Journal of Global Business Review Volume 19 No. 1 January-June 2017 Semiannual Publication: January-June and July – December Aims and Scope Journal of Global Business Review is a peer-reviewed journal, published by the Graduate School of Commerce, Burapha University. The journal aims to be an arena for international exchange of knowledge in the field of business, management, marketing, finance, operations management, economics, human resource management and relevant subjects. Quality research articles and academic articles from around the world are welcomed to be considered for publication.

Managing Editor Asst. Prof. Banpot Wiroonratch, Ph.D. Burapha University

Editorial Board Prof. Carla Locatelli, Ph.D. Social Science University of Trento, Trento, Italy Prof. Margaret Deery, Ph.D. Victoria University, Melbourne, Australia Prof. Ainin Sulaiman, Ph.D. University of Malaya, Kuala Lumper, Malaysia Prof. Ir. Didik Sulistyanto, Ph.D. Embassy of Indonesia, Indenesia Prof. Norma Mansor, Ph.D. University of Malaya, Kuala Lumper, Malaysia Prof. Andrew Criswell, Ph.D. Hedmark University College, Norway Prof. Fauzias Mat Nor. Ph.D. Graduate School of Business, Banji, Malaysia Prof. Brian Corbitt, Ph.D. College of Business RMIT University, Melbourne Prof. Emeritus. Harry J. Bury, Ph.D. Baldwin Wallace College, Berea, Ohio, USA. Assoc. Prof. Robert Inbakaran, Ph.D. University of Canberra, Australia. Assoc. Prof. Olivier Guyottot, Ph.D. Montpellier Business School, Montpellier, France Asst. Prof. Benjamin C. Powell, Ph.D. A ppalachian State University, Boone, North Carolina, USA Assoc. Prof. Rana Pongruengphan, Ph.D. Burapha University Asst.Prof Adisak Chanprapalert, D.B.A. Burapha University Asst. Prof. Yordying Thanatawee, Ph.D. Burapha University Asst. Prof. Suchonnee Methiyothin, D.B.A. Burapha University Asst. Prof. Sarunya Lertputtharak, D.B.A. Burapha University Krit Jarinto, D.B.A. Burapha University Hugh Fox III, Ph.D. Burapha University

Editorial Assistant Wilailuk Khamloy, M.B.A. Burapha University

Editorial Office Graduate School of Commerce, Burapha University 169 Long-Hard Bangsaen Road, Bangsaen, Saensuk Sub-District, Mueang District, Chonburi 20131

Tel: 038-394900 ext. 132 E-mail address: [email protected] ISSN: 16897165 Journal of Global Business Review

ISSN 1689-7165 Volume 19 No. 1 January-June 2017

Table of Contents The Development Guidelines for Working Efficiency of ASEAN Employees 1 Krisada Chienwattanasook, Boontharika Wongwanich The Relation between Institutional Context and Business Performance of the Firms within VAT Refund for Tourists in Chiang Mai 11 Satha Waroonkun Strategy and Success of the Small and Medium Enterprisesin Bangkok and its Vicinities 21 Pornapa Peamchai

The Effect of Service Marketing Mix Factors on Decision Making to Choose a Nursery of Parents in Meaung Chonburi District, Chonburi Province 37 Angkanita Muangput, Sarunya Lertputtarak, Wilailuk Khamloy The Study of Relationship between the Level of Sustainability Report Disclosure and Security Prices of Listed Companies in the StockExchange of Thailand 47 Sumalee Hodkum, Sakchai Chanruang Journal of Global Business Review : Volume 19 No. 1 January-June 2017 pp. 1-9

THE DEVELOPMENT GUIDELINES FOR WORKING EFFICIENCY OF ASEAN EMPLOYEES

Krisada Chienwattanasook1*,Boontharika Wongwanich1* 1Faculty of Business Administration, Rajamangala University of Technology Thanyaburi, Pathum Thani, 12110

ABSTRACT The objectives of this research were 1) to examine opinions regarding the desirable characteristics, working efficiency and st21 century working skills of employees in the selected ASEAN-employee organizations according to the organization’s perception and employee’s self-assessment, and 2) to review relationships between desirable characteristics and working efficiency as well as relationship between 21st century working skills and working efficiency. The study area included the organizations located in Bangkok, Thailand. Purposive sampling method was employed in this study in order to select participants from the ASEAN-employee organizations. The data were collected with questionnaires distributed to 80 managers and 400 employees from eight selected organizations. The findings indicated the levels regarding the working efficiency and employee’s working skills were found indifferent in the views of the organization’s need and , employee’s self-assessment. For the desirable characteristics, it was found that the employees evaluated themselves higher than what the managers had perceived. Also, the desirable characteristics had a significant relationship with the working efficiency (R = .573 for managers, R = .725 for employees). Lastly, the 21st century working skills had significant relationship with the working efficiency (R = .405 for managers, R = .499 for employees) at the statistical significance level of 0.05.

Keywords: Performance efficiency, desirable characteristics, st21 Century Skills

*Author e-mail address: [email protected]; [email protected] 2 Journal of Global Business Review

Introduction Research Purpose Entrepreneurs these days need to adjust themselves 1. To study the opinion levels regarding working to trends while implementing new business strategy efficiency, desirable characteristics and st21 century in order to keep up with products and services’ working skills measured by both selected ASEAN- standard. At the same time, cost should be maintained employee organizations’ need and employee’s at low level in order to gain advantage over self-assessment. competitors. Unfortunately, one significant factor to 2. To study relationship between desirable success is “employees” who were difficultly found in the characteristics, 21st century working skills and labor market. Thus, most organizations call for a great working efficiency which meets the expectation number of skillful, yet affordable, employees as their of the selected ASEAN-employee organizations performance efficiency with professional moral could located in Bangkok. pave the way to success.,Thangpreechaparnich (2012). In 2015, Thailand joined ASEAN community with Research Hypothesis Mutual Recognition Arrangement (MRA) that allowed 1. Performance efficiency, desirable characteristics certain professions to voluntarily transfer within and 21st century working skills of staff in member countries. So far the agreement has been ASEAN-employee organizations measured by applied to 7 professions: engineer, medical, nurse, organization’s need and employee’s self-assessment architect, physician, dentist and accountant. (Chula are indifferent. Uniresearch, Chulalongkorn Univerysity, 2015). With 2. The employee’s desirable characteristics and free trade, skilled labors would be able to migrate 21st century working skills have an effect on within ASEAN countries. It was expected that once their performance efficiency in ASEAN-employee Thailand joined ASEAN community, foreign skilled organizations. labors from other member countries would be able to work despite the differences in language, culture Literature Review and levels of work performance. Organizations must Performance efficiency concept adjust themselves with this new environment Thanawangnoi (2012, p.170) explained that for more human resource practice efficiency in personnel was the key to the success of organization. order to have an approach to skillful employees It was generally accepted that human was the most (Vichiennoi, 2015). valuable and important factor of the management With diversity in races and cultures, it was a principle. Reinforcing working requirement to challenge for human resource management under employee would increase employee’s positive working new circumstance, changing economy, politics and attitude and devotion for company’s progressive technology in modern days in order to acquire the success. It was essential for the executive to take personnel who were efficient at work, However, the ultimate efficiency into consideration as there each employee held different thoughts and attitudes were theories regarding employee’s motivation towards organization managements. The study; that focused on means to get employee’s devotion, therefore, aims at studying the guidelines for responsibility and attention leading to loving, optimizing performance efficiency of ASEAN positive relationship and loyalty towards the employees regarding their working efficiency, desirable organization. characteristics, and 21st century working skills. In other words, personnel needed a lot of factors: Organizations hiring ASEAN employees which knowing time management, having ways to were situated in Bangkok were selected to be increase confidence, being a good team player, further explored. Findings will become a guideline working morally with positive attitude, to work for schools to produce eligible graduates who fit efficiently from his or her potential and to stick to employers’ needs. the goal,. In addition, work system of organization Journal of Global Business Review 3 with solid management policy plan and systematic Joseph (1983, p. 11 cited in Chueasraku, 2008) management would also facilitate the faster and studied consumer’s perception and suggested 5 more efficient working process. characteristics every service provider’s organization The concept of employee’s desirable characteristics should possessed as follows; 1) pleasant attitude, Although plenty of studies have described desirable 2) giving responsive and correct answer, 3) being employee’s characteristics of various professions, well-equipped, 4) being skilled and trained and there was not yet a direct study regarding ASEAN 5) punctuality. employees who could be massive and different in Chueasraku (2008) had divided characteristics of each organization. However, significant desirable service staff into 2 categories which were personal characteristics could be referred to in some characteristic and professional characteristic. For vocations as following; instance, personal characteristics referred to bright Brown (1989, pp. 89 cited in Chueasraku, 2008) personality and “service mind” while professional had summarized the service staff’s characteristics characteristic was related to “knowledge”, “skills” into 3 categories; and “working abilities.” 1. Staff who displays courage and out-going 21st century working skill concept personality has self-confidence and determination According to studies and articles regarding 21st to complete jobs given. century working skills (Tisana Khammani, 2002; Wichan 2. Staff who is able to enthusiastically adjust himself Panich, 2002 cited in Thanormchayathawat, 2016), to others with flexibility in interpersonal interaction educational challenges in 21st century prompted the is able to deal with tasks tactfully. students to adjust themselves to changing 3. Staff who is compassionate is essential, and the environment and to dwell with “learning skill” as service staff should be amicable and carry courtesy it has been the age of studying strategically by while handling customers. building patterns and guidelines to strengthen the The characteristics mentioned above reflected service learning management capability. Students would be staff’s “attitude” during their proper interaction with encouraged to build knowledge, skill and expertise to clients and could predict behaviors in selecting dwell in modern days. Partnership For 21st Century services afterwards. The service provider business Skills (www.p21.org), or P21 network in short, also grew once their staff delivered service that met suggested a “model” for 21st century learning that the client’s expectation. Therefore, an organization integrated knowledge, specific skills, and proficiency would look for new recruits with working talent, for both working and living aspects. responsibility and service mind to raise the Researchers would like to summarize literature possibility to success. review as below. Independent variable Dependent variable Desirable characteristics Professional Knowledge Employee’s performance efficiency Foreign Language Skill Swiftness Technology Proficiency Accuracy Moral and Ethics Knowledge Leadership Experience Creativity 21st century working skills Figure 1 Research framework 4 Journal of Global Business Review

Research Method This is a Quantitative Research using Survey Research Findings Research Method in which information was collected Part 1 Finding of general survey response analysis in the form of questionnaire. For executive profile, most of them were women 1. Population and sampling aged 25-35 years, single, and having bachelor’s Executives and staff in eight selected ASEAN- degree, and their entry level was manager in employee organizations in Bangkok represented 8 an organization with over 201 employees. They different industries which included 1) agricultural had 5 – 10 years of work experiences in Thai and food chemistry, 2) fast moving consuming organizations in agricultural and food chemistry, fast goods industry (FMCG), 3) financial institutes, moving consuming goods industry (FMCG), financial 4) industrial goods, 5) real estate business, 6) resource institutes, industrial goods, real estate business, resource business and (7) technology service cooperation business and technology service cooperation and 8) Technology corporation. Purposive Sampling and earned 20,000 – 25,000 baht a month. Quota Sampling were used to select 80 executives For staff profile, most of them were women aged (10 of each selected organization) and 400 staff 25-35 years, single, having a bachelor’s degree (50 of each selected organization). The total number and earning 20,001 – 25,000 baht a month in of the sampling was 480. an organization with over 201 employees. They 2. Research tools had 11 – 15 years of work experiences in Thai Questionnaire was distributed and concepts and organizations in agricultural and food chemistry, theories were analyzed from related documents and fast moving consuming goods industry (FMCG), studies to cover the research concepts. The financial institutes, industrial goods, real estate questionnaire was also presented to 3 processionals business, resource business and technology service to assess content validity using the index of cooperation. item-objective congruence measure as well as to Part 2 Performance efficiency, desirable characteristics assess reliability of each variable with Cronbach’s and 21st century working skills in ASEAN-employee coefficient alpha. organization.

Table 1 Mean and Standard Deviation of staff’s performance efficiency level perceived by manager versus employees in the selected ASEAN-employee organization’s self-assessment. Manager Employee Work efficiency t value X SD X SD 1. Swiftness 3.89 0.55 3.92 0.54 - 0.4071 2. Accuracy 3.77 0.49 3.78 0.53 - 0.1521 3. Knowledge 3.89 0.50 3.93 0.54 - 0.5964 4. Experience 3.99 0.55 3.96 0.57 0.4068 5. Creativity 3.75 0.55 3.82 0.58 -0.9491 Total 3.86 0.39 3.88 0.43 - 0.3822

In conclusion, managers preferred staff with experience, swiftness. T-test result turned out to be less than swiftness and knowledge respectively while staff t critical value (t.05,478 = 1.96496) as manager’s from the staff’s self-assessment ranked experience perception towards work efficiency was not different the first which was followed by knowledge and from employee’s self - assessment either. Journal of Global Business Review 5

Table 2 Mean and Standard Deviation of staff’s desirable characteristics perceived by managers versus employees in the selected ASEAN-employee organization’s self-assessment. Manager Employee Desirable characteristics t value X SD X SD 1. Professional knowledge 3.00 0.57 3.92 0.57 - 12.0428 2. Foreign language skill 2.20 0.67 3.58 0.74 - 15.3540 3. Technology Proficiency 2.50 0.70 3.91 0.71 - 15.0269 4. Moral and Ethics 2.75 0.60 4.14 0.64 - 17.2728 5. Leadership 2.50 0.67 4.10 0.64 -17.8621 Total 2.95 0.43 3.93 0.46 - 16.9919 Table 2 revealed that all of t-statistic was higher skill was ranked the last. Meanwhile, employee’s than t critical value since staff seemed to rate self-assessment suggested that employees highly themselves higher than what manager had perceived. rated their desirable characteristics in all aspects However, manager favored staff with experience such as moral and ethics, leadership, professional the most, followed by moral and ethics, technology knowledge, technology proficiency skill and foreign proficiency and leadership while foreign language language skills, respectively.

Table 3 Mean and Standard Deviation of 21st century working skills perceived by managers and employees from the selected ASEAN-employee organization’s self-assessment. Manager Employee Working skills t value X SD X SD 1. Reading and Comprehension Skill 3.69 0.82 3.86 0.79 -1.5474 2. Writing for Organizational Communication Skill 3.75 0.77 3.90 0.77 -1.4534 3. Mathematics Skill 3.60 0.82 3.76 0.81 -1.4560 4. Judgmental Thinking Skill 3.66 0.73 3.88 0.73 -2.2486 5. Systematical Analysis Skill 3.73 0.73 3.97 0.69 -2.4544 6. Personal Problem Solving Skill 3.76 0.73 3.95 0.74 -1.9417 7. Work Problem Solving Skill 3.88 0.68 4.01 0.72 -1.4255 8. Cooperative Working Skill 4.00 0.80 4.12 0.73 -1.1202 9. Team Working Skill 3.98 0.73 4.12 0.69 -1.4317 10. Leadership Skill 3.91 0.60 4.04 0.64 -1.6154 11. Supporting Skill 3.91 0.62 4.01 0.66 -1.2025 12. Technology Proficiency 3.93 0.67 3.88 0.70 0.5565 13. Various Technology llikS 3.70 0.74 3.88 0.72 -1.8154 14. Computer Literacy 3.80 0.83 3.99 0.75 -1.7096 15. Learning Skill 3.95 0.69 4.05 0.71 -1.0810 16. Creative Thinking Skill 3.76 0.73 3.97 0.71 -2.1470 17. Inventive Management Development Skill 3.75 0.75 3.97 0.73 -2.1892 18. Stress Management Skill 3.71 0.83 3.91 0.78 -1.7990 6 Journal of Global Business Review

Table 3 According to manager’s expectation for Also, Table 3 indicated that most t-test results were st staff’s 21 century working skills which ASEAN- lower than t critical value (t.05,478=1.96496) implying employee organization’s executive prefer were put into that the perceived 21st century working skills by categories, the most favorable skills were cooperative employers and employee’s self-assessment were working skill (4.00), team working skill (3.98) and not different except for judgmental thinking skill, learning skill (3.95) consecutively while the least systematic analysis skill, creative thinking skill and expected skill was mathematics skill (3.60). At the inventive management development skill. same time from employee’s self-assessment results, Part 3 Desirable characteristic factors and 21st century team working skill was ranked first (4.12) followed working skills affect staff’s performance efficiency by learning skill (4.05) and leadership skill (4.04). in ASEAN-employee organization in Bangkok.

