CRITICAL SUCCESS FACTORS FOR E-COMMERCE IN THAILAND: A MULTIPLE CASE STUDY ANALYSIS Kittipong Laosethakul A Dissertation Submitted to the Graduate Faculty of Auburn University in Partial Fulfillment of the Requirements for the Degree of Doctor of Philosophy Auburn, Alabama December 16, 2005 CRITICAL SUCCESS FACTORS FOR E-COMMERCE IN THAILAND: A MULTIPLE CASE STUDY ANALYSIS Kittipong Laosethakul Permission is granted to Auburn University to make copies of this dissertation at its discretion, upon request of individuals or institutions and at their expense. The author reserves all publication rights. ______________________________ Signature of Author ______________________________ Date of Graduation iii VITA Kittipong Laosethakul, son of Samrong Laosethakul and Vimol Laosethakul, was born June 26, 1970, in Bangkok, Thailand. He graduated from Chulalongkorn University in Thailand with a Bachelor of Science degree in Mathematics in 1994. After working as a business coordinator at Thai-MC Company Limited (Mitsubishi), Bangkok, Thailand for one year and Sunny World Corporation, Bangkok, Thailand for another year, he attended University of Alabama in Huntsville in 1996 and obtained a Master degree in Management of Technology in 1998. He joined Teledyne Brown Engineering, Huntsville, Alabama in 1998 as a business analyst, and then entered Graduate School, Auburn University in the late 1999. iv DISSERTATION ABSTRACT CRITICAL SUCCESS FACTORS FOR E-COMMERCE IN THAILAND: A MULTIPLE CASE STUDY ANALYSIS Kittipong Laosethakul Doctor of Philosophy, December 16, 2005 (M.S., University of Alabama in Huntsville, 1998) (B.S., Chulalongkorn University, 1994) 513 Typed Pages Directed by Dr. William R. Boulton The purpose of this dissertation is to study the critical success factors for e-commerce in Thailand. The dissertation addressed four research questions: (1) Regardless of industry, what are the critical success factors relevant to all companies engaged in e-commerce in Thailand? (2) What are key requirements that all e-commerce companies must have in order to enter the industry? (3) What is the company’s e- commerce business model? (4) How is the company’s business performance? The investigation was conducted using case research study methodology. Nine e-commerce companies in Thailand were studied and analyzed. First, critical success factors for e-commerce in Thailand are identified and discussed. Second, key industry requirements for e-commerce in a particular industry are identified and discussed. Third, the best practice guideline addressing critical success factors and key industry requirement for e-commerce in a particular industry is developed. Finally, three main propositions from the study were developed. In addition, implications for practitioners and researchers are presented. v ACKNOWLEDGMENTS To God, without You, Lord, I would not have enough strength to come this far. You have given me hope and peace in my mind that everything is in your control. Thank you for blessing me with clarity, focus, and determination to get through the process. I have learnt so much about my faith and my belief in You during this process. I love You with all my heart, Lord. Dad and mom, this is for you. Thank you for your constant encouragement and comfort. Although you could not be here physically to support me, I know with all my heart that you love me very much. Your thought about me means the world to me. I am sorry that I made you guys worried so much. To my brothers, thank you for all your advice and support. I love you all. I would like to express my gratitude to my committee: Dr. William Boulton, Dr. Sharon Oswald, and Dr. Terry Byrd. Dr. Boulton, I am truly appreciated for your advice and quick response. Thank you for never giving up on me. Dr. Oswald, you had been there for me every single time when I have a problem. You had saved me from trouble so many times, and I am forever grateful. You are my teacher, my sister, my friend, and I hope that our friendship will be for a life time. Dr. Terry Byrd, thank you for understanding and supporting this effort in every manner possible. I also would like to thank Dr. Nelson Ford. You are not only someone I look up to as a teacher, but also someone who gives me spiritual guidance. You are truly the testimony of the Lord, and I am so thankful that the Lord leads you to be in my life these years. To my friends in Auburn and in Thailand, you guys are the best. It is such a privilege that I have you all in my life: Thaweepan Liengpibul (Duke), Puttharat (Nui), Nik and Anju, Yajiong Xue (Lucky), Summer Bartczak, Paul Schwager, Rhonda Syler, Wararat (Bird) and Wudtisin family, Suwat (Tong), Rakop (Jeab), Orr, Tik, and Cherie Henderson. vi To the organization and individuals who agreed to participate in this research, it was a privilege to work with you and learn of the great things you are accomplishing. vii Style manual used Publication Manual of the American Psychological Association Fifth Edition Computer software used Microsoft Word 2002, Microsoft Excel 2002, Microsoft Visio viii TABLE OF CONTENTS LIST OF TABLES…………………………………………………………………………………. LIST OF FIGURES………………………………………………………………………………… I. INTRODUCTION 1 Introduction……………………………………………………………………………. 