The concept of community-based enterprises operated by small entrepreneurial groups involved in export of locally manufactured and produced products has become a globally recognized way to relieve rural poverty and urban flight. However, the factors involved in export performance strategies are less defined and can vary significantly from country to country. Production capacity for export purposes is a great challenge for developing nations, which in turn influences the quality, service standard, and production scale. Also, customer satisfaction with goods and service act as critical components to export performance. It was, therefore, the intent of this study to identify the factors and their interrelationships in Thailand’s globally recognized “‘One-Tambon, One-Product”’ (OTOP) government- sponsored export program. The main research instrument, which measured the five latent variables and 26 observed variables, was a questionnaire containing a 6-point unipolar scale to measure the opinions of the 500 exporter/manufacturer sample to the survey’s items. To access the measurement model, a confirmatory factor analysis (CFA) was employed using LISREL Version 9.1 prior to the use of a structural equation model (SEM) to analyze the 8-hypotheses model. Results supported similar studies in which it has been determined that product quality plays a key role in the export customer’s trust, which has a positive impact on distribution satisfaction. Top down management policies and pricing strategies, however, appear to be limiting factors to an OTOP exporter’s success. Finally, future focus should be given to Thai OTOP village cluster competitiveness, in which greater emphasis needs to be given to basic management training, leadership skills, product standardization, maintaining uniform output, understanding costs, and cash flows.
Keywords: microenterprise, OVOP, product quality, satisfaction, trustAaby, N. E., & Slater, S. F. (1989). Management influences on export performance: A review of the empirical literature 1978-–88. International Marketing Review, 6(4), 7-–25. doi:10.1108/EUM0000000001516
Abu-Jarad, I. Y., Yusof, N. A., & Nikbin, D. (2010). A review paper on organizational culture and organizational performance. International Journal of Business and Social Science, 1(3), 26-46–. Retrieved from http://tinyurl.com/hpgk2ro.
Agus, A., & Hajinoor, M. S. (2012). Lean production supply chain management as driver towards enhancing product quality and business performance: Case study of manufacturing companies in Malaysia. International Journal of Quality & Reliability Management, 29(1), 92-–121. doi:10.1108/02656711211190891
Al-Aali, A., Lim, J-S., Khan, T., & Khurshid, M. (2013). Marketing capability and export performance: The moderating effect of export performance. South African Journal of Business Management, 44(3), 59-–70. Retrieved from http://tinyurl.com/ych6tsjw.
Albright, J. J., & Park, H. M. (2009). Confirmatory factor analysis using Amos, LISREL, Mplus, SAS/STAT CALIS*. Retrieved from http://tinyurl.com/hp6xmhk.
Alsajjan, B. A. (2014). Satisfaction-trust model: Developing customer satisfaction and trust indices for mobile service providers in the UK. International Review of Management and Business Research, 3(2), 1088-–1104. Retrieved from http://tinyurl.com/jtya9eh.
Anderson, E. W., & Fornell, C. (2000). Foundations of the American customer satisfaction index. Total Quality Management, 11(7), 869–-882. doi: 10.1080/09544120050135425
Anh, N. T. (2013). One Village One Product (OVOP) in Japan to One Tambon One Product (OTOP) in Thailand: Lessons for grass root development in developing countries. Journal of Social and Development Sciences, 4(12), 529-–537. Retrieved from http://tinyurl.com/y8wuqv3d.
Asia-Pacific Economic Cooperation. (2003). Joint Ministerial Statement: Strengthening an APEC entrepreneurial society. APEC small and medium enterprise ministerial meeting. Held in Chiang Mai, Thailand, on August 7-8. Retrieved from http://tinyurl.com/hrmbulb.
Ayan, T. Y., & Percin, S. (2005). A structural analysis of the determinants of export performance: Evidence from Turkey. Innovative Marketing, 1(2), 106-–120. Retrieved from http://tinyurl.com/z589ofk.