Table 4 Findings of coefficient of multiple correlation of staff’s desirable characteristics versus their performance efficiency. Model R R Square Adjusted R Std. Error of the Estimate Square Manager 0.573 0.328 0.283 0.326 Employee 0.725 0.526 0.520 0.297 Next, the desirable characteristics and staff’s work those from employee’s perspective demonstrated efficiency based on manager’s perception exhibited R = 0.725 with forecast possibility when all five R = 0.573 with forecast possibilities when all five desirable characteristics were combined at 52.0% desirable characteristics combined at 28.3% while Table 5 Findings of coefficient of multiple correlation of st21 century working skills versus staff’s work efficiency. Model R R Square Adjusted R Std. Error of the Estimate Square Manager 0.405 0.164 0.154 0.354 Employee 0.499 0.249 0.247 0.372 Table 5 displayed the relationship between 21st It was discovered that performance efficiencyfrom century working skills and staff’s work efficiency manager’s perception and staff’s self-assessment were based on manager’s perception, and R equals 0.405 in high level and were indifferent in every aspect in with forecast accuracy of 15.4% and the relationship accordance with Yuenyong (2014) who pointed that between 21st century working skills and staff’s work there was no different among employee performance efficiency based on employee’s self-assessment, and despite being diverse genders, age, status and R equals 0.499 with forecast accuracy of 24.7% education. The research on desirable characteristics found that employees evaluated themselves higher Discussion and Analysis than that of managers’ perception which was Hypothesis 1 Performance efficiency, desirable not consistent with Thangpreechaparnich (2012). characteristics and 21st century working skills of Thangpreechaparnich studied desirable characteristics staff in ASEAN-employee organizations measured by of accountants and advised that all organizations organization’s need and employee’s self-assessment needed staff with professional background and are indifferent. basic knowledge such as language and technology Journal of Global Business Review 7 proficiency to gain advantages in work performance. perceived by managers was 0.405 while that of In 21st century working skills aspect, both managers employee’s self-assessment was 0.499. and employees were like-minded except for judgmental Both manager’s perception and staff’s self-assessment thinking skill, systematic analysis skill, creative thinking on 21st century working skills and performance skill and inventive management development efficiency endorsed Phetchara (2015) who mentioned skill in which employees assessed themselves higher that 21st century working skills were not only for than what managers had perceived. professors and students but could also applied to Hypothesis 2 Employees’ desirable characteristics all staff who attempted to strengthen their skill to and 21st century working skills have an effect on get accepted among working society and to continue their performance efficiency in ASEAN-employee living in modern days. The finding also aligned organizations. with the study from Thanormchayathawat (2016) Hypothesis 2.1 Employee’ desirable characteristics that it was crucial that schools getting prepared affect their performance efficiency in ASEAN-employee to foster their students to be able to handle their organizations. future living and career among current challenges From the coefficient of multiple correlations of in 21st century advanced education development. employees’ desirable characteristics and performance 21st century. efficiency from manager’s perception, it was found that in general the efficiency perceived by the Recommendation mangers was 0.573 while that of employee’s 1. Recommendation from this research self-assessment was 0.725. 1.1 Employee’s performance efficiency aspect When each aspect was identified separately, the The results of both managers and employee desirable characteristics from manager’s perception were generally satisfied. However, it is even better towards employee’s professional skill altered their for employees to adjust themselves to have higher performance efficiency of experience and creative performance efficiency and to increase organization’s thinking skill and the desirable characteristics in competitiveness. Moreover, organization should be technology proficiency affected knowledge efficiency on alert on circumstances that would enhance by 0.05 while employee’s self-assessment demonstrated employee’s performance efficiency such as initiating that all desirable characteristics (professional working motivation and task appreciation, giving knowledge, foreign language skill, technology appropriate compensation, developing self-development proficiency, moral and ethics and leadership) had encouragement and authorization. Such suggestions an impact on performance efficiency at 0.05. The would result in employee’s devotion leading to finding supported Krootboonyong (2014) who higher performance efficiency. observed that with rapid changes in economy and 1.2 Employee’s desirable characteristics society, Thai labor market required candidates The employee’s overall desirable characteristics with higher professional skills to compete with was at the moderate level. Employees should realize other countries. Development in education model and develop their foreign language skill, technology management entailed more educated, skillful candidates proficiency and leadership to advance their own with experience in accordance with organizations in advantages in the labor market although the which there was still the lack of employees with manager’s perception of which was still minor. It foreign language skill. could be staff’s additional learning or organizations Hypothesis 2.2 employees’ 21st century working could arrange internal training sessions or provide skills affect their performance efficiency in ASEAN- qualified instructors to improve employee’s talent. employee organizations. It is also inevitable for employees to be able to The coefficient of multiple correlations of employees’ adopt technology to both their daily and working 21st century working skills and performance efficiency life for increasing their technology proficiency 8 Journal of Global Business Review aspect. Organizations should arrange an orientation their future career to catch on to organization’s regarding technology tasks for the new recruits in expectation and life. Skills that are necessary for order to familiarize themselves with technology and work nowadays are life and career skills which to be able to perform accurately. could be further studied from 21st century learning The desirable characteristics from employee’s management concept (P21, 2015) self-assessment issued in high rating and this could be comprehended into 2 directions : In case of a 2. Recommendation for future research valid statement, it was positive that employees were 2.1 This research engaged factors of desirable so confident in their own potential that they could characteristics and working skills to examine employee’s overcome challenges efficiently. Thus, organization performance efficiency. In the future, there might should provide advance support of specific field be other factors such as motivation, stress, conflict, for employee’s career path. In case of exaggeration, awareness of organizational support, bonding within staff recognize their performance to be higher organization and so forth that have an impact than that of reality, and this could cause concerns on employee’s performance efficiency for better within organization’s personnel management since understanding. Also, study regarding new innovation it would alter employee’s self- acknowledgement to boost performance efficiency would be beneficial. and satisfaction towards compensation. To prevent 2.2 This research was conducted within Bangkok. such circumstances, organization should directly tell Therefore, future research could compare employees’ employee that there was the correlation between performance efficiency and management’s expectation performance efficiency and compensation and should from different areas. justify why assessment system is important because 2.3 This research used quantitative method. it indicates levels of performance efficiency and its Consequently, future research could add some explanation could also build employee’s confidence. qualitative approach using in-depth interview or 1.3 Employee’s working skill open-ended questions for deeper understanding Both manager’s perception and employee’s towards manager’s expectation or different context self-assessment were appraised as high score in terms in a wider organization category. of employee’s working skill with must-have abilities. However, employees should improve their abilities References in accordance with organization’s expectation for the Chueasraku, C. (2008). Perceived Service Staff’s higher performance efficiency. In Leadership aspect, Characteristics and Servic Quality of Employees most organizations distribute authorization to entry and Customers of True Move. Master’s Thesis level managers (horizontal authority) for flexibility (Industrial and Organizational Psychology), in running operation. Consequently, it is essential Psychology Department, Faculty of Liberal to have employees with leadership skills in most Arts, Thammasat University. organization to initiate and complete task rather Chula Uniresearch, Chulalongkorn University. (2015). than waiting for leader’s order and they should be ASEAN Economic Community. Retrieved from able to understand their role appropriately. Also, http://www.unisearch.chula.ac.th. manager could specifically identify employee’s role Krootboonyong, C. (2014). Desirable Characteristic in order to root their confidence when running of Accountant for Japanese Manufacturing operation. Manager could even encourage staff’s Companies in Thailand: Research Report. leadership skill by giving them opportunities to Bangkok: Thai-Nichi Institute of Technology. make their own judgments as well as cheer them Phetchara, Y. (2015). Skills of the Future [Review of the up and support their decision. book 21st Century Skills: Rethinking How Students In At the present time, Thai schools prioritize Learn (Leading Edge), by James Bellanca & student’s talent development before graduation for Ron Brandt]. Information. 22(2), 97-100. Journal of Global Business Review 9

P21. (2015). Framework for 21st Century Learning. Thanormchayathawat, B. (2016). 21st Century skills: Retrieved from http://www.p21.org/our-work/ A challenge for student development. The p21-framework. Southern College Network Journal of Nursing Thanawangnoi, L. (2012). The Relationship between and Public Health, 3(2), 208-222. Human Resource Management and Performance Vichiennoi, N. (2015). Review of AEC. Retrieved Efficiency of Betagro Group Employees. In from http://www.thai-aec.com/161. Proceedings the 2nd STOU Graduate Research Yuenyong, T. (2014). Factors related to work efficiency Conference (pp. 170-171). School of Management of staff at the municipality in Pathumthani Science, Sukhothai Thammathirat Open district, Pathumthani. Pathumthani University University. Academic Journal, 6(3), 29-40. Thangpreechaparnich, P. (2012). The Favorable characteristics and qualifications of accounting staffs preferred by enterprises: A case study of the Samutsakorn Industrial Estate. RMUTT Global Business and Economics Review, 7(2), 158-173.

Journal of Global Business Review : Volume 19 No. 1 January-June 2017 pp. 11-20

THE RELATION BETWEEN INSTITUTIONAL CONTEXT AND BUSINESS PERFORMANCE OF THE FIRMS WITHIN VAT REFUND FOR TOURISTS IN CHIANG MAI

Satha Waroonkun1* 1Faculty of Business Administration, Maejo University, Chiang Mai 50290, Thailand.

ABSTRACT This article demonstrates the effects of business motivation on implementing value added tax refund for tourists’ systems (VAT refund). It examined the relationship between the institutional context and business performances of the firms within value added tax (VAT) refund for tourists in Chiang Mai, both in internal context and external context. The findings showed that internal institutional context, consisting of management factor and marketing factor had the positive effect on business performance. Therefore, a key decision for managers or owners was to focus on internal institutional context for making a decision to implement VAT refund which helped to achieve business performance.

Keywords: Value added tax, VAT refund, internal institutional, external institutional, business performance

