AN ANALYSIS OF FACTORS AFFECTING THE PERFORMANCE OF SMALL RURAL NON-FARM FIRMS IN THAILAND

PREEYANUCH APIBUNYOPAS, Purdue University

Abstract

Small rural non-farm firms are an important part of the manufacturing subsector in Thailand. They provide exports which improve the balance of payments and help create jobs for rural people. They are one of the major sources of income for rural people.^ This study had four objectives: to describe the characteristics of firm managers, to describe the economic performance of firms in eight industries, to explain differences in economic performance among firms, and to translate research findings into practical recommendations for improving firm performance. The performance measures used were returns to labor, labor efficiency, net income as a percentage of sales, asset turnover, technical efficiency and returns to proprietor.^ Firm performance was hypothesized to be influenced by (1) internal factors controllable by management, and (2) external factors which are not influenced by the firm. These factors were: firm size, age of firm, educational level of proprietor, years of experience, father's occupation, age of proprietor, nationality of proprietor, innovation, the keeping of records and government assistance. To analyze the influence of specific factors on firm performance, multiple regression analysis was used.^ The data for this study consisted of characteristics of firms and entrepreneurs, financial, and operating information from 148 firms in the North and Northeast of Thailand. The sampled firms were selected from eight industries--brick, cement products, fruit and vegetable processing, furniture, ready-made garments, food processing, silk and wood carving.^ The regression analysis found eight different factors to be significant in explaining variations in the performance variables. Firm size, age of the enterprise, education, years of experience, age of proprietor, nationality, innovation and the keeping of records were those characteristics that appear to be positively associated with the success of the firm. On the other hand, the father's occupation and government assistance were two factors that did not seem to be strongly associated with the performance of the firm. ^

Degree

Ph.D.

Subject Area

Economics, Agricultural

Off-Campus Purdue Users:
To access this dissertation, please log in to our
proxy server
.

Share

COinS