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The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | i
The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | i
The 2nd
International Conference of
The Asian Supply Chain Academy (ASCA2016)
22nd
– 23rd
December 2016, Chiang Mai, Thailand
www.AsianSupplyChainAcademy.com/asca2016
	
About ASCA
ASCA (Asian Supply Chain Academy) is an open platform for research and education
in Supply Chain Management, founded in 2015 by Pairach Piboonrungroj, PhD
The international conference of ASCA aims to provide a platform to develop manuscripts of
academics who wish to publish their work in international peer-reviewed journal. In ASCA,
more time are allocated for each presentation with pre-assigned discussants. After
presenting in ASCA, authors shall have constructive suggestions to develop their manuscript.
Also ASCA provides research skill development for conference delegates during the pre-
conference workshops such as research writing skill (especially for journals) and data
analysis skill (especially R programming).
• ASCA2015 was successfully organised at the Eastin Tan Hotel in Chiang Mai,
Thailand. All the papers presented in ASCA2015 were published in the international
journals.
• ASCA2016 is held at Ibis Style hotel in Chiang Mai, Thailand. The conference is
concurring with Chiang Mai R User Conference and Chiang MICE Forum on December
22nd
in the morning and in the afternoon, respectively.
• ASCA2017 will be organised in Seoul, South Korea with potential collaboration
with the International Logistics department of Chung Ang University during 5th
-6th
2017.
ASCA is professionally organised by:
Eduwisor Co., Ltd.
Based Chiang Mai, Thailand
www.eduwisor.com
The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | ii
CONTENTS
	
Conference programme iv
Theme A: Service Supply Chain 1
A1: The Impact of Reverse Logistics in Electronic Business in Northern of
Thailand
2
by Wararat Namwong
A2: Green Meeting to sustainable development of MICE CITY: Chiang Mai
Province
17
by Niranol Prasertphongkun, P Piboonrungroj and T-R Lee
A3: Modeling a Decision Making to Attend Tradeshows in the MICE Industry 18
by Napapol Somrit, P Piboonrungroj and T-R Lee
Theme B: Economic Modeling 36
B1: A Supply Chain Analysis of Factors Affecting Spending of Elderlies in Mae
Phrik District, Lampang Province
37
by Supaporn Fanchompoo, P Piboonrungroj and T-R Lee
B2: A Supply Chain Analysis of Saving Life Cycle of people in Mae Phrik
District
38
by Prapassorn Kamkeaun, P Piboonrungroj and T-R Lee
B3: The effect of the payment system on Smart Mobile of Chinese tourists to
the supply chain.
39
by Thiranun Khamhom, P Piboonrungroj and T-R Lee
Theme C: Global Supply Chain 40
C1: An Analysis of Supply Chain and Market Potential of Thai Sweet Tamarind 41
by Roengchai Tansuchat
C2: Marketing Logistics of Coffee Bean Products in China 42
by Chun Jiang
C3: Risks model in fruits export supply chain: A perspective of the United Arab
Emirates importers
66
by Thatphong Namwat
Theme D: International Trade Logistics and Supply Chain 76
An Importance – Performance Analysis (IPA) Approach to Study First - Level
SCOR Performance of Thai Fresh Fruits Export to United Arab Emirates Market
75
by Chairerk Tantitecha
Myanmar Mango Supply Chain and its Opportunities and Constrains in
Exporting
87
by Sai Ye Win Kyaw
E-commerce Customer Satisfaction Evaluation of Chinese Third Party Logistics
Service Providers: Case Study of Yunnan, China
88
by Li xing hui
The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | iii
Theme E: Supply Chain Modeling 99
E1: Export Potential Assessment in the Southern of Thailand 100
by Roengchai Tansuchat
E2: Logistical and Service-Quality Factors Driving Laos Patients to Use
Healthcare Services in its Bordering Chiang Rai, Thailand
101
by Natchaya Khaofong
E3: Stochastic Mathematical Modeling for Food Waste Reduction in Two-Level
Supply Chain
108
by Po-ngarm Somkun
Theme F: Supply Chain Performance 109
F1: A Game Theory Analysis of Incentive Travel Supply Chains 110
by Chatchuda Thumachai, P Piboonrungroj and T-R Lee
F2: A Thai Airport Development Policy Study: The Enabling And Challenging
Factors Of Supply Chain And Policy Deployment Strategies
111
by Siriwanlaya Chueasa-at
F3: Evaluation of SCOR KPIs using a predictive MILP model under fuzzy
parameters.
136
by Piyanee Akkawuttiwanich
The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | iv
ASCA2016
Conference Programme
22nd
December 2016
08:30 – 09:00 Registration
09:00 – 09:30 Welcoming Remark
by Chair of ASCA2016
09:30 – 10:45 Workshop: R Programming for Supply Chain Research (1)
by Pairach Piboonrungroj, PhD
10:45 – 11:00 Refreshment Break
11:00 – 12:00 Workshop: R Programming for Supply Chain Research (2)
12:00 – 13:00 Lunch
13:00 – 14:30 Oral Presentations: Session A
Theme A: Service Supply Chain
Chair: Pairach Piboonrungroj
• A1: The Impact of Reverse Logistics in Electronic Business
in Northern of Thailand
By Wararat Namwong
• A2: Green Meeting to sustainable development of MICE
CITY: Chiang Mai Province
By Niramol Prasertphongkun
• A3: Modeling a Decision Making to Attend Tradeshows in
the MICE Industry
By Napapol Somrit
14:15 – 14:30 Refreshment Break
14:30 – 16:00 Oral Presentations: Session B
Theme B: Economic Modeling
Chair: Pimpika Chawalit
• B1: A Supply Chain Analysis of Factors Affecting Elderlies
in Mae Phrik District
by Supaporn Fanchompoo
• B2: Supply Chain Analysis of Saving Life Cycle: A Case of
Elderly people in Mae Phrik District
by Prapassorn Kamkeaun
• B3: The effect of the payment system on Smart Mobile of
Chinese tourists to the supply chain
by Thiranan Khamhom
The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | v
23rd
December 2016
08:30 – 09:00 Registration
09:00 – 10:30 Oral Presentations: Session C
Theme C: Global Supply Chain
Chair: Roengchai Tansuchat
• C1: An Analysis of Supply Chain and Market Potential of
Thai Sweet Tamarind
by Roengchai Tansuchat
• C2: Risks model in fruits export supply chain: A perspective
of the United Arab Emirates importers
by Thatphong Namwat
• C3: Marketing Logistics of Coffee Bean Products in China
by Chun Jiang
10:30 – 10:45 Refreshment Break
10:45 – 12:15 Oral Presentations: Session D
Theme D: International Trade Logistics and Supply Chain
Chair: Sai Ye Win Kyaw
• D1: An Importance – Performance Analysis (IPA) Approach
to Study First - Level SCOR Performance of Thai Fresh
Fruits Export to United Arab Emirates Market
by Chairerk Tantitecha
• D2: Myanmar Mango Supply Chain and its Opportunities
and Constrains in Exporting
by Sai Ye Win Kyaw
• D3: E-commerce Customer Satisfaction Evaluation of
Chinese Third Party Logistics Service Providers: Case
Study of Yunnan, China
by Li xing hui
12:30 – 13:30 Lunch
13:30 – 15:00 Oral Presentations: Session E
Theme E: Supply Chain Modeling
Chair: Po-ngam Somkun
• E1: Export Potential Assessment in the Southern of
Thailand
by Roengchai Tansuchat
• E2: Logistical and Service-Quality Factors Driving Laos
Patients to Use Healthcare Services in its Bordering
Chiang Rai, Thailand
by Natchaya Khaofong
The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | vi
• E3: Stochastic Mathematical Modeling for Food Waste
Reduction in Two-Level Supply Chain
by Po-ngarm Somkun
15:00 – 15:15 Refreshment Break
15:30 – 17:00 Oral Presentations: Session F
Theme F: Supply Chain Performance
Chair: Piyanee Akkawuttiwanich
• F1: A Game Theory Analysis of Incentive Travel Supply
Chains
by Chatchuda Thumachai, P Piboonrungroj and T-R Lee
• F2: A Thai Airport Development Policy Study: The
Enabling And Challenging Factors Of Supply Chain And
Policy Deployment Strategies
by Siriwanlaya Chueasa-at
• F3: Evaluation of SCOR KPIs using a predictive MILP model
under fuzzy parameters
by Piyanee Akkawuttiwanich
• F4: Supply Chain Analysis in Thailand
by Suthep Nimsai
17:00 – 17:30 Closing Ceremony and Best Paper Award
The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 1
	
	
	
	
	
	
	
	
	
	
	
	
	