*Author e-mail address: [email protected] 12 Journal of Global Business Review

Introduction International Airport, and Phuket International The tax system is one of the main elements of Airport. Presently, the VAT Refund for Tourists market economy. It is the government’s main Offices is available at 8 international airports which instrument influencing the development of are Suvarnabhumi, Don Mueang, Chiang Mai, Phuket, economic and social development. Tourism industry Hat-Yai, U-Tapao, Krabi and Samui International is important industry in Thailand. Thailand tourism Airports (Thailand, 2016). industry is growing at the rate of 5.45 percentage According to VAT Refund systems, traveler with of tourism direct GDP (TDGDP) compared within purchase must first retrieve the VAT voucher from the country whose ratio is likely to increase. This their luggage and then present the voucher to the has contributed to new jobs, approximately 4.45 customs authority at the airport. In many cases, million in 3 quarters of 2015 or 11.64 percentage the baggage has previously been checked in to the of overall employment (Staff, 2015). airline, thereby preventing the presentingof the voucher Tax free shopping provides many advantages, such to the customs authority. Even after the voucher as new jobs, opportunity for exports, and support has been presented and certified by the customs of tourism market which does not require high authority, it is still necessary to go to a separate initial cost. Moreover, businesses have an opportunity office to receive the refund. Such procedures are to sell their products at the lower price. Governors intolerable to a typical tourist. The computerized have promoted the tourism industry by using system disclosed herein eliminates the necessity for recovery systems of the value added tax on goods visiting both the customs authority and the refund and services to tourists. Value added tax can be office since the VAT refund is simply posted to the recovered on purchases made by foreigners in the credit card account at the time of purchase. Due to reverse crossing border of the country in which they the complexities of the procedures and the number were acquired. Several countries have implemented of companies that operate refund programs long value added tax refunds system for tourists, such lines at the airport counters make many tourists as Tax Free in Europe, GST refund in Singapore, either lose out or being charged with exorbitant Tourist Refund Scheme (TRS) in Australia and fees (Mingjie, 2016). However, small business is other systems of their cover of value added tax the most flexible and easily-adaptable to market during the export of goods bought by foreigners fluctuations of the market forms of business and it needs during their stay in the country (Nikolaevna, 2013). active government support (Nikolaevna, 2013). Foreigners visiting the country imposing the VAT Therefore, the role of taxation enhances the are exempt if the aggregate purchases do not exceed competitiveness of organization in Chiang Mai for a predetermined amount. The procedure for collection tourism and takesg national features and current of the VAT from foreigners, particularly tourists, is trends of VAT Refunds in Chiang Mai Thailand into time consuming and a financial drain on the foreigner, account. This study investigated factors influencing the retail establishment, and the government. firm performance in order to formulate guidelines The VAT Refund for Tourists Office was established to apply VAT refunds for an organization. The research on June 1st, 1999 by the Revenue Department to questions for this investigation are as follows: promote tourism in Thailand through the tax incentives. 1. What factors influence firm performance after The office reports directly to the Director-General organizations implementing VAT refunds systems? of the Revenue Department or a person assigned 2. Which factors can motivate the organizations to by the Director-General for a precise, prompt and implement VAT refunds systems? efficient management. At the beginning, the offices were operated at 4 major international airports Review of the Literature and Theoretical which were Bangkok International Airport (Don Concept Mueang), Chiang Mai International Airport, Hat-Yai This study applies a concept of the neoinstitutionalism Journal of Global Business Review 13 theory to help the understanding of the relationship institutionally desirable behavior considered to be among variables in the conceptual model. The organizationally internalized to the extent that it is neoinstitutionalism theory is the organizational reflected in an organization’s structures, strategies, behavior which is determined by cultural norms and routines (Bresser & Milloning, 2003). Moreover, and values rather than by efficiency consideration normative pressures explain not only the adoption in each society where there are fundamental of an innovation, but also the implementation of institutions embodying expectations that specify the innovation (Huo, Han, Zhao, Zhou, Wood, & why it may be useful for the organizations, what Zhai, 2013). This is relevant for all types of organizational purposes they should fulfill, and how they should decision to extent?? specific environment demands be designed (Bresser & Milloning, 2003). Institutional that are compatible with an organization’s system of isomorphic change occurs with three mechanisms, norms and values and should therefore be adopted. consisting of coercive isomorphism, mimetic Organizations can anticipate emerging regulatory processes, and normative pressures which come from constraints, reduce the stringency of anticipated different conditions and lead to different outcomes mandatory regulations and thus reduce the expected (Dimaggio & Powell, 1983). costs of compliance in the future (Phan & Baird, Additionally, Neoinstitutionalism is a consequence 2015). for the firms’ strategic management because internal Management factor and external institutional environments have a According to institutional theory companies sometimes, profound impact on organizational success and under pressure from stakeholders, adopt practices survival. Internal institutional context affects firm which are environmentally friendly and beneficial to to elicit varying responses and influences from the society. There is a dire need for companies, especially external environment. On the other hand, external those engaged in manufacturing activities, to take a institutional context affects firm by means of act proactive, rather than a reactive, approach in this of the state, regulative processes of rule setting, regard (Dubey, Gunasekaran, & Ali, 2015). Then, monitoring, and sanctioning. This will help a firm top management uses organization’s resources into to have a competitive advantage when it creates a a unique and viable posture based on its relative successful strategy suitable for its firm environment internal competencies and shortcoming, anticipated which can increase its performance. Moreover, it has changes in the environment, and contingent is moved been found that institutional pressure is significant by intelligent opponents. Manager can use strategic on firm performance (Fikru, 2014; Huo, Han, Zhao, planning to create organizations goal congruence, Zhou, Wood, & Zhai, 2013). Therefore, this study support creativity, change circumstances (Whittington aims at examining the relationship among internal & Cailluet, 2008), and determine the success or institutional context, external institutional context, failure of an organization (Hyness, 2009). Moreover, and firm performance. The internal institutional this can lead to clear operation, understanding contexts include management factor, marketing evaluating job accomplishment systematically, and factor, and technology and machinery factor. In correct direction for investment (Ocasio & Josephe, additionthe external institutional contexts include 2008). VAT refund for tourism can reduce prices economic condition factor and politics and legal for tourist services. Given that the price is the factor. Thus, the research model shows that the most important factor in the competitiveness of relationships between institutional context and firm tourism organization, their competitiveness will performance. These are shown below. increase as a result of the modernization of the 2.1 Internal Institutional Context tax system and the development of the tourism Internal institutional context is dominated by market (Nikolaevna, 2013). Manager can use VAT the normative component which exerts external refund as strategic planning to support creativity pressures on an organization by specifying and changing circumstance for their organization 14 Journal of Global Business Review performance. Thus, management factor seems to isomorphism resulting from the firm’s rational have a positive relationship with firm performance. desire to imitate the behavior of other organization. Therefore, we posit the hypothesis as follows: Uncertainty is powerful force that encourages H1a: The management factor positively impacts imitation because an organization faces a problem firm performance. with ambiguous causes or unclear solutions and Marketing factor wants its own model different from that of other Market pressures such as competitive pressure help organizations; and 3) normative isomorphism or set an organization to improve the economic benefits of expectation in particular organizational contexts available from adoption of different management about what constitutes appropriate and legitimate practices (Zhu & Sarkis, 2007). Marketing benefits behavior, as established by social organization, from VAT refund for tourism (VRT) come from professional association, or academic institutions. the Revenue Department that provides VRT sign to There are three benefits of VAT: neutral effect on show the privilege from joining in VRT system. A taxation, transparency of taxation and prevention trader in VRT system can get VRT sticker and VRT against tax evasion. The principle of tax neutrality desktop sign at the Area Revenue Office where the means that taxes should be indifferent to corporates store is located. Or trader can make the sign which that are taxable, which means that the business is specified the size by the Revenue Department to taxation should not be an advantage or disadvantage suit the store (Thailand, 2016). Moreover, company for businesses (Hajduchova, Sedliacikova, & Viszlai, advertises the store by goods’ photos, store’s photos 2015). However, VAT refund is implemented by and location to get sales promotion through the voluntary organization rather than mandated systems. Revenue Department’s website (www.rd.go.th/vrt). Tax mechanism excludes tax bundle together when Also, tourists get manuals, related documents and there is application of the tax on the tax. Taxation foreign language brochure from traders to communicate subject of taxpayer is a natural or legal person who with tourists about VRT system at the Area Revenue Office registers in competent Tax office. Neoinstitutional where the store is located The stores can request the theory is used to provide explanations for whether brochure from the Area Revenue Office where the store to adopt an innovation or the intention to adopt is located. Joining VRT system, the firms have benefits an innovation (Teo, Wei, & Benbast, 2003). In the because it supports their market and improve their context of value added tax (VAT), the element which performance. Thus, marketing factor seems to have a most significantly affects tourism is its rates at which positive relationship with firm performance. Therefore, the traffic of goods and services is calculated and we posit the hypothesis as follows: paid (Dombrovski & Hodzic, 2010) H1b: The marketing factor positively impacts firm Economic condition Factor performance. The usefulness of VAT as a scheme to tax tourism 2.2 External Institutional context would be reduced when government has tourism External institutional context is another dimension problems and concerns. The different regional taxation of neoinstitutional theory that is based on institutional could tackle the problems associated to tourism theory which specifies three mechanisms through (Gago, Labandeira, Picos, & Rodriguez, 2009). which the influence of institutional transfers to Furthermore, specific tourism taxes generate negative organization (Dimaggio & Powell, 1983; Zailani, attitudes in tourists and businesses against what is Eltayeb, Hsu, & Tan, 2012), 1) coercive isomorphism perceived as discriminatory policies (fiscally predatory resulting from pressures exerted by other organizations governments) that also encourage bad practices (tax that firm depend, which may be felt as force, evasion through black markets). persuasion, or as invitations to join in collusion. It is well known that any taxes are distortionary In some circumstances, organization changes are a when supply and/or demand is relatively elastic, direct response to government mandate; 2) mimetic since the price differential caused by taxes leads to Journal of Global Business Review 15 a significant change in the behavior of business and Thus, politics and legal factor seems to have a positive consumers (Gago, Labandeira, Picos, & Rodriguez, relationship with firm performance. Therefore, we 2009). Thus, economic condition factor seems to posit the hypothesis as follows: have a positive relationship with firm performance. H2b: The politics and legal factor positively impacts Therefore, we posit the hypothesis as follows: firm performance. H2a: The economic condition factor positively Technology and machinery factor impacts firm performance. The majority of those business operators that are Politics and legal Factor not in the system of VAT refunds to tourists The regional administrations and governments are agree that the primary restraining element is the important to normal market forces because they are difficulty in practice to follow the Revenue not only acting as policy makers, but frequently Department’s regulation, followed by the reasons of as market actors. The government can also potentially complicated application procedure to get approval. induce the improvement of business policies indirectly They have to pay attention to the conditions that through appropriately designed public incentives, business operators must observe offer approval for since there are normative pressures from a variety being VAT refunds to tourists ‘store, to filling of of sources, including employees, professional groups, application for VAT refunds (Pandee, 2005). The media and the community (Phan & Baird, 2015). Revenue Department of Thailand (RD) tries to use For example, environmental legislation in Australia technology such as e-Tax invoice systems to collect imposes liabilities not only on corporations but tax invoice data from taxpayers especially in also on director and managers for their corporations’ business. This will provide information for businesses offences thereby forcing business to minimize that join VAT refund for tourist service. The service their environmental impacts to comply with legal prevents forging of tax invoices which effectively requirements (Phan & Baird, 2015). They found increase tourists’ confidence in Thai business that the government can induce improvements in (Suwisuthikasem & Tangsripairoj, 2008). environmental performance by creating regulatory The implementation of system integration facilitates pressures such as the threat of more stringent information sharing, shortens cycle time, reduces mandatory regulation. costs, and improves customer service, and this leads The impact of VAT increase prices of tourist products. to improved financial performance. Then firms can It can decrease competitiveness of tourist services, put an effort to strengthen their system integration demand and loss of revenue from tourism due to because companies that have adopted system collecting VAT. Jensen and Wanhill (2002) found integration would achieve financial benefits (Huo, that the highest rate of VAT on tourism in Denmark Han, Zhao, Zhou, Wood, & Zhai, 2013). Moreover, is a subject of continual concern to the Danish the e-procurement systems provide a unique tourist industry, notably the hotel sector, due to opportunity for supply managers because of the the belief that this is a key factor in the industry’s application of technology to boost competitiveness poor financial performance in a very competitive and profitability. The actions that can improve market. The Revenue Department promotes tourism profitability and value creation are generally under in Thailand through issuing the VAT refund system the firm’s control. Better management of operations for tourists. This system is voluntary system that should have a major impact on revenue growth, firms can select to implement. However, firms engage cost reduction, and asset turnover (Presutti, 2003). in political strategies in order to achieve access to Thus, technology and machinery factor seems to critical decision-makers in their surroundings, to have a positive relationship with firm performance. actively inform them about their firms’ strategies Therefore, we posit the hypothesis as follows: and views, to influence these actors’ opinions, and H2c: The technology and machinery factor positively to build reputation (Nell, Puck, & Heidenreich, 2015). impacts firm performance. 16 Journal of Global Business Review

Research Method management, marketing, economic condition, politics Population and Sample and legal, and technology and machinery. Internal Firms that designated as the population and sample and external institutional context were measured for the data analysis are firms implementing value on 5-point Likert scales (e.g., 5 = Strongly Agree, added tax refund of tourists (VRT) by The Revenue 4 = Agree, 3 = Neutral, 2 = Disagree, 1 = Strongly Department of Thailand. With regards to the population Disagree). Most of the scales employed have been and sample, 165 firms are gathered to provide adopted from the existing and validated scales database of Revenue Department of Thailand. Mailed used in the present and extant literature. Also, firm questionnaire distributed to all companies is used performance which is assigned as dependent variable as instrument for data collection. For the analysis, was measured on 5-point Likert scales (e.g., 5 = Strongly 53 returned mails are complete and usable for Agree, 4 = Agree, 3 = Neutral, 2 = Disagree, 1 = Strongly the analysis according to the suggestion of Aaker, Disagree). Kumar, and Day (2001), indicating the acceptable Method response rate should exceed 20%. The response rate Confirmatory factor analysis (CFA) was employed of this study is 32.12% indicating that the gathered to investigate the validity of constructs. Moreover, data for the analysis of this study is acceptable. In factor scores were used to estimate for regression addition, non-response bias between early and late analysis. This research demonstrates the results of respondents is also examined using t-test comparisons factor loading and Crobach’s alpha efficiencies show which indicate that there is no difference between that all factors loading are greater than acceptable both groups of respondents. cut-off score which is 0.40 as minimum (Nunnally Measure & Bernstein, 1994). Crobach’s alpha of all variables All the variables were obtained from the survey. The are greater than 0.7 (Nunnally & Bernstein, 1994). independent variables include internal and external Overall, the results in Table 1 indicate the reliability institutional context, containing five factor issues: and validity of these constructs. Table 1 Results of validity and reliability testing Variables Factor Loading Cronbach’s Alpha Coefficients Management Factor (MA) 0.884 – 0.910 0.886 Marketing Factor (MK) 0.556 – 0.793 0.841 Economic condition Factor (EC) 0.834 – 0.865 0.807 Politics and legal Factor (PL) 0.826 – 0.846 0.777 Technology and machinery (TM) 0.866 – 0.878 0.839 Firm performance (FP) 0.809 – 0.863 0.789 The regression analysis using ordinary least squared in hypotheses testing. The equation models are method (OLS) is operated to estimate parameters shown as follows:

β β β β β β β β ε FP = 0 + 1MA + 2MK + 3EC + 4PL + 5TM + 6FA + 7FS + Where FP is firm performance; MA is management is technology and machinery factor; FA is firm age; factor; MK is marketing factor; EC is economic FS is firm size; andε is error term. condition factor; PL is politics and legal factor; TM Journal of Global Business Review 17

Research Results correlation between independent variables, it Table 2 shows the descriptive statistics and correlation does not have severe multicollinearity problems matrix between variables analyzed by Pearson according to the VIF range from 1.299 to 2.782 correlation efficiencies. Although it indicates a high (Hair, 2006). Table 2 Descriptive statistics and correlation matrix Variables MA MK EC PL TM FP FA FS Mean 4.1195 4.1368 4.0314 4.0943 4.1006 4.1887 2.7547 1.3962 S.D. .65403 .57296 .66108 .57875 .65236 .59381 .97873 .56635 MA MK .345* EC .535** .475** PL .517** .642** .478** TM .392** .528** .726** .433** FP .585** .667** .638** .581** .540** FA -.094 .061 -.325* -.128 -.212 -.095 FS -.009 .319* -.051 .158 -.058 .078 .317* * p<0.05, ** p<0.01

Effects of Internal Institutional Context on Firm planning which affects performance no matter it is Performance a large/small firm or capital/ labor intensive firm Table 3 presents the results of OLS regression which can benefit from the adaptation aspect of analysis of the relationships between internal strategic planning (Miller & Cardinal, 1994). VAT institutional contexts and firm performance. The refund has strongest impact on tourism and price inference hypotheses 1a and 1b whether examines with taxes because it affects the formation of prices the relationship among management factor, marketing (Dombrovski & Hodzic, 2010). Moreover, marketing factor, and firm performance. The result shows that factor has benefit from VAT refund program. It both independent variables consisting of management will also help firm to know about crediting and factor and marketing factor have a significant positive advertising which improve their performance. This is effect on firm performance (b1 = .243, P<0.05; b2 consistent with Morgan, Vorhies, and Mason (2009) = .457, P<0.5). Management factor is when the who found that market orientation and marketing manager can use VAT refund as strategic planning capabilities are complementary assets that contribute (e.g., pricing) to support creativity and changing to superior firm performance. As the results, circumstance for their organization performance Hypotheses 1a and 1b are supported. (Nikolaevna, 2013). Managers have to concern about 18 Journal of Global Business Review

Table 3 Results of OLS regression analysis environmental management of economic performance Independent Variables Dependent Variable but there is no effect on externally oriented green (FP) supply chain initiatives. This reason might affect the external institutional context on firm performance. Management Factor (MA) .243* Therefore, Hypothesis 2a - 2c are not supported. (.104) Conclusions and discussion Marketing Factor (MK) .457* The governors’ element to support and promoted the (.143) tourists’ business is the VAT refund system because Economic condition .251 tourists’ business is sensitive to prices, and also Factor (EC) (.134) to taxes affecting the formation of price. This will give opportunity for business to sell the product at Politics and legal .047 the lower price because foreigners can receive tax Factor (PL) (.134) refund form their purchase. The firm that implements Technology and -.020 VAT refund system can gain the competitive machinery (TM) (.126) advantage and improve their performance. However, literature advocates that institutional context will Firm Age (FA) .008 have an effect on the organizational behavior (.063) whose different conditions can lead to different outcomes. Firm Size (FS) -.061 The results show that the benefits of prices reduction (.107) from tax which can increase business performance Adjusted R2 .583 depend on their manager and competitiveness. Manager that acknowledge VRT system will use * P<0.05 VAT refund as some strategies to attract tourist customers and to compete rivals. Moreover, the Effects of External Institutional Context on Firm market environment also affects business performance Performance because firms can use Revenue Department’s Table 3 presents the results of the relationships support by using some advertising providing goods’ between external institutional context and firm photos, store’s photos and store’ location on its performance. Interestingly, economic condition website. The finding shows that internal institutional factor, politics and legal factor, and technology and context (management factor, marketing factor) has machinery factor have no significant effect on firm the most powerful effect on firm performance. performance. In the voluntary of VAT refund of According to the results of the study, it is suggested Revenue Department of Thailand, there is the need that the Revenue Department should present firms of improvement of VAT refund law and regulations, management benefit and marketing benefit which and it is recommended that the regulations would will create the internal motivation for implementing be easy and well understood regulations so that VAT refund for tourists. they would attract firm to implement VAT refund However, the results show that the external (Sirithanangkool, 2001). Technology and machinery institutional context (economic condition factor, factor might not be affected because the capital politics and legal factor, and technology and machinery expenditure of some technologies is too high for factor) does not affect business performance. The cost-efficient recovery (Khor, Udin, Ramayah, & economic condition factor might not affect much Hazen, 2016). Moreover, Zhu, Sarkis, and Lai because of the price competition. The shops in VRT (2007) find a significant effect only on internal system are formal shops which sell products with Journal of Global Business Review 19 higher price than the smaller shop and the VAT Dombrovski, R., & Hodzic, S. (2010). Impact of value system in our country also allows small shop to added tax on tourism. International Business use VAT system voluntarily. Also, some shops can & Economics Research Journal, 9(10), 131-138. gain benefits from tax evasion because it is easy for Dubey, R., Gunasekaran, A., & Ali, S. S. (2015). firms that do not register in VAT system. Moreover, Exploring the relationship between leadership, the politics and legal factor might not affect much operational practices, institutional pressures because VRT is the voluntary system for business. and environmental performance: A framework Some businesses such as furniture business can’t for green supply chain. International Journal gain the benefit from VRT system because accord- of Production Economics, 160, 120-132. ing to the law, to gain tax refund, it is required Fikru, M. G. (2014). International certification in that goods have to carried out of Thailand on the developing countries: the role of internal departure date. In addition, the technology and and external institutional pressure. Journal machinery factor is might not affect because VRT of Environmental Management, 144, 286-296. system has several requirements for tourist such Gago, A., Labandeira, X., Picos, F., & Rodriguez, as goods have to be taken out of Thailand within M. (2009). Specific and general taxation of 60 days from the date of purchase, Tourist must tourism activities. Evidence from Spain. have his name or passport number on the original Tourism Management, 30, 381-392. tax invoices that are attached to the tourist VAT Hair, J. F. (2006). Multivariate Data Analysis: Upper Refund Application form. Saddle River, NJ: Prentice Hall. This study provides the results of the effects of Hajduchova, I., Sedliacikova, M., & Viszlai, I. (2015). internal institutional context (management factor, Value-added tax impact on the state budget marketing factor) and external institutional context expenditures and incomes. Procedia Economics (economic condition factor, politics and legal factor, and Finance, 34, 676-681. and technology and machinery factor) on firm Huo, B., Han, Z., Zhao, X., Zhou, H., Wood, C. H., performance. The Revenue Department can use the & zhai, X. (2013). The impact of institutional results to attract firms to implement VRT system. pressures on supplier intergration and finanacial There are alternative ways to attract firms. For performance: evidence from china. International example, some rules should be reduced and Journal of Production Economics, 146, 82-94. supporting systems should be provided not only to Hyness, N. (2009). Corporate culture, strategic motivate firms to implement VAT and VRT system orientation, and business performance: New but also to boost economic and social development approaches to modeling complex relationships. in tourism industry. Technological Forecasting and Social Change, 76(5), 644-651. References Jensen, T. C., & Wanhill, S. (2002). Tourism’s taxing Aaker, D. A., Kumar, V., & Day, G. S. (2001). Marketing times: value added tax in europe and denmark. Research. New York: John Wiley & Son. Tourism Management, 23, 67-79. Bresser, R. K. F., & Milloning, K. (2003). Institutional Jr., W. D. P. (2003). Supply management and capital: competitive advantage in light Of e-procurement: creating value added in The new institutionalism in organization the supply chain. Industrial Marketing theory. Schmalenbach Business Review, 55(3), Management, 32, 219-226. 220-241. Khor, K. S., Udin, Z. M., Ramayah, T., & Hazen, Dimaggio, P. J., & Powell, W. W. (1983). The iron B. T. (2016). Reverse logistics in Malaysia: cage revisited: Institutional isomorphism and The contingent role of institutional pressure. collective rationality in organizational fields. International Journal of Production Economics, American Sociological Review, 48(2), 147-160. 175, 96-108. 20 Journal of Global Business Review

