A Quest for a Sustainable Social Enterprise Model: The Case of Amphawa Chaipattananurak, the Kingdom of Thailand

The social enterprise concept, a business with specific social objectives, has been questioned by scholars and practitioners for its sustainability. More importantly, a paucity of research exists on how a social enterprise can be sustainable, indicating the necessity of developing a sustainable model of social enterprise, particularly in the Asian context. Filling in the gap in the literature, the present study’s prime objective is to explore a sustainable social enterprise model. The bodies of knowledge on social enterprise and sustainable enterprise are reviewed, followed by identifying a sustainable social enterprise model for exploration. The identified model is among the few sustainable social enterprise models available, thus making it appropriate for the exploration. To explore the model, the phenomenological paradigm is adopted. The study uses the case study approach with open-ended, semi-structured interview methods as well as documentation to explore a case enterprise called Amphawa Chaipattananurak (ACCP) in Thailand. To ensure data validity, the data, method, investigator, and theory triangulation methods are adopted. Ninety-five stakeholder informants were interviewed, ranging from the management team, staff, community people, and visitors to customers. In terms of analysis, the working analytical framework is adopted to analyze the collected data. Findings indicate that the ACCP practices and outcomes are consistent with those of the sustainable social enterprise model, indicating the model’s applicability. Based on the findings, a refined sustainable social enterprise model is derived. Limitations, future research directions, theoretical contributions and implications, and managerial implications are also discussed

Value-based Localization Strategies of Automobile Subsidiaries in Thailand

Purpose – To analyse the scope of localization strategies and corresponding benefits of these strategies to subsidiaries of international companies in the automobile industry in Thailand. Design/methodology/approach – The authors have adopted the case research method to investigate localization strategies of subsidiaries of seven companies (Toyota, Hino, Honda, Isuzu, DaimlerChrysler, BMW, and Auto Alliance) as well as 14 of their dealers and suppliers in Thailand. The information was gathered by conducting in-depth multiple interviews with 120 local and expatriate employees at various levels in the organizations; by referring to annual reports, policy documents and internal reports of these companies; and by observation during plant visits. Findings – Contrary to the belief that international companies implement localization strategies to simply match the local market environment, it was found that these companies implement a wide range of localization strategies to achieve multiple benefits. The paper identifies nine areas of localization: localization of strategic decision making; building and exploiting the local knowledge pool; deployment of local human resources; localization of R&D; localization of products; use of local supplier networks; adaptations to manufacturing processes; local deployment of subsidiary profits; and localization of corporate image. These localization strategies are not just based on the principle of “cost-based localization” but are based on “value-based localization.” These strategies work in tandem and create value through a system of multiple benefits, such as managements' ability to comprehend and deal with uncertainty in the operating environment; make informed decisions to respond to challenges in developing efficient local assembly and marketing systems; cost reduction; higher degree of commitments by local employees; product customization and acceptance; and greater brand equity and image as a good corporate citizen. Practical implications – Based on concrete illustrations of seven companies, this study identifies nine distinct areas for planning and implementing localization strategies and their corresponding benefits. The managers of subsidiaries can benefit by focusing their localization efforts in these areas to gain maximum advantage from host country context and then translate these advantages into a competitive international strategy. Originality/value – CEOs of subsidiaries in emerging markets can learn how to build and harness local advantages for global competitiveness by implementing a wide range of localization strategies

Managing Local Employees: Expatriate Roles in a Subsidiary

Purpose – In order to identify expatriate roles in a subsidiary it is necessary to go beyond those functions which are subservient to the headquarters. This paper sets out to prescribe a new spectrum of development roles with respect to varying capabilities and development needs of local employees. Design/methodology/approach – The roles of expatriates are analyzed based on seven case studies conducted with top automobile manufacturers in Thailand: Toyota Motor Thailand; Hino Motors (Thailand); Honda Automobile (Thailand); Isuzu Motors (Thailand); BMW (Thailand); DaimlerChrysler (Thailand); and Auto Alliance (Thailand). Findings – Four types of expatriate roles – commander, conductor, coach, and connector – are proposed; the roles correspond to the degree of task readiness and managerial capabilities of local employees. Practical implications – The paper provides a tool that will help expatriates understand their roles according to the technical skills and managerial capabilities of local employees. Originality/value – The paper offers practical advice for diagnosing expatriate roles and their training prior to assignment to a subsidiary

Localization Drivers in an Emerging Market: Case Studies from Thailand

Purpose – The purpose of this paper is to analyze the drivers that influence subsidiaries of international companies in the automobile industry in Thailand and how automobile companies pursue localization in response to these drivers. Design/methodology/approach – Using case research method, examined seven leading automobile manufacturers – Toyota Motor (Thailand); Hino Motors (Thailand); Honda Automobile (Thailand); Isuzu Motors (Thailand); BMW (Thailand); DaimlerChrysler (Thailand); and Auto Alliance (Thailand) – as well as 14 of their dealers and suppliers in Thailand. In total 120 Thai and expatriate managers were interviewed. Findings – Extending the knowledge body from existing research, this study found that there are four drivers for automobile manufacturers to adopt localization strategies. Those are host country characteristics, industry characteristics, company characteristics, and market characteristics. The results show that automobile manufacturers react to drivers by localization of their decision making, building and exploiting knowledge pool of local suppliers and distributors, increasing numbers of Thais at the management level while decreasing the number of expatriates, increasing R&D activities locally, localizing products, increasing usage of local suppliers, adapting manufacturer processes, reinvesting at subsidiary, and localizing corporate image. However, these vary in degree from company to company. Localization strategies produce benefits that go beyond allowing automobile manufactures to compete within the local situation, also enabling them to overcome challenges and use their successes to transform the parent company and other subsidiaries and eventually contribute to the parent company's globalization strategy. Practical implications – Managers in subsidiaries may first implement localization strategies to cope with driver factors to mitigate risks and uncertainty. By adopting localization, managers should not focus only on short term benefits to gain local advantages in host countries, but these advantages at the subsidiary should be transmitted to the parent company and other subsidiaries to build a competitive international strategy. Originality/value – CEOs of subsidiaries in emerging markets can learn what drivers influence localization strategies and how to cope and create local advantages for global competitiveness by implementing wide range of localization strategies

Developing Local Talent in International Subsidiaries: The Importance of Trust and Respect in Toyota

Purpose – To analyze the challenges and solutions in developing local employees for managing subsidiaries – the implementation of Thainization philosophy at Toyota Motor Thailand (TMT). Design/methodology/approach – In-depth interviews were conducted with Thai and Japanese employees, and Imai Hiroshi, one of the architects of Thainization philosophy. Findings – For successful implementataion of Thainization philosophy in TMT, the management had to demonstrate respect for local employees and build trust between Thai and Japanese employees. Once the employees related to each other on the basis of mutual respect and trust, it was relatively easy to collaborate and find solutions. Practical implications – CEOs of multi-national companies, particularly Asian subsidiaries, can learn how to cope with challenges in developing local employees, building their technical and managerial capabilities. Originality/value – Many international companies are struggling with the important issue of building capabilities of local employees for leveraging their global competitiveness. The successful implementation of Thainization philosophy of TMT offers a major breakthrough in this direction

Impacts of COVID-19 on Sustainable Agriculture Value Chain Development in Thailand and ASEAN

The unprecedented challenges of the COVID-19 pandemic have put human and food security at risk. Currently, the literature on its impacts and implications on the agricultural sector towards United Nations Sustainable Development Goals (UN SDGs) is limited. This study aims to expand the existing knowledge by assessing COVID-19 impacts on sustainable agriculture value chain development in a major global hub of food supplies, Southeast Asia, particularly in the context of regional cooperation for the Association of Southeast Asia Nations (ASEAN). This study employs an empirical qualitative research design to collect primary data from 31 in-depth key-informant interviews with multilateral stakeholders. We also reviewed the latest literature for the secondary data to advance our limited knowledge in this realm. Our study provides a macro-analytical outlook of COVID-19 impacts on the agricultural sector for sustainable development in Thailand and ASEAN, using a SWOT analysis and sustainability framework (i.e., socio-economic and environmental dimensions) with SDGs mapping. Our findings address critical sustainability issues about agriculture and food value chains for food security and post-COVID-19 recovery. Our study also suggests various opportunities and policy recommendations for transformative regional sustainability strategies for sustainable agriculture to achieve the UN SDGs and a sustainable future