The impact of ICT and networking on the business performance of one tambon one product enterprises in greater Bangkok and metropolitan areas

Abstract

The main objectives of this research are: (1) to find out the current level of business performance among the OTOP entrepreneurs, (2) to explore the factors affecting the business performance of OTOP entrepreneurs including personal characteristics, business characteristics, information and communication technology adoption and entrepreneurial networks, and (3) to determine the most important predictors explaining the business performance of OTOP entrepreneurs. The research comprises a data collection process: for the quantitative method, a postal survey of OTOP entrepreneurs, and telephone or face-to-face interviews with OTOP entrepreneurs. The population of the study is 3 to 5 star OTOP entrepreneurs in greater Bangkok and metropolitan areas. The unit of analysis is the OTOP entrepreneur. The population of the study consists of 781 OTOP entrepreneurs and the sampling is 339. For the qualitative method, in-depthinterviews were conducted with ten government officials related to the OTOP project and ten key OTOP entrepreneurs. The conceptual framework was development based on the literature review. The quantitative data arising from the questionnaire were analyzed using descriptive statistics, crosstabulation, correlation matrix, chi-square test, multivariate analysis, regression analysis and path analysis. The empirical findings are: (1) most of the OTOP entrepreneurs respondents had knowledge of ICT adoption and they did networking and had reasonably good business performances (2) work experience, number of employees, ICT adoption and entrepreneurial networks exhibited positive relationships with business performance. Business performance received an impact from work experience, number of employees, ICT adoption and entrepreneurial networks. It can be implied that business performance had significant positive relationships with work experience, number of employees, ICT adoption, and entrepreneurial networks. Increase in the work experience of the entrepreneur, increase in the number of employees, increase in adoption and application of ICT and increase in entrepreneurial networkings also appear to increase business performance. (3) The most important predictor variables were work experience (Beta = .248), entrepreneurial networks (Beta = .237), ICT adoption (Beta = .147), and number of employees (Beta = .122). Reasonably acceptable numbers of workers can create sales, market expansion and profits for the business of experienced entrepreneurs, ICT adoption has a positive relationship with entrepreneurial networks. OTOP entrepreneurs that have adopted more ICT have more entrepreneurial networks. This proves that expanding the use of ICT definitely expands the nodes and links among the entrepreneurial networks for business performance. ICT adoption and entrepreneurial networks among the OTOP entrepreneurs in Thailand to enhance business performance is well acknowledged among the in-depth interviewed Community Development Department officials and key OTOP entrepreneurs in the sample. The government should provide financial support, quality training, and management, and create a conducive environment for the OTOP entrepreneurs to realize their full potential and maximize their contribution to the country’s economic development. OTOP entrepreneurs should further utilize ICT and networks to strengthen their business performance. The government should have a choice of policies in order to enable OTOP entrepreneurs to come to the existence and to grow. The justification for such policies is that OTOP enterprises are major sources of job creation, innovation, and competitiveness. It is the government’s responsibility to support and promote the entrepreneurs in order to enhance economic development. All involved in the OTOP project for economic development should have integrated awareness and a holistic view in order to overcome the challenges.