Theme A
Service Supply Chain
The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 2
Inferring Reverse Logistics in the Thai Electronic Industry
by Annual Report-based Documentary Study:
Contributing towards a Corporate Social Responsibility
Theory of Reverse Logistics
Wararat Namwong1
, Chai Ching Tan2
, Phoommhiphat Mingmalairaks3
1
Business Excellence and Logistics Research Centre (BE-Logist)1
School of Management, Mae Fah Luang University
E-mail : lukyim.wara@gmail.com
2
Business Excellence and Logistics Research Centre (BE-Logist)
School of Management, Mae Fah Luang University
E-mail : Drcctan@yahool.com
3
Business Excellence and Logistics Research Centre (BE-Logist)
School of Management, Mae Fah Luang University
E-mail : Drphoom@gmail.com
ABSTRACT
The purpose of this study is to use documentary analysis of the available
annual reports of Thai publicly listed electronics equipment
manufacturing companies to study the reverse logistics by focusing on the
normative typological structure of corporate social responsibility (CSR)
theory – known as deontological, process oriented and teleological
outcome.As terms like reverse logistics or related terms (i.e.reuse, recycle,
recover value, remanufacturing) has not gained into the popular
management vocabularies (as seen in the annual reports) of these publicly
listed organizations, inferences that match with the definitions of reverse
logistics are attempted through thematic analysis of the annual reports. In
this way, the thematic analysis provides the foundation for construct
validity that relates to reverse logistics. To have representativeness of the
Thai electronics equipment manufacturing industry, the Thai publicly
listed companies in electronics sector would serve the purpose. This
research essentially contributes towards exploring for a CSR (Corporate
Social Responsibility) theory for guiding the development and
implementation of reverse logistics.
Keywords: Reverse logistics, electronics business, CSR Theory
The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 3
1. Introduction
As the world is depleting of the scarce and expensive resources (i.e. rare-earth metals) for
use in electronics equipment manufacturing, sustainability-driven theme becomes
significantly important which is embedded as an emerging major driver of reverse
logistics (SCM Pro, 2013, p. 13). Nevertheless, policy-driven initiative, i.e. sustainability-
enabled, in reverse logistics is not well understood by many organizations, as
organizations would need to think out of the box. For instance, as returned goods have to
bear the transportation costs (Sattiraju, 2013), Elmas and Erdogmus (2011) advocate an
innovation-driven policy for reverse logistics such as by developing the technology and
the materials used for reducing packaging weights. This policy-driven initiative is known
as the deontological knowledge and application of organization (Tan, 2016), but such a
CSR-oriented term has vastly been neglected in the extant literature of the reverse logistics
discipline.
In addition, as “reverse logistics practices vary based on industry and channel position”
(Elmas and Erdogmus, 2011, p. 164) and as the publicly listed large organizations of
electronics equipment manufacturers in Thailand involve characteristics of large volume
in logistical process and thus could incur larger reverse logistics burden, it is important
to study reverse logistics competencies and actual rationales in the industry.
Unfortunately, the study of reverse logistics in the electronics sector in Thailand is vastly
unavailable (Tepprasit and Paopan, 2016), it is thus necessary to explore, especially the
available literature are single-case studies driven, which track transaction-based measures
such as lead time minimization. Due to the lack of available knowledge about reverse
logistics for electronics industry, the following research objective is thus established:
The purpose of this study is to use documentary analysis of the available
annual reports of Thai publicly listed electronics equipment
manufacturing companies to study the reverse logistics by focusing on
the normative typological structure of corporate social responsibility
(CSR) theory – known as deontological, process oriented and
teleological outcome.
As terms like reverse logistics or related terms (i.e. reuse, recycle, recover value,
remanufacturing) has not gained into the popular management vocabularies (as seen in
the annual reports)of these publicly listed organizations, inferences that match with the
definitions of reverse logistics are attempted through thematic analysis of the annual
reports.
To study this research objective, the following two research questions are raised which
aim to identify the qualitative themes:
• Can the reverse logistics management be categorized in a CSR-oriented
theoretical structure that embraces deontology, process orientation and
teleological outcome?
The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 4
• What contents or focuses are obvious to infer the commitment of the publicly
listed electronics manufacturing companies that relates to reverse logistics,
directly or indirectly, from the annual report study?
2. Literature Review
Depending upon the given geographical constraints and the infrastructural strengths of
the countries, reverse logistics could be very complicated, for instance “electronical
consumer goods tend to face particularly high return rates due to the fluctuating power
supply across India” (Lemanski, 2016). Thus, many international electronics equipment
manufacturers would establish “centralized returns hubs and repair facilities” and by
coupled with carefully planned supply and logistics chain systems to effectively and
efficiently manage reverse logistics (Lemanski, 2016). With a total export value of USD
55 billion in 2014 for the electronics industry in Thailand (BOI, 2014), reverse logistics
theme would play a significant role – especially which aims to recapture value without
burdening too much on the customers and the manufacturers (Rogers and Tibben-
Lembke, 2001). Nevertheless, the study of reverse logistics in Thai electronics industry
is generally not available (Tepprasit and Paopan, 2016), and thus, annual report-based
documentary analysis approach to the study of reverse logistics would be beneficial, albeit
the study is exploratory in nature and purpose.
By the nature of exploratory research, construct validity assurance becomes significantly
important which can exploit the available definitions of reverse logistics in different
variances that are available in the extant literature.
To be concise, reverse logistics relies on a process oriented competency such as planning,
implementing, and controlling of the reverse logistics flows (Rogers and Tibben-Lembke,
2001), with the assistance and supports of information management system (Jack, Power,
and Skinner, 2010)to positively affect the value extraction or reclaiming process.Reverse
logistics are generally known to initiate at the points of consumption, which exploits the
aforementioned process competencies of reverse logistics, to deliver economic, social and
environmentally capable outcomes (McKinnon, 2010). The process competency
involving in the reverse logistics could aim, for instance, to embed an environmentally
friendly design policy (Ilgin and Gupta, 2010), and to reuse containers, recycle packaging
materials, or redesign packaging so that less materials could be used, or reduce the use of
energy and thus lead to reduction of environmental burdens. From the market-oriented
view, reverse logistics aim to foster customer relationship (Smith, 2005) by centralizing
customers in the focal point (Bounds, Yorks, Adams, and Ranney, 1994), which is made
feasible by quality assurance and initiatives of recycles (Stroufe, 2013).
3. Research Method
Publicly listed electronics equipment manufacturing companies are representatives of
large-scale nature of the industry. Although small-scale electronics equipment
manufacturing companies in Thailand are studied (Tepprasit and Paopun, 2016), mostly
The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 5
single case in nature, the results are hardly replicable and representative of the large-scale
electronics industry. Out of this necessity, this research employs documentary research
method by reviewing the annual reports of the four major electronics companies listed in
Thai stock exchanges – Delta Electronics (Thailand), KCE Electronics, Hana
Microelectronics, and SVI Electronics. Delta Electronics (Thailand) has sales revenue of
46,938 Million Baht, Hana Microelectronics has sales revenue of 20,521 in 2015, KCE
Electronics has sales revenue of 12,448 in 2015, and SVI has sales revenue of 8,119 M
Baht.
The qualitative data analysis employed is documentary analysis, which centralizes on
theme identification.To ensure the theme identified is allocated to the right CSR category,
definitions of deontology and teleology are reviewed and provided, which provides the
structure and foundation for construct validity. Specifically, deontological orientation
deals with duty-based or principle-based approach in the decision making and the reverse
logistics reasoning process, teleological orientation provides a cognitive base to assess
the effects of the reverse logistics (cf. Tan, 2016).
4. Results and Discussion
Although reverse logistics has emerged as an important field in the two decades
(Nikolaidis, 2013), but the documentary review of the annual reports of the publicly listed
electronics equipment manufacturing companies does not show any direct use of
vocabularies that relate to reverse logistics. As there is no direct mention of reverse
logistics terms, the data analysis has to resolve to indirect means through inferring from
the extant literature review implications.
As reverse logistics is highly related to corporate citizenship (Tepprasit and Paopun,
2016) and social responsibility (Nikolau and Evangelinos, 2013), which relates to the
consideration and commitment for close-loop supply chain and logistics integration, the
thematical analysis is thus structured in three corporate social responsibility
(CSR)domains (Tan, 2016), namely:
• Deontology
• Process
• Teleological outcomes
Deontology:
Deontology prescribes a duty-or obligation-based approach to reverse logistics.In reverse
logistics, apart from reclaiming pallets and containers, and packaging of the products
delivered (Carter and Ellram, 1998), the publicly listed electronics manufacturing
companies show also an effort to “uncover ways to reclaim, not only the parts, but the
minerals and metals” (cf. SCM Pro, 2015, p. 17), that is in accordance with the Waste
Electrical & Electronic Equipment (WEEE) Directive (Europa, 2016). In addition,
sustainability development and innovation policies are also actively promoted throughout
these electronics manufacturing companies’ supply chain (see Delta, 2015; Hana, 2015).
The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 6
To minimize defective quality returns, the electronics manufacturing companies, such as
KCE Electronics, install quality policy that aims to “provide products and services to meet
or exceed agreed agreements for all of their customers through continuous improvement
and by doing it right the first time” (KCE, 2015). To minimize lead time in the reverse
logistics, Hana (2015) prioritize the establishment of service companies at cost
competitive manner – as their business operating policy. In addition, every initiative –
whether reverse logistics, forward logistics, or total quality management and product
innovation, Hana (2015) centralize on corporate social responsibility (CSR) policy that
aim to minimize economic, social and environmental impacts. Policy commitment is
important, as KCE Electronics (2015) recognize, that in doing so they can develop and
maintain integrity of services and quality and thus, reputation for quality products and
services.
Process:
Process demonstrates the attitude and behaviors of integrity manifested by the strategies
and actions taken in reverse logistics management, which is reflected in ISO quality
management systems of the electronics manufacturing companies (see Delta, 2015). The
process-oriented view of reverse logistics necessitates the exploration and integration of
deontological cause and teleological relationships.
Process oriented nature of reverse logistics is important.For instance, Dowlatshahi (2005,
p. 1361) defines reverse logistics as “a process by which a manufacturing entity
systematically takes back previously shipped products or parts from the point-of-
consumption for possible recycling, remanufacturing or disposal.”
Nevertheless, as most of the large-scale publicly listed companies as designated for this
research are export oriented, reverse logistics is rather complicated, which may involve
accurate and real-time transit and product documentations availability, and partnerships
with third or fourth party arrangements (Sattiraju, 2013). For high-stake large-volume
transactions in export-oriented organizations, reverse logistics are usually handled by
proactive means –that is, by resolving to total quality management and quality policy, and
by use of service centers to support returned products, provide repairing services and
other after-sales services (see Delta, 2015; KCE, 2015).By setting up a service center near
the customer sites, reverse logistics become more flexible and responsive to serve
customers faster. In this case, lead time in recovering the value of the products, including
the associated expenditures, would be reduced tremendously (Tibben-Lembke, 1998).
For instance, in Delta Electronics, the after-sales service networks and customer relations
offices worldwide are established to provide after sales services to their customers:
“Since various services are generally required to serve the global clients, the Company
needs to offer such services in the area where they are located in. This makes Delta group
to establish business network which enables the Company to have customer relations
The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 7
offices worldwide to provide effective marketing and after sales service to its clients at
the competitive costs.” (Delta, 2015)
Apart from service centers that locate in close proximity to customers, Hana
Microelectronics use supply chain synergy and coordination among the value chain
members to maximize “the effectiveness in the marketplace” (Hana, 2015). As a result,
Hana Electronics have since been rewarded positively by their customers:
“In the past years, the Company and their subsidiaries received various awards from their
customers such as ‘Suppliers Valuable Contribution and Strategic Partnership,’ ‘Excellent
Support,’ and ‘Supplier of the Year,’ and ’20-Year Partnership Recognition’ (Hana, 2015).
The other most significant process oriented factor is relating to supply chain risk
management and sustainability development. While the former ensures supply certainty
at the time needed to resolve reverse logistics issues, sustainability is the recent chorus of
reverse logistics as many of the rare-earth minerals needed in the electronics industry will
be exhausted, and that sustainability, such as by meeting the EU directives (see Delta,
2015), the company can effectively and efficiently “uncover ways to reclaim, not only the
parts, but the minerals and metals as well” (SCM Pro, 2013, p. 17).
Teleological Outcomes:
Teleological outcomes demonstrate the results of behavioral execution of the reverse
logistics policy and strategies. As reverse logistics is also known as means to extract and
retain as much the original values of the products, including materials or components used
–whether in progress or at the points of consumptions by the customers –as possible (Jack,
Power and Skinner, 2010), companies like Hana Electronics (2015) have since recycled
water for usage, at 40% of total water consumption in year 2015. Not only that, Hana
(2015) also implement waste recycle, while the hazardous waste of the electronics
components processing materials are treated and managed according to legal standards of
the Department of Industrial Works of Thailand.
Minimization for reverse logistics is made possible by robust quality management system
(QMS) with the aim “to deliver high quality on time, which also strives for the customer
satisfaction, zero defects, and meeting international standard requirements” (Hana, 2015).
The significantly obvious reverse logistics oriented teleological outcomes in these
publicly listed electronics manufacturing companies are as follows: reduce the
environment impacts caused by end-of-life electronic and electrical items and gain
customer satisfaction and loyalty (Delta, 2015), and minimize environmental impact,
efficient use of resources, cost saving, total quality improvement, and receive of various
awards from customers, and also recapturing or recuperating the values of the products
(Hana, 2015).
The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 8
5. Conclusion
This section concludes the efforts of this research in addressing the research objective as
follows:
The purpose of this study is to use documentary analysis of the
available annual reports of Thai publicly listed electronics equipment
manufacturing companies to study the reverse logistics by focusing on
the normative typological structure of corporate social responsibility
(CSR) theory – known as deontological, process oriented and
teleological outcome.
As terms like reverse logistics or related terms (i.e. reuse, recycle, recover value,
remanufacturing) has not gained into the popular management vocabularies (as seen in
the annual reports) of these publicly listed organizations, inferences that match with the
definitions of reverse logistics are attempted through thematic analysis of the annual
reports. Thus, to study this research objective, the following two research questions are
raised which aim to identify the qualitative themes:
• Research Question 1: Can the reverse logistics management be categorized in a
CSR-oriented theoretical structure that embraces deontology, process orientation
and teleological outcome?
• Research Question 2: What contents or focuses are obvious to infer the
commitment of the publicly listed electronics manufacturing companies that
relates to reverse logistics, directly or indirectly, from the annual report study?
Apparently, the reverse logistics management can be categorized in a CSR-oriented
theoretical structure that embraces deontology, process orientation and teleological
outcome – and thus, this research builds towards a CSR theory of reverse logistics.
The deontological, process oriented and teleological domains of reverse logistics provide
the typological rationale for reverse logistics that embeds and integrates the why (driving
force), how (behaviors)and what (teleological outcome)of reverse logistics. The products
involved in the reverse logistics are aimed to recapture and recover the necessary values
from the original products as possible, which involves both products at the points of
consumption as well as in process such as water and wastes involved in the process. In
this way, the publicly listed electronics manufacturing companies actively implement
their sustainability oriented initiatives as means to reclaim rare-earth elements as well as
to reduce impacts economically, ecologically and socially. The waste minimization is at
the heart of the reverse logistics which aims to either comply with the governmental
legislation, or to proactively strive to minimize environmental impact, or to aim to reclaim
as much economic value as possible. The government-mandated motivation is revealed,
for instance, in Hana Electronics through the WEEE Directive conformance, such as
relating to waste disposal and rare-earth material substitution.In other words, by carefully
engaging in eco-design and systematically eco-chain friendly innovation, the companies
can minimize reverse logistics.
The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 9
In the process-orientation aspect of reverse logistics, the results demonstrate the attitude
and behaviors of integrity manifested by the strategies and actions taken in reverse
logistics management, which is reflected in ISO quality management systems of the
electronics manufacturing companies (see Delta, 2015). The process-oriented view of
reverse logistics necessitates the exploration and integration of deontological cause and
teleological relationships. As most of the large-scale publicly listed companies as
designated for this research are export oriented, reverse logistics is rather complicated,
which may involve accurate and real-time transit and product documentations availability,
and partnerships with third or fourth party arrangements (Sattiraju, 2013). For high-stake
large-volume transactions in export-oriented organizations, reverse, reverse logistics are
usually handled by proactive means – that is, by resolving to total quality management
and quality policy, and by use of service centers to support returned products, provide
repairing services and other after-sales services (see Delta, 2015; KCE, 2015). By setting
up a service center near the customer sites, reverse logistics become more flexible and
responsive to serve customers faster. In this case, lead time in recovering the value of the
products, including the associated expenditures, would be reduced tremendously (Tibben-
Lembke, 1998).
Apart from service centers that locate in close proximity to customers, Hana
Microelectronics use supply chain synergy and coordination among the value chain
members to maximize “the effectiveness in the marketplace” (Hana, 2015). As a result,
Hana Electronics have since been rewarded positively by their customers: “In the past
years, the Company and their subsidiaries received various awards from their customers
such as ‘Suppliers Valuable Contribution and Strategic Partnership,’ ‘Excellent Support,’
and ‘Supplier of the Year,’ and ’20-Year Partnership Recognition’ (Hana, 2015). The other
most significant process oriented factor is relating to supply chain risk management and
sustainability development. While the former ensures supply certainty at the time needed
to resolve reverse logistics issues, sustainability is the recent chorus of reverse logistics
as many of the rare-earth minerals needed in the electronics industry will be exhausted,
and that sustainability, such as by meeting the EU directives (see Delta, 2015), the
company can effectively and efficiently “uncover ways to reclaim, not only the parts, but
the minerals and metals as well” (SCM Pro, 2013, p. 17).
Lastly, teleological outcomes demonstrate the results of behavioral execution of the
reverse logistics policy and strategies.
The revelation of deontological, process oriented and teleological domains of reverse
logistics has a particular but significant contribution to the discipline of logistics, in
characterizing the typological rationale and scopes of reverse logistics through the
normative ideologies of corporate social responsibility (CSR). In this way, reverse
logistics become duty- or principle-bound, behavioral dedication and systems integration
in nature, and most importantly is teleologically responsible. As a result, a theory of CSR
is developed for reverse logistics, which should provide a cross-disciplinary insight and a
sound explanatory background to guide further research relating to reverse logistics.
The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 10
References
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Carter, C.R. and Ellram, L.M. (1998), Reverse Logistics: A Review of the Literature and
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Delta (2015), DELTA Annual Report 2015, Thailand: Delta Public Company Limited.
Dowlatshahi, S. (2005), A Strategic Framework for the Design and Implementation of
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Elmas, G. and Erdogmus, F. (2011), The Importance of Reverse Logistics, International
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Europa (2016), Waste Electrical & Electronic Equipment (WEEE), Retrieved from
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Hana (2015), HANA Annual Report 2015, Thailand: HANA Microelectronics Public
Company Limited.
Ilgin, M.A. and Gupta, S.M. (2010), Environmentally Conscious Manufacturing and
Product Recovery (ECMPRO): A Review of the State of the Art, Journal of
Environmental Management, 91(3), pp. 563-591.
Jack, E., Power, T.L. and Skinner, L. (2010), Reverse Logistics Capabilities: Antecedents
and Cost Savings, International Journal of Physical Distribution and Logistics
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SVI (2015), SVI Annual Report 2015, Thailand: SVI Public Company Limited.
The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 12
	
