Explaining barriers and opportunities for recycled pet for food packaging in Thailand through the lenses of organizational environment theory

Abstract

Currently, some plastic-related companies propose a solution of recycled plastic (rPET) for food packaging as a solution for the plastic problem in Thailand. Therefore, the objective of the thesis is to study business behavior in order to understand the rationale of why some company needs to use rPET for food packaging. This study combined two theories which are the organizational environment theory and the institutional theory of CSR to analyze the effect of the internal and the external environment that influence companies to support rPET food packaging.

The finding indicates that companies’ mission creates an influence on companies to promote rPET for food packaging in Thailand, especially for global companies. Global companies usually have a clear mission to show responsibility to the plastic problem in any country they are operating. Global companies mostly produce and use massive plastic packaging, making them receive more social pressure than local companies. In terms of the external environment, findings reveal the combination between the availability of financial resources and feedstock of post-consumer PET bottle that influence plastic producers to change or resist to change to rPET production. rPET is new in Thailand, and the country has poor waste segregation system. The market of rPET packaging and the feedstock of post-consumer PET bottles are also limited. It is not easy for some producer to produce rPET food packaging. This can be explained by the second factor which is recycling technology for rPET packaging. For the company who have no recycling technology for food-grade rPET, they need technological investment which requires a huge investment. If there is no clear market for rPET packaging and enough feedstock of post-consumer PET bottle, they would not dare to take a risk in investing in the new technology. Also, if any company which does not have a headquarters mission or receive high pressure from NGOs, it is unlikely for them to change from virgin plastic to rPET which has a higher production cost as well