The comprehensive model of the determinants on export performance of agricultural firms in Thailand

Abstract

This study aims to develop a comprehensive model of the determinants on export performance of agricultural firms in Thailand. The empirical data are collected to examine the impacts of factors concerning the firm’s resource (export commitment and international market knowledge), external environment (perceived competitive intensity, tariff and non-tariff barriers and government agency support), and export product strategy upon the export performance of agricultural firms. The conceptual framework in this study is based on the resource-based view theory, industrial organization theory, internationalization process theory and consumer perspective on agricultural exporting. The model is analyzed by using data set of 369 observations that are collected through a mail survey. The respondents are export managers or executives who are responsible for exporting practices from agricultural exporting firms in Thailand including four main product categories: crop and grain, horticulture, fishery, and livestock and daily products. The Structural Equation Model (SEM) is formed and LISREL 8.52 is used for confirmatory factory analysis and structural model assessment to test eleven hypotheses in the model. SPSS 15.0 is used to analyze descriptive statistics. The results of this study reveals threefold (1) firms’ resources are found to have positive impacts on export product strategy, while external environmental factors are not found to have impacts upon export product strategy, (2) export commitment, international market knowledge, perceived competitive intensity, tariff and non-tariff barriers and government agency support are found to have impacts upon the export performance of agricultural firms in Thailand, and (3) export product strategy is not found to have statistically impact on the export performance. The empirical results of this study extend the body of knowledge for the determinants on export performance of agricultural firms in Thailand. In addition, this study provides managerial and policy maker contributions to enhance agricultural export of Thailand in the future.