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Management Control in a Thai-Owned Chicken Company In Management Control in a Thai-Owned Chicken Company in Thailand A thesis submitted in fulfilment of the requirements for the Degree of Doctor of Philosophy in Accounting and Information Systems by Piyarat Dokkularb University of Canterbury 2013 Table of Contents List of Pictures .................................................................................................... v List of Tables and Figures ................................................................................. v Acknowledgments .............................................................................................vi Abstract ........................................................................................................... viii Chapter 1 ............................................................................................................. 1 Introduction ........................................................................................................ 1 1.1 Introduction ..................................................................................... 1 1.2 Nature of Management Control Systems ..................................... 3 1.3 Research about Management Control Systems in South and Southeast Asia .................................................................................. 4 1.4 Objectives of the Research ............................................................. 7 1.5 Research Questions ......................................................................... 8 1.6 Research Method ........................................................................... 10 1.7 Organisation of the Thesis ............................................................ 11 Chapter 2 ........................................................................................................... 15 Review of Research about Management Control ........................................ 15 2.1 Introduction ................................................................................... 15 2.2 Defining Management Control Systems ..................................... 15 2.2.1 Instrumental Definition .......................................................... 15 2.2.2 Socio-Political Definition ........................................................ 17 2.2.3 Application of Definitions in the Present Study .................. 18 2.3 Application of Management Control in Asia ............................. 19 2.3.1 National Culture ...................................................................... 21 2.3.2 Demographic Characteristics ................................................ 30 2.3.3 Ethnic Tensions ....................................................................... 33 2.3.4 Socio-Political Circumstances ................................................ 34 2.3.5 Liberalisation and Privatisation ............................................ 38 2.4 Management Control Systems in Thailand ................................ 43 2.5 Conclusions ..................................................................................... 48 Chapter 3 ........................................................................................................... 50 Background of Thailand.................................................................................. 50 3.1 Introduction ................................................................................... 50 3.2 The Thai in Thailand .................................................................... 51 3.3 National Identity ............................................................................ 53 3.3.1 Physical, Political and Economic Geography ...................... 53 3.3.2 Language .................................................................................. 62 3.3.3 People ........................................................................................ 63 3.4 Buddhism ........................................................................................ 67 3.5 From Absolute Monarchy to Constitutional Democracy ......... 68 3.6 Thai Way of Life ............................................................................ 78 3.7 Thai Cultural Values ..................................................................... 82 3.8 Conclusions ..................................................................................... 96 i Chapter 4 ......................................................................................................... 101 Research Method ............................................................................................ 101 4.1 Introduction ................................................................................. 101 4.2 Research Method ......................................................................... 102 4.2.1 Schedule of Research Events ...............................................104 4.2.2 Methodology and Method ....................................................106 4.3 Gaining Access to Saha Farms ................................................... 107 4.3.1 First Refuser ..........................................................................107 4.3.2 Second Refuser ......................................................................109 4.3.3 Other Possibilities ..................................................................110 4.3.4 Approval from Saha Farms .................................................111 4.4 Research in Saha Farms ............................................................. 112 4.5 Limitations of the Research........................................................ 121 4.6 Conclusions ................................................................................... 124 Chapter 5 ......................................................................................................... 126 Management Control at Saha Farms .......................................................... 126 5.1 Introduction ................................................................................. 126 5.2 Saha Farms ................................................................................... 126 5.2.1 In the Beginning ....................................................................127 5.2.2 Functions and Structure Today ...........................................128 5.3 Management Control at Saha Farms ........................................ 130 5.3.1 Family Business .....................................................................131 5.3.2 Retirees’ Team .......................................................................131 5.3.3 Owner’s Network ..................................................................133 5.3.4 Business Structure, Process and Symbols ..........................134 5.3.5 Business Practice ...................................................................140 5.3.6 Accounting and Finance .......................................................156 5.3.7 Communication Methods .....................................................159 5.4 Thai Culture and Saha Farms Interactions ............................. 161 5.5 Conclusions ................................................................................... 174 Chapter 6 ......................................................................................................... 176 Interpretation of Empirical Materials: Management Control at Saha Farms ............................................................................................................... 176 6.1 Introduction ................................................................................. 176 6.2 Thai Culture ................................................................................. 177 6.2.1 Hierarchy ................................................................................178 6.2.2 Individuality ...........................................................................178 6.2.3 Ego Orientation .....................................................................179 6.2.4 Grateful Relationship Orientation ......................................180 6.2.5 Smooth Interpersonal Relationship Orientation ...............181 6.2.6 Flexibility and Adjustment Orientation .............................182 6.2.7 Religious-Psychical Orientation ..........................................182 6.2.8 Education and Competence Orientation ............................183 6.2.9 Interdependence Orientation ...............................................183 6.2.10 Fun and Pleasure Orientation ............................................184 ii 6.2.11 Task-Achievement Orientation ..........................................185 6.2.12 Spiritualism versus Materialism ........................................185 6.2.13 Traditional Networks versus Rules ...................................192 6.2.14 Avoiding Lay-Offs versus Restructuring .........................193 6.2.15 Labour versus Technology .................................................193 6.2.16 Face-to-Face versus Internet ..............................................195 6.2.17 Self-Reliance versus Profligacy ..........................................195 6.3 Demographic Characteristics..................................................... 200 6.4 Being a Family Business ............................................................. 206 6.5 Labour Market Competition ..................................................... 212 6.6 Competition in the Market ......................................................... 214 6.7 Labour Laws ...............................................................................
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