Marketing Innovation, Integrated Logistics Management and the Efficiency of Thai Orchids Export

Abstract

Thailand is the global center of tropical orchid production.  However, there are new competitors competing in the export market of Thai quality orchids, which significantly affects the value of exports. The research objectives were as follows: 1) to study the current situation of Thai orchid exports; 2) to study the influence of marketing innovations and integrated logistics management on the efficiency of Thai orchid exports; and 3) to create a model of success for exporting Thai orchids. This research used a combination of quantitative and qualitative research methods. In quantitative research, the sample consisted of 340 senior executives and middle-ranked executives of an orchid exporting companies, which belonged to an SME group according to the definition of business classification of the Office of Small- and Medium-Sized Enterprises Promotion. The sample size was determined based on the criteria of 20 times the observed variables.  They were selected via multi-stage sampling.  Data were collected with the use of a questionnaire and analyzed by structural equation model. For the qualitative research, in-depth interviews were employed.  The key informants were 13 orchid garden owners, executives of the exporting company, executives of associations related to the export of Thai orchids, executives of freight forwarders, and logistics management specialists. The results of the research showed that: 1) most Thai orchid export businesses had been established for more than five years with an export value of approximately 1 and 10 million Baht and had less than 50 employees. Most companies purchased orchids from less than 50 orchid gardens and exported them to 1 to 10 countries. The largest export market was China, followed by the United States; 2) the influence of marketing innovations and integrated logistics management together could forecast the efficiency of Thai orchid export (EXEFF) by .0.86 percent; and 3) a model of success in exporting Thai orchids that the researcher developed was called COTS (C referring to customer, O referring to orientation, C referring to Collaboration, T referring to Trust, and  S referring to Satisfaction), which could be applied as a guideline for promoting the success of export operators in other businesses according to the discovered variables. Moreover, the qualitative research results also revealed that the model for enhancing the success of Thai orchid exports could benefit public and private organizations. Specifically, the findings showed the relationship and pattern of marketing innovation and integrated logistics management that affected the Thai orchid exports' efficiency. They could also serve as an academic resource for interested researchers for the improvement and development of the exporting products in the same category.