Miller, C. C., & Cardinal, L. B. (1994). Strategic Staff, E. C. A. (2015). Tourism Economic Review: planning and firm performance: A synthesis of Ministry of Tourism & Sports. Retrieved from more than two decades of research. Academy www.mots.go.th of Management Journal, 37(6), 1649-1665. Suwisuthikasem, S., & Tangsripairoj, S. (2008). E-Tax Mingjie, W. (2016). Chinese Tourists Bemoan UK’s invoice system using web services technology: Tax-refund System. China Daily. Retrieved from A case study of The Revenue Department europe.chinadaily.com.cn/business/2016-03/28/ of Thailand. Paper presented at the Ninth content_24126479.htm ACIS International Conference on Software Morgan, N. A., Vorhies, D. W., & Mason, C. Engineering, Artificial Intelligence, Networking, H. (2009). Market orientation, marketing and Parallel/ Distributed Computing. capabilities, and firm performance. Strategic Teo, H. H., Wei, K. K., & Benbast, I. (2003). Management Journal, 30(8), 909-920. Predicting intention to adop interorganizational Nell, P. C., Puck, J., & Heidenreich, S. (2015). Strictly linkages: an institutional perspective. MIS limited choice or agency? Institutional duality, Quarterly, 27(1), 19-49. legitimacy, and subsidiaries’ political strategies. Thailand, T. R. D. O. (2016). VAT Refund for Journal of World Business, 50, 302-311. Tourists. Retrieved from http://vrtweb.rd.go.th/ Nikolaevna, E. E. (2013). Taxation as a tool of index.php/en/ improvement of competitiveness of small Whittington, R., & Cailluet, L. (2008). The crafts of enterprises in the sphere of tourism. World strategy: Special issue introduction by the Applied Sciences Journal, 24(11), 1455-1459. guest editors. Long Range Planning, 41(3), doi:10.5829/idosi.wasj.2013.24.11.13289 241-247. Nunnally, J. C., & Bernstein, I. H. (1994). Psychometric Zailani, S. H. M., Eltayeb, T. K., Hsu, C.-C., & Tan, K. Theory. New York: McGraw-Hill. C. (2012). The impact of external institutional Ocasio, W., & Josephe, J. (2008). Rise and Fall - or drivers and internal strategy on environmental Transformation?: The evolution of strategic performance. International Journal of Operations planning at the general electric company, & Production Management, 32(6), 721-745. 1940-2006. Long Range Planning, 41(3), 248-272. doi:10.1108/01443571211230943 Pandee, J. (2005). An Economic Analysis of Barriers to Zhu, Q., & Sarkis, J. (2007). The moderating effects Entrepreneurs in Selling Goods in the System of institutional pressures on emergent green of VAT refunds for tourists in Chiang Mai supply chain practices and performance. Province. Master of Economics, Chiang Mai International Journal of Production Research, University. 45(18-19), 4333-4355. Phan, T. N., & Baird, K. (2015). The comprehensiveness Zhu, Q., Sarkis, J., & Lai, K.-h. (2007). Green supply of environmental management systems: The chain management: pressures, practicesand influence of institutional pressures and the performance within the Chinese automobile impact on environmental performance. Journal industry. Journal of Cleaner Production,15(11), of Environmental Management, 160, 45-56. 1041-1052. Sirithanangkool, N. (2001). Readiness of Chiangmai Entrepreneurs in Practicing the VAT Refund for Tourists. Chiang Mai: Maejo University. Journal of Global Business Review : Volume 19 No. 1 January-June 2017 pp. 21-35

STRATEGY AND SUCCESS OF THE SMALL AND MEDIUM ENTERPRISES IN BANGKOK AND ITS VICINITIES

Pornapa Peamchai1* 1Department of Management, Rajamangala University of Technology Thanyaburi, PhathumThani 12110, Thailand

ABSTRACT The research aimed to study the strategy and the success of small and medium enterprises in Bangkok and its vicinities. A survey questionnaire was a tool for data collection from 400 entrepreneurs of SMEs in Bangkok and its vicinities. Data analysis was based on descriptive statistics including Frequency, Percentage, Mean and Standard Deviation; whilst inferential statistics including Independent Samples t-test, One-Way ANOVA, LSD and Stepwise Multiple Linear Regression at the significance level of .05. The results showed that differences in type of business, business duration and registered capital can affect the entrepreneurial success The findings from stepwise multiple linear regressions revealed that innovation, business alliance and customer focus can predict the entrepreneurial success in terms of business growth; nevertheless, business alliance and customer focus can predict the entrepreneurial success in terms of satisfaction at the significance level of .05

Keywords: Business strategy, entrepreneur’s business success, SMEs

Author e-mail address: [email protected] 22 Journal of Global Business Review

Introduction Sharma (2011) stated that “long-run business plan can Small and medium enterprises are very important help business owner to be successful in the future”. for entire economic systems of both developed Sutthison, Chaowakeeratiphong and Wongnaya (2015) and developing countries. It is also referred as a indicated that strategies for small business operation main mechanism to drive the country economy of entrepreneur consisted of increasing channels of by providing more employment over the country. distribution of products and services, building a In 2015, Office of Small and Medium Enterprise strong brand, upgrading product and service quality Promotion (OSMEP) indicated that there were 2,765,986 according to the standards, increasing production SMEs entrepreneurs, accounted as 99.72% of all technology manufacturing, developing new products SMEs creating 10,749,735 employees or 80.44% of and services responding to customer requirement, employment in the country. Also, GDP was 41.1% increasing the entrepreneurs’ capability to access to and export value was 1.98 trillion baht 27.4%. financial institutes, improving efficient management Most of SMEs operate in trading sector (42.32%), and structure, increasing the workers’ efficient skills, and then followed by service sector (38.13%), production finding network and business alliance. Moreover, to sector (18.24%) and agricultural sector (1.31%), achieve SMEs business operation the entrepreneurs respectively. Bangkok was the most important area should analyze either external or internal business of SMEs establishment with 43.15% (Office of Small environment can affect the business success. and Medium Enterprise Promotion, 2016). In line with that, the researcher then concentrates Since the government continuously focused on the on studying SMEs strategies to achieve SMEs importance of SMEs, it then established Office of operation. The results derived from this research will Small and Medium Enterprise Promotion (OSMEP) explore the beneficial knowledge to entrepreneurs in 2000 to be the center of work collaboration, to and initiator. promote SMEs, and to assist and develop SMEs system in order to achieve master plan and practical Objectives of study plan (Office of Small and Medium Enterprise 1. To study about business strategies and success Promotion, 2012). However, operating SMEs can of the small and medium enterprises in Bangkok be successful and failure because the SMEs owners and its vicinities. will encounter with many problems including 2. To compare success of the small and medium investment funding, inputs, lack of human power, enterprises in Bangkok and its vicinities divided lack of knowledge related to market and marketing. by general business characteristics. In addition, they also face with pressures from five 3. To study identify business strategies affecting force model, Porter’s concept (Porter& Collins, 2012) success of the small and medium enterprises in causing many companies’ breakdown. Information Bangkok and its vicinities. derived from the Department of Business Development, the Ministry of Commerce, revealed that approximately Hypothesis 9,010 companies were closed in 2012 and the majority H1: Different general business characteristics (business of the shut-down companies (3,189 or 35.40%). type, business model, business duration, investment (Department of Business Development, 2013) capital and location) have influenced entrepreneur’s Nevertheless, there are still successful SMEs owners success differently. operating their businesses under the pressure from H2: Business strategies have an influence on business various aspects by adjusting their business strategies success (business growth and satisfaction). in order to match with global change of economy. Journal of Global Business Review 23

Conceptual framework Independent variables Dependent variable

General business characteristics 1. Business type 2. Business model 3. Business duration 4. Investment capital 5. Location Business success

Business strategies 1. Business growth 1. Low cost 2. Satisfaction 2. Differentiation 3. Innovation 4. Business alliance 5. Customer focus 6. Product/ service improvement 7. Customer relationship Figure 1 Research conceptual framework Literature reviews permanent asset value excluding land and employment. Concepts related to small and medium enterprises In terms of permanent asset value, the medium (SMEs) production and service enterprises are limited to Small and medium enterprises (SMEs) means the 200 million baht and the small one is limited to 50 business that has less invest funds, small volume million baht. In aspects of wholesale and retail, this of sale and less numbers of personnel. SMEs can business group is divided into 2 sub-groups. The be divided into three groups including production, medium wholesale is limited to 100 million baht and service and wholesale and retail. Firstly, a production small wholesale is limited to 50 million baht. And, group refers to a business that sells products to the medium retail is limited to 60 million baht and wholesalers or retailers in order to sell to customers small retail is limited to 30 million baht (Ministry directly. This production group includes agriculture, of Industry,2002). In aspects of employment, the animal hunting and forest, fishery, mining and SMEs can be classified by numbers of employees in minerals, electricity, gas, and water. Secondly, a the organization. A medium production and service service group refers to a business that provides enterprises are limited to 200 employees and the the service to the customers. This type of business small one is limited to 50 employees. In aspects includes constructions, hotels and restaurants, financial of the wholesale and retail, this business group is mediators, real-estate agencies (renting and business divided into 2 sub-groups. A medium wholesale is consultations), education, health service and social limited to 50 employees and small wholesale limits welfares. Lastly, a wholesale and retail group refers to 25 employees. And, a medium retail limits to to a businesses that sell products and materials to 30 employees and a small retail is limited to 15 industries or ended customers directly (Department employees (Ministry of Industry,2013). of Business Development, 2013). A small and medium enterprise has an important The characteristics of SMEs can be identified by role toward Thai economy. Theeravanich(2001) 24 Journal of Global Business Review mentioned that SMEs are so crucial to employment and organizational value of various activities to and job creation because SMEs require less employees gain organizational performance. then the business owner can easily establish their Therefore, the strategy is very important for utilizing own business and it could reasonably be sources and controlling the resources (Personnel, machines, of jobs which they finally have positive effects on equipment and finance) by having the purposes population growth and national economy. Furthermore, to create and promote the business maximization. SMEs can also create innovation because these Business strategy is divided into 3 levels consisting owners have specific skills and inspiration to launch of cooperate, business and functional levels. The new invented products and services to the market. corporate level covers the overall competition of Also, SMEs can provide sources of raw inputs, business and focuses on setting the business in distribution or automobile parts, as for instance. the industry. The business level includes strategies Lastly, SMEs can also efficiently provide products to enhance the business in doing marketing for and services because they are flexible and deliver themselves. Lastly, the functional strategies focus on customers. maximizing the organizational resource utilization. However, small and medium enterprises encounter Under the limitation of the corporate and business various problems such as funding. Most of SMEs level, the functional level should determine the are lack of cash flow and investment capital to strategies that can support the corporate and business expand the business. Problems related to ability to level (Nawikan, 2000). manage the business such as marketing, accounting, Doing business needs to interface with competition personnel management, procurement and distribution always. Michael E. Porter, a professor from Harvard can also affect negatively SMEs owners. Another University, developed Five Force Model including problem for SMEs is related to number of staff. threat of new entrants, bargaining power of suppliers, This frequently happens to the SMEs owners threat of substitutes, bargaining power of customers because working in this type of business is seen and industry rivalry. Firstly, the threat of new as unstable works. When the staff is offered new entrants describing as the market will have new job with higher compensation, they will resign the business incomers which they can take a market job easily. With that reason, the entrepreneurs will share by launching the competitive product. Secondly, be required to deal with staff recruitment, selection the bargaining power of suppliers refers to a supplier and training. In addition, the entrepreneurs need of sources of materials, components, labor, and to work longer than usual, have no time for services has power to bargain the price over the firm self-relaxation. Lastly, SMEs are very risky compared when there are few substitutes. Thirdly, bargaining to the large scale business because it has less capital power of customers is described as the ability of investment which it can negatively affect the power customers to pressure the firm’s product/service to purchase or stock materials or inputs in order price. Fourthly, the threat of substitutes can be to gain cost reduction or even remain the staff referred to existence of products outside of the realm (Rumakom, 1997). of the common product boundaries increases the propensity of customers to switch to alternatives. Concepts related to strategies Lastly, the industry rivalry refers to intensity of Luecke& Collis (2008) defined a strategy that it is competitive rivalry the existing market with the a process to search and consider the environmental objectives to get the market share by providing factors in order to plan the business operation product/service with competitive price, launching so that the business owner can use it to develop new products/ services and service improvement the business to gain the competitive advantages. (Porter & Collins, 2012). Meanwhile, Porter and Collins (2012) stated that the Derived from Five Force Model analysis, the results strategy is establishment of goal and clear position can determine the strategies that are suitable to Journal of Global Business Review 25 business so that the entrepreneurs can use it to 4) media selection, 5) research strategies on attitude effectively operate their business. In addition, the and behaviors toward brand, 6) customer relationship, entrepreneurs should also consider the internal and 7) research strategies on purchasing behavior, external environmental factors, strength, weakness, 8) dominant service specification strategy and opportunity, and threats in order to achieve the 9) convenient distribution of service and product. These business goal (Luecke & Collis, 2008). were found very beneficial to the entrepreneurs. Many academicians explores various strategies including Furthermore, Siriyong (2012) studied strategies used low-cost strategy, business distribution, merging and in small and medium enterprises of Thailand to acquisition, globalization strategy, customer focus, increase SEMs’ competition potentials. The finding product leadership, integrative growth strategy, indicated that SMEs used the following strategies: flexibility, product/service differentiation, customer cost leadership, differentiation, market development, relationship, networking strategies, innovation, product development, price strategy, focus strategy, business alliances and others (Luecke & Collis, 2008; customer retention, service specification strategy, Boonbongkarn & Kecharananta, 2001; Tantayanon, quick responsiveness, business alliance, pledge and 2010; Lertnaisat, 2004 & Piyawongwattana, 2012). In return strategy, channel of distribution, business addition, Srijumpa (2009) presented marketing strategies public relations and strategies to access furniture’s for business survival which they included 1) price market, can increase the competitive potentials of strategies, 2) value differentiation, 3) brand loyalty, SMEs sustainably. Table 1 Summary of strategies in SMEs Variables Strategy Author 1. Cost leadership Price strategy Srijumpa(2009) Cost leadership strategy Luecke & Collis, (2008) 2. Differentiation of products Value differentiation strategy Srijumpa (2009) and service Differentiation strategy Boonbongkarn and Kecharananta (2001) 3. Innovation Innovation strategy Tantayanon (2010) 4. Business alliance Alliance strategies Lertnaisat (2004) 5. Customer focus Focus strategy Piyawongwattana, (2012) Dominant service specification Srijumpa (2009) strategy 6. Product and service Product and service convenience Srijumpa (2009) improvement strategy 7. Customer relationship Customer relationship strategy Srijumpa (2009) Customer relationship strategy Luecke and Collis (2008) Concepts of entrepreneurs’ success aspects including 1) finance 2) customers 3) internal Entrepreneurs’ success means the success from the organization process and 4) learning and developing. entrepreneurs running the business. Piyawongwattana Firstly, finance refers to the income growth considered (2012) indicated that the measure to evaluate the by the growth of sale volume of products and success of the entrepreneurs can be divided into four services, cost reduction, increase in productivity 26 Journal of Global Business Review considered by income/employee, cost compared to Research instruments competitors, cost per unit and benefits from assets Researcher used close–ended questionnaires divided by considering the return on investment. Secondly, into 3 parts. Part 1 consisted of check-list questions customer refers to the customer remain, customers’ asking about the general business characteristics satisfaction, customer acquisition and market share. including business type, business model, business Thirdly, internal organization process refers to duration, investment capital and location. Part 2 innovation, number of invented product/service included rating scale questions (five Likert’s scale) and product/service quality. Lastly, learning and asking about the business strategies (low cost, development refers to the increase in employees’ differentiation, innovation, business alliance, customer potentials, employee remaining, employee retention, focus, product/service improvement and customer and information system development. In the meantime, relationship) and business success (business growth Wangbenmad and Bindulem (2014) studied about and satisfaction). And, Part 3 covered opened questions the key success factors for small and medium asking about the opinions and recommendation enterprises in Muang Hadyai, Songkhla Province toward critical business strategies. by collecting data from 280 enterprises by survey questionnaire. Their variables of business included Validity and reliability the business acceptance, the stability of business For validity check, the researcher had experts in and the reputation of business. After the study, the related fields inspect the accurate and consistency results indicated that all business success aspects of contents and questions used in the questionnaires were rated at the high level. and recommend for improvement and edition. The researcher gathered the issues related to the For reliability check, researchers distributed 40 entrepreneurs’ success and divided into 2 points questionnaires to similar SMEs entrepreneurs. The including 1) business growth (market share, number finding discovered Cronbach’s alpha coefficient as of customer, business profits and business growth of 0.901 for business strategies and as of 0.844 for rate) and 2) satisfaction refers to entrepreneurs’ business success. satisfaction toward business operation, employees’ satisfaction and customers’ satisfaction. Data analysis Researchers analysed data derived from samples Research methodology by using descriptive statistics including percentage, Population and samples mean and standard deviation and inferential statistics Population in this study is SMEs owners in production, consisting of independent t-test and ANOVA (One-Way service and wholesale and retail sectors in Bangkok Analysis of Variance) in order to compare the and its vicinities. Data derived from registered difference of entrepreneurs’ opinion related to data of the Department of Business Development, business success by considering general business the Ministry of Commerce, dated 1st April, 2013, characteristics. LSD (Least Significant Different) was indicated that there were 338,010 (99.6%) of SMEs employed in the study in order to consider the owners in Bangkok and its vicinities (Department pair difference in the particular sample group. In of Business Development, 2013and OSMEP, 2011). addition, stepwise multiple regression analysis was Through the sampling computation employing employed to study the relationship between business unknown population (Silpcharu, 2005) at the confident strategies (Low cost, differentiation, innovation, level as of 95%, there were 400 samples used in the business alliance, customer focus, product/service study. After that, the researcher employed stratified improvement and customer relationship) and business random sampling to divide samples into 3 groups success (Business growth and satisfaction) with including production, service and wholesale and retail the purpose of predicting business success for and hired convenience sampling to collect the data. entrepreneurs. Journal of Global Business Review 27

