IISES International Academic Conference, Venice

THE EFFECT OF GOVERNMENT SUPPORT AND VALUE CHAIN MANAGEMENT ON THE BUSINESS PERFORMANCE IN THE NORTHEASTERN BORDER TRADE AREA OF THAILAND

ASSOCIATE PROFESSOR PICHYADA PHEUNPHA, ASSISTANT PROFESSOR PHIMONSINEE UDOMPHAN

Abstract:

The research aimed to investigate the influence of government support and value chain management on the performance of business in the northeastern border trade area of Thailand. A questionnaire with a reliability coefficient (0.96) at a very high level was used in this study. Area sampling collected 307 small and medium enterprises from Ubon Ratchathani and Mukdahan provinces. The methods used were descriptive statistics and multiple linear regression analysis. The results showed that thirteen sub-independent variables correlated with the business performance at a very high level (r = 0.88) and can explain or predict the variance of business performance at a high level with 76% (Adjusted R-Squared). Four variables affected the business performance with statistical significance at 0.01** and 0.05*, which were marketing and sales (β = 0.40**), human resource management (β = 0.24**), Inbound logistics (β = 0.16), and government support for exports (β = 0.12) *, respectively. So, entrepreneurs should develop robust marketing strategies, utilizing digital tools and social media to enhance visibility while conducting market research to tailor their offerings. They should also consider investing in employee training and fostering a positive workplace culture to improve human resource management. Additionally, entrepreneurs can optimize inbound logistics by streamlining supply chain processes and implementing effective inventory management. Moreover, staying informed about government support programs and collaborating with other businesses will help maximize their benefits. For the government, enhancing export support programs through increased awareness and workshops, promoting business development initiatives like grants for marketing and technology investments, improving logistics infrastructure, and continuously assessing SME needs are crucial for fostering a competitive business environment in Thailand's northeastern border trade area.

Keywords: Government Support, Value Chain Management, Business Performance, SMEs