. Some of the Community enterprises are not acceptable by government or private agencies, and Sometimes there is support from the government, but it does not meet the actual needs. Therefore, Establishments owned by the community must also classified as being Owned by the private sector. But in reality, "business" implies that the pursuit of profit is fundamental. However, community-owned establishments have a concept that emphasizes dependency rather than profit. Therefore, the Word of Community Enterprise is the same as State enterprises that many people know. A community enterprise is a group of Community Activities that the community can think about from learning. It is not a single activity aimed at reaching a large market. And it's not a complicated activity. It's all about making food and using it instead of buying from the market, the management of production and consumption systems that exist in daily life, such as managing rice, pork, mushrooms, duck, chicken, vegetables, fruits, shampoo, soap, dishwashing liquid, or other things that the community can do on their own without much hassle. Eating instead of buying reduces expenses and helps strengthen the economy (Department of Agricultural Extension, 2019). It is also the Organizational restructuring of the economic system into a realistic basis in the community. If the community is strong and self-reliant, According to the royal speech of His Majesty King Rama IX, he compared the sufficiency economy to the piles of a building that makes the Stability and Strong, and the country's Economy will be Strong and sustainable. In the past, the Economic system in the country was like building a building with a narrow base. The Office of the Promotion of Local Wisdom and Community Enterprises (2022) highlights the critical role of a Strong economic foundation in its report. They liken an economy to a building, suggesting that one with a limited base risks instability, similar to a weak foundation. Therefore, Community Enterprises are Important in creating a stable base for the country. By stimulating the grassroots economy to be strong and distributing career opportunities to create jobs, generate income, and reduce the burden of expenses so that the majority of the country's citizens can be more self-reliant.
3.2 Management strategy concept
Management strategy concept It is a management approach based on the environment from factors inside and outside the organization. The management strategy should be a strategy that takes advantage of strengths and opportunities to reduce weaknesses and obstacles to the organization's business operations (Aksorntap et al., 2021), consisting of:
3.2.1 Proactive strategy: There is a unique style of the community by using resources available in the community along with modern technology to produce products or services that meet standards and safety according to consumer needs, leading to the development of community products to maintain identity and increase the value of cultural products. It promotes the skills of producing prototypes of new products so that the community can continue to produce other products.
3.2.2 Defensive strategy: Giving importance to creating a network that allows for production planning. Network Marketing and Communications, as a result, enterprises in the community become strong and sustainable. Creating a network in the community will create an exchange of knowledge together, allowing community members to participate in decision-making to Create regulations and fair guidelines shared in the community.
3.2.3 Corrective strategies: Born from the self-development of community enterprise groups By finding ways to develop management potential with development strategies that are consistent and appropriate to the context and meet the needs of groups and members of community enterprises, which encourages community enterprise members to have a systematic learning process, starting with self-study within the group Community enterprise Therefore study and exchange experiences from external learning sources between enterprises or networks until being able to determine guidelines for business development community enterprises appropriately.
3.2.4 Preventive strategies: arise from the participation of stakeholder groups and local agencies as Important factors for community enterprises. Providing support or interaction from local agencies will benefit community enterprise groups in the area. Government policy should give importance to upgrading the capabilities of community enterprises. There are measures to promote and support production, investment, and exports. Activities are Organized to strengthen the potential of entrepreneurs using their unique characteristics in local organizations to create value and market opportunities both domestically and abroad.
3.3 Environmental analysis concepts (SWOT Analysis)
Analysis techniques The internal and external environment of the organization To take advantage of strengths and adjust weaknesses. Including being able to see opportunities and prevent obstacles. That may occur to the organization (Wickramasinghe& Takano, 2009). Analysisof the External and Internal environment of the organization can used in planning work as wellas creating various strategies for operating the organization to be efficient and most appropriate to the actual conditions (Namugenyi, Nimmagaddab, &Reiners, 2019).
3.4 Strategy Creation Ideas (TOWS Matrix)
For creating new strategies appropriate for the organization from the current environment and situation (Oreški, 2012) developed from the SWOT Analysis technique by matching the organization's environment between Internal factors and external factors, this will result in 4strategies that are appropriate for that organization: (1) Maxi-Maxi Strategy, (2) Mini-Maxi Strategy, (3) Maxi-Mini Strategy, and (4) Mini-Mini Strategy (Weihrich, 1982).
4.Results and Discussion
4.1 Results
After the in-depth interview (Figure 1), Key informants include the president of the community enterprise and members of the community enterprise, including those Participants consisting of officials of the Provincial Agriculture Office, District Agriculture Office, or District Development Officer, the researcher conducted analyzed data with the SWOT analysis, Summarized in the following Table 1.
For creating new strategies appropriate for the organization from the current environment and situation (Creski, 2012) developed from the SWOT Analysis technique by matching the organization's environment between Internal factors and external factors, this will result in 4 strategies that are appropriate for that organization: (1) Maxi-Maxi Strategy, (2) Mini-Maxi Strategy, (3) Maxi-Mini Strategy, and (4) Mini-Mini Strategy, the following Table 2
From Table 2,The result with the TOWS Matrix techniques, in 4 strategies that are appropriate for that organization: (1) Maxi-Maxi Strategy, (2) Mini-Maxi Strategy, (3) Maxi-Mini Strategy, and (4) Mini-Mini Strategy, Summarized in the following.
SO Strategies (Maxi-Maxi Strategy):
(S1 + 01): Leverage various resources and quality products to capitalize on community values for increased sales.
(S3 + 03): Utilize OTOP standards and responsiveness to consumer demand to take advantage of the rise of online channels.
WO Strategies (Mini-Maxi Strategy):
(W1 + 01): Address the challenge of many products of the same type by focusing on products with values for communities.
(W2 + 02): Seek government and agency support to overcome the lack of modern technology for product development.
ST Strategies (Maxi-Mini Strategy):
(S2/S4 + T2): Use quality products and responsiveness to consumer demand to mitigate the impact of fluctuating oil prices and the world economy.
(S3/S1 + T3): Leverage OTOP standards and various resources to counteract the threat of lack of support from the government/relevant agencies.
WT Strategies (Mini-Mini Strategy):
(W1 + T1): Address the challenge of many products of the same type to avoid the negative impact of values for communities products on increased sales.
(W2 + T3): Mitigate the risk of lack of modern technology affecting product development by addressing the threat of lack of connection and integration of government and related agencies.
4.2 Discussion
Discuss the SO Strategies (Maxi-Maxi Strategy): Leveraging various resources and quality products to capitalize on community values for increased sales, community enterprises can focus on aligning their products (Chumkate, 2017) with the values and preferences of their local community can be combined including using locally sourced ingredients or materials, incorporatingtraditional craftsmanship or techniques, and promoting the unique cultural heritage of the communitythrough their products (Chandhasa and Pattanappanithipong, 2018). Engaging with the community through events, workshops, or social media can also help build a strong connection and loyalty among local consumers, increasing sales. Utilizing OTOP (One Tambon One Product) standards and responsiveness to consumer demand (Nimnuan, 2020) to take advantage of the rise of online channels involves ensuring that products meet the quality standards set by OTOP, which can enhance the credibility and appeal of the products to a wider range audience. Community enterprises can also use online platforms (Srisura et al., 2022) to reach new customers beyond their local area, leveraging the convenience and accessibility of online shopping to monitor and respond to consumerfeedback and market trends, which community enterprises can customize their products and marketingstrategies to meet evolving consumer preferences, thereby maximizing their online sales potential (Marthong, 2022).
Discuss the WT Strategies(Mini-Mini Strategy): To address the challenge of many products of the same type and avoid the negative impact on increased sales of products with values for communities, Community Enterprises can focus on differentiation and innovation (Tupkrut, Boonkuer, and Ampha, 2020). They can explore ways to add unique features or functionalities to their products that set them apart from competitors, including incorporating new technologies, improving product design (Srathongkham, Taiwan, and Thoongsuwan, 2022), or offering customizedoptions to meet specific customer needs. By continuously innovating and staying ahead of trends, community enterprises can maintain a competitive edge (Lalaeng, Chaiphet, and Uea-aree, 2022) and mitigate the risk of being overshadowed by similar products in the market. To Mitigate the risk of a lack of modern technology affecting product development, community enterprises can work on strengthening their connections and integration with government and related agencies, which can include participating in industry forums, engaging in dialogue with government officials (Sakunpong, 2022), and advocating for policies that support technological advancements in their sector. By building strong partnerships and collaborations, community enterprises can access resources (Jarudamrongsak, 2017), expertise, and funding opportunities that can help them overcome technological barriers and drive innovation in product development (Khwunnak, 2021).