	
	
	
Appendix	
	
Table A.1: Annual Report Synthesis of Thai Publicly Listed Companies on Reverse
Logistics – The Key Contents
Company Deontological
Principle
Process Utilitarian
Outcomes
Delta
Electronics
Products and
Packaging:
Company’s products
and packaging are
unique and comply
with International
environmental
standard, such as EU
RoHS (Restriction of
Hazardous Substances)
and WEEE (Waste
Electrical and
Electronic Equipment).
These measures
provide guide
guidelines to control
pollution and waste
from electronic
products. On
company’s products,
there are labels
informing
environmental
certification obtained
such as Energy Star
and 80 PLUS.
CSR Policy:
Sustainability
development CSR
policies that focus on
innovation, creation
and research
development, and best
practices to reduce
environmental impact,
and promote CSR
WEEE Directive set
collection, recycling and
recovering targets for all
types of electrical goods.
The company has
participated in Ministry
of Industry’s “Green
Industry” program by
focusing on
implementing
environmentally-friendly
practice by shaping up
its production and
environmental
management processes
to be greener as well as
displaying greater social
responsibility internally
and externally
throughout its supply
chain to arrive at
sustainable development.
The company also is
committed to develop
clean and energy-
efficient products.
After Sales:
Since various services
are generally required to
serve the global clients,
the Company needs to
offer such services in the
area where they are
located in. This makes
To reduce the
environmental
impacts caused
by end-of-life
electronic and
electrical items.
To gain customer
satisfaction and
loyalty.
The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 13
ideals and practical
guidance throughout
Delta’s supply chain
with cooperation for
between efficiency.
Delta group to establish
business network which
enables the Company to
have customer relations
offices worldwide to
provide effective
marketing and after sales
service to its clients at
the competitive costs.
Commissions are
normally charged based
on transaction size (e.g.
sales or purchase
amount) and considered
general business
condition.
ISO Systems: ISO
9001, TS16949, TL900;
ISO/IEC17025, ISO
27001, ISO 13485:2003.
The company strives to
bring the highest level
of satisfaction to its
customers by offering
high quality products
and impressive services.
Supply Chain Risk
Management:
The Company assesses
the major risk factors
throughout the supply
chain, this is because
any misalignment in the
supply management
would affect the
confidence of consumers
and other stakeholders as
well as impact future
operations. To ensure
good quality and
continuity of supply,
the Company always
places strong emphasis
on managing
‘Key/Critical suppliers’
and ‘Key/Critical parts’
The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 14
in the supplier
management framework.
SVI
Electronics
Nothing related to
reverse logistics is
highlighted.
Operations
Management:
Offer a complete,
dynamic, turn-key
service to customers by
providing materials
procurement to
customers who require
SVI to be their material
supplier. SIV provide
design services for test
equipment in order to
test finished products
before delivering to
ensure customers’
satisfaction.
KCE Nothing related to
reverse logistics is
highlighted.
Policy commitment in
keeping a long-term
relationship with the
customers by
providing the most
valuable service – the
reputation of quality
product, that gain trust
from customers ever
since. In addition, the
Company place an
important on
stakeholders and social
responsibility by
developing “Green
technology.”
Quality Policy:
KCE is committed to
providing products and
services to meet or
exceed agreed
requirements for all of
their customers
through continuous
improvement and by
Customer Service
Quality:
The Company endeavors
to achieve customer
satisfaction by providing
quality products that
meet or exceed
customers’ expectations
and delivering
exceptional service to
customers. The
Company develops and
maintains a sustainable
relationship with their
customers.
Customers’ satisfaction
was evaluated
throughout the supply
chain, starting from
accepting customers’
order, raw materials
procurement, quality
inspection before
delivery and after-sales
service.
During 2015, the
Company conducted
Customer Satisfaction
Customer
Satisfaction
Right the first
time in meeting
customer
expectation
The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 15
doing it right the first
time.
surveys in various
categories, such as
technical area, on-time
delivery, problem
responsiveness, logistics,
accuracy, accuracy of
the document and
communication. The
results of which are
satisfactory (in the level
of 80% - 100%).
HANA
Microelectroni
cs
Business Operating
Policy:
Hana has the policy to
diversify its business
to multiple cost
competitive
manufacturing
locations and setting
up the necessary
companies for
customer service,
purchasing center,
trading and holding
companies to serve the
group requirement.
CSR Policy:
CSR policies for
sustainable
development to ensure
compliance with the
CSR objectives toward
sustainable
development with
regards to the
economic, social and
environmental impact.
Recycle water:
The company has
continued to reduce the
use of water. The waste
water from the
production process shall
be treated and filtered to
recycle enabling the
increase the recycling
water by 40%.
KPI: Recycled water
consumption is at 40%
of total water
consumption in year
2015.
Recycle waste:
The company has
implemented the
separation of waste into
three categories: general
waste, recycle waste and
hazardous waste. The
waste disposition is
managed according to
legal standards of the
Department of Industrial
Works.
Minimization of reverse
recycle:
Hana places the highest
value on customers,
aiming to meet or exceed
Minimized
environmental
impact
Efficient use of
resources
Cost saving
Total quality
improvement
Receiving
various awards
from their
customers such as
“Suppliers
Valuable
Contribution and
Strategic
Partnership,”
“Excellent
Support,” and
“Supplier of the
Year,” and “20-
Year Partnership
Recognition.”
The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 16
customers’ expectations
for product quality,
delivery, reliability and
competitive prices,
through accreditation to
Quality Management
System (QMS) with the
aim to deliver high
quality products on time.
The company policy is
to strive for the customer
satisfaction, zero defects,
and meeting the
international standard
requirements.
Supply Chain Synergy:
The company and its
subsidiaries continue to
support the supply chain
management so that all
the members from
suppliers to customers
could coordinate their
business activities and
processes to minimize
their total costs and
maximize their
effectiveness in the
marketplace.
In the past years, the
Company and their
subsidiaries received
various awards from
their customers such as
“Suppliers Valuable
Contribution and
Strategic Partnership,”
“Excellent Support,” and
“Supplier of the Year,”
and “20-Year
Partnership
Recognition.”
The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 17
Green Meeting to sustainable development of MICE CITY:
Chiang Mai Province
Niramol Prasertphongkun1
, Pairach Piboonrungroj2
and Prof.Tzong-Ru Lee3
1
Economic of Faculty, Chiang-mai University
E-mail: Niramol1405@gmail.com
2
Economic of Faculty, Chiang-mai University
E-mail: Me@Pairach.com
3
National Chung Hsing University
E-mail: trlee@dragon.nchu.edu.tw
ABSTRACT
This article is part of an independent structural equation of factors that
influence the green meetings. The objective of this study is the factors that
influence the Green Meeting of Chiang Mai, to develop a model for the
structure equation of the factors influencing the Green Meeting of Chiang Mai
to analyze and verify the consistency of the structural factors influencing the
Green Meeting for Chiang Mai and to propose solutions to problems and
developing green meeting in Chiang Mai. It also pushed Chiang Mai which a
MICE hub of the northern region in Thailand. Chiang Mai is distinction in the
field of tourism, there are a good culture, good food and good place to MICE
City of sustainable development.
In this study was to study theory and related research regarding structural
equation, theory sustainability, MICE Industry, Green Meeting Policy, as well
as other domestic and foreign green policies. Tool to collect data from people
who have been involved in meetings in the MICE industry. The data were
analyzed with statistical tools is CFA: Confirmatory Factor Analysis
The Study is expected to known the factors that influence in green meeting to
conform to Chiang Mai. The factors include the following: Laws and Policy
of the Government, Corporate Policy, Executive Vision, Trend (Green
Global), Cost/Benefit, Human Resource, Pollution and Weather, Perception
and Local Resource. And have the suggestion for firm and government to
develop green meeting of MICE city to sustainable growth.
Keywords: Green Meeting, Sustainable Growth, MICE industry
The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 18
Modeling a Decision Making to Attend Tradeshows in
the MICE Industry
Napapol Somrit1
and Pairach Piboonrungroj2
, and Prof.Tzong-Ru Lee
1
Faculty of Economics, Chiang Mai University
E-mail: rockmanpoom@gmail.com
2
Faculty of Economics, Chiang Mai University
E-mail: me@pairach.com
3
National Chung Hsing University
E-mail: trlee@dragon.nchu.edu.tw
ABSTRACT
With increasing of number of MICE tradeshows that oppose to
considering in many factors to attend tradeshows of sellers in MICE
industry. This study will propose about what factors affected to decision
making to attend tradeshows of sellers in MICE industry and how
tradeshow exhibitor can develop their events to attract entrepreneurs to
attend. The literature reviews included motivation and decision making
to attend exhibition of attendees which most of them represented
structural equation model. This study will collect data from sellers in
MICE industry by survey method. The data analysis will use structural
equation model to analyze relationship between observed factors and
decision making to attend of sellers.
Keywords: MICE industry, Tradeshow, Choice Structural Equation Mode
1. Introduction
Nowadays business travel industry in Thailand has grown rapidly. Meeting industry,
Intensive Travel industry, Convention industry and Exhibition industry which we call them
“MICE” industry are parts of business travel industry. MICE industry has grown as same as
business travel industry and become most of GDP of Thailand economy. MICE industry can make
a lot of revenue that higher than general tourism because MICE can make income distribution for
many parts in business travel for both directly and indirectly. Direct business in MICE industry
such as high revenue for accommodations, restaurants, transportation and stores can get a lot of
profit from MICE events because attenders in MICE events have high purchasing power. For
indirect results from MICE industry are Foreign Direct Investment (FDI) from foreigners,
development in new innovation in that areas where MICE events occurred. (TCEB, 2015)
Figure 1 shows for number of MICE events occurred in Thailand during 2007 to
2015. Number of MICE events in Thailand decreased in 2008-2009 because of global crisis. After
The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 19
recovery since 2009, MICE industry in Thailand grown until now and have tendency to grow
more in the future. (TCEB, 2015)
Figure 1: Number of MICE events in Thailand from 2007 – 2015
Source: TCEB (2015)
Exhibition is one type of MICE industry. This is the event that sellers come to
introduce and sell their products to buyers and other attenders. Although number of exhibition is
least in MICE events, but exhibition is one of industry that can affect to whole economy more
than some industry because in addition to showing and purchasing products in exhibition,
exhibition can make many activities between attenders more than introducing and selling the
products. For example, exhibition can show about communication of all attenders in that event,
sellers can gain competitors’ information, development in new innovation from introduction new
products, all of attenders can know about trends or problems of Exhibition industry from attending
and every events can make public relation from mass media who attends, etc. (TCEB, 2015)
Figure 2 shows for number of exhibitions occurred in Thailand during 2007 to 2015.
Since 2010, Thailand became interesting area to create exhibition because of famous of attractions
and quality of facilities. (TCEB, 2015)
Figure 3 shows for revenue from MICE exhibitions occurred in Thailand during 2007
to 2015 comparing with other parts of MICE events. Although number of MICE exhibitions is
less than others but we will see that revenue from MICE exhibitions is much. (TCEB, 2015)
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
2007 2008 2009 2010 2011 2012 2013 2014 2015
Number	of	MICE	events	
Years
Total	MICE
The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 20
Figure 2: Number of MICE Exhibitions in Thailand during 2007 to 2015
Source: TCEB (2015)
Figure 3: Comparing revenue from each industry in MICE in Thailand during 2007
to 2015
Source: TCEB (2015)
Tradeshows is one type of Exhibition. In general tradeshows, this is the events that
both sellers and buyers are business sector in specific industry who come to demonstrate their
products and services and not open fornormal people. But for about tradeshows in MICE industry,
both sellers and buyers are attenders who were invited to come to attend the events for
Meeting Intensive Travel Convention Exhibition
2007 2000 1271 2088 93
2008 2225 1779 2292 114
2009 2197 1601 2157 76
2010 2354 1520 2260 70
2011 2641 1810 2397 81
2012 2751 1900 2643 88
2013 2925 2032 2812 97
2014 2674 1980 2637 86
2015 2764 2039 2716 89
0
5000
10000
15000
20000
25000
30000
35000
2007 2008 2009 2010 2011 2012 2013 2014 2015
Revenue	(Million	Baht)
Meeting
Intensive	Travel
Convention
Exhibition
The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 21
communication in tradeshows. They wish for connection and communication between sellers and
buyers in the future after tradeshows finished more than revenue that occurred within tradeshows.
(Trade Show Public Relations, 2013)
Moreover, attenders who attend tradeshows in must pay some fees and register before
attending. Because of these costs, so both sellers and buyers who attend tradeshows will need
serious communication for gain business benefit from attending tradeshows. (TCEB, 2015)
Nowadays, Tradeshows industry in Thailand still has grown along to growth of economy.
So number of tradeshows in Thailand increased more than before and there are some competitions
in inviting sellers and attenders. But from previous paragraph, we will see that both sellers and
buyers need serious communication for their benefit. So they must consider for many costs and
something to tradeoff with attending tradeshows more than attending in other events. (TCEB,
2015)
Because of this considering, we will see the problem that sellers can’t attend all
tradeshows because they must consider for many factors that oppose to increasing of MICE
tradeshows nowadays. (TCEB, 2015)
So this research have purpose for study about factors that affect to decision making to
attend tradeshows of sellers in MICE industry such as factors about costs, transportation and
organization, etc.
2. Theory
2.1 Structural Equation Modeling
Structural equation modeling is a statistical technique for analyzing
relationships between observed variable and latent variables. This model can estimate
multiple dependence in one analysis. The variables we need are exogenous variables that
be independent variables and endogenous variables that be dependent variables.
(Statistics Solutions, 2016)
Structural equation model has two types of model as follow.
1) Measurement model
This model shows about how observed variables can demonstrate the theory.
(Statistics Solutions, 2016)
2) Structural model
This model shows about how observed variables can represent relationships with
the others. (Statistics Solutions, 2016)
The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 22
In the other word, structural equation model can propose causal relationship
between variables. There are some assumptions as follow. (Statistics Solutions, 2016)
- The relationship between endogenous and exogenous variables is linearity.
- Our data is multivariate normal distribution.
- The data should not have outlier because it can affect to significance of the
model.
- The observed relationship must be true.
- Amount of sample should be 200 – 400 samples with more than 10 variables.
- We assume that our error terms have autocorrelation property.
- The equations must be rather than the estimated parameters or
models should be over identified or exact identified. Under identified
models are not considered.
2.2 Customer Satisfaction Theory
Rai (2008) shows the basic formula of customer satisfaction as
Customer satisfaction = Customer Perception of the Service Received – Customer
Expectation of Customer Service
It’s easy to infer that if the perception of the service received is higher than the
expectations of the service, customer satisfaction will be positive. If the perception of the of the
service received is less than the level of expectation of the service, it will lead to customer
dissatisfaction. (John Dudovskiy, 2012)
According to Dodds et al (1985), Zeithaml (1988) and Lee and Cunningham
(1996), They explain that a set of earlier studies on the topic of customer satisfaction and
service perceptions were mainly undertaken on the basis of studying the relationships
between three or four variables. (John Dudovskiy, 2012)
The important mistakes of these studies are that they believe in increasing
qualitative aspects and do not consider about psychological aspects of customer
experiences. When related to the current research such customer experience
psychological aspects will be stress associated with the longer waiting times in London
Underground and National Rail Services terminals and stress and pressure caused by train
carriages being overcrowded. This study on the other hand addresses the psychological
aspects of service sector organisation customer experiences as well. (John Dudovskiy,
2012)
The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 23
According to Yi (1989), he mentions confirmation or disconfirmation
framework when discussing the issues of customer satisfaction. According to the
framework customers have a set of pre-established standards in their mind when they are
about to purchase a product or a service. The level of customer satisfaction is a result of
comparison of this standard to the perception of the product bought or the service