Results Table 2 General business characteristics General business characteristics Frequency Percentage Business type Production 78 19.50 Service 190 47.50 Wholesale/ retail 132 33.00 Business model Company Limited 373 93.25 Partnership limited 12 3.00 Juristic person 2 0.50 Private company (only 1 owner) 13 3.25 Business duration 1-3 Years 109 27.25 3– 5Years 209 52.25 5–7Years 61 15.25 7-10 Years 5 1.25 10 Years above 16 4.00 Investment capital Lower than 5 million baht 21 5.25 5-10 million baht 35 8.75 11-50 million baht 166 41.50 51-100 million baht 168 42.00 101-200 million baht 4 1.00 More than 200 million baht 6 1.50 Total 400 100.00 Location Bangkok 299 74.75 Metropolitan area 101 25.25 Total 400 100.00 From Table 2, it found that samples of this study between 51-100million baht, staff between 51 and were SMEs in service group, with business duration 100 persons, located in Bangkok. as of between 3 years and 5 years, investment capital 28 Journal of Global Business Review

Table 3 Mean and standard deviation of business strategies and business success Variables Mean S.D. Business strategies 3.72 0.360 Low cost strategy 3.76 0.496 Differentiation strategy 3.70 0.521 Innovation strategy 3.62 0.621 Business alliance strategy 3.72 0.599 Customer Focus Strategy 3.61 0.573 Product/ service improvement strategy 3.71 0.551 Customer relationship strategy 3.72 0.360 Business success 3.55 0.519 Business growth 3.47 0.611 Satisfaction 3.63 0.557 From Table 3, the overall business strategies were 3.63, orderly. rated at high level with mean score as of 3.72. When considering each strategies, customer relationship, Hypothesis testing low cost strategy and business alliance strategy with Hypothesis 1: Different general business characteristics mean score as of 3.89, 3.76 and 3.72, respectively (business type, business model, business duration, were rated at high level. In terms of business investment capital and location) have entrepreneur’s success, the overall score was rated at high level, success degree differently. with the mean score as of 3.55. After considering Hypothesis 1.1: Different general business characteristics each aspect, business growth and satisfaction were in terms of location have entrepreneur’s success rated at high level with mean score as of 3.47 and degree differently.

Table 4 Statistics displaying comparison of entrepreneurs’ opinion toward entrepreneurs’ business success classified by location General business characteristics N X SD t p Location Bangkok 299 3.55 0.492 0.190 0.850 Vicinity 101 3.54 0.593 From Table 4, the result indicated that different general in terms of business type, business model, business business characteristics in terms of location do not duration, and investment capital have entrepreneur’s have entrepreneur’s success degree differently. success degree differently. Hypothesis 1.2 Different general business characteristics Journal of Global Business Review 29

Table 5 Statistics displaying comparison of entrepreneurs’ opinion towardentrepreneurs’ business success classified by business type, business model, business duration, and investment capital General business characteristics Source of variation DF SS MS F p Business type Between groups 2 2.994 1.497 5.697 0.004* Within groups 397 104.336 0.263 Total 399 107.330 Business model Between groups 3 1.822 0.607 2.279 0.079 Within groups 396 105.509 0.266 Total 399 107.330 Business duration Between groups 4 12.297 3.074 12.778 0.000* Within groups 395 95.033 0.241 Total 399 107.330 Investment capital Between groups 5 5.189 1.038 4.003 0.001* Within groups 394 102.142 0.259 Total 399 107.330 From Table 5, the results indicated that different From the study, it found that the aspects including general business characteristics in terms of Business business type, business model, business duration and Type, Business Duration and Investment Capital investment capital between the groups are different. affect entrepreneur’s success degree differently Therefore, the research used LSD (Least Significant because p value is less than 0.05 at then statistically Different) to investigate the pairwise difference. The significant level as of .05. details are given below.

Table 6 Mean difference of pairwise comparison of entrepreneurs’ opinion toward entrepreneurs’ business success classified by business type Production Service Wholesale/Retail Business Type X 3.43 3.52 3.66 Production 3.43 - 0.09 0.23* Service 3.52 - 0.14* Wholesale/Retail 3.66 - * Significance level as of .05 When considering the results of pairwise comparison opinion in the Wholesale/retail type is than the by LSD on entrepreneurs’ opinion toward entrepreneurs’ Production and Service type at the significance business success classified by business type, the finding level as of .05. indicated that the mean score of entrepreneurs’ 30 Journal of Global Business Review

Table 7 Mean difference of pairwise comparison of entrepreneurs’ opinion toward entrepreneurs’ business success classified by business duration 1-3 Years 3-5 Years 5-7 Years 7-10 10 Years Business duration Years above X 3.34 3.61 3.81 3.64 3.16 1-3 Years 3.34 - 0.27* 0.47* 0.30 0.18 3-5 Years 3.61 - 0.20* 0.45 0.45* 5-7 Years 3.81 - 0.65 0.65* 7-10 Years 3.64 - 0.48 10 Years above 3.16 - * Significance level as of .05 When considering the results of pairwise comparison mean score of entrepreneurs in 5-7 years and 3-5 by LSD on entrepreneurs’ opinion toward entrepreneurs’ years business is higher than 10-year-above business. business success classified by business duration, the Lastly, the mean score of entrepreneurs in 5-7 finding indicated that, firstly, the mean score of years and 3-5 years business is higher than 3-5 entrepreneurs in 5-7 years and 3-5 years business years business. is higher than 1-3 years business. Secondly, the Table 8 Mean difference of pairwise comparison of entrepreneurs’ opinion toward entrepreneurs’ business success classified by business duration investmentcapital. Investment capital <5 5-10 11-50 51-100 101-200 >200 (Million baht) X 3.31 3.65 3.47 3.65 3.48 3.21 <5 3.31 - 0.34* 016 0.34* 0.17 0.10 5-10 3.65 - 0.18 0.00 0.17 0.44 11-50 3.47 - 0.18* 0.01 0.26 51-100 3.65 - 0.65 0.44* 101-200 3.48 - 0.27 >200 3.21 - * Significance level as of .05 When considering the results of pairwise comparison of entrepreneurs in the business with investment by LSD on entrepreneurs’ opinion toward entrepreneurs’ capital of 51-100 million baht is higher than the business success classified by business duration, the business with investment capital of 11-50 million finding indicated that, firstly, the mean score of baht. Lastly, the mean score of entrepreneurs in the entrepreneurs in the business with investment capital business with investment capital of 51-100 million of 5-10 million baht and 51-100 million baht is baht is higher than the business with investment higher than the business with investment capital of capital of 200 million baht above. lower that 5 million baht. Secondly, the mean score Journal of Global Business Review 31

Hypothesis 2: Business strategies have an influence on confidence level as of 95%. The hypothesis would business success (business growth and satisfaction). be accepted when p value is lower than 0.05. Stepwise multiple regression analysis had been Hypothesis 2.1: Business strategies have an employed to predict the business success in terms influence on business success in terms of business of business growth and satisfaction by using growth. Table 9 The result of stepwise multiple regression analysis between business strategies and business success in terms of business growth. Unstandardized Standardized Variables Coefficients Coefficients t p Beta Std.Error Beta (Constant) 1.882 0.235 8.021 0.000* Innovation strategy (X3) 0.127 0.055 0.129 2.309 0.021* Business alliance strategy (X4) 0.127 0.054 0.124 2.361 0.019* Customer focus strategy (X5) 0.180 0.057 0.169 3.158 0.002* R = 0.407; R2 = 0.166; Adjusted R2 = 0.199; S.E.E. = 0.579 * Significance level as of .05 From the table, the finding indicated that the business 0.05. Therefore, the hypothesis was accepted. The strategies have an influence on business success in model of prediction can be drawn as follows. terms of business growth at the significance level as of .05; multiple correlation coefficients as of Y1 = a+b3X3+b4X4 +b5X5 0.407 and adjusted R square as of 0.199, indicating or can be replaced as that the model can predict the business success as of 19.90 percent. Y1 = 1.882+0.127X3+0.127X4+0.180X5 When considering each variable, the result indicated that innovation strategy, business alliance strategy Hypothesis 2.2: Business strategies have an influence and customer focus strategy have p value as of on business success in terms of satisfaction. Table 10 The result of stepwise multiple regression analysis between business strategies and business success in terms of satisfaction. Unstandardized Standardized variables Coefficients Coefficients t p Beta Std.Error Beta (Constant) 2.515 0.212 - 11.881 0.000* Business alliance strategy (X4) 0.149 0.047 0.160 3.151 0.002* Customer focus strategy (X5) 0.156 0.049 0.160 3.157 0.002* R = 0.409; R2 = 0.167; Adjusted R2 = 0.162; S.E.E. = 0.540 * Significance level as of .05 32 Journal of Global Business Review

From the table, the finding indicated that the now is very desirable; it could make the business business strategies have an influence on business reduces the time to find the income customers. success in terms of satisfaction at the significance The lack of labors, uncertainty of country economy level as of .05; multiple correlation coefficients as of and politic situation and economy depression 0.409 and adjusted R square as of 0.162, indicating can also severely have a negative impact on doing that the model can predict the business success as SMEs. of 16.20 percent. When considering each variables, the result indicated Discussion that business alliance strategy and customer focus Study of business strategies and success of the strategy have p value as of 0.05. Therefore, the small and medium enterprises in Bangkok and hypothesis was accepted. The model of prediction its vicinities can be drawn as follows. Interestingly, the study indicated that overall business strategies were rated in high level. When considering Y2 = a+b4X4+b5X5 each strategy, customer relationship, low cost orcan be replaced as strategy and business alliance strategy were also rated at high level, respectively. This study result Y2 = 2.515+0.149X4+0.156X5 is corresponding with the study taken by Siriyong (2012) studying about strategies used in small and Results regarding correspondents’ opinions medium enterprises of Thailand to increase SEMs’ and recommendation competition potentials. The findings indicated that From the data collection regarding the entrepreneurs’ strategies used in SMEs have included customer opinions, the results indicated that doing business relationship, low cost strategy and business alliance encounters with risks and high competition. Thus, strategy. In terms of business success, the overall there should be the studies related to the marketing score was rated at high level. After considering before launching the business. Not only having each aspect, business growth and satisfaction were marketing research conduction, the entrepreneurs rated in high level, orderly. This result matches should have well selected and trained the staff by with Wangbenmad and Bindulem (2014) studying using new technology enhancing their strength to about the key success factors for small and medium compete with other competitors. In addition, new enterprises in Muang Hadyai, Songkhla Province strategies in doing business are also important by collecting data from 280 enterprises by survey because it would help the business success. These questionnaire. The results indicated that all business business strategies include having a good plan in success aspects including customer’s satisfaction and order to reduce the possible risks interrupting the business security, which were similar to the variables business operation. in this study, were rated at high level. The entrepreneurs who are successful suggested Different general business characteristics (business that doing SMEs business needs time to prove the type, business model, business duration, investment success. The business itself should jump into the capital and location) have entrepreneur’s success business immediately because jumping needs more degree differently funds and investment. In addition, cost of production Different general business characteristics (business and customers’ satisfaction are very crucial in type, business model, business duration, investment SMEs too. capital and location) have entrepreneur’s success The business should supply the right product and degree differently. It is corresponding the study service to the customers on time and quickly, and finding by Promkhun (2007) studying about factors network and make business alliances in order to that affecting the strategic operation of ready-to-wear increase the distribution channels. Alliance in business clothes exporters and the results indicated that Journal of Global Business Review 33 basic factors covering business size, industry size, District, Nakhon Nayok Province, indicated that the location and business model had not had effects entrepreneurs’ characteristics in terms of innovation on the business growth of ready-to-wear clothes thinking had positive effect on entrepreneur’s success. meanwhile general information of samples in the In addition, this study finding also matched with aspects of business group, business duration, the study conducted by Promkhun (2007), studying investment capital and numbers of employees had an about factors affecting operation by strategy and impact on small and medium enterprises differently. relationship of operational strategies with the growth This can be vivid evidence that the entrepreneurs of selected companies engaged in the ready-to-wear who are willing to be successful are necessary to clothes export business. Her study revealed that consider the business types that they are operating customer focus, customer relationship, low cost and its tendency because SMEs can exist in the strategy and business alliance have an influence on market easily (Theeravanich, 2001) and at the business growth according to the strategic plan of same time also disappears easily. The reason may exporter’s ready-to-wear clothes and also matched be about the problems regarding human power, with the study done by Siriyong (2012),studying investment fund and cost of business operation that about Thai SME formation and business strategy: a are also increasing continually (Rumakom, 1997). case study of the 4 finalists on TV program “SME In addition. Business duration, period in doing Tee Tak” the best SME of 2011. Her study revealed business, was also very crucial for business operation. that successful entrepreneurs employed customer The study done by Sukhothai Thammathirat Open focus strategy as a prioritized strategy and then University(2006) revealed that the success factors focused on customer responsiveness and customer of small and medium enterprises is practices and relationship. In relations of customer focus strategy, experiences in doing the business which it can mean the entrepreneurs concentrated on production and that the more the entrepreneurs do the business, service provision and focused on targeted group the possible the business is success. of customers. In addition, the entrepreneurs also Business strategies have an influence on business modernized the products and use power of word- success (business growth and satisfaction) of-mouth promotion to promote the products. The study results indicated that innovation strategy, business alliance strategy and customer Recommendations focus strategy can be brought to predict the business During the economic recession, the competition success of entrepreneurs in terms of business in small and medium enterprises is high. The growth meanwhile the business alliance strategy and entrepreneurs should do market researches in order customer focus strategy can be employed to predict to establish the strategies, especially innovation, the business success of entrepreneurs in terms of alliance and customer focus. Firstly, innovation satisfaction. Jedewong, Suksakul, Ruengwittayaporn strategy can create new and modern products and & Kinjan(2006), who studied about desired service for the business. Secondly, alliance strategy entrepreneur’s characteristics of small and medium can establish the power to negotiate with the enterprises in Phetchabun Province, found that customers and create the more channels to distribute SMEs entrepreneurs, who are successful in operating the products and services. Lastly, customer focus SMEs in Phetchabun Province, put importance in strategy can help satisfy the customers because the innovation strategy, customer responsiveness, higher entrepreneurs can provide the right products and quality and higher efficiency. It is corresponding to services to the customers. With these strategies, SMEs the study done by Yimsook (2009), studying the entrepreneurs can then enhance their potentials to relationships between entrepreneurial characteristics compete with the other competitors in the market and small business entrepreneur’s success: a case and be finally successful. study of plants decorating business in Ongkharak 34 Journal of Global Business Review

