A Study on the Characteristics of Farmers’ Management Capability in Thailand (ࢱ࢖࡟࠾ࡅࡿ㎰ᐙࡢ⤒Ⴀ⬟ຊࡢ≉ᚩ࡟㛵ࡍࡿ◊✲) PANATDA UTARANAKORN The United Graduate School of Agricultural Sciences, Tottori University, Japan 2016 A Study on the Characteristics of Farmers’ Management Capability in Thailand (ࢱ࢖࡟࠾ࡅࡿ㎰ᐙࡢ⤒Ⴀ⬟ຊࡢ≉ᚩ࡟㛵ࡍࡿ◊✲) By Panatda Utaranakorn A Dissertation Submitted to the United Graduate School of Agricultural Sciences, Tottori University, Japan In partial fulfillment of the requirement for the degree of DOCTOR OF PHILOSOPHY IN MANAGERIAL ECONOMICS Supervisors: Professor Dr. Hideo FURUTSUKA (April 2016 – September 2016) Professor Dr. Kumi YASUNOBU Associate Professor Dr. Norikazu INOUE (October 2014 – September 2016) Professor Dr. Hajime KOBAYSHI (October 2013 – March 2016) Associate Professor Dr. Akira ISHIDA (October 2013 – September 2014) 2016 Acknowledgement I would firstly like to express my sincere gratitude to the Ministry of Education, Culture, Sports, Science and Technology of the Government of Japan for offering me the Japanese government scholarship (Monbukagakusho) to pursue higher studies in Japan. I am deeply grateful to my advisors, Prof. Kumi YASUNOBU for the continuous support of my study and related research, for her patience, motivation, and immense knowledge. Her guidance helped me in all the time of research and writing of this thesis. I could not have imagined having a better advisor and mentor for my study. Besides my advisor, I would like to thank the rest of my academic supervisors: Prof. Hajime KOBAYASHI, Prof. Hideo FURUTSUKA, Prof. Norikazu INOUE and Prof. Akira ISHIDA, for their insightful comments and encouragement, but also for the hard question which incented me to widen my research from various perspectives. My sincere thanks also goes to Prof. Kumi YASUNOBU again who provided me an opportunity to join their team as intern, and who gave access to the laboratory and research facilities. Without her precious support it would not be possible to conduct this research. I thank my fellow labmates in for the stimulating discussions, and for all the fun we have had in the last five years. Also I thank to all of the professionals, officers, farmers and other folks who welcomed me into their home and offices, offered their time for me as well as trusted me with their stories, in the following institutions: Khon Kaen University, Community Development Department of Nong Song Hong district, Agricultural Extension Office of Nong Song Hong district, Wang Hin sub-district and Non Han sub-district. I could not have completed this work without their valuable insights and opinions. In particular, I am grateful to Dr. Weera Pakuthai, Assoc. Prof. iii Prensak Pugdee and Assist. Prof. Supaporn Puangchomphoo for enlightening me the first glance of research. Last but not the least, I would like to thank my family: my parents and to my brothers, my sisters, my relatives and my lovely friends for supporting me spiritually throughout writing this thesis and my life in general. Panatda Utaranakorn iv Dedication I dedicate this thesis to my parents, farther Mr. Boo Utaranakorn and mother Mrs. Junjira Utaranakorn, who have lead me through the valley of darkness with light of hope and support. I hope this achievement will complete the dream that you have had for me since twenty-seven years ago when you chose to give me the best education you could. This dissertation is also dedicated to my beloved friend, my dearest brothers and sisters, who encourage and support me. Furthermore, I am sincerely thankful for all the people in my life, who touch my heart. v Table of Contents Acknowledgement iii Dedication v List of Tables xi List of Figures xiii Acronyms and abbreviations xiv Chapter 1: Introduction 1 1.1 Background of the study 1 1.2 Objectives of the study 4 1.3 Thesis structure 4 Chapter 2: Literature Review on Farm Management Capability 7 2.1 Definition of farm management capability 7 2.2 Farm managerial ability of farmer 9 2.3 Farmers’ attitudes and perception toward farm management 13 2.4 Decision-making process 14 2.5 Farm production efficiency 16 Chapter 3: Research Design 21 3.1 Analytical framework of the study 21 3.1.1 Research questions 23 3.2 The study area 23 3.2.1 Overview of agriculture in Thailand and in Northeast 23 region 3.2.2 Description of the study area 24 Chapter 4: Farmers’ Managerial Ability and Its Determinant 28 4.1 Introduction and specific objectives 28 4.2 Sample and data collection 29 vi 4.3 Analytical methods 30 4.4 Results and discussion 31 4.4.1 Levels of farmer’s managerial ability 31 4.4.1.1 Risk orientation skills 31 4.4.1.2 Resource mobilization skills 32 4.4.1.3 Decision-making skills 33 4.4.1.4 Communicative skills 34 4.4.1.5 Technical skills 35 4.4.1.6 Planning and goal setting skills 