received. If the level of perception of product or service bought does match the established
customer standards this will result in customer satisfaction, and if it fails to meet customer
standards customers will be left dissatisfied. (John Dudovskiy, 2012)
According to Czepiel et al (1974), he maintains the validity of two factor
theory related to analyzing customer satisfaction. Two factor theory states that customers
can be satisfied and dissatisfied with a product or service at the same time because
satisfaction and dissatisfaction will be about different aspects of the product or service.
So they will be not related. (John Dudovskiy, 2012)
According to Swan and Combs (1976), they developed their theory to change
the names of factors to instrumental performance and expressive performance. According
to this theory instrumental performance relates to physical aspects of the product or
service, whereas expressive performance refers to psychological aspects. The theory
specifies expressive performance as a necessary component of customer satisfaction.
Customers will be left unsatisfied if they are not satisfied with expressive performance of
products and services, regardless of the fact that their instrumental performance have been
satisfactory or not. (John Dudovskiy, 2012)
2.3 Rational Choice Theory
Rational choice theory is a theory in social science that used for understand
human interaction and information, allowance, time and fame are the resources that were
exchanged. From this theory, individuals are motivated by their own goals and wants and
are driven by personal requirements. It is impossible for individuals to achieve all of
things that they wish because they must make choices related to both their objectives and
the means of achieving their goals. Individuals must expect the results of alternative
courses of action and consider which action will lead to the best results for them. Finally,
the rational individuals will choose the action that give the best satisfaction for them.
(About Education, 2016)
The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 24
One of important element in rational choice theory is the belief that all of
individuals action is based on rational is character. This element differs from other theory
because it denies all action other than purely rational action. (About Education, 2016)
The assumption which central to all forms of rational choice theory is that
complicated social phenomena can be explained in term of individual actions that leads
to that phenomenon. So if we want to explain social change and institutions, we must
show how they occur from result of individual interaction and action. (About Education,
2016)
2.4 Transaction Cost Theory
Transaction cost theory is a theory which explains why company exist or
expand and source out activities to the external environment. The transaction cost theory
supposes that companies try to minimize the costs of exchanging resources with the
environment and that companies try to minimize the bureaucratic costs of exchanges
within the company. The companies must consider about ratio of these two types of costs.
When external transaction costs are more than the company's internal bureaucratic costs,
the company will grow because it means the company can make their activities cheaper.
But if the bureaucratic costs for coordinating the activity are higher than the external
transaction costs, the company will be downsized. (BusinessMate.Org, 2010)
According to Ronald Coase (1937), every company will expand as long as
they can make it cheaper within the company than outsourcing the activities to external
providers in the market. (BusinessMate.Org, 2010)
According to Williamson (1981), transaction costs occur all the times when
the product or service was transferred from one stage to another where new sets of
technological capabilities are needed to make the product or service. (BusinessMate.Org,
2010)
The transaction costs related to the exchange of resources with the external
environment could be reflected by some factors. These are Environmental Uncertainty,
Risks, Main assets of company, Opportunism and Bounded Rationality. These factors
will make the external transaction costs more expensive for a company to control these
factors. So maintaining the internal cost for activity in-house will better. The company
will not use external resources with meetings, suppliers and supervision, etc.
(BusinessMate.Org, 2010)
The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 25
3. Literature Review
Bussakorn Khumhome and staff Ubon Ratchathani University (2012) studied
about Factors influencing the Decision to Participate in a Green industry Project of
Entrepreneurs in Ubon Ratchathani. They collected data from 25 entrepreneurs in type3
factories in Ubon Ratchathani by interviews and questionnaires as instrument. Their
statistical method in analysis data were means, percentage, and standard deviation. The
results showed that the 3 most influential factors in decision making to participate in the
Green Industry project of entrepreneurs were the need to enhance image of corporation,
the convenient procedures for participation and the determination to decrease
environmental effects. The entrepreneurs stated that average level of barrier in decision
making to participate in Green Industry project was in moderate level. Those factors were
insufficient support from the government, lack of knowledge and experience in requesting
for Green Industry certification, the complicated process in requesting for that
certification, lack in information and difficulties in accessing source of information.
Overall, demand for benefit from participation in Green Industry project of the
entrepreneurs was at moderate level. After considering we found that the most benefit
that the entrepreneurs wanted was a better in image of corporation. Most of entrepreneurs
wanted to request the certification for Green Industry at level 1, followed by level 5, 3
and 2. If the entrepreneurs already received the certification in Green Industry, 50% of
them wanted government’s supporting by setting up a consulting center for helping and
planning for a working process system, followed by providing training organized by the
government and low interest rate loans to set up the system.
Young Ki Lee (2011) studied about a cultural perspective on motivation factors
affecting Exhibition participation. He collected data from 328 participants who attended
an exhibition in Las Vegas, USA by using questionnaires as instrument. 191 of 328
participants were Eastern from 17 countries and another 137 were Western from 11
countries. He used Principle Axis Factoring (PAF) and Maximum likelihood (ML) for
analyzed extracting method. The results showed that as for the Western and Eastern factor
analyzed, the local factor (safety) and the exhibition factor from the Western group
showed different motivation when compared to those from the Western group. The
Western analysis was divided into total cost factors and other exhibition factors and the
attributes fell into each category so clearly. But the Eastern analysis couldn’t show why
The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 26
the attributes didn’t have a specific category. The pull factors and exhibition factors can
be applied to the local factors that showed the difference between Western and Eastern
participants.
Deborah Breiter and Ady Milman (2006) studied about Attendees’ needs and
service priorities in a large convention center: Application of the importance-performance
theory. They collected data from 566 participants in five different exhibitions which held
at Orange County Convention Center in Orlando, Florida, USA by using questionnaires
as instrument. The results showed that overall cleanliness of the convention center, a well-
maintained facility, and helpfulness of guest service staff were the most importance
factors which attendees regarding about the convention center’s facility services. The
other high importance factors which attendees regard to the convention center’s facility
services were directional signage in the convention center, availability of high quality
residence near the convention center, sufficient restrooms throughout the facility and
ability to get mobile phone signal. Moreover, they found the differences of significance
between the importance level and performance level of the majority of the facility services
of the convention center.
Hyunjeong Spring Han and Rohit Verma (2014) studied about a Comparison of
Exhibitors and Attendee’s Performance in Attending Tradeshows. They collected data
from exhibitors and attendees from 26 different companies in industrial sectors within
USA. The results showed that the core factors that affected to decision of both exhibitors
and attendees were speakers, their topics, the resulting education value, namely, location,
cost, number of exhibitors and number of attendees. The results showed that differences
between exhibitors and attendees were cost, preferences for technology, scheduling and
sustainability options such as the relative importance of criteria for tradeshow selection
and relative utilities of various tradeshow attributes. The moderate important factors that
used to identify subgroup level within attendees and exhibitors groups were attendance
frequency, technology preference, age and career level. This study concluded that
tradeshows organizers may need to focus about factors that showed about differences
between attendees and exhibitors such as age, career level, frequency of tradeshow
attendance and their need for knowledge in new technology.
Jarawee Inthum (2016) studied about A Structural Equation Model of Logistics
Service Provider Selection in Exhibitions. She collected data from 300 entrepreneurs who
attended the exhibition by using questionnaire as instrument and using structural equation
The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 27
model (SEM) in analysis. The results showed that the core factors which affected to
selection of third-party logistics providers were factors of quality of third-party logistics
providers and factors of cost in services from third-party logistics providers. The big
companies (more than 12 employees) only considered in factors of quality of third-party
providers, but the small companies (less than 12 employees) considered in both factors
of quality of third-party logistics providers and factors of cost in services from third-party
logistics providers.
The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) |28
Table 1 Summarize previous researches and related variables
Bussakorn
Khumhome
(2012)
Young Ki
Lee (2011)
Deborah
Breiter and
Ady Milman
(2006)
Hyunjeong
Spring Han
and Rohit
Verma (2014)
Jarawee
Inthum (2016)
Country Thailand USA USA USA Thailand
Population
Type
3factories in
Ubon
Ratchathani
Participants
who
attended an
exhibition in
Las Vegas,
USA
Participants
in different
exhibitions
which held
at Orange
County
Convention
Center in
Orlando, FL
Exhibitors and
attendees from
different
companies in
industrial
sectors within
USA
Entrepreneurs
who attended
the exhibitions
Amount of
samples
25
191 Eastern
137 Western
566 26 300
Analyzing
SEM and
SPSS
analysis
PAF and ML
Importance
and
Performance
Analysis
Likert type
scales and
maximu -
difference
choice
analysis
SEM and
SPSS analysis
The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) |29
Table 1 Summarize previous researches and related variables (Continue)
Bussakorn
Khumhome
(2012)
Young
Ki Lee
(2011)
Deborah
Breiter and
Ady
Milman
(2006)
Hyunjeong
Spring Han
and Rohit
Verma
(2014)
Jarawee
Inthum
(2016)
Total
Observed variables
Convenient transportation *
Venue’s capacity *
Famous attraction *
Distance from hometown *
Fix cost * *
Variable cost * * *
Reputation of host area *
Reputation of exhibitor *
Reputation of tradeshows * *
The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) |30
Event’s purpose * * *
Number of invited sellers * *
Buyer’s nationality *
Relationship *
Public relation * *
Facilities * * *
Registration * *
Profit guarantee *
The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 31
4. Purpose of the study
4.1 To know about factors that affect to decision making to attend tradeshows of
sellers in MICE industry
4.2 To help tradeshows exhibitors to develop their tradeshows to become better
events to attract Entrepreneurs to attend
5. Advantage of the study
5.1 It is expected that the result of this study would show about factors that affect
to decision making to attend tradeshows of sellers in MICE industry
5.2 It is expected that the result of this study would be information to help
tradeshows exhibitors to manage their organization to invite Entrepreneurs to
attend their tradeshows
5.3 In government sector, expected that the result will point the purpose or factor
improvement ways to support MICE industry of Thailand
6. Research Designs, Scope and Methods
6.1 Scope of the Study
This research will study about factors that affect to decision making to attend
tradeshows of sellers in MICE industry
Scope of population is Entrepreneurs who attend tradeshows in MICE industry as
sellers.
Figure 4 shows about SEM which is model of this research. There are some
variables as follow.
There are four external variables as follow.
i) Factor about Venue. They include for observed variables. They are
Convenient Transportation, Capacity, Famous Attraction and Distance from
Entrepreneurs’ Hometown.
ii) Factor about Cost
iii) Factor about Reputation. They include for observed variables. They are
Reputation of Host Area, Exhibitor and Tradeshows.
iv) Factor about Organization. They include for observed variables. They are
Event’s Purpose, Number of Invited Sellers, Buyers’ Nationality,
Relationship, Public Relation, Facilities, Registration and Profit Guarantee.
The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 32
There are one internal variable. It is Decision Making of sellers to attend
tradeshows. It includes for two observed internal variables. They are Attend and Not attend.
Signs for this model as follow.
is external variables
is internal variables
is causal relationship and weight of relationship
The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) |33
6.2 Conceptual framework / Model
Figure 4: Structural Equation Model
Decision
Making
Venue
Cost
Reputation
Organization
Attend Not attend
Convenient
Transportation
Capacity
Famous Attraction
Distance from
Hometown
Host Area
Exhibitor
Tradeshow
Fix Cost
Variable Cost
Event’s Purpose
Number of Invited
Sellers
Buyers’ Nationality
Relationship
Public Relation
Facilities
Registration
Profit Guarantee
The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 34
6.3 Data collection
This research will use Survey Research to study about factors that affected to
decision making to attend tradeshows of sellers in MICE industry, so data collection of this
research will use these methods as follow.
6.3.1 Population and Sample
This research will study about factors that affected to decision making to attend
tradeshows of sellers in MICE industry that be primary data. Our population is Entrepreneurs
who attend tradeshows in MICE industry as sellers.
For sampling, Structural Model can define the most appropriate number of for
estimating samples from all population. It means that we will define number of sample from
number of parameter by ratio 10 samples for 1 parameter.
So we will collect data from 250 samples from 25 parameters.
6.3.2 Instrument
Our instrument is questionnaire for collecting data for study about factors that
affected to decision making to attend tradeshows of sellers in MICE industry that come from
literature reviewing. Our questionnaire can be divided to three parts as follow.
Part 1 General information such as sex, ages and types of business, etc.
Part 2 The factors that affected to decision’s sellers to attend tradeshows in
MICE industry. They are factors of venue, factors of cost, factors of reputation and factors of
organization.
In part 2 from the questionnaire, there are 5 rating levels for the personal to give
to each factor
Very important 5 score
Important 4 score
Moderately important 3 score
Less important 2 score
Not important 1 scores
Part 3 Suggestion / Other factors that maybe affected to decision’s sellers to
attend tradeshows in MICE industry
The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 35
6.4 Research Methodologies / Data Calculating Method
This research will use Survey Method for study about factors that affect to decision
making to attend tradeshows of sellers in MICE industry. We will use primary data from
collecting data then analyze as follow.
For the first objective which is study about related factors that affect to attending
tradeshows. We will analyze two parts from questionnaire.
(1) General information analysis for study about characteristics of sellers who
attend tradeshows. We will find the results by mean and percentage.
(2) Related factors analysis for study about importance of each factor that affect
to attend tradeshows. We will find the results by mean, percentage and set hypothesis that each
factors relate to decision making to attend tradeshows of sellers.
7. Reference
About Education. (2016). Rational Choice Theory. (http://sociology.about.com/od/
Sociological-Theory/a/Rational-Choice-Theory.htm). (accessed December 30, 2016).
BusinessMate.Org. (2010). Transaction Cost Theory. (http://www.businessmate.org/
Article.php?ArtikelId=182). (accessed December 30, 2016).
Bussakorn, K. (2012). Factors Influencing the Decision to Join Green Industry Project
of Ubonratchathani Entrepreneurs. Ubon Ratchathani University.
Deborah, B., Ady, M. (2006). Attendees’ needs and service priorities in a large
convention center: Application of the importance-performance theory.
University of Central Florida, Orlando, FL.
Hyunjeong, S. H., Rohit, V. (2014). Comparison of Exhibitors and Attendee’s
Performance in Attending Tradeshows. Cornell University School of Hotel
Administration
Jarawee, I. (2016). A Structural Equation Model of Logistics Service Provider Selection
in Exhibitions. Chiang Mai University.
John Dudovskiy. (2012). Concepts of Customer Services and Customer Satisfaction:
Introduction. (http://research-methodology.net/concepts-of-customer-services-and-customer-
satisfaction-introduction/). (accessed December 30,2016)
Statistics Solutions. (2016). Structural Equation Model, (http://www.statisticssolutions.
com/structural-equation-modeling/). (accessed December 8, 2016).
TCEB. (2015). Introduction to MICE industry.
Trade Show Public Relations. (2013). “Difference Between General Tradeshow and
MICE Tradeshow”. (http://www.trade-show-pr.com/2013/02/22/trade-show-
fair-or-exhibition-part-1/). (accessed December 6, 2016).
Young, K. L. (2011). A Cultural Perspective on Motivation Factors Affecting Exhibition
Participation. University of Nevada, Las Vegas.
The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 36
	