Further study Ministry of Commerce. (2002). Regulations Related 1. Opening ASEAN community in 2558, there to Wage and Salary and Permanent Asset will be SMEs in both domestic and international of Small and Medium Enterprises 2002. markets. Thus, there should be a study regarding Retrieved from http://law.longdo.com/ to the SMEs strategies by having business alliance law/625/sub43745 in ASEAN community. Nawikan, S. (2000). Strategic Management and 2. Since the growth of information technology, many Business Policy, (5th ed.) Bangkok: Bhannakij organizations have implemented the information Publishing. technology and Internet, such as E-commerce, in Piyawongwattana, P. (2012). Strategic Management: doing the business. With that, there should be a Technology and Innovation. Bangkok: study related to business strategies of SMEs in Chulalongkorn University digital era. Promkhun, J. (2007). Factors Affecting Operation byStrategy and Relationship of Operational Strategies with the Growth of Selected References Companies Engaged in the Ready to Boonbongkarn, J., & Kecharananta, N. (2001). Wear Export Business. Thesis of master’s Strategic Management. Bangkok: Se-Education degree, RajamangalaUniversity of Technology Public. Thanyaburi. Department of Business Development, Ministry Rumakom, P. (1997). Small Business Management, of Industry.(2013). Business Trader Search. (5th ed.). Bangkok: Physics Center Press Retrieved from http://datawarehouse.dbd. LTD.,Part. go.th/bdw/search/search3.html. Sharma, G. (2011). Do SMEs need to strategize? Jedewong, S., Suksakul, C., Ruengwittayaporn, N., Business Strategy Series, 12(4), 186 –194. & Kinjan, A. (2006). Desired Entrepreneur’s Silpcharu, T. (2005). Research and Data Analysis by Characteristics of Small and Medium SPSS (3rd ed.).Bangkok: V InterPrint. Enterprises in PetchboonProvince. Phetchabun: Siriyong, D. (2012). Thai SME Formation and Faculty of Management, PhetchabunRajabhat Business Strategy: A Case Study of the 4 University. Finalists onTV Program “SME Tee Tak” The Lertnaisat, R. (2004). Practical Manual: Strategic Best SME of 2011. Master’s degree in MBA, Planning. Bangkok: Technology Promotion Department of Entrepreneurship, Gradate Association (Thailand-Japan). School, Silapakorn University. Luecke, R., & Collis, D. J. (2008). Strategies: Creation Srijumpa, R. (2009). Marketing Strategies for and Implementation, (6th ed.) [Strategy : Creating Survival. Retrieved from http://nanosoft.co.th/ and Implementing] (JakTingsapatip, Transla- maktip54.htm. tor). Bangkok :ExpernetBooks. (Origin, 2005) SukhothaiThammathirat Open University. (2006). Office of Small and Medium Enterprise Promotion. Teaching Material: Human Resource Manage- (2016). Report of Situation of Small and ment. (11th ed.). Nontaburi: SukhothaiTham- Medium Enterprise – Year 2016. Retrieved mathirat Open University. from http://www.sme.go.th/th/index.php/ Sutthison, R., Chaowakeeratiphong, T., & Wongnaya, data-alert/alert/report-smes-year/report-year/ S. (2015). Strategy Development for Small report-year-2559. Business Operation of Entrepreneur in Porter, M. E., & Ollins, J. C. (2010). Strategies. KamphaengPhet Province.Social Sciences [HBR,s Must Reads: On Strategy] (Sintakarnpo. Research and Academic Journal. Retrieved N., translator). Bangkok: ExpernetBooks. from file:///C:/Users/Suraporn%20Onputtha (Origin, 2010) Downloads/37716-85695-3-PB%20(2).pdf. Journal of Global Business Review 35

Tantayanon, R. (2010). Strategies Technology and Yimsook, N. (2009). The Relationships between Innovation. Retrieved from http://www. Entrepreneurial Characteristics and Small bangkokbiznews.com/home/detail/business/ Business Entrepreneur’s Success: A Case Study ceo-blogs/rewat/20100614/337515/กลยุทธ์ of Plants Decorating Business in Ongkharak ด้าน-เทคโนโลยี--และ-นวัตกรรม.html. District, NakhonNayok Province. Master’s Theeravanich, A. (2001). Small Enterprise Management. degree in Liberal Arts, majoring in Industrial Bangkok: Kasetsart University. and Organizational Psychology, Faculty of Wangbenmad, C., & Bindulem, T. (2014). The Key Liberal Arts, Thammasat University. Success Factors for Small and Medium Enterprises in MuangHadyai, Songkha Province. Journal of Management Science SuratthaniRajabhat University. Retrieved from http://e-journal. sru.ac.th/index.php/msj/article/view/196

Journal of Global Business Review : Volume 19 No. 1 January-June 2017 pp. 37-45

THE EFFECT OF SERVICE MARKETING MIX FACTORS ON DECISION MAKING TO CHOOSE A NURSERY OF PARENTS IN MEAUNG CHONBURI DISTRICT, CHONBURI PROVINCE

Angkanita Muangput 1*, Sarunya Lertputtarak1*, Wilailuk Khamloy1* 1Graduate School of Commerce, Burapha University, Chon Buri 20131, Thailand

ABSTRACT The present study aims to examine the effect of service marketing mix factors on decision making to choose a nursing home of parents in Meaung Chonburi District, Chonburi Province. Sample group was 400 parents who used a nursing home in Meaung Chonburi District, Chonburi Province. A questionnaire was an instrument in this study. The content in the questionnaire consisted of personal factors, the importance of marketing mix in decision to choose a nursing home, and decision making process to choose a nursing home. The data analysis was conducted by using SPSS for Windows. Descriptive statistics, i.e. frequency, percentage, average, and standard deviation; meanwhile, inferential statistics analyzed in this study was Multiple Regression Analysis. The findings revealed that the service marketing mix factor, product, servicing process and physical evidence found the effect on decision making to choose a nursing home of parents in Meaung Chonburi District, Chonburi Province at the significant level of 0.01.

Keywords: Marketing mix factors, nursery, Chonburi

*Author e-mail address: [email protected]; [email protected]; [email protected] 38 Journal of Global Business Review

Background and significance of the problem Parents expect their children to be good people, Family institutions are considered to be the foundation have a good future and good education, but they of a society which molds and nurtures a family have no time for their children because they have member, from a child to have a strong foundation to work and to earn money for the family. Then, ready to face the outside world and to be a quality they send their children to a day nursery with the person. Nevertheless, today the social and economic idea that they can take good care of them. If a day environment of Thailand has changed. At present, nursery is good, it is a good thing because children family members, both husband and wife are are given the skills to live with others, and they required to work and have job for which they are are developed and prepared for kindergarten and responsible to help generate income and stability continuing education. However, if the parents sent for families. In addition, after the marriage, the their child to the unqualified center, there would family was separated into a nuclear family whose be the problem later. If babysitters did not take members are father, mother and children. Most good care of the children, and there were a lot of of the children have been looked after by other children in the same place, there would be health people since childhood. Families may not be able problems such as infection problem. If the day to do the same duty as before because of their nursery did not have standard care, the children nuclear family. 20.52 million households were the might experience an accident. Most importantly, the total number of households in the country, and child will suffer from lack of warmth because the the 65.98 million people was the total population. staff of nursery school cannot give thorough care. In some families, there are only husband and wife. Chonburi is a coastal city, seaport in ocean In other families, there are a husband, a wife and freight, and also a home to many large industrial children. It was found that there were one third estates. The province is divided into 11 districts, (34.9%) families with a husband, a wife and their 92 sub-districts, 687 villages. Local administrative children in the2002. However, there are one quarter organization consists of provincial administrative (27.5%) families with a husband, a wife and their organization, 2 municipalities which are Laem children. in 2012. This showed that the number of Chabang City Municipality and Chao Phraya Surasak the families with the husband, wife and children City Municipality, 9 town municipalities, 29 has decreased. The proportion of families living sub-district municipalities, 56 sub-district administrative with spouses increased from 13.3% in 2002 to organizations and one special form of government, 15.7% in 2012, and this information is consistent Mueang Pattaya, separated by the administration of with data from the families with grandparents and Banglamung district because it is an international grandchildren, and they have tendency to increase tourist destination with the rapid growth. There are to 29.9% in 2002 (National statistics office, 2010) 11 districts of Chonburi which are Mueang Chon Currently, there are about 3.8 million children in Buri, Phanat Nikhom District, Phan Thong District, early childhood from newborn babies to 5-year- old Banbueng District, Sriracha District, Ko Chan District, children. The economic and family characteristics of Bo Thong District, Nong Yai District, Bang Lamung a nuclear family make it impossible for parents to District, Sattahip District and Koh Si Chang District. provide full care for their children, especially the The population of Chonburi based on the registration families in urban societies whose characteristic is a certificates on December 31, 2014, the Central Registry large number of nuclear-families. This has changed of the Department of Interior, Ministry of Interior a form of childcare according to the current amounted to 1,421,425, consisting of 696,038 males environment. Parents turn to hiring other people and 725,387 females (Chonburi Provincial Office for to take care of their children, such as using the Local Administrative, 2015) service from nursery or hiring a babysitter. (National According to the 2010 Census of Chonburi Statistics Office, 2010). Province, it was found that the majority, 74.5% of Journal of Global Business Review 39 the population, lived in the municipality, and the remaining, 25.5 %, lived outside the municipality 1. Amphoe Mueang Chon Buri has 27 nurseries. Compared by the district, Mueang Chonburi 2. Districts of Banglamung has 12 nurseries. had the largest population of 352,301 or 22.7%, 3. Banbueng District has 3 nurseries. followed by Banglamung district with 335,415 people 4. District of Phanat Nikhom has 2 nurseries.. or 21.6%, Sriracha district with 332,984 people or 5. Phan Thong District has 1 nursery. 21.4%. For Ko Si Chang, the least populated area, 6. Amphoe Sriracha has 34 nurseries. there were 3,113 people, or 0.2 percent. The total 7. Sattahip District has 3 nurseries. (Department number of households in Chonburi is 599,735, and of Social Development Welfare, Ministry of Social 597,249 were individual households, and 2,486 were Development and Human Security, 2015) group households (Workers’ Households, institutional Therefore, the researcher is aware of the importance households). The average size of individual of factors affecting decision-making of parents living households was 2.5 persons and 33.2% of the in the district in Chonburi Province. This study households had female head (National Statistical focuses on the strategic factors of nursery marketing Office, 2010). Because Chonburi Province is one that affect parents’ decision to use nursery services. of the eastern provinces and is an industrial in- This study also promotes and takes the advantage vestment source, the large industrial estates have of the marketing strategy and develops the nursery emerged. This affects the influx of people entering to meet the needs of parents. the industrial estate. The population has flowed into the industrial estates and had their families. This Research Objectives makes the very good economy in the industrial To study the influence of the emphasis on marketing estate. Business is growing and nursery schools are mix on the parent’s decision-making process growing too (Chonburi Provincial Administrative of choosing a day nursery in Amphur Mueang, Offices, 2015).At present, there is the increase of Chonburi Province. the day nurseries in Chonburi. However, when comparing with the needs of parents, Hypothesis of research the researcher found that they do not satisfy the The service marketing mix factors influenced the demand for this business. There are 82 nurseries in parent’s decision-making process of choosing a Chonburi, and the details are as follows: nursery in Mueang District. Chonburi province. Research Framework Independent variables Dependent variables

Service marketing mix (7Ps) The decision-making process of Products and services using parents’ day care services in Price suitability Mueang District Chonburi province Place Perception needs Promotion Search People Alternative assessment Physical Evidence Decision making Process Behavior after using the service (Saengsuwan et al., 2004; (Blackwell, 2006). Kotler, 2012; Lovelock & Wirtz, 2010) 40 Journal of Global Business Review

Theory of Strategy/ Service Marketing Mix gated entrance and clean classrooms (Lovelock & In previous theory, there were four main service Wirtz, 2010). marketing mix factors: product, price, distribution channels (place), and marketing promotion. Later, The process of buying decision (Buying in the service marketing mix, three areas were decision process) added to suit the business. They are process, service Blackwell, (2006) discusses consumer buying decision personnel, and the creation and presentation of process as a process of consumer buying. physical characteristics. Therefore, there are 7 service 5 steps of buying process are as follows. marketing mix factors: 1. Need recognition or problem recognition before 1. Product: Child Development Center is a semi-service making a purchase: Consumers must be motivated business. Therefore, the products of the child development to purchase the product or service by realizing center are tangible materials such as teaching aids, their problem or the need for having or using the bedding, food; and non-tangible things, such as goods and services. teaching activities, cleanliness, caring of teachers 2. Search for information: When consumers want for students (Kotler, 2012). to buy any services, consumers will try to find 2. Price: price refers to the tuition fee or service information about the products or services through charge. Pricing must take target market segments various channels such as from friends, relatives, or people who are likely to send their children to salespeople, television sites, or even try the sample nurseries into account (Saengsuwan et al., 2004). to get information about the products or the service 3. Place: place means building, location and environment. for purchasing decision. It must be located in a safe, non-polluting, hygienic 3. Pre-purchase evaluation of alternatives: Once area. Space for playgrounds is allocated with suit- the information is satisfactory, consumers will use able and safe rides. the derived information to evaluate the alternatives 4. Marketing Promotion: Promotion means the to use or purchase the products or services. It is channel to present goods and services that can attract estimated by quality, brand, price, service, distribution customers to purchase the products and services channel, etc. Consumers may evaluate the products offered. It also includes promotions to encourage which are expensive in details. However, some purchases (Lovelock & Wirtz, 2010). products may not be evaluated at all because they 5. The process of service: Process means the are inexpensive or they have used the product convenience and speed that customers will receive before and see that they are good, resulting in from each purchase (Lovelock & Wirtz, 2010), repeat purchases. which will bring the impression on goods and 4. Purchase decision: When consumers evaluate services (Saengsuwan et al. For the nursery, the goods and know the best product, consumers will entrepreneur should pay special attention to the make a purchase. Marketers need to study what quality of service and primarily take the safety of motivates consumers to buy products and services children into account. so that they can properly plan marketing. 6. Personnel: Personnel refer to all people of a day 5. Post-purchase behavior: It is the behavior after nursery, ranging from cleaners and teachers who consumers have used the product or services. They need to be skilled and able to take care of young may be satisfied or dissatisfied. If they are satisfied, children. They must have sacrifice and pay close they purchase repeatedly. If they are not satisfied, attention to the children (Saengsuwan et al., 2004). they will search information again and buy another 7. Physical evidence and presentation: Physical brand of products. evidence refers to the quality of service through the use of visible evidence, such as the creation of a Related Research clean, neat and pleasant nursery environment with Ratanadechapitak (2009) studied on service Journal of Global Business Review 41 marketing mix factors affecting parents’ decision Moser and Kalton (1972) for unknown number of to choose private nursery in Muang Chiang Mai. consumers. The confidence was determined at 95% The results showed that the aspect of physical , and error of estimation was not more than 5%. evidence factor that had the highest average was The sample size was n = 384.16. or 385 people and a fence to enclose the area. The aspect of process to prevent errors from incomplete survey responses factor that had the highest average was record and the researcher then added 15 additional samples, evaluation for growth, behavior and development so the total was 400 samples. of children in all age groups. For example, they Statistics used in research. record children’s physical, mental, emotional, social Multiple linear regression analysis was used to test for attributes in every six months. The aspect of product autocorrelation by the test method of Durbin-Watson that had the highest average was teaching activities statistics. The statistical value was determined that were consistent with the development of children. between 1.50 and 2.50 (Prabaripai, 2004). There was These results were consistent with another researcher’s also the test of the correlation between independent study. variables (Durbin-Watson Testing multicollinearity) by Sutthisarn (2010) whose research title was “Demand considering the value of Tolerance. If Tolerance was for Nursery in Khlong Luang District Pathum Thani greater than 0.1, this showed that the independent Province suggested that most parents who worked variables did not correlate each other (Menard, from home also had need to have a nursery school 1995). By considering the Variance Inflation factor take care of their children after school hours because (VIF), the researcher found that if the VIF value they sometimes had to run an errand. This type of was less than 10, it showed that the independent service would influence parent’s decision-making to variables did not correlate (Myers, 1995). choose the nursery school. Research results Methodology Summary of hypothesis testing results In conducting research whose title was Service Hypotheses : Service marketing mixes influence par- marketing mix factors influencing the decision-making ents’ decision-making process of using day nursery process in the selection of nursery services of in Mueang Distric, Chonburi Province. parents in Muang District Chonburi Province. the H0: Service marketing mix factors influencing parents’ researcher studied, and collected information with decision making process of day nursery in Mueang survey research, in which the researcher had to District, Chonburi are not different. invent a questionnaire with the choice of answers H1: Service marketing mix factors influence parents’ and open- ended questions so that the respondents decision making process of day nursery service in were free to give comments. In addition, the Mueang District, Chonburi Province are different. researcher used statistical methods to verify the The results of the research showed that service hypothesis. The samples used in this study were marketing mix factors: product, process of services, parents who used services from 27 nurseries in and physical evidence had significant effects on Mueang District, Chonburi Province. The sample decision making at the 0.05 significant level, as size could be calculated by using the formula of shown in the table. 42 Journal of Global Business Review

Table 1 Multiple iinear regression analysis used for the test of the relationship between service market mix factors and parents’ decision-making process of day nursery service in Mueang District. Chonburi Province. Unstandardized Standardized Model Coefficients Coefficients t Sig. Tolerance VIF B Std. Error Beta Constant 1.045 0.200 5.215 0.000**

x1 0.169 0.069 0.146 2.449 0.015* 0.418 2.392

x2 0.060 0.048 0.065 1.264 0.207 0.572 1.748

x3 0.019 0.050 0.022 0.389 0.697 0.487 2.054

x4 -0.039 0.045 -0.041 -0.869 0.385 0.687 1.456

x5 0.029 0.057 0.033 0.514 0.608 0.368 2.715

x6 0.378 0.061 0.398 6.225 0.000** 0.364 2.744

x7 0.119 0.057 0.118 2.112 0.035* 0.481 2.080 R 0.645 R2 0.416 Adjust R2 0.405 F-ratio 39.82 (0.000**) The dependent variable is decision making. *p-value < 0.05 **p-value < 0.01 Table 1 showed that the F statistic test revealed the multiple regression analysis showed that the that the p-value = 0.000, which was less than the market mix factors : product, service process and significance level of 0.01.This showed that at least physical aspect influence the decision-making at the one marketing mix could predict the variance of significance level of 0.05. Thus, the equation can the dependent variable which was decision making be expressed as follows. to use day nursery. The results of the t-test with Journal of Global Business Review 43

Table 2 Relationship analysis using multiple linear regression (Enter Multiple linear regression analysis) to see the relationship between marketing factors :products, service process and physical evidence and decision-making aspect Unstandardized Standardized Model coefficients coefficients t p-value Tolerance VIF B Std. Error Beta Constant 1.062 0.189 5.613 0.000**

Product (X1) 0.195 0.064 0.169 3.053 0.002** 0.487 2.051 Process of service (X6) 0.406 0.049 0.429 8.276 0.000** 0.554 1.806 Physical evidence (X7) 0.132 0.052 0.131 2.533 0.012* 0.559 1.788 R 0.642 R2 0.412 Adjusted R2 0.407 F-ratio 92.321 (sig = 0.000) Durbin-Watson 1.736 The dependent variable is decision making. *p-value < 0.05 **p-value < 0.01 From table 2 the results of the F test showed that the parents in selecting nursery services in Mueang p-value = 0.000, which was less than the significance District, Chonburi Province. level of 0.01. This revealed that at least one marketing mix could predict the variance of the dependent Discussion of the results of the research. variable that was decision making to use the service The results of the test of hypothesis revealed that for a day nursery in Mueang District, Chonburi marketing factors influenced the parent’s decision-making Province. The results of the t-test with multiple process of choosing a day nursery in Mueang regression analysis revealed that the marketing mix District. Chonburi Province. It was also found that influenced the parents’ decision-making process the product mix market, the process of service and in assessing the choice of nursery care in Mueang physical evidence had a significant effect on decision District, Chonburi Province. The results are as making at 0.05significance level due to the fact that follows:. all parents cared about their children. These factors include: 1) product factors such as learning activities Unstandardized Y = 1.062 + 0.195X1 **+ 0.406X6** that enhance the child’s appropriate development, + 0.132X7* and suitable and diverse instructional media and Standardized Y = 0.169X1 **+ 0.429 X6** after school daycare in case parents have to run an + 0.131X7* errand or have to pick up their child late. Therefore, day nursery might have service to take care of the These equations showed that there was sufficient children on weekends or public holidays, 2) process information to reject the null hypothesis H0 at 0.05 factors such as convenient and fast enrollment, significance level. There were at least three marketing payment for tuition fees and provision of contact mix factors affect the decision-making process of details. Moreover, the nursery was managed with the 44 Journal of Global Business Review standard of Department of Health. There should be development of these service marketing mix factors. shuttle services with the standard of the Department 2. Actions are suggested as follows: of Transport, and 3) Physical factors , for example 2.1 Improvement of the marketing mix factor in the nursery was spacious, shady, ventilated, and the service process. secure with fence enclosing the area and clean and 2.1.1 Education, curriculum, personnel, teachers, beautiful classrooms. There was adequate lighting and caregivers should be enhanced to meet and ventilation in the classroom, bedroom, canteen, the standards to support the opening of first-aid room, and bathroom. The furniture such ASEAN community. For example, there should as desks and chairs was in good condition. The be cooperation with the public sector in the clothes and bedding were clean and tidy, and the training, or the nursery school should send place was well-ventilated, well-spaced, well-defined the staff to attend training with the public area of the classroom, bedroom, dining room, and and other private sectors. bathroom. The results were consistent with 2.1.2 The quality of staff’s operations and Rattanadeepitak’s research (2009), entitled “Decision services should be improved with the distribution of Parents in Choosing Private Nursery in Amphoe of a questionnaire so parents or nursery users Mueang, Chiang Mai”. The results showed that the can evaluate the operation of the nursery aspect of physical evidence factor which had the and the services of the staff of the nursery. highest average was fence enclosing the area. The 2.1.3 More resources and database of childcare aspect of process factor that had the highest average information should be provided for parents was record and evaluation for growth, behavior to have a fast and convenient access. This and development of children in all 4 areas, namely supports the haste of the society of people physical, intelligence, mental or emotional, and social who worked outside. The information can attributes. For example, they record children’s physical, be provided by creating electronic pages, mental, emotional, social attributes in every six Facebook, Instagram, and other media to months. The aspect of product that had the highest facilitate the access to nursery information. average was teaching activities. These results were 2.1.4 Channels for payment of tuition fees consistent with another researcher’s study entitled should be added and there should be various “Demand for Nursery in Khlong Luang District ways to facilitate parents by using bank Pathum Thani Province”. In the study, it was found channels and other various systems. that most parents who worked from home still 2.1.5 There should be more shuttle busses to had a need for after-school childcare service, which pick up children and they should have would influence their decision-making. standard specified by the Department of Transport. In addition, a teacher or a caretaker Research recommendations should be appointed to assist children while Based on the research entitled “The Effect of Marketing traveling to and from the nursery school to Mix Factors on Parents’ Decision to Choose a ensure parents for the safety and to relieve Nursery in Mueang District, Chonburi Province”, the parents’ worries. researcher has given the following recommendations: 2.2 Improvement of Marketing Mix Factors 1. Policy recommendations 2.2.1 Location should be managed to be From the study entitled “The Effect of Marketing appropriate and diverse to enhance the learning Mix Factors on Parents’ Decision to Choose a environment for children, such as playgrounds, Nursery in Mueang District, Chonburi Province”, it gardens and equipment in the classroom to was found that marketing mix factors in product, make children more interested in learning. service process and the physical evidence influence 2.2.2. The nursery should be improved and decision-making. Therefore, there must be a focus on maintained to be a safe, hygienic, clean and Journal of Global Business Review 45

shady place with good ventilation for children. Refferences 2.3 Improvement of marketing mix. Blackwell, R. D., Miniard, P. W., & Engel, J. F. 2.3.1 A plan of instructional management (2006). Consumer Behavior (10th ed.). Australia: should be developed to focus on developing Thomson South-Western. skills in areas such as language, computer, Chonburi Provincial Office for Local Administrative. music, art, and there should be diverse (2015). Chonburi Provincial Administrative activities to support children of different ages. District. Retrieved from http://chonburilocal. 2.3.2 Extra services should be provided for go.th/public/history/data/index/menu/22 the childcare after school, or on Saturday Department of Social Development, Welfare Ministry or Sunday to support in case parents have of Social Development and Human Security. to run an errand or work overtime on weekends (2015). Private Nursery and Childcare. Retrieved or on holidays. It was also found that most from Http://www.google/61.19.238.233/nusery/ parents work for a private company. . Improvement content/search.aspx. in this area can be an option for parents. Moser, C. A., & Kalton, G. (1972). Servey Method 2.3.3 There should be a proper registration in Social Investigation. New York: Basic. of nurseries in accordance with the Office of Prabaripai, A. (2004). Statistical Analyses Using SPSS. Social Development and Welfare. In addition, Bangkok: Krasetsart University. the nursery should have a certificate and it Saengsuwan, T. et al. (2004). Marketing Management. should be assessed and verified annually to Bangkok: Pearson. guarantee that the nursery is efficient. Ratanadecahpitak, N. (2009). Service Marketing Mix Factors Influencing Parents’ Decision Suggestions for the further research to Choose a Private Daycare in Mueang Based on the results of the research, the researcher District,Chiang Mai. Master of Business gave the following suggestion for further research: Administration, Marketing, Graduate School, 1. The researcher collected only information on the Chiang Mai University nursery in Mueang District, Chonburi Province In the National Statistical Office. (2010). 2010 Census. next research, there may be research in other districts, Retrieved from http: // www.nso.go.th. such as Sriracha, Panthong, which are important Sutthisarn, O. (2010). Demand for Nursery in Khlong economic sources with a lot of registered nurseries. Luang District Pathum Thani Province. 2. More qualitative research should also be done. Dissertation of Master of Economics, Department Therefore the results can give good supplement to the of Management Economics, Srinakharinwirot findings. This can be done by interviewing nursery University. entrepreneurs about their business management, Kotler, K. (2012). Marketing Management. Boston: so that the information can be beneficial to improve Pearson. the nursery more appropriately. Lovelock, C., & Wirtz, J. (2010). Service Marketing: 3. The demand and supply quantity should be People, Technology, Strategy (6th ed.). USA: studied to see whether the number of nurseries is Pearson Prentice Hall. enough for the demand in Mueang District, Chonburi Menard, S. (1995). Applied Logistic Regression Province Analysis. Thousand Oaks: Department of 4. The guidelines for early childhood education Socail Sciences, Sag University. should be studied in order to develop nurseries in Myers, T. A. (1995). An Analysis of Perceived Customer Chonburi Province. Contact Service Quality in the Public Sector. Dissertation Abstracts International, 51(4). 1385-A.

Journal of Global Business Review : Volume 19 No. 1 January-June 2017 pp. 47-45

THE STUDY OF RELATIONSHIP BETWEEN THE LEVEL OF SUSTAINABILITY REPORT DISCLOSURE AND SECURITY PRICES OF LISTED COMPANIES IN THE STOCK EXCHANGE OF THAILAND.

Sumalee Hodkum1*, Sakchai Chanruang1* 1Graduate School of Commerce Burapha University, Chon Buri 20131, Thailand

ABSTRACT The research’s objectives were to study the relationship between the level of sustainability report disclosure and the security prices of listed companies in the Stock Exchange of Thailand, and to study the relationship between the level of sustainability report disclosure and the security prices of each industry of listed companies in the Stock Exchange of Thailand. Data were collected from 489 companies listed in the Stock Exchange of Thailand in 8 industries during A.D. 2012 - 2014. Statistics used included simple linear regression analysis and multiple regression analysis. This research’s findings reveal that the level of sustainability report disclosure is positively related to the security prices of listed companies in the Stock Exchange of Thailand. Furthermore, 1) the level of sustainability report disclosure regarding economics is positively related to the security prices, 2) the level of sustainability report disclosure regarding social is not related to the security prices, and 3) the level of sustainability report disclosure regarding environment is not related to the security prices.

Keywords: Sustainability report, security prices

Author e-mail address: [email protected]; [email protected] 48 Journal of Global Business Review

Background and significance of the study utilized to study the relationship, and to reveal Sustainability has become a trend that all sections business value and market value measurement. It in the society paid attention to as for developing also investigated the positive and negative effects of economic system, society, and environment sustainably sustainability report disclosure in economic, social, and interchangeably. Such trend is a direction and environmental aspects on business value and which many countries in the world agreed to use its cause. The level of disclosure was studied to as a frame to develop their organizations and help stakeholders to make decision. countries (Anakoon, 2015). Listed companies in the Stock Exchange of Thailand is one of an important Objectives part to drive national economic system. The Stock 1. To examine level of sustainability report disclosure Exchange of Thailand encouraged listed companies of listed companies in the Stock Exchange of Thailand to operate with sustainability and responded to 2. To investigate relationship between sustainability needs of investors. report disclosure and security prices of listed companies Report of sustainability is an economic tool for in the Stock Exchange of Thailand social communication. It is a way to promote the organization and to strengthen the trustworthiness Hypotheses and image of the organization. The sustainability 1. Level of economic sustainability report disclosure becomes a part of businesses, organizations, and has a positive relationship with security prices activities in the world. 2. Level of social sustainability report disclosure The present study aims to examine the relationship has a positive relationship with security prices between the level of sustainability report disclosure 3. Level of environmental sustainability report and security prices of listed companies in the disclosure has a positive relationship with security Stock Exchange of Thailand. Tobin’s Q concept was prices Conceptual framework Level of sustainability report disclosure Economic Security prices Social Environmental

Control variables 1. Size of business 2. Return on Equity (ROE) 3. Dividend Payout Ratio (DPR) 4. Capital Structure (CS) (Tanasarnborisoot & Padungsit, 2012)

Significance of the study about strategies and operations of the organizations 1. Listed companies can refer to the findings as before deciding to capital budget for strategic adjustment and self-evaluation. The 3. The Stock Exchange of Thailand can findings can also be applied in the organizations refer to the findings as a base information to have sustainable development for developing effective sustainability report 2. Investors can get clear and correct information disclosure Journal of Global Business Review 49

Scope of the study market value of assets of organizations with replacement The scope of this study was to study the relationship cost of such assets. The market value of those assets between level of sustainability report disclosure and could measure the market value of stock of shareholders security prices of listed companies in the Stock and liabilities. Professor Tobin believes that Tobin’s Exchange of Thailand. Report disclosed included Q is a good measurement that could reveal value annual report (Form 56-2), annual information form of the organization. (Form 56-1), corporate social responsibility report, and sustainability report. An independent variable Tobin’s Q Formula was the level of report disclosure, i.e. those reports disclosed to public. An dependent variable was Tobin’s Q = Market Value the security prices (Tobin’s Q) and controlled variables Replacement cost included Size of Business, Return on Equity Sustainability report (ROE), Dividend Payout Ratio (DPR), and Capital Sustainability report is the disclosure of economic, Structure (CS). social and environmental operations which provided to response to needs and to add the information Tobin’ Q concept found in annual report. The data could be positive Tobin’s Q is a concept proposed by Professor James or negative but for sustainable development. T. Tobin, a professor from Yale University who Sustainability report can be applied with Global won Noble Prize in economics in 1981. Tobin’s Q Reporting Initiative (GRI) as a sustainability report was a measurement of operation integrated financial of the organization for economic, social, and statement and market value calculated by dividing environmental aspects.