Bartlett, W. J., & Bukvić, V. (2001). Barriers to SME growth in Slovenia. MOCT-MOST: Economic Policy in Transitional Economies, 11, 17-–195. doi: 10.1023/A:1012206414785
Bei, L. T., & Chiao, C. Y. (2001). An integrated model for the effects of perceived product, perceived service quality, and perceived price fairness on consumer satisfaction and loyalty. Journal of Consumer Satisfaction, Dissatisfaction and Complaining Behavior, 14, 125-–140. Retrieved from http://tinyurl.com/h43zkno.
Beleska-Spasova, E. (2014). Determinants and measure of export performance – comprehensive literature review. Journal of Contemporary and Business Issues, 1(1), 63-74. Retrieved from http://tinyurl.com/gqjsvmt
BEUC. (2015). Durable goods: More sustainable products, better consumer rights. Retrieved from http://tinyurl.com/y6wod9j8
Bilkey, W. J. (1978). An attempted integration of the literature on the export behavior of firms. Journal of International Business Studies, 9, 33-–46. Retrieved from http://tinyurl.com/hcd657f.
Brenčič, M. M., Ekar, A., & Virant, E. (2008). The influence of relationship marketing components on export performance: a comparison of transitional vs. established markets. Original Scientific Papers, 9-–18. Retrieved from http://tinyurl.com/zu5eb9c.
Brown, G. K. (2003). The impact of market orientation and its strategic antecedents on business performance: rReplication, corroboration, and extension of recent structural equation results. (Unpublished doctoral thesis). Thammasat University, Bangkok, Thailand. Retrieved from http://tinyurl.com/z28zhr9.
Byrne, B. M., Shavelson, R. J., & Muthén, B. (1989). Testing for the equivalence of factor covariance and mean structures: The issue of partial measurement invariance. Psychological Bulletin, 105, 456-–466. Retrieved from http://tinyurl.com/jjxcxb6.
Cagalitan, H. (2017, July 12). DTI hopes ‘one town one product’ reboot will bolster the local economy even. Panay News. Retrieved from http://tinyurl.com/y7fr2udh
Carneiro, J., da Rocha, A. da., & da Silva, J. F. da. (2007). A critical analysis of measurement models of export performance. BAR - Brazilian Administration Review, 4(2), 1-–19. doi: 10.1590/S1807-76922007000200002
Cavusgil, S. T., & Zou, S. (1994). Marketing strategy-performance relationship: An investigation of the empirical link in export market ventures. Journal of Marketing, 58(1), 1-–21.
Chang, K-C. (2012). How reputation creates loyalty in the restaurant sector. International Journal of Contemporary Hospitality Management, 25(4), 536-557. doi: 10.1108/09596111311322916
Chang, K. C., Kuo, N. T., Hsu, C. L., & Cheng, Y. S. (2014). The impact of website quality and perceived trust on customer purchase intention in the hotel sector: Website brand and perceived value as moderators. International Journal of Innovation, Management and Technology, 5(4), 255-–260. Retrieved from http://tinyurl.com/hfovk8g.
Changsorn, P. (2015, March 28). 3 categories seen as rising stars for top exports. The Nation. Retrieved from http://tinyurl.com/zmwmmfw.
Chau, P. Y. K. (1997). Reexamining a model for evaluating information center success using a structural equation modeling approach. Decision Sciences, 28(2), 309-–334. doi: 10.1111/j.1540-5915.1997.tb01313.x
Consult-Myanmar. (2017, August 9). How genius coffee cracked Myanmar’s premium export market. Retrieved from http://tinyurl.com/y6vtr882
Cronbach, L. J. (1951). Coefficient alpha and the international structure of tests. Psychometric, 16 (3), 297-–334. Retrieved from http://tinyurl.com/gtfuvqg.