	
	
	
	
	
	
	
	
	
	
	
	
Theme B
Economic Modeling
The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 37
A Supply Chain Analysis of Determinants Factor Affecting
Spending of Elderlies in Maephrik District
Supaporn Fanchompoo1
, Pairach Piboonrungroj2
, and Prof.Tzong-Ru Lee3
Faculty of Economics, Chiang Mai University
Vitamilk_m@hotmail.com
2
Faculty of Economics, Chiang Mai University
E-mail: me@pairach.com
3
National Chung Hsing University
trlee@dragon.nchu.edu.tw
ABSTRACT
This paper aims to examine determinants of factor affecting spending of elderly people under
the concept of supply chain. The literature usually study factors affecting spending under a
transaction concept. However spending could be studied under the concept of supply chain;
upstream, midstream and downstream. Data are collected in Meaprik district in Lampang
province of Thailand since it is one of the provinces in Thailand where the propotion of elderlies
are highest. Then we use Tobit model to estimate the impacts of proposed factors. Supply chain
concept is then applied to comprehend spending pattern along the supply chain.
Keywords: Supply Chain Analysis, Spending model, Elderly people, Tobit model
The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 38
A Supply Chain Analysis of Saving Life Cycle:
A Case of Elderly people in Mae Phrik District
Prapassorn Kamkeaun1
, Pairach Piboonrungroj2
, and Prof.Tzong-Ru Lee3
Faculty of Economics, Chiang Mai University
prapassorn_k@cmu.ac.th
2
Faculty of Economics, Chiang Mai University
E-mail: me@pairach.com
3
National Chung Hsing University
trlee@dragon.nchu.edu.tw
ABSTRACT
The objectives of this study are to explore the Saving Life Cycle of People in Mae Phrik District
and socio-economic characteristics of the elder in Mae Phrik District, Lampang, and to
understand factors that affect to the elderly people during each supply chain stage. Such factors
are income, expenses, saving. The samples consist of 400 elders who live in Mae Phrik District,
Lampang Province / people who live in Mae Phrik District. Questionnaire is used to collect
information of 400 elders who live in Mae Phrik District, Lampang, Province to analyze the
relationship between income, expenses and saving and the general information of the samples
in age, occupation and the number of descendants. Tobit model is used to analyse the data to
understand factors that affect Saving Life Cycle and provide suggest in each supply chain
states; upstream, midstream and downstream to the policy makers.
Keywords: Supply Chain Analysis, Saving Life Cycle, Elderly people
The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 39
The effect of the payment system on Smart Mobile of Chinese
tourists to the supply chain
Thiranun Khamhom1
, Pairach Piboonrungroj2
, and Prof.Tzong-Ru Lee3
Faculty of Economics, Chiang Mai University
Vitamilk_m@hotmail.com
2
Faculty of Economics, Chiang Mai University
E-mail: me@pairach.com
3
National Chung Hsing University
trlee@dragon.nchu.edu.tw
ABSTRACT
The research studies the effect of the payment system on Smart Mobile of Chinese
tourists to the supply chain. To serve as a guide for entrepreneurs who are involved in
payments technology progressed. The objective was to study option of payment of
Chinese tourists in Chiang Mai. In this case, the author selected the study areas in the
central business that provides services to Chinese tourists. From the guidelines, the
road Nimman Heamin in Chiang Mai was the main area for data collection. The study
was used questionnaire to collect data. The questionnaires with alternatives were
distributed to Chinese tourists.
The research found that Alternative Payment of Chinese tourists have various forms
that comprising a cash, Debit card (Visa / Master card) and Online Payment with a
Laptop or Mobile application. There is also sergeant money by third party payment
Platform, which includes a payment method by PC, application functionality or scan
QR code by Smart Mobile of Chinese tourists. This system can provide convenience
to Chinese tourists, quickly and thoroughly considered alternatives that have been
popular with Chinese tourists that traveling to Thailand.
However, form the payment of Chinese tourists is happening. Inevitably cause an
effect on supply chain that involved in the tourism sector. The Institute is Bank in
Thailand which previously had income from fee for service payment that is debit card
(Visa or Master Card) of Chinese tourists. The bank's income in this segment will
disappear immediately. While looking back on the side of the store to get various
benefits. Besides the convenience is The Chinese tourists can buy and pay more
pleasant. It is good for the turnover of the stores in Chiang Mai to be high.
Keywords: Tourism supply chain, Mobile payment, Chinese tourists
The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 40
	
	
	
	
	
	
	
	
	
	
	
	
	