Discuss the WO Strategies (Mini-Maxi Strategy): To address the challenge of many products of the same type, community enterprises can differentiate themselves by focusing on products with unique values for their communities (Supachariyawat and Jittichanon, 2019), whichcould involve emphasizing the Cultural significance, craftsmanship, or sustainability of their product. By highlighting these unique selling points, community enterprises can stand out in a crowded market and appeal to consumers who value authenticity and local identity. Seeking government and agency support can help community enterprises (Faicharoenmongkol and Chiangchana, 2022) overcome the lack of modern technology for product development. This support can come in various forms, such as funding for technology upgrades, training programs to enhance technical skills (Srisawat et al., 2023), or access to research and development resources. By partnering with government agencies or seeking grants and subsidies, community enterprises can improve their technological capabilities, Leading to more efficient production processes, higher-quality products, and increased competitiveness in the market (Inthakul, 2017).
Discuss the ST Strategies (Maxi-Mini Strategy): To use quality products and responsiveness to consumer demand to mitigate the impact of fluctuating oil prices and the world economy, community enterprises can focus on efficiency and flexibility (Aksornrat, 2022). They can streamline their production processes to minimize energy consumption and waste, reducing their dependence on oil-related inputs. Additionally, by closely monitoring consumer trends and preferences, community enterprises can quickly adjust their product offerings and marketing strategies (Nakruang, Wattanayuenyong, and Lekhawichit, 2017) to adapt to changing economic conditions. By maintaining high-quality products that meet consumer demands, community enterprises can maintain a loyal customer base and mitigate the impact of external economic factors. To leverage OTOP standards (Supachariyawat, A. and Jittichanon, 2019) and various resources to counteract the threat of lack of support from the government/relevant agencies (Phanthadaporn, 2015), community enterprises can demonstrate their commitment to quality and compliance. By adhering to OTOP standards, they can enhance their credibility and reputation, which can be attractive to customers and business partners. Additionally, community enterprises can seek alternative sources of support,such as collaborations with other organizations, crowdfunding initiatives, or seeking support fromprivate sector partners. By diversifying their support network (Sakunpong, 2022) and demonstrating their value proposition, community enterprises can reduce their reliance on government support and navigate challenges more effectively (Thamma, Chuamuangphan, and Wannalo, 2023).
By implementing these SO, WT, WO, and ST strategies, community enterprises can leverage their strengths and opportunities to overcome weaknesses and threats, ultimately achieving sustainable growth and success.
5. Conclusions and Recommendations
5.1 Conclusion
The following is a summary of the study's findings:
Capitalize on Strengths and Opportunities (SO): Use internet platforms and current resources to showcase community values through high-quality products.
Turn Weaknesses into Opportunities (WO): Combat a crowded market by focusing on products with strong community values and seek government/agency support to overcome technological limitations.
Minimize Threats with Strengths (ST): Maintain high-quality products and responsiveness to consumer demand to lessen the impact of economic fluctuations. Additionally, leverage OTOP standards and diverse resources to address the potential lack of government support.
Minimize Threats and Weaknesses (WT): Balance community focus with product diversification to avoid hindering sales. Additionally, strengthen connections with government and related agencies to overcome technological limitations and drive innovation.
5.2 Suggestions
The Community enterprise cluster in the Lower Northeastern Region of Thailand can leveragevarious strategies to enhance its competitiveness and resilience in the market by aligning its products with community values, emphasizing uniqueness and quality, and engaging with customers and stakeholders, which can increase sales and build strong connections with their local communities,including OTOP standards and online channels can further Away expand their reach and appeal tothe Wider audience. Addressing challenges such as product differentiation, technological limitations,and lack of government support requires a proactive approach, including innovation, collaboration,and support for implementing these strategies so that community enterprises can thrive in a dynamic and competitive business environment.
Acknowledgement
This research received no specific grant from the public, commercial, or not-for-profit funding agencies. Approval was obtained from the Kalasın University Social and HumanSciences Ethics Committee for the study (with the protocol number HS-KUS 004/2566 on 12.01.2023), and written and verbal approvals were obtained from the teachers who agreed to participate in the study.
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