Kositchotethana, B. (2017, February 20). Budget carrier’s’ passenger traffic continues to soar. Bangkok Post. Retrieved Accessed from http://tinyurl.com/len4qpe.
Fauji, F., & Utami, M. M. (2013). How intellectual stimulation affects knowledge sharing, innovation and firm performance. International Journal of Social Science and Humanity, 3(4), 420 – 425. doi: 10.7763/ijssh.2013.v3.274
Fujioka, R. (2006). Thai OTOP Project: Lights and Shadow of Grassroots Development Policy. Chapter 6,In A. Editor & B. Editor (Eds.), OVOP and Developing countries: Subtitle (pp. xx–xx). Place of publication: Institute of Developing Economies, Japan External Trade Organization (IDEJETRO).
Hair, J. F., Hult, G. T. M., Ringle, C., & Sarstedt, M. (2016). A primer on partial least squares structural equation modeling (PLS-SEM). Thousand Oaks, CA: Sage.
Haraguchi, N. (2008). The One-Village-One-Product (OVOP) movement: What it is, how it has been replicated, and recommendations for a UNIDO OVOP-type project. United Nations Industrial Development Organization (UNIDO). Retrieved from http://tinyurl.com/z6emv6a.
Hill, C. W. L., Jones, G. R., & Schilling, M. A. (2017). Strategic Management: Theory: An Integrated Approach (12th ed.). Singapore: Cengage Learning.
Hirohata, N. (2013). One Village One Product movement in Laos. International Journal of Engineering Innovation and Management, 3, 31-–35. Retrieved from http://tinyurl.com/zfac866.
Hooper, D., Coughlan, J., & Mullen, M. (2008). Structural equation modeling: Guidelines for determining model fit. Electronic Journal of Business Research Methods, 6(1), 53-–60. Retrieved from http://tinyurl.com/zyd6od2.
Hörstemeier, A. (2017, September 1). How many tambon are there in Thailand? [Blog post]. Retrieved from http://tinyurl.com/ydeqoj69.
Hox, J. J., & Bechger, T. M. (1998). An introduction to structural equation modeling. Family Science Review, 11, 354-373. Retrieved from http://tinyurl.com/ht6w8pe
Hu, L. T., & Bentler, P. M. (1999). Cutoff criteria for fit indexes in covariance structure analysis: Conventional criteria versus new alternatives. Structural Equation Modeling, 6(1), 1-–55. doi: 10.1080/10705519909540118
Ismail, M. D. (2011, December). Role of trust in SMEs export performance. Paper presented at the International Conference on Management, Economics and Social Sciences (ICMESS` 2011), Bangkok, Thailand. Retrieved from http://tinyurl.com/ycvohnbp.
Jaccard, J., & Wan, C. K. (1996). LISREL approaches interaction effects in multiple regression. Thousand Oaks, CA: Sage Publications.
Jin, B., Park, J. Y., & Kim, J. (2007). Cross-cultural examination of the relationships among firm reputation, e-satisfaction, e-trust, and e-loyalty. International Marketing Review, 25(3), 324-–337. doi: 10.1108/02651330810877243
Jones, C. & Pimdee, P. (2017). Innovative ideas: Thailand 4.0 and the fourth industrial revolution. Asian International Journal of Social Sciences, 17(1), 4 – 35. doi: 10.29139/aijss.20170101
Julian, C. C. (2003). Export marketing performance: A study of Thailand firms. Journal of Small Business Management, 41(2), 213-–221. doi: 10.1111/1540-627X.00077
Keengwe, J., & Onchwari, G. (2011). Computer technology integration and student learning: Barriers and promise., Journal of Science Education and Technology, 17, 560-–570. doi: 10.1007/s10956- 008-9123-5
Kline, R. B. (1998). Principles and Practice of Structural Equation Modeling. New York, NY: Guilford Press.