36 4.4.1.7 Information-searching skills 37 4.4.1.8 Accounting and financial management 38 skills 4.4.1.9 Marketing management skills 39 4.4.2 Factors contributing to nine managerial abilities 40 4.5 Summary 42 Chapter 5: Farmers’ Attitudes toward Farm Management and Farm 43 Development 5.1 Introduction and specific objectives 43 5.2 Sample and data collection 44 5.3 Analytical methods 45 5.4 Results and discussion 47 5.4.1 Descriptive statistics of the variables 47 5.4.2 Identifying efficient and inefficient farms based on 48 technical efficiency scores 5.4.3 Demographic profile of rice farmers between efficient 49 and inefficient farms 5.4.4 Farmers’ attitudes toward farm management between 51 vii efficient and inefficient farms 5.4.5 Farmers’ attitudes toward farm development of efficient 56 and inefficient farms 5.5 Summary 58 Chapter 6: Searching and Sharing Agricultural Information within 61 Social Networks 6.1 Introduction and specific objectives 61 6.2 Sample and data collection 62 6.3 Analytical methods 63 6.4 Results and discussion 63 6.4.1 Socioeconomic characteristics of farmers 63 6.4.2 Managerial ability of farmers 64 6.4.3 The structure of farmers’ social networks 65 6.4.4 The network structure of farmers with high managerial 65 ability 6.4.5 Information sharing topics within connected 67 networks 6.5 Summary 68 Chapter 7: Farmers’ Decision-Making in Agricultural Problems 70 7.1 Introduction and specific objectives 70 7.2 Sample and data collection 71 7.3 Analytical methods 71 7.4 Results and discussion 72 7.4.1 General characteristics of the sample farmers 72 7.4.2 Sources of technical information and roles in farmers’ 73 decision-making 7.4.3 Identifying agricultural problems 74 viii 7.4.4 Problem definition and implementation of farmers 76 7.4.5 Decision-making events for individual farmers through 79 case studies 7.4.5.1 Case study: Farmer A 81 7.4.5.2 Case study: Farmer B 82 7.4.5.3 Case study: Farmer C 84 7.4.5.4 Case study: Farmer D 85 7.4.5.5 Case study: Farmer E 86 7.5 Summary 87 Chapter 8: Evaluation of Technical, Allocative and Economic 89 Efficiencies 8.1 Introduction and specific objectives 89 8.2 Sample and data collection 90 8.3 Analytical methods 91 8.4 Results and discussion 93 8.4.1 Descriptive statistics of all variables 93 8.4.2 Technical, allocative and economic efficiencies 95 8.4.3 Farm and farmer specific factors causing technical and 96 allocative efficiency 8.5 Summary 99 Chapter 9: Conclusions 101 9.1 Summary of main findings 101 9.2 Conclusions and Implications 104 9.3 Suggestions for future research 105 References 107 Appendix 125 Thesis summary 130 ix Thesis summary in Japanese 134 List of Publications 137 x List of Tables Table 2.1 Summary key approaches of three major ability tests 11 Table 4.1 The average levels of risk-oriented skill and sub-skills 32 Table 4.2 The average levels of resource-mobilized skill and sub-skills 33 Table 4.3 The average levels of decision-making skill and sub-skills 34 Table 4.4 The average levels of communicative skill and sub-skills 35 Table 4.5 The average levels of technical skill and sub-skills 36 Table 4.6 The average levels of planning and goal setting skill and sub-skills 37 Table 4.7 The average levels of information searching skill and sub-skills 38 Table 4.8 The average levels of accounting and financial skill and sub-skills 39 Table 4.9 The average levels of marketing management skill and sub-skills 40 Table 4.10 Factors contributing to nine skills of farm management 41 Table 5.1 Summary statistics of input and output variables for the sample 48 farms Table 5.2 Distribution of technical (TE), pure technical (PTE) and scale 49 efficiency (SE) scores of rice farms Table 5.3 Farms and farmers characteristics of efficient and inefficient farms 51 Table 5.4 Mean scores of attitudes of attention to farming 52 Table 5.5 Mean scores of attitudes regarding the openness to ideas 53 Table 5.6 Mean scores of attitudes about business orientation and financial 54 risk Table 5.7 Mean scores of attitudes regarding success and satisfaction with 54 farming Table 5.8 Mean scores of attitudes with respect to emergent management 56 and stress behavior Table 5.9 Farmer’s attitudes toward farm development between efficient and 58 inefficient farms Table 6.1 Information sources for farmers’ agricultural information and 67 number of times discussed in the group Table 7.1 General characteristics of the sampled farmers (n=57) 72 Table 7.2 Information sources and the role of information sources in making 74 decision xi Table 7.3 Distributions of farmers’ perception on problem detections (n=57) 75 Table 7.4 General characteristics and decision-making in problems of five 80 case studies Table 8.1 Summary statistic of variables using in DEA model 93 Table