Theme C
Global Supply Chain
The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 41
An Analysis of Supply Chain and Market Potential of
Thai Sweet Tamarind
Roengchai Tunsuchat1
and Suthep Nimsai2
1 Faculty of Economics, Chiang Mai University
E-mail: roengchai_t@yahoo.com
2 School of Management, Mae Fah Luang University
E-mail: n_suthep@hotmail.com
ABSTRACT
The objectives of this study were to study the current situation of Thai sweet
tamarind production industries and export, and to analyze logistics and supply
chain management of Thai sweet tamarind in order to enhance Thai sweet
tamarind competitiveness. The researchers conducted a survey and in-depth
interviews with key informant from stakeholders of public and private sectors
in fresh and processed sweet tamarinds in both domestic and international
markets especially Vietnam, India and United State of America. This study
focuses on providing information on production and market connectivity of
Thai fresh and processed sweet tamarind as well as high-potential value chain
development in Thai sweet tamarind businesses. The results found that
although Thai tamarind is a potential exotic fruit and has high
competitiveness because is the only one of the world's plant tamarind, it lacks
of diversity in field of transportation and encounters the trade barriers in
international markets. Therefore, Thai government and private sector need to
plan the marketization strategies for trade facilitation and value – added
production plan such as new processed tamarind, innovation for processed
tamarind and processed tamarind for niche market to enhance trade
competitiveness and reduce various trade risks.
Keywords: Sweet Tamarind, Supply Chain, Value Chain Development,
Competitiveness, Thailand
JEL Classification: Q17, Q13
The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 42
Marketing Logistics of Coffee Bean Products in China
Chun Jiang1
, Suthep Nimsai2
, Chai-Ching Tan3
Business Excellence and Logistics Research Centre (BE-Logist)
1
School of Management, Mae Fah Luang University E-mail :
jcstan@gmail.com
2
School of Management, Mae Fah Luang University. E-mail :
suthep.mfu@gmail.com,
3
School of Management, Mae Fah Luang University. E-mail :
drcctan@yahoo.com.
ABSTRACT
Both the trade of coffee and its state of competition have been expanded in
China at an accelerated pace in the past decade. As a way of enhancing
competitive advantage, coffee traders have to work on their logistics planning
in combination of marketing strategy. However, literature on coffee-beans
marketing logistics in China is limited. This paper, by adopting a mixed
method, investigates both demand and supply sides of the coffee bean value
chain and provides insights towards marketing logistics. Qualitative data from
the supply side revealed many variables, such as business model innovation
and customer education, amongst the traditional marketing mix factors that
contribute to increased consumption. These variables, including product
quality, packaging elements and marketing efforts, are further studied through
quantitative survey. The quantitative and qualitative data are then compared
and analyzed. Based on the analysis, recommendations are provided to suggest
how coffee traders in China can better formulate supply chain strategies that
enhance competitive advantage.
Keywords: China, Coffee Beans, Marketing Logistics, Logistics and Supply
Chain JEL Classification: O13, Q42, Q43
The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 43
1. Introduction
1.1. Coffee Industry in China Coffee has
assumed many significances: the second
most traded commodity only after oil (Yin,
2005; Yang et al., 2014; 2012), the black
gold (Murphy & Jenner-Leuthart, 2011),
the most consumed drink after water (Yin,
2005), and the leading commodity in the
Fair-Trade realm (Yang et al., 2014; 2012),
to name just a few. For an emerging
economy as big as China, even though the
country is reputable for the rich cultural and
historical kinship with tea drinking, it has
been frequently reported as a potential
market for coffee products (Yin, 2005;
Yang et al., 2014; 2012; Zhang 2014). Not
only does the consumption of coffee
continues to grow at a two-digit rate for the
past decade (Yang et al, 2014), the fact that
it’s also a fast-growing production country
might also surprise many coffee drinkers in
the western world (Zhang 2014). Statistics
of this trend can be seen from TABLE 1.
TABLE 1. Coffee Statistics in China
Source: ICO, 2015 According to
According to the report by ICO
(International Coffee Organization),
although the coffee market in China is still
dominated by instant coffee products, the
growth rate of instant coffee has started to
show decline, which is compensated by the
ever-strong increase of fresh coffee
consumption. This can be explained by the
bamboo-shooting trend started by
international coffee giants such as
Starbucks, and numerous independent
coffee shops bringing a new way of
recreational style to Chinese cities.
1.1.1 Coffee Production and Consumption
in China
The plantation of coffee in China started in
the 19th century when the French
missionary first brought some coffee crops
from Vietnam via the Yunnan-Vietnam
railway (Yin, 2005 and Zhang, 2014). Until
after 1980s, with the help of international
program such as UNDP, large coffee
companies like Nestle came to Yunnan and
commercialized the coffee plantation there.
By now, Yunnan produces 99% of China’s
coffee beans. During the harvest season
between 2015 and 2016, about 139,000
metric tons of coffee beans have been
harvested in Yunnan. (Yunnan Coffee
Association). Due to the high altitudes of
Yunnan’s coffee plantations, the flavor of
Yunnan coffee is welcomed by Europe,
which is the biggest buyer of Y unnan
coffee. In July 2015, the first Eurasian
cargo train from Kunming embarked on a
journey to Europe, and 100 containers of
coffee products arrived Europe in only 15
days. The production of Yunnan coffee has
been steadily growing, however, 70% of its
quality green beans are exported despite the
huge potential of domestic demand. (Yin,
2005) At the same time, 90% of coffee
imports come from Vietnam (Yunnan
Coffee Association). According to the
prediction of Yunnan Provincial
Department of Agriculture, the coffee bean
demand in China is likely to grow up to
500,000 metric tons by 2020, and to meet
this demand, Yunnan plans to keep an
annual output of 200,000 metric tons of
coffee beans by then. Apart from
international players like Nestle, Maxwell,
and Starbucks, who have set up coffee
production bases in Yunnan, local brands
such as Hogwood, have also signed up for
the competition under support from the
government.
1.1.2 Coffee Beans Demand in China In
the latest report from ICO (Coffee in China,
The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 44
2015), statistics show that China’s import
of coffee beans has been increasing with an
average annual growth rate of 15% in the
past 10 years. With the consumption
volume of 1.9 million bags1 in 2014, China
has been ranked the 17th largest coffee
consuming nation. The size of its
population, 1.4 billion, however, dilutes the
consumption per capita down to only 5~6
cups (or 83 grams) per year, while the world
average is 240 cups. The market structure
distributed unevenly across China, with
urban metropolises significantly higher
than suburban areas.
Despite the fact that the No.1 hot beverage
in Chinese homes is still tea, the coffee
culture is swiping across all major Chinese
cities in forms of café outlets which is
basically an important configuration of
every shopping complex. The report made
an interesting comparison of current coffee
consumption in China and that of Japan
between 1960s and 1970s. The trend looks
strikingly similar. Worth mentioning, Japan
has become the world’s fourth largest
coffee consumer since 2000, with a
consumption volume of 7 million bags, and
3.5 kg per capita. See FIGURE 1.
Source: ICO
FIGURE 1. Coffee Consumption in China
(2004/05 to 2013/14) Compared to Japan
(1964/65 to 1973/74)
The above figure could give the marketers
of coffee in China great confidence as there
is huge potential for coffee demand in this
country. However, the coffee market
structure is still remarkably uneven. 50% of
coffee beans are consumed in various
coffee shops, 40% in star hotels, and only
10 % consumed in households, restaurants,
and offices (Yin, 2005), although the
general growing trend is believed to be
optimistic given the size of massive
population. Even if coffee bean
consumption is only to the niche market in
China at present, the size of the market is
big enough to cater to multiple competitors.
This can be seen from the phenomena of
bamboo-shooting coffee shops in major
cities in China. They come and they go but
they never stop coming up.
1.2. Integration of Marketing and Logistics
Marketing and logistics have long been
studied as two different disciplines, while
the activities of both disciplines are actually
interdependent (Svensson, 2002). Although
marketing strives to create demand,
nevertheless, to satisfy the demand it needs
supportive logistics activities. With the
increasing dynamics of market change, the
traditional 4P mix of marketing alone,
namely product, place, promotion, and
price strategies are struggling in leading
competitive success. Under such
background, to compete in the volatile
market, firms are leaning towards logistics
efficiency at the strategic level in order to
satisfy the demands of maturing customers
(Christopher and Peck, 2003). At the
interfaces of marketing and logistics,
supply chain management strategies play
important roles in minimizing total costs
while delivering higher customer service
The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 45
levels. Thus, to gain competitive advantage,
it is necessary to understand the demand
and based on the demand, devise
appropriate strategies not only for
marketing but in combination of logistics as
well.
1.3 Problem Statement As a new product
category to Chinese consumers, the
marketing of fresh ground coffee (as
opposed to instant coffee), should adapt to
the local market by understanding the
customers at the end of the supply chain.
Traditionally, purchasing decision is
largely dependent on the attributes of
perceived cost and perceived quality
(Alhabeeb, 2002), and the marketing mix
theories are well studied. However, given
the constant changing market trends in
China, and the fact that coffee bean
consumption in China is still at its
developing stage, it doesn’t seem easy for
local coffee traders, the suppliers, to
compete with coffee giants. On the other
hand, the 4P marketing mix has evolved
over the past decades. It is necessary,
therefore, to precisely identify the
contemporary dimensions of the traditional
4P and utilize the concept to win over the
market.
This paper aims to study the nature of 4P
marketing mix that contribute to the
purchase intension of Yunnan coffee in the
city of Kunming and generally China, while
intercepting the views of the supply side in
their current states of strategic pipelines,
thereby provide some insights to Yunnan
coffee bean traders and marketers seeking
to improve coffee bean trade in China.
1.4 Research Objectives and Questions
Objective 1. To understand the consumer
behavior of Yunnan coffee bean products:
RQ1. What are the roles of
demographic and psychographic variables
play in the study?
RQ2. What are the dimensions of
4P mix in the industry of Yunnan coffee
bean products?
RQ3. How consumers’ purchase
intention correlates to these dimensions?
RQ4. What are the most important
factors among the 4P dimensions that
predict consumers’ purchase intention of
Yunnan coffee bean products?
Objective 2. To understand, from the
supplier’s perspective, why the purchase
intention of Yunnan coffee beans is
influenced by the identified 4P factors –
addressing both the significant and the
insignificant ones.
1.5 Scope of Study
1.5.1 Yunnan Coffee Bean Products
Although the coffee market in China is
under development, and instant coffee and
other three-in-one, ready to drink products
are all taking up the shelves in market, this
research is focused on the ground coffee, or
the fresh coffee, which can either be in the
form of roasted coffee beans or packed
coffee grounds. Statistics have shown that
the ground coffee sector has been
increasing in China even though it is still
largely consumed in non-home sectors.
(ICO, 2015)
1.5.2 Geographical Scope The research is
conducted in the city of Kunming as
The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 46
Kunming is the capital of Yunnan Province,
which is the single largest representative of
China’s coffee industry, and the city is
prone to coffee drinking cultures due to
historical and geographical reasons.
1.6 Overview of Research Resign and
Method The study is aimed in
investigating the nature of consumer
behaviors for the coffee-bean product
markets in Yunnan by focusing on the role
played by marketing mixes on purchase
intentions, while intercepting the logistical
and supply-side details and insights in the
explanations. In doing so this research can
provide significant contributions to both
disciplines which this research
acknowledges as marketing logistics. Three
suppliers of Yunnan coffee bean products
were interviewed to help construct the
framework of research. Theoretical
saturation was achieved which surface key
variables such as product innovation and
consumer education as key considerations
in marketing mixes which have been
neglected in the marketing literature. The
themes or variables (constructs) identified
in the interviews were subjected to further
literature reviews to ensure construct
validity in the questionnaire
operationalization, while reliability is
ensured through scrutiny over the item
consistency and content validity efforts.
135 valid responses were collected and
analyzed using descriptive and inferential
techniques with SPSS version 23.
However, statistical analysis showed that
there is a gap in understanding between
suppliers and consumers on the factors
affecting consumers purchase intention.
The empirical results were then
communicated back to the suppliers and
their comments were collected and
analyzed which helps the suppliers
understand the effectiveness of their
intended strategy and the final empirical
model shows not only the current states of
consumer behavior reality but also the areas
of strategy focus which the suppliers need
to emphasize.
1.7. Limitations The research adopted a
mixed method in investigating the
marketing mix application to Yunnan
coffee bean products. Although data were
collected from both supply side and
demand side, a gap was found in between.
As a new product category, the supply
chain tactics of coffee bean industry are not
yet well considered. Knowing the
customer’s needs and wants is the first step,
and more researches need to be conducted
on the logistics efficiency of the coffee
industry.
2. Literature review
A skillful use of methodological
triangulation by means of mixed methods to
study a single research problem can allow
the research to speedily come to a
conclusion in addressing the research
objective (Tan, 2016). While the sequence
of which method precedes remains flexible,
suggesting qualitative interview as the first
step, at the outset, it equips the researcher
with the necessary substantive focus which
provides a general guide, and when
completed with further literature review, a
direction of scope and depth for
The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 47
questionnaire development (Tan, 2016). In
this way, the literature review can be
minimalist in nature and the research allows
the theoretical structure of the empirical
results to emerge.
This research focuses specifically to study
consumer behaviors pertaining to Yunnan
coffee bean products. This is mainly
opposite to soluble coffee and ready-to-
drink coffee products. Yunnan province
produces 98% of China’s coffee beans
which are mainly grown in coffee
plantations in the southern and
southwestern prefectures such as Pu’er,
Xishuang Banna, Wenshan, Baoshan, and
Dehong. The main variety of Yunnan
coffee is the famous Arabica. There are
three major varieties of Arabica grown in
Yunnan, the Typica, Bourbon, and Catimor
(with some Robusta gene, anti-rust, but
lower in quality).
The investigated product category, Yunnan
coffee bean products, refers to the fresh
ground coffee products, in forms of packed
coffee beans, coffee grinds, and the
convenient drip coffee bags using coffee
beans produced in Yunnan.
In studying the consumer behaviors,
marketing mix concept would be the central
focus, but the operationalization of the
construct would be made with
contemporary adaptation of each of the
theme in particular with packaging
innovation as a part of the product attribute,
and is enabled by in-depth qualitative
interviews so that the operationalization of
marketing mix construct fits the market
context in Yunnan. The model of marketing
mix was first proposed by Neil Borden, the
president of American Marketing
Association in 1953. In his paper “The
Concept of the Marketing Mix” (Borden,
1964), Borden made an analogy of
Marketing mix as recipe ingredients, which
can be followed, altered, or invented
according to the marketer in different
scenarios, but the concept of mix became
dominant. The elements of 4P were
classified by Jerome McCarthy (1960) into
Product, Price, Place and Promotion. Since
then, the 4P model has dominated
marketing thought (Gronroos, 1994). To
gain accurate understanding of the 4P mix
in China’s coffee industry, the research
started off by interviewing the coffee
providers to extend the dimensions of each
P.
To allow the consumer behavior structure
to form, this research attempts to focus
particularly on how the marketing mix is
contributing to purchase intention.
Although plenty of literature devotes in
refuting consumers’ purchasing intention as
a precise predictor of their actual purchase
behavior (Chapman, 2001, Morwitz, 2001),
still, marketing managers often use
purchase intention because self-reported
intentions are easy and flexible to use.
(Barber and Taylor, 2013). Furthermore,
Barber and Taylor (2013) also argued that
individual intention of purchase is a strong
predictor to their actual behavior.
Therefore, this study defines consumers’
purchase intention as the dependent
variable of the possibility that consumers
will buy Yunnan coffee bean products.
Proceeding of ASCA 2016
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Proceeding of ASCA 2016