1 E-commerce in Developing Countries: The Case of Thailand…………..………….…. 3 Critical Success Factors for E-commerce………………………………..………..…… 6 E-commerce Business Model………………………………………………………….. 7 Research Needs………………………………………………………….…………….. 8 II. LITERATURE REVIEW 10 Introduction to E-commerce Development in Thailand……………………………….. 10 Defining E-commerce…………………………………………………....…………….. 14 Defining Critical Success Factors (CSFs)……………………………….…………….. 18 CSFs for E-commerce in Developed Countries………………………….…………….. 19 CSFs for E-commerce Relevant to All Companies in a Particular Industry (Key Industry Requirement for E-commerce)………………….…………….. 68 Addressing E-commerce Critical Success Factors: E-commerce Business Model…………………………………………………………..………….…………… 72 Performance Measurement…………………………………………………………….. 87 Research Questions…………………………………………………………………….. 90 III. RESEARCH DESIGN AND METHODOLOGY 94 Qualitative Research Design……………………………………………..…………….. 94 Conducting Case Study Research………………………………………..…………….. 96 Conducting Research…………………………………………………….…………….. 109 Roles of the Researcher and Research Limitations……………………....…………….. 116 Conduct of Research……………………………………………………..…………….. 117 Conclusion……………………………………………………………….………….…. 124 IV. HOTELTHAILAND.COM 127 HotelThailand.com’s Business Profile and History……………………...…………….. 127 What are CSFs for E-commerce in Thailand? ………………………………………… 152 What are the Key Industry Requirements for E-commerce in the Online Travel Industry? ……………………………………………………………………………….. 157 What is HotelThailand.com’s E-commerce Business Model? ……….………………... 163 What is HotelThailand.com’s Business Performance? ………………………………... 178 V. THAIGEM.COM.COM 180 Thaigem.com’s Business Profile and History…………………………...……………... 180 XII What are CSFs for E-commerce in Thailand? ………………………………………… 200 What are the Key Industry Requirements for E-commerce in the Online Gemstone Industry? ……………………………………………………..…………….................... 204 What is Thaigem.com’s E-commerce Business Model? ………………………………. 211 What is Thaigem.com’s Business Performance? ……………………………………… 224 VI. TOHOME.COM 226 Tohome.com’s Business Profile and History…………………………………………... 226 What are CSFs for E-commerce in Thailand? …………………………..…………….. 238 What are the Key Industry Requirements for E-commerce in the Retail Industry? ....... 241 What is Tohome.com’s E-commerce Business Model? ………………...…………….. 245 What is Tohome.com’s Business Performance? ………………………..……………... 258 VII. SIAM CEMENT 260 Siam Cement’s Business Profile and History………………………………………….. 260 What are CSFs for E-commerce in Thailand? …………………………..…………….. 270 What are the Key Industry Requirements for E-commerce in the Cement and Building Material Distribution Industry? ………………….……………...……………............... 275 What is Siam Cement’s E-commerce Business Model? ………………...…………….. 281 What is Siam Cement’s Business Performance? ………………………..…………….. 290 VIII. PANTAVANIJ 292 Pantavanij’s Business Profile and History……………………………….…………….. 292 What are CSFs for E-commerce in Thailand? …………………………..…………….. 309 What are the Key Industry Requirements for E-commerce in the E-marketplace Industry? …………………………………………………...……………...…………… 312 What is SCG’s E-commerce Business Model? ………………………………………... 317 What is SCG’s Business Performance? ……………………………………………….. 325 IX. THAITICKETMASTER.COM 327 TTM’s Business Profile and History…………………………………….……………... 327 What are CSFs for E-commerce in Thailand? …………………………..…………….. 342 What are the Key Industry Requirements for E-commerce in the Entertainment Ticket Distribution Industry? …………………………………………...…………….............. 345 What is TTM’s E-commerce Business Model? ……………………………………….. 349 What is TTM’s Business Performance? ………………………………...……………... 358 X. NAIIN.COM 360 Naiin.com’s Business Profile and History …………………………………………….. 360 What are CSFs for E-commerce in Thailand? …………………………..…………….. 380 What are the Key Industry Requirements for E-commerce in the Online Bookstore Industry? ……………………………………………………..……………...…………. 383 What is Naiin.com’s E-commerce Business Model? …………………...……………... 387 What is Naiin.com’s Business Performance? …………………………...…………….. 394 XI. OFFICEMATE 395 Officemate’s Business Profile and History…………………………………………….. 395 What are CSFs for E-commerce in Thailand? …………………………..…………….. 420 What are the Key Industry