ECONOMIC SOCIAL SUSTAINABILITY

ENVIRONMENT

Figure 1 Sustainability dimensions Instruments 3. Secondary source of data was the annual report Instruments to collect data are as follows: (Form 56-2), the annual information form (Form 1. Work sheets were used to collect data in accordance 56-1), the corporate social responsibility report, and with variables specified in the annual report (Table the sustainability report from year 2012 – 2014 3-5) of listed companies of the Stock Exchange of 2. Checklist was the level of sustainability report Thailand. disclosure referred to the checklist for annual The organization had specified details to be disclosed information form (Form 56-1) and framework for and to give analysis method. The details of GRI G4 the organization were not strictly required. 50 Journal of Global Business Review

Each organization could describe their profiles companies in the Stock Exchange of Thailand. differently. The evaluation was conducted by Descriptive analysis was to investigate the criteria, following level of GRI G4 sustainability report. evaluation methods, and level of sustainability Quantitative analysis was conducted by analyzing report disclosure. all data to find the relationship of between level of Statistics to analyze data included simple linear sustainability report disclosure and security prices of listed regression analysis and multiple regression analysis. Model of the study β β β β β β Tobin’s Q = 0+ 1 (EP)+ 2(MP)+ 3(IEI)+ 4(PP)+ 5(PLDW)+ β β β β β β β β β β 6(HR)+ 7(S)+ 8(PR)+ 9(M)+ 10(E)+ 11(W)+ 12(B)+ 13(EM)+ 14(EW)+ 15 β β β β β β β (P&S)+ 16 (C)+ 17(T)+ 18(O)+ 19(SEA)+ 20(EGM)+ 21(SIZE)+ 22(ROE) β β + 23(DPR)+ 24(CS)+e The researcher calculated Tobin’s Q from two concepts, The formula was adjusted as follow. i.e. Lindenberg and Ross (1981) and Chung and Pruitt (1994), since they were the most acceptable. Tobin’s Q = Market Value Replacement cost

Calculating Tobin’s Q Table 1 Market value and replacement cost Type Calculation Common stock Common stock value at the end of year Market value Preferred stock Dividend retrieved from return index of preferred stock Liability Book value of current liability and non-current liability Building and materials Book value Replacement cost Inventory Book value Other assets Book value Adjusted from concepts of Lindenberg and Ross (1981) and Chung and Pruitt (1994) Table showing results Table 2 Descriptive statistics of level of sustainability report disclosure based on sustainability Dimension (n = 1,467) Sustainability dimensions MIN MAX SD X Economic 0.06 1.00 0.19 0.22 Social 0.00 0.84 0.11 0.18 Environmental 0.00 0.93 0.12 0.11 Total 0.02 0.92 0.14 0.17 Journal of Global Business Review 51

Table 3 Descriptive statistics of level of sustainability report disclosure based on industry group (n = 1,467) Industry group Numbers MIN MAX SD X Property and construction 91 0.03 0.89 0.12 0.16 Technology 38 0.03 0.34 0.07 0.14 Financials 60 0.02 0.54 0.09 0.29 Consumer products 40 0.03 0.42 0.09 0.16 Industrials 81 0.03 0.78 0.11 0.15 Agro and food industry 50 0.03 0.50 0.08 0.14 Resources 37 0.03 0.78 0.20 0.22 Services 92 0.01 0.39 0.06 0.13 Total 489 0.02 0.58 0.10 0.17

Table 3 Results of regression analysis for relationship between level of sustainability report disclosure and security prices based on sustainability dimensions Sustainability β Sig R Square Expected dimensions Unstandardized(B) Standardized ( ) (Constant) -68.005 0.001* 0.268 Economic 150.900 0.337 0.000* + Social -96.030 -0.128 0.000* + Environmental -44.612 -0.062 0.057** + SIZE 7.362 0.092 0.001* ROE 0.007 0.004 0.857 DPR -0.011 -0.009 0.728 CS 2.777 0.108 0.000* R = 0.268 R Square = 0.072 F = 5.333 *Sig = 0.05 **Sig = 0.10 Discussions employees since the employees were important drivers The findings on the levels of sustainability report of the organization. This dimension also revealed disclosure based on sustainability dimensions responsibility of the organization towards products revealed that they were at the low level. The level as for building good relationship with customers of economic dimension was higher than others since and brand loyalty. The environmental dimension economic data were necessarily revealed to public. was found having the lowest level of sustainability The organizations commonly showed such information. report disclosure because of many reasons, e.g. Social dimension was the report about workforce companies did not do business harming environment, and human right. It aims to create loyalty of the effects were not able to count, the companies 52 Journal of Global Business Review did not pay attention to this dimension, etc. stakeholders are aware of information disclosed to The findings on the levels of sustainability report public, share prices may adjust. It could be inferred disclosure based on industry groups showed that the that when the level of sustainability report disclosure report disclosure were increasing. Unfortunately, the in economic dimension is high, enterprise value, i.e. disclosures were at the low level. Average of index security, increases. for all groups was about 17 percent. The group 2. Level of sustainability report disclosure in social found having highest level of disclosure included dimension had no relationship with security prices. financials, resources, property and construction, The social dimension is to reveal interaction between industrials, agro and food industry, technology, employers and employees, variety of social factors, and services. Financials were crucial for national methods and evaluation to manage effects derived economic system as they provide working capital, from operations and communication of organizations support economic activities, and lead to expansion to stakeholders, policy and responsibility to the goods, of economic. Bank of Thailand paid the most attention products, and services (Guideline for Sustainability to economic dimension. For social dimension, Report, year). As a social disclosure, corporate social financials needed work force who were proficient responsibility (CSR) seriously started in 2006 and to drive business. Benefits and return were used to it was included in business administration as for prevent corruption. The financials had little operations leading the sustainability of the organization The that have an environmental effect. Another industry disclosure is considered as showing responsibility to group found to disclose at the high level was employees, community, corruption, and customers. resources. This group dealt with nature and natural Although such disclosures have increased, there was resources. The effects on environment were at the no regulations or guideline given from the authority. highest level. The group found the lowest level Limitations of disclosure included characteristics of of disclosure was services. This group dealt with business, cost for disclosure, competency of employees, abstract units as for responding to needs (Satisfaction and effects of disclosure itself (Jantana & Monvika, and expectation) of customers. Service provider 2012). Stakeholders may not have received enough business needs service-minded personnel. This group information and viewed this as an effect on economic paid attention to professional development as the dimension. This can affect the decision of the investors. highest dimension being disclosed. They may postpone to invest and misunderstand The results on relationship between level of sustainability that social dimension affected security prices. report disclosure and security prices of listed companies Level of sustainability report disclosure in environmental in the Stock Exchange of Thailand. dimension did not have a relationship with security 1. Level of sustainability report in economic dimension prices because the report was to reveal effects from was found a positive relationship with security business operations and quantity of raw materials prices at the significance level of 0.05. The economic of the organizations. This can be negative image of disclosure was required to report to public in annual the business. There was no regulations or guidelines report and annual information form (56-1) since from the authority. There were limitations to reveal the Stock Exchange of Thailand requested all listed some information, e.g. competency of employees, companies to reveal this information. In addition, effects of disclosed information, etc. (Jantana & economic dimension was important factor affecting Monvika 2012) Reporting environmental information investing in securities. Economic problems can lead is crucial for organizations internationally. Quantity to other problems and affect investors psychologically and quality of disclosure were different regionally Investors and stakeholders should be clear with and internationally (Lenciu, 2012). Many organizations economic report being making decision. The report were not ready to reveal this dimension or they showed expectation and risk to investors. would do very little on it. In addition, economic According to the efficient market theory, when dimension was considered the most important factor Journal of Global Business Review 53 which drive the country to move forward. Such References development actually affects environment and natural Anakoon, B. (2015). Sustainability. Retrieved from resources (Wongboonsin, n.d.). It does not support http://www.manager.co.th/iBizChannel/ environment conservation. This may be the cause ViewNews.aspx?NewsID=9560000018939. of limited numbers in environmental reports. Inves- Jantana, T., & Monvika, P. (2012). To study the tors and stake holders received limited information relationship between the traits of company and it was not enough for making decision. They with the level of social and environment may misunderstand how can environmental report data declaring: A case study of patented affects security prices. companies in stock market M.A.I., The Journal of accounting Profession, 30(11), 23-40. Suggestions Tanasarnborisoot , J. & Padungsit, M. (2012). To 1. The findings can support theories, i.e. agency study the relationship between the traits theory. Providing correct and effective sustainability of company with the level of social and report is considered a good representative of the environment data declaring: A case study organization. The Stock Exchange of Thailand should of patented companies in stock market M. encourage or request the organizations to increase A. I. The Journal of Accounting Profession, numbers of such reports. 30(11), 23-40. 2. The findings can support business administration. Lindenberg, E. B., & Ross, S. A. (1981). Tobin’s Q 1) Listed companies adjust their strategic plans as an ratio and industrial organizations. Journal of instrument for self-evaluation. The findings may be Business, 54(1), 1-32. applied for development and sustainable operations Wongboonsin, K. (n. d.). Population and Development. of the organization. 2) There was a clear and correct Bangkok: Chulalongkorn University. information as a guideline for investors. 3) There Chung, K. H., & Pruitt, S. W. (1994), A simple was a guideline for the Stock Exchange of Thailand approximation of Tobin’s Q, Financial to develop an effective sustainability report format Management, 23(3), 70-74. and to request the companies to provide such report. Lenciu, A. I. (2012). Environmental reporting and corporate governance for FTSE 100 listed Suggestions for future study companies. Annals of Faculty of Economics, 1. Further studies can be replicated in different 1(2), 681–687. periods of time since the change of periods may affect the relationship among factors. 2. Scoring for disclosure can be conducted with other methods, e.g. counting words, lines, etc.

Instructions to Authors

Manuscript guidelines: 1. Original papers should be a new piece of work and has not been submitted or published elsewhere . 2. Articles should be in Business administration theories and practices in the fields Of management, human resources management, accounting, organizational behavior, marketing, finance, operations research, economics, and management of information systems. 3. Manuscripts must be typed in Times New Roman 12 point font and submit with Microsoft Word (A file must be able to edit) 4. Manuscripts must be typed with A4 white paper, full length papers of not more than 15-20 pages. 5. Articles must have abstract, the length should not over one page. 6. Articles must have keywords. 7. Manuscripts should be proved accurate language and format before submit. 8. References citation in content must be listed in references at the end of the article. 9. The reference must be in American Psychological Association style or APA. The example is shown in References Style. 10. Author name and work place must be typed below title article. (see example)

MIXED METHODS: QUANLITATIVE AND QUALITATIVE RESEARCH IN BUSINESS MANAGEMENT Sarunya Lerdputtarak1 1Graduated School Of Commerce, Burapha University, Chon Buri 20131, Thailand

Data sending 1. Submit Microsoft Word file of article and submitted form to Ms. Wilailuk Khamloy E-mail address: [email protected] 2. Asking for more details, please contact Ms. Wilailuk Khamloy, Assistant Editor Tell 03839490 ext. 131, 132; Fax 038094900 ext. 129 E-mail address: [email protected] or [email protected] Submitted Form Journal of Global Business Review 1. Title ......

2. Article Type  Academic article  Research article

3. Author Author 1 Name ………………………...... ………… Sir name ………………………...... …………...... Institution Address (In case of student use Education institution address) ...... Author 2 Name ………………………...... ………… Sir name ………………………...... …………...... Institution Address (In case of student use Education institution address) ...... Author 3 Name ………………………...... ………… Sir name ………………………...... …………...... Institution Address (In case of student use Education institution address) ...... Author 4 Name ………………………...... ………… Sir name ………………………...... …………...... Institution Address (In case of student use Education institution address) ......

4. Contact an author address (Need only the first author) House No...... Village No...... Sub district …………...... ……...... District …………...... ……...... Province …....…….....…… Zip Code ...... Mobile Phone ...... E-mail address ......

5. Article Certification  This paper has not been submitted or published elsewhere.

6. I attached the document as below:  Microsoft Word file  Submitted Form

I certify that the above information is true and correct Signed...... Author (…...... ) Date...... Month...... Year...... Article Typing Form

Page 1

16 Bold TITLE 14 Name Sir Name (Author) 14 Institution Address

ABSTRACT (14 Bold) Abstract content (12) ------

Keywords: (12) 1 line spacing

Page 2

Research article should contain the topic as below: Introduction Objective of the Study Literature review Sample and data Methodology Results Conclusion Acknowledgements References References Style

The reference must be in American Psychological Association style or APA. Please see the example as below: Book: Author./(Year)./Tile/(edition (if has)./City or Country: Publisher. Ex: Kotabe, M., & Helsen, K. (1998). Global marketing management. (2nd ed.). New York: McGraw-Hill. Translation Book: Author./(Year)./Tile/(edition (if has)./(Translator’s Name, Trans.)./City: Publisher. Ex: Johnson, A.W. (2013). International behavior. Somsak Wongdee, Trans.) Bangkok: Se-Ed. Article in book: Author./(Year)./Article Tile./in/Editor/(ed.),/Book title./(pp./page no.)/City: Publisher. Ex: Kotabe, M., & Helsen, K. (1998). Marketing Mix for education. In J. Dillin(Ed.), Global marketing management (2nd ed.) (pp. 12-23). New York: McGraw-Hill. Dissertation/Thesis: Author./(Year)./Tile./Degree,/Major, Faculty, University. Ex: Kim, B. J. (2009). Factors that influence customer to purchase brand name bags.Doctoral dissertation, Marketing, Faculty of Business Administration, University of California. Article in journal: Author./(Year)./Tile./Journal title, Vol(No.), pages no. Ex: Pilke, E. M. (2004). Flow experiences in information technology use. International Journal of Human- Computer Studies, 61(3), 347-57. Conferences: Author./(Year)./Title/In/Conference’s name./ (pp./page no.)./ City: Publisher. Ex: Ramesh, S. (2012). Preparation and evaluation of nanoparticles for sustained deliverly of ampicillin. In Proceedings of the Burapha University International Conference 2012, global change (pp. 351-357). Chon Buri: Burapha University. Interview: Author./(Year,/Date/Month)./Position (If have)./Interview. Ex: Bear, T. (2006, August 11). President. Interview. Website: Author./(Year)./Tile./Retrieved from/ URL of Website Ex: Bitner, M. J. (2014).7ps of Marketing. Retrieved from https://www.entrepreneur.com/article/70824 Journal of Global Business Review Subscription Form

Journal of Global Business Review publish twice a year No.1 publish in January-June, No.2 publish in July-December Annually Subscription 200 Baht (Include shipping fee) Annually subscription …...... Year Start from Volume …...... No. …..... Month …...……… Year …...... to Volume …...... No. …..... Month …...……… Year …...... Please send journals to the address below: Name ………………...... …………………. Sir name ………………………...... …………………….. Institution ………………………………...... …………………………………...... ………………….. Address ...... Sub district ………...... ……… District ………...... ……… Province ………...... ……… Zip Code ...... Phone ...... E-mail address ...... Paying by bank only, transfer money to saving account no. 386-1-00442-9, Krungthai Bank (Public) Co., Ltd., Burapha University sub-branch, Chonburi Province, Thailand. Please present your pay-in copy with this subscription form to Ms. Wilailuk Khamloy E-mail: [email protected] and note that you have paid for Journal of Global Business Review. Designed and printed by Natikul Press Co., Ltd. Thailand ë Tel. (662) 669-3131-4, 669-2447-8