  • 1. The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | i
  • 2. The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | i The 2nd International Conference of The Asian Supply Chain Academy (ASCA2016) 22nd – 23rd December 2016, Chiang Mai, Thailand www.AsianSupplyChainAcademy.com/asca2016 About ASCA ASCA (Asian Supply Chain Academy) is an open platform for research and education in Supply Chain Management, founded in 2015 by Pairach Piboonrungroj, PhD The international conference of ASCA aims to provide a platform to develop manuscripts of academics who wish to publish their work in international peer-reviewed journal. In ASCA, more time are allocated for each presentation with pre-assigned discussants. After presenting in ASCA, authors shall have constructive suggestions to develop their manuscript. Also ASCA provides research skill development for conference delegates during the pre- conference workshops such as research writing skill (especially for journals) and data analysis skill (especially R programming). • ASCA2015 was successfully organised at the Eastin Tan Hotel in Chiang Mai, Thailand. All the papers presented in ASCA2015 were published in the international journals. • ASCA2016 is held at Ibis Style hotel in Chiang Mai, Thailand. The conference is concurring with Chiang Mai R User Conference and Chiang MICE Forum on December 22nd in the morning and in the afternoon, respectively. • ASCA2017 will be organised in Seoul, South Korea with potential collaboration with the International Logistics department of Chung Ang University during 5th -6th 2017. ASCA is professionally organised by: Eduwisor Co., Ltd. Based Chiang Mai, Thailand www.eduwisor.com
  • 3. The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | ii CONTENTS Conference programme iv Theme A: Service Supply Chain 1 A1: The Impact of Reverse Logistics in Electronic Business in Northern of Thailand 2 by Wararat Namwong A2: Green Meeting to sustainable development of MICE CITY: Chiang Mai Province 17 by Niranol Prasertphongkun, P Piboonrungroj and T-R Lee A3: Modeling a Decision Making to Attend Tradeshows in the MICE Industry 18 by Napapol Somrit, P Piboonrungroj and T-R Lee Theme B: Economic Modeling 36 B1: A Supply Chain Analysis of Factors Affecting Spending of Elderlies in Mae Phrik District, Lampang Province 37 by Supaporn Fanchompoo, P Piboonrungroj and T-R Lee B2: A Supply Chain Analysis of Saving Life Cycle of people in Mae Phrik District 38 by Prapassorn Kamkeaun, P Piboonrungroj and T-R Lee B3: The effect of the payment system on Smart Mobile of Chinese tourists to the supply chain. 39 by Thiranun Khamhom, P Piboonrungroj and T-R Lee Theme C: Global Supply Chain 40 C1: An Analysis of Supply Chain and Market Potential of Thai Sweet Tamarind 41 by Roengchai Tansuchat C2: Marketing Logistics of Coffee Bean Products in China 42 by Chun Jiang C3: Risks model in fruits export supply chain: A perspective of the United Arab Emirates importers 66 by Thatphong Namwat Theme D: International Trade Logistics and Supply Chain 76 An Importance – Performance Analysis (IPA) Approach to Study First - Level SCOR Performance of Thai Fresh Fruits Export to United Arab Emirates Market 75 by Chairerk Tantitecha Myanmar Mango Supply Chain and its Opportunities and Constrains in Exporting 87 by Sai Ye Win Kyaw E-commerce Customer Satisfaction Evaluation of Chinese Third Party Logistics Service Providers: Case Study of Yunnan, China 88 by Li xing hui
  • 4. The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | iii Theme E: Supply Chain Modeling 99 E1: Export Potential Assessment in the Southern of Thailand 100 by Roengchai Tansuchat E2: Logistical and Service-Quality Factors Driving Laos Patients to Use Healthcare Services in its Bordering Chiang Rai, Thailand 101 by Natchaya Khaofong E3: Stochastic Mathematical Modeling for Food Waste Reduction in Two-Level Supply Chain 108 by Po-ngarm Somkun Theme F: Supply Chain Performance 109 F1: A Game Theory Analysis of Incentive Travel Supply Chains 110 by Chatchuda Thumachai, P Piboonrungroj and T-R Lee F2: A Thai Airport Development Policy Study: The Enabling And Challenging Factors Of Supply Chain And Policy Deployment Strategies 111 by Siriwanlaya Chueasa-at F3: Evaluation of SCOR KPIs using a predictive MILP model under fuzzy parameters. 136 by Piyanee Akkawuttiwanich
  • 5. The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | iv ASCA2016 Conference Programme 22nd December 2016 08:30 – 09:00 Registration 09:00 – 09:30 Welcoming Remark by Chair of ASCA2016 09:30 – 10:45 Workshop: R Programming for Supply Chain Research (1) by Pairach Piboonrungroj, PhD 10:45 – 11:00 Refreshment Break 11:00 – 12:00 Workshop: R Programming for Supply Chain Research (2) 12:00 – 13:00 Lunch 13:00 – 14:30 Oral Presentations: Session A Theme A: Service Supply Chain Chair: Pairach Piboonrungroj • A1: The Impact of Reverse Logistics in Electronic Business in Northern of Thailand By Wararat Namwong • A2: Green Meeting to sustainable development of MICE CITY: Chiang Mai Province By Niramol Prasertphongkun • A3: Modeling a Decision Making to Attend Tradeshows in the MICE Industry By Napapol Somrit 14:15 – 14:30 Refreshment Break 14:30 – 16:00 Oral Presentations: Session B Theme B: Economic Modeling Chair: Pimpika Chawalit • B1: A Supply Chain Analysis of Factors Affecting Elderlies in Mae Phrik District by Supaporn Fanchompoo • B2: Supply Chain Analysis of Saving Life Cycle: A Case of Elderly people in Mae Phrik District by Prapassorn Kamkeaun • B3: The effect of the payment system on Smart Mobile of Chinese tourists to the supply chain by Thiranan Khamhom
  • 6. The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | v 23rd December 2016 08:30 – 09:00 Registration 09:00 – 10:30 Oral Presentations: Session C Theme C: Global Supply Chain Chair: Roengchai Tansuchat • C1: An Analysis of Supply Chain and Market Potential of Thai Sweet Tamarind by Roengchai Tansuchat • C2: Risks model in fruits export supply chain: A perspective of the United Arab Emirates importers by Thatphong Namwat • C3: Marketing Logistics of Coffee Bean Products in China by Chun Jiang 10:30 – 10:45 Refreshment Break 10:45 – 12:15 Oral Presentations: Session D Theme D: International Trade Logistics and Supply Chain Chair: Sai Ye Win Kyaw • D1: An Importance – Performance Analysis (IPA) Approach to Study First - Level SCOR Performance of Thai Fresh Fruits Export to United Arab Emirates Market by Chairerk Tantitecha • D2: Myanmar Mango Supply Chain and its Opportunities and Constrains in Exporting by Sai Ye Win Kyaw • D3: E-commerce Customer Satisfaction Evaluation of Chinese Third Party Logistics Service Providers: Case Study of Yunnan, China by Li xing hui 12:30 – 13:30 Lunch 13:30 – 15:00 Oral Presentations: Session E Theme E: Supply Chain Modeling Chair: Po-ngam Somkun • E1: Export Potential Assessment in the Southern of Thailand by Roengchai Tansuchat • E2: Logistical and Service-Quality Factors Driving Laos Patients to Use Healthcare Services in its Bordering Chiang Rai, Thailand by Natchaya Khaofong
  • 7. The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | vi • E3: Stochastic Mathematical Modeling for Food Waste Reduction in Two-Level Supply Chain by Po-ngarm Somkun 15:00 – 15:15 Refreshment Break 15:30 – 17:00 Oral Presentations: Session F Theme F: Supply Chain Performance Chair: Piyanee Akkawuttiwanich • F1: A Game Theory Analysis of Incentive Travel Supply Chains by Chatchuda Thumachai, P Piboonrungroj and T-R Lee • F2: A Thai Airport Development Policy Study: The Enabling And Challenging Factors Of Supply Chain And Policy Deployment Strategies by Siriwanlaya Chueasa-at • F3: Evaluation of SCOR KPIs using a predictive MILP model under fuzzy parameters by Piyanee Akkawuttiwanich • F4: Supply Chain Analysis in Thailand by Suthep Nimsai 17:00 – 17:30 Closing Ceremony and Best Paper Award
  • 8. The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 1 Theme A Service Supply Chain
  • 9. The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 2 Inferring Reverse Logistics in the Thai Electronic Industry by Annual Report-based Documentary Study: Contributing towards a Corporate Social Responsibility Theory of Reverse Logistics Wararat Namwong1 , Chai Ching Tan2 , Phoommhiphat Mingmalairaks3 1 Business Excellence and Logistics Research Centre (BE-Logist)1 School of Management, Mae Fah Luang University E-mail : lukyim.wara@gmail.com 2 Business Excellence and Logistics Research Centre (BE-Logist) School of Management, Mae Fah Luang University E-mail : Drcctan@yahool.com 3 Business Excellence and Logistics Research Centre (BE-Logist) School of Management, Mae Fah Luang University E-mail : Drphoom@gmail.com ABSTRACT The purpose of this study is to use documentary analysis of the available annual reports of Thai publicly listed electronics equipment manufacturing companies to study the reverse logistics by focusing on the normative typological structure of corporate social responsibility (CSR) theory – known as deontological, process oriented and teleological outcome.As terms like reverse logistics or related terms (i.e.reuse, recycle, recover value, remanufacturing) has not gained into the popular management vocabularies (as seen in the annual reports) of these publicly listed organizations, inferences that match with the definitions of reverse logistics are attempted through thematic analysis of the annual reports. In this way, the thematic analysis provides the foundation for construct validity that relates to reverse logistics. To have representativeness of the Thai electronics equipment manufacturing industry, the Thai publicly listed companies in electronics sector would serve the purpose. This research essentially contributes towards exploring for a CSR (Corporate Social Responsibility) theory for guiding the development and implementation of reverse logistics. Keywords: Reverse logistics, electronics business, CSR Theory
  • 10. The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 3 1. Introduction As the world is depleting of the scarce and expensive resources (i.e. rare-earth metals) for use in electronics equipment manufacturing, sustainability-driven theme becomes significantly important which is embedded as an emerging major driver of reverse logistics (SCM Pro, 2013, p. 13). Nevertheless, policy-driven initiative, i.e. sustainability- enabled, in reverse logistics is not well understood by many organizations, as organizations would need to think out of the box. For instance, as returned goods have to bear the transportation costs (Sattiraju, 2013), Elmas and Erdogmus (2011) advocate an innovation-driven policy for reverse logistics such as by developing the technology and the materials used for reducing packaging weights. This policy-driven initiative is known as the deontological knowledge and application of organization (Tan, 2016), but such a CSR-oriented term has vastly been neglected in the extant literature of the reverse logistics discipline. In addition, as “reverse logistics practices vary based on industry and channel position” (Elmas and Erdogmus, 2011, p. 164) and as the publicly listed large organizations of electronics equipment manufacturers in Thailand involve characteristics of large volume in logistical process and thus could incur larger reverse logistics burden, it is important to study reverse logistics competencies and actual rationales in the industry. Unfortunately, the study of reverse logistics in the electronics sector in Thailand is vastly unavailable (Tepprasit and Paopan, 2016), it is thus necessary to explore, especially the available literature are single-case studies driven, which track transaction-based measures such as lead time minimization. Due to the lack of available knowledge about reverse logistics for electronics industry, the following research objective is thus established: The purpose of this study is to use documentary analysis of the available annual reports of Thai publicly listed electronics equipment manufacturing companies to study the reverse logistics by focusing on the normative typological structure of corporate social responsibility (CSR) theory – known as deontological, process oriented and teleological outcome. As terms like reverse logistics or related terms (i.e. reuse, recycle, recover value, remanufacturing) has not gained into the popular management vocabularies (as seen in the annual reports)of these publicly listed organizations, inferences that match with the definitions of reverse logistics are attempted through thematic analysis of the annual reports. To study this research objective, the following two research questions are raised which aim to identify the qualitative themes: • Can the reverse logistics management be categorized in a CSR-oriented theoretical structure that embraces deontology, process orientation and teleological outcome?
  • 11. The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 4 • What contents or focuses are obvious to infer the commitment of the publicly listed electronics manufacturing companies that relates to reverse logistics, directly or indirectly, from the annual report study? 2. Literature Review Depending upon the given geographical constraints and the infrastructural strengths of the countries, reverse logistics could be very complicated, for instance “electronical consumer goods tend to face particularly high return rates due to the fluctuating power supply across India” (Lemanski, 2016). Thus, many international electronics equipment manufacturers would establish “centralized returns hubs and repair facilities” and by coupled with carefully planned supply and logistics chain systems to effectively and efficiently manage reverse logistics (Lemanski, 2016). With a total export value of USD 55 billion in 2014 for the electronics industry in Thailand (BOI, 2014), reverse logistics theme would play a significant role – especially which aims to recapture value without burdening too much on the customers and the manufacturers (Rogers and Tibben- Lembke, 2001). Nevertheless, the study of reverse logistics in Thai electronics industry is generally not available (Tepprasit and Paopan, 2016), and thus, annual report-based documentary analysis approach to the study of reverse logistics would be beneficial, albeit the study is exploratory in nature and purpose. By the nature of exploratory research, construct validity assurance becomes significantly important which can exploit the available definitions of reverse logistics in different variances that are available in the extant literature. To be concise, reverse logistics relies on a process oriented competency such as planning, implementing, and controlling of the reverse logistics flows (Rogers and Tibben-Lembke, 2001), with the assistance and supports of information management system (Jack, Power, and Skinner, 2010)to positively affect the value extraction or reclaiming process.Reverse logistics are generally known to initiate at the points of consumption, which exploits the aforementioned process competencies of reverse logistics, to deliver economic, social and environmentally capable outcomes (McKinnon, 2010). The process competency involving in the reverse logistics could aim, for instance, to embed an environmentally friendly design policy (Ilgin and Gupta, 2010), and to reuse containers, recycle packaging materials, or redesign packaging so that less materials could be used, or reduce the use of energy and thus lead to reduction of environmental burdens. From the market-oriented view, reverse logistics aim to foster customer relationship (Smith, 2005) by centralizing customers in the focal point (Bounds, Yorks, Adams, and Ranney, 1994), which is made feasible by quality assurance and initiatives of recycles (Stroufe, 2013). 3. Research Method Publicly listed electronics equipment manufacturing companies are representatives of large-scale nature of the industry. Although small-scale electronics equipment manufacturing companies in Thailand are studied (Tepprasit and Paopun, 2016), mostly
  • 12. The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 5 single case in nature, the results are hardly replicable and representative of the large-scale electronics industry. Out of this necessity, this research employs documentary research method by reviewing the annual reports of the four major electronics companies listed in Thai stock exchanges – Delta Electronics (Thailand), KCE Electronics, Hana Microelectronics, and SVI Electronics. Delta Electronics (Thailand) has sales revenue of 46,938 Million Baht, Hana Microelectronics has sales revenue of 20,521 in 2015, KCE Electronics has sales revenue of 12,448 in 2015, and SVI has sales revenue of 8,119 M Baht. The qualitative data analysis employed is documentary analysis, which centralizes on theme identification.To ensure the theme identified is allocated to the right CSR category, definitions of deontology and teleology are reviewed and provided, which provides the structure and foundation for construct validity. Specifically, deontological orientation deals with duty-based or principle-based approach in the decision making and the reverse logistics reasoning process, teleological orientation provides a cognitive base to assess the effects of the reverse logistics (cf. Tan, 2016). 4. Results and Discussion Although reverse logistics has emerged as an important field in the two decades (Nikolaidis, 2013), but the documentary review of the annual reports of the publicly listed electronics equipment manufacturing companies does not show any direct use of vocabularies that relate to reverse logistics. As there is no direct mention of reverse logistics terms, the data analysis has to resolve to indirect means through inferring from the extant literature review implications. As reverse logistics is highly related to corporate citizenship (Tepprasit and Paopun, 2016) and social responsibility (Nikolau and Evangelinos, 2013), which relates to the consideration and commitment for close-loop supply chain and logistics integration, the thematical analysis is thus structured in three corporate social responsibility (CSR)domains (Tan, 2016), namely: • Deontology • Process • Teleological outcomes Deontology: Deontology prescribes a duty-or obligation-based approach to reverse logistics.In reverse logistics, apart from reclaiming pallets and containers, and packaging of the products delivered (Carter and Ellram, 1998), the publicly listed electronics manufacturing companies show also an effort to “uncover ways to reclaim, not only the parts, but the minerals and metals” (cf. SCM Pro, 2015, p. 17), that is in accordance with the Waste Electrical & Electronic Equipment (WEEE) Directive (Europa, 2016). In addition, sustainability development and innovation policies are also actively promoted throughout these electronics manufacturing companies’ supply chain (see Delta, 2015; Hana, 2015).