Krejcie, R. V., & Morgan, D. W. (1970). Determining sample size for research activities. Educational and Psychological Measurement, 30, 607-–-610. Retrieved from http://tinyurl.com/zpzqmo6
Krosnick, J. A., & Presser, S. (2009). Question and questionnaire design. In J. D. Wright, & P. V. Marsden (Eds.), Handbook of Survey Research (2nd Eed.; pp. xx–xx). San Diego, CA: Elsevier. Retrieved from http://tinyurl.com/jd6ztou
Lai, P. T. (2017, July 18). Introducing SMEs to “Industry 4.0”. Vietnamnet. Retrieved from http://tinyurl.com/ycnbxw9o.
Lakhanapipat, C., Smith, I., & Lobster, C. (2016). Leadership development in the One Tambon One Product (OTOP) scheme in Thailand. HRD Journal, 7(1), 36-–46. Retrieved from http://tinyurl.com/ybscsudl
Laosiri Hongthong, T., Teh, P.-L., & Adebanjo, D. (2013). Revisiting quality management and performance. Industrial Management & Data Systems, 113(7), 990-–1006. doi: 10.1108/IMDS-02-2013-0058
Li, Y., Westlund, H., Zheng, X., & Liu, Y. J. (2016). Bottom-up initiatives and revival in the face of rural decline: Case studies from China and Sweden. Rural Studies, 47, (Part B), 506–513.
Lin, P-H. (2013). Shopping motivations on the internet: An empirical study of trust, satisfaction and loyalty. International Journal of Electronic Business Management, 11(4), 238-–246. Retrieved from http://tinyurl.com/h2okcao.
Liu, Y., & Li, Y. (2017). Revitalize the world’s countryside. Nature, 548, 275–277. doi: 10.1038/548275a
Leonidou, L. C., Katsikeas, C. S., & Samieec, S. (2002). Marketing strategy determinants of export performance: aA meta-analysis. Journal of Business Research, 55, 51-–67. doi: 10.1016/S0148-2963(00)00133-8
Leonidou, L. C., (2004). An analysis of the barriers hindering small business export development. Journal of Small Business Management 42(3), 279-–302. doi: 10.1111/j.1540-627X.2004.00112.x
Lo, C. Y. (2003). E-Business marketing on relationship management models an empirical study in Taiwan (China) [Unpublished doctoral thesis]. University of Hong Kong, Hong Kong, PRC. Retrieved from http://tinyurl.com/j24tkk5.
Maital, S. (1995). When you absolutely, positively have to give better service. In C. E. Schneier, D. G. Shaw, R. W. Beatty, & L. S. Baird (Eds.), Performance Measurement, Management, and Appraisal Sourcebook, (pp. 247 – 249)., Amherst, MA: Human Resource Development Press.
Marsh, H. W., Hau, K. -T., & Wen, Z. (2004). In search of golden rules. Structural Equation Modeling, 11(3), 320-–341.
Madsen, T. (1987). Empirical export performance studies: a review of conceptualizations and findings. In S. T. Cavusgil (Ed.),. Advances in international marketing (Vvol. 2, pp. 177-–198). Greenwich, CT: JAI Press Inc.
Moha-Asri, A. (2002). The Impact of the Asian Financial Crisis on Small and Medium Enterprises in Malaysia: Policy Responses. Journal of Comparative Asian Development, 1(2), 227-–244. doi: 10.1080/15339114.2002.9678361
Moliner, M. A. (2008). Loyalty, perceived value and relationship quality in healthcare services. Journal of Service Management, 20(1), 76-–97. doi: 10.1108/09564230910936869
National News Bureau of Thailand. (2015, June 5). ‘Know global-build local’ fair helps Thai OTOP entrepreneurs reach the global market. Retrieved from http://tinyurl.com/hvw6rf3.
National News Bureau of Thailand. (2016, May 15). The government cooperates with Thai Airways to sell OTOP products. Retrieved from http://tinyurl.com/jypj5qc.
Natsuda, K., Wiboon Pongse, A., Cheamuangphan, A., Shingkharat, S., & Thoburn, J. (2011). One village, one product – rural development strategy in Asia: The case of OTOP in Thailand. (RCAPS Working Paper No. 11). Retrieved from http://tinyurl.com/z5kevlw.
Office of the Prime Minister. (2016). The government offers assistance to SMEs and OTOP operators [Press Release]. Retrieved from http://tinyurl.com/z9sdure
Phetcharat, C. (2017, August 15). Thai SMEs need to grow beyond the Kingdom`s borders. Bangkok Post. Retrieved from http://tinyurl.com/ycpyvama.
Piriyakul, M., & Wingwon, B. (2011). Societal activity of corporate social responsibility as a moderating factor of brand loyalty in the ceramic industry. Contemporary Marketing Review, 1(3), 12-–25. Retrieved from http://tinyurl.com/hxcngta.
Pope, R. A. (2002). Why small firms export: Another look. Journal of Small Business Management, 40(1), 17-–26. doi: 10.1111/1540-627X.00035
Poungsuk, P., Pourpan, N., & Thongsuk, P. (2016). Using the philosophy of sufficiency economy (PSE) in high school agricultural teaching in Northeastern (Isan) Thailand. Asian International Journal of Social Sciences, 16(1), 116 – 127. doi: 10.29139/aijss.20160106
Prayukvong, W. (2007). A Buddhist economic approach to happiness & capability linkage in OTOP craftsmen in Southern Thailand. Kasetsart Journal: Social Science, 28, 161-–176. Retrieved from http://tinyurl.com/z4y4rjq.
Pumim, A., Srinuan, C., & Panja Kajornsak, V. (2017). Mobile phone customer loyalty in Thailand: A path analysis case study. Asia-Pacific Social Science Review, 16(3), 65-–82. Retrieved from http://tinyurl.com/ydx9qhmo
Rasch, G. (1980). Probabilistic models for some intelligence and attainment tests. Chicago, IL: University of Chicago Press.
Rijkers, R. J. D. (2014). The influence of company image, trust and price on satisfaction and intensity of repurchase at the large retail businesses in Makassar, South Sulawesi Indonesia. International Journal of Business and Behavioral Sciences, 4(12), 1-–17. Retrieved from http://tinyurl.com/jdtg9xd.
Schumacker, R. E., & Lomax, R. G. (2004). A beginner`s guide to structural equation modeling. Mahwah, NJ: Lawrence Erlbaum Associates. Retrieved from http://tinyurl.com/z2sdwtr.
Sith Kong, S., & Pasurawan, T. (2004, July). Enhancing and harnessing the competitiveness of SME entrepreneurs: A market oriented approach, opportunities and challenges. Paper presented at the APEC Conference on Promoting APEC Entrepreneurs: A Financier’s Perspective, held on Month date range, in Hua Hin, Thailand.
Song, H. X., & Wang, F. S. (2011, August). Research on the relationship between corporate governance structure and diversification strategy. Paper presented at the International Conference on Management and Service Science (MASS), Wuhan, China. doi: 10.1109/icmss.2011.5998565
Sousa, C. M. P. (2004). Export performance measurement: An evaluation of the empirical research in the literature. Academy of Marketing Science Review, 8(9), 1-–22.
Steiger, J. H., & Lind, J. (1980). Statistically-based tests for the number of common factors. Paper presented at the Annual Spring Meeting of the Psychometric Society, Iowa City, IA. Retrieved from http://tinyurl.com/huxwndx.
Stuart, F. L., Verville, J., & Taskin, N. (2011). Trust in buyer-supplier relationships: Supplier competency, interpersonal relationships and performance outcomes. Journal of Enterprise Information Management, 25(4), 392-–-412. doi: 10.1108/17410391211245856
Styles, C., & Ambler, T. (1994). Successful Export Practice: The UK Experience. International Marketing Review, 11(6), 23-–47. doi: 10.1108/02651339410072999
Styles, C. (1998). Export performance measures in Australia and in the United Kingdom. Journal of International Marketing, 6(3), 12-–36. Retrieved from http://www.jstor.org/stable/25048738
Suindramedhi, X. (2016). The development of community enterprise: A case study of Moku Moku Farm in Mie Prefecture. Rangsit Journal of Social Science and Humanities, 3(1), 33-–48. Retrieved from http://tinyurl.com/jzhzmhs
The World Bank. (2010). Innovation policy: A guide for developing countries. Washington, DC: World Bank Group. Retrieved from http://tinyurl.com/hm84tt6.
TockMi, T. J. M., & Baharun, R. (2013). Introduction to SMEs in Malaysia: gGrowth potential and branding strategy. World Journal of Social Sciences, 3(6), 189-–203. Retrieved from http://tinyurl.com/yadnraq2.
Tohidinia, Z., & Haghighi, M. (2011). Predictors and outcomes of relationship quality: A guide for customer-oriented strategies. Business Strategy Series, 12(5), 242 – 256. doi: 10.1108/17515631111166889
Tsiotsou, R. (2005). The role of perceived product quality and overall satisfaction on purchase intentions. International Journal of Consumer Studies, 30 (2), 207 – 217. Retrieved from http://tinyurl.com/jfl8t6y.
Ullman, J. B. (2001). Structural equation modeling. In B. G. Tabachnick & L. S. Fidell (Eds.),. Using Multivariate Statistics, (4th ed.; pp. xx–xx). Needham Heights, MA: Allyn and Bacon.
United States Agency for International Development. (USAID) (2005). Thailand competitiveness initiative: Accelerating economic recovery in Asia. Retrieved from http://tinyurl.com/yapybzew
Ural, T. (2009). The effects of relationship quality on export performance. European Journal of Marketing, 43(1/2), 139-–168. doi: 10.1108/03090560910923274.
Uslaner, E. M. (2001, September 15-21). Trust as a moral value. Paper presented at Social Capital: Interdisciplinary Perspectives held on September 15-21 at. University of Exeter, United Kingdom. Retrieved from http://tinyurl.com/y77z4fq2
Valvi, A. C., & West, D. C. (2013). E-loyalty is not all about trust, price also matters: eExtending expectation-confirmation theory in bookselling websites. Journal of Electronic Commerce Research, 14(1), 99-–123. Retrieved from http://tinyurl.com/hovdxth
Vesel, P., & Zabkar, V. (2010). Comprehension of relationship quality in the retail environment. Managing Service Quality, 20(3), 213-–235. doi: 10.1108/09604521011041952
Voerman, L. (2003). The Export Performance of European SMEs. Alblasserdam, The Netherlands: Labyrint Publication. Retrieved from http://tinyurl.com/jrk8cun
Wang, E. S-T., & Tsai, B-K. (2012). Consumer response to retail performance of organic food retailers. British Food Journal, 116(2), 212-–227. doi: 10.1108/BFJ-05-2012-0123
Wong, K. K.-K. (2013). Partial Least Squares Structural Equation Modeling (PLS-SEM) Techniques Using SmartPLS. Marketing Bulletin, 24, Retrieved from http://tinyurl.com/j2qjdyr
Yamane, T. (1967). Statistics:, an introductory analysis (2nd Eed.). New York, NY: Harper and Row.
Zou, S., Taylor, C. R., & Osland, G. E. (1998). The EXPERF Scale: A cross-national generalized export performance measure. Journal of International Marketing, 6(3), 37–58. Retrieved from http://tinyurl.com/hm552tr
Zou, S., & Stan, S. (1998). The determinants of export performance: a review of the empirical literature between 1987 and 1997. International Marketing Review, 15(5), 333-–356. doi: 10.1108/02651339810236290