  • 13. The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 6 To minimize defective quality returns, the electronics manufacturing companies, such as KCE Electronics, install quality policy that aims to “provide products and services to meet or exceed agreed agreements for all of their customers through continuous improvement and by doing it right the first time” (KCE, 2015). To minimize lead time in the reverse logistics, Hana (2015) prioritize the establishment of service companies at cost competitive manner – as their business operating policy. In addition, every initiative – whether reverse logistics, forward logistics, or total quality management and product innovation, Hana (2015) centralize on corporate social responsibility (CSR) policy that aim to minimize economic, social and environmental impacts. Policy commitment is important, as KCE Electronics (2015) recognize, that in doing so they can develop and maintain integrity of services and quality and thus, reputation for quality products and services. Process: Process demonstrates the attitude and behaviors of integrity manifested by the strategies and actions taken in reverse logistics management, which is reflected in ISO quality management systems of the electronics manufacturing companies (see Delta, 2015). The process-oriented view of reverse logistics necessitates the exploration and integration of deontological cause and teleological relationships. Process oriented nature of reverse logistics is important.For instance, Dowlatshahi (2005, p. 1361) defines reverse logistics as “a process by which a manufacturing entity systematically takes back previously shipped products or parts from the point-of- consumption for possible recycling, remanufacturing or disposal.” Nevertheless, as most of the large-scale publicly listed companies as designated for this research are export oriented, reverse logistics is rather complicated, which may involve accurate and real-time transit and product documentations availability, and partnerships with third or fourth party arrangements (Sattiraju, 2013). For high-stake large-volume transactions in export-oriented organizations, reverse logistics are usually handled by proactive means –that is, by resolving to total quality management and quality policy, and by use of service centers to support returned products, provide repairing services and other after-sales services (see Delta, 2015; KCE, 2015).By setting up a service center near the customer sites, reverse logistics become more flexible and responsive to serve customers faster. In this case, lead time in recovering the value of the products, including the associated expenditures, would be reduced tremendously (Tibben-Lembke, 1998). For instance, in Delta Electronics, the after-sales service networks and customer relations offices worldwide are established to provide after sales services to their customers: “Since various services are generally required to serve the global clients, the Company needs to offer such services in the area where they are located in. This makes Delta group to establish business network which enables the Company to have customer relations
  • 14. The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 7 offices worldwide to provide effective marketing and after sales service to its clients at the competitive costs.” (Delta, 2015) Apart from service centers that locate in close proximity to customers, Hana Microelectronics use supply chain synergy and coordination among the value chain members to maximize “the effectiveness in the marketplace” (Hana, 2015). As a result, Hana Electronics have since been rewarded positively by their customers: “In the past years, the Company and their subsidiaries received various awards from their customers such as ‘Suppliers Valuable Contribution and Strategic Partnership,’ ‘Excellent Support,’ and ‘Supplier of the Year,’ and ’20-Year Partnership Recognition’ (Hana, 2015). The other most significant process oriented factor is relating to supply chain risk management and sustainability development. While the former ensures supply certainty at the time needed to resolve reverse logistics issues, sustainability is the recent chorus of reverse logistics as many of the rare-earth minerals needed in the electronics industry will be exhausted, and that sustainability, such as by meeting the EU directives (see Delta, 2015), the company can effectively and efficiently “uncover ways to reclaim, not only the parts, but the minerals and metals as well” (SCM Pro, 2013, p. 17). Teleological Outcomes: Teleological outcomes demonstrate the results of behavioral execution of the reverse logistics policy and strategies. As reverse logistics is also known as means to extract and retain as much the original values of the products, including materials or components used –whether in progress or at the points of consumptions by the customers –as possible (Jack, Power and Skinner, 2010), companies like Hana Electronics (2015) have since recycled water for usage, at 40% of total water consumption in year 2015. Not only that, Hana (2015) also implement waste recycle, while the hazardous waste of the electronics components processing materials are treated and managed according to legal standards of the Department of Industrial Works of Thailand. Minimization for reverse logistics is made possible by robust quality management system (QMS) with the aim “to deliver high quality on time, which also strives for the customer satisfaction, zero defects, and meeting international standard requirements” (Hana, 2015). The significantly obvious reverse logistics oriented teleological outcomes in these publicly listed electronics manufacturing companies are as follows: reduce the environment impacts caused by end-of-life electronic and electrical items and gain customer satisfaction and loyalty (Delta, 2015), and minimize environmental impact, efficient use of resources, cost saving, total quality improvement, and receive of various awards from customers, and also recapturing or recuperating the values of the products (Hana, 2015).
  • 15. The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 8 5. Conclusion This section concludes the efforts of this research in addressing the research objective as follows: The purpose of this study is to use documentary analysis of the available annual reports of Thai publicly listed electronics equipment manufacturing companies to study the reverse logistics by focusing on the normative typological structure of corporate social responsibility (CSR) theory – known as deontological, process oriented and teleological outcome. As terms like reverse logistics or related terms (i.e. reuse, recycle, recover value, remanufacturing) has not gained into the popular management vocabularies (as seen in the annual reports) of these publicly listed organizations, inferences that match with the definitions of reverse logistics are attempted through thematic analysis of the annual reports. Thus, to study this research objective, the following two research questions are raised which aim to identify the qualitative themes: • Research Question 1: Can the reverse logistics management be categorized in a CSR-oriented theoretical structure that embraces deontology, process orientation and teleological outcome? • Research Question 2: What contents or focuses are obvious to infer the commitment of the publicly listed electronics manufacturing companies that relates to reverse logistics, directly or indirectly, from the annual report study? Apparently, the reverse logistics management can be categorized in a CSR-oriented theoretical structure that embraces deontology, process orientation and teleological outcome – and thus, this research builds towards a CSR theory of reverse logistics. The deontological, process oriented and teleological domains of reverse logistics provide the typological rationale for reverse logistics that embeds and integrates the why (driving force), how (behaviors)and what (teleological outcome)of reverse logistics. The products involved in the reverse logistics are aimed to recapture and recover the necessary values from the original products as possible, which involves both products at the points of consumption as well as in process such as water and wastes involved in the process. In this way, the publicly listed electronics manufacturing companies actively implement their sustainability oriented initiatives as means to reclaim rare-earth elements as well as to reduce impacts economically, ecologically and socially. The waste minimization is at the heart of the reverse logistics which aims to either comply with the governmental legislation, or to proactively strive to minimize environmental impact, or to aim to reclaim as much economic value as possible. The government-mandated motivation is revealed, for instance, in Hana Electronics through the WEEE Directive conformance, such as relating to waste disposal and rare-earth material substitution.In other words, by carefully engaging in eco-design and systematically eco-chain friendly innovation, the companies can minimize reverse logistics.
  • 16. The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 9 In the process-orientation aspect of reverse logistics, the results demonstrate the attitude and behaviors of integrity manifested by the strategies and actions taken in reverse logistics management, which is reflected in ISO quality management systems of the electronics manufacturing companies (see Delta, 2015). The process-oriented view of reverse logistics necessitates the exploration and integration of deontological cause and teleological relationships. As most of the large-scale publicly listed companies as designated for this research are export oriented, reverse logistics is rather complicated, which may involve accurate and real-time transit and product documentations availability, and partnerships with third or fourth party arrangements (Sattiraju, 2013). For high-stake large-volume transactions in export-oriented organizations, reverse, reverse logistics are usually handled by proactive means – that is, by resolving to total quality management and quality policy, and by use of service centers to support returned products, provide repairing services and other after-sales services (see Delta, 2015; KCE, 2015). By setting up a service center near the customer sites, reverse logistics become more flexible and responsive to serve customers faster. In this case, lead time in recovering the value of the products, including the associated expenditures, would be reduced tremendously (Tibben- Lembke, 1998). Apart from service centers that locate in close proximity to customers, Hana Microelectronics use supply chain synergy and coordination among the value chain members to maximize “the effectiveness in the marketplace” (Hana, 2015). As a result, Hana Electronics have since been rewarded positively by their customers: “In the past years, the Company and their subsidiaries received various awards from their customers such as ‘Suppliers Valuable Contribution and Strategic Partnership,’ ‘Excellent Support,’ and ‘Supplier of the Year,’ and ’20-Year Partnership Recognition’ (Hana, 2015). The other most significant process oriented factor is relating to supply chain risk management and sustainability development. While the former ensures supply certainty at the time needed to resolve reverse logistics issues, sustainability is the recent chorus of reverse logistics as many of the rare-earth minerals needed in the electronics industry will be exhausted, and that sustainability, such as by meeting the EU directives (see Delta, 2015), the company can effectively and efficiently “uncover ways to reclaim, not only the parts, but the minerals and metals as well” (SCM Pro, 2013, p. 17). Lastly, teleological outcomes demonstrate the results of behavioral execution of the reverse logistics policy and strategies. The revelation of deontological, process oriented and teleological domains of reverse logistics has a particular but significant contribution to the discipline of logistics, in characterizing the typological rationale and scopes of reverse logistics through the normative ideologies of corporate social responsibility (CSR). In this way, reverse logistics become duty- or principle-bound, behavioral dedication and systems integration in nature, and most importantly is teleologically responsible. As a result, a theory of CSR is developed for reverse logistics, which should provide a cross-disciplinary insight and a sound explanatory background to guide further research relating to reverse logistics.
  • 17. The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 10 References BOI (2014), Thailand Electrical and Electronics Industry, Thailand: Thailand Board of Investment. Bounds, G., Yorks, L., Adams, M., Ranney, G. (1994), Beyond Total Quality Management: Toward the Emerging Paradigm, New York: Irwin/McGraw-Hill. Carter, C.R. and Ellram, L.M. (1998), Reverse Logistics: A Review of the Literature and Framework for Future Investigation, Journal of Business Logistics, 19(1), pp. 85-102. Delta (2015), DELTA Annual Report 2015, Thailand: Delta Public Company Limited. Dowlatshahi, S. (2005), A Strategic Framework for the Design and Implementation of Remanufacturing Operations in Reverse Logistics, International Journal of Production Research, 43(16), pp. 3455-3480. Elmas, G. and Erdogmus, F. (2011), The Importance of Reverse Logistics, International Journal of Business and Management Studies, 3(1), pp. 1309-8047. Europa (2016), Waste Electrical & Electronic Equipment (WEEE), Retrieved from ec.europa.au/environment/waste/weee/index_en.htm, On 20-December-2016. Hana (2015), HANA Annual Report 2015, Thailand: HANA Microelectronics Public Company Limited. Ilgin, M.A. and Gupta, S.M. (2010), Environmentally Conscious Manufacturing and Product Recovery (ECMPRO): A Review of the State of the Art, Journal of Environmental Management, 91(3), pp. 563-591. Jack, E., Power, T.L. and Skinner, L. (2010), Reverse Logistics Capabilities: Antecedents and Cost Savings, International Journal of Physical Distribution and Logistics Management, 40(3), pp. 228-246. KCE (2015), KCE Annual Report 2015, Thailand: KCE Electronics Public Company Limited. Lemanski, O. (2016), Reverse Logistics in India: The Facts, Figures, and Realities of Doing Busienss in One of the Fastest Growing Economies on Earth, Reverse Logistics Magazine, December 20. McKinnon, A. (2010), Environmental Sustainability: A New Priority for Logistics Manager. In A. McKinnon, S. Cullinane, M. Browne, and A. Whiteing (Eds.), Green
  • 18. The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 11 Logistics: Improving the Environmental Sustainability of Logistics (pp. 3-30), UK: The Chartered Institute of Logistics and Transport. Nikolaidis, Y.(2013), Reverse Logistics and Quality Management Issues:State-of-the-Art. In Y. Nikolaidis (Ed.), Quality Management in Reverse Logistics: A Broad Look on Quality Issues and Their Interaction with Close-Loop Supply Chain(pp.1-19), New York: Springer. Nikolaou, I.E. and Evangelinos, K.I. (2013), A Framework for Evaluating the Social Responsibility Quality of Reverse Logistics. In Y. Nikolaidis (Ed.), Quality Management in Reverse Logistics: A Broad Look on Quality Issues and Their Interaction with Close- Loop Supply Chain (pp. 53-72), New York: Springer. Rogers, D.S. and Tibben-Lembke, R.S. (2001), An Examination of Reverse Logistics Practices, Journal of Business Logistics, 22(2), pp. 129-148. Sattiraju, S. (2013), A Closer Look at Reverse Logistics, Supply Chain Management Professional, 1(7), pp. 20-21. SCM Pro (2013), Future of the Auto Logistics, Supply Chain Management Professional, 1(7), p. 17. Smith, A.D. (2005), Reverse Logistics Programs: Gauging their Effects on CRM and Online Behavior, The Journal of Information and Knowledge Management Systems, 35(3), pp. 166-181. Stroufe, R. (2013), Quality Assurance and Consumer Electronics Recycling. In Y. Nikolaidis (Ed.), Quality Management in Reverse Logistics: A Broad Look on Quality Issues and Their Interaction with Close-Loop Supply Chain (pp. 73-94), New York: Springer. Tan, C.C. (2016), Towards a Phenomenological Theory of Corporate Social Responsibility and its Spirited Services, India: IMRF Publication House. ISBN 978-93- 84124-99-1. Tepprasit, P. and Popun, N. (2016), The Reverse Logistics Management Model of Thai’s Electronics Industry, Middle-East Journal of Scientific Research, 24(4), pp. 1483-1487. Tibben-Lembke, R.S. (1998), The Impact of Reverse Logistics on the Total Cost of Ownership, Journal of Marketing Theory and Practice, Statesboro, 6(4). SVI (2015), SVI Annual Report 2015, Thailand: SVI Public Company Limited.
  • 19. The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 12 Appendix Table A.1: Annual Report Synthesis of Thai Publicly Listed Companies on Reverse Logistics – The Key Contents Company Deontological Principle Process Utilitarian Outcomes Delta Electronics Products and Packaging: Company’s products and packaging are unique and comply with International environmental standard, such as EU RoHS (Restriction of Hazardous Substances) and WEEE (Waste Electrical and Electronic Equipment). These measures provide guide guidelines to control pollution and waste from electronic products. On company’s products, there are labels informing environmental certification obtained such as Energy Star and 80 PLUS. CSR Policy: Sustainability development CSR policies that focus on innovation, creation and research development, and best practices to reduce environmental impact, and promote CSR WEEE Directive set collection, recycling and recovering targets for all types of electrical goods. The company has participated in Ministry of Industry’s “Green Industry” program by focusing on implementing environmentally-friendly practice by shaping up its production and environmental management processes to be greener as well as displaying greater social responsibility internally and externally throughout its supply chain to arrive at sustainable development. The company also is committed to develop clean and energy- efficient products. After Sales: Since various services are generally required to serve the global clients, the Company needs to offer such services in the area where they are located in. This makes To reduce the environmental impacts caused by end-of-life electronic and electrical items. To gain customer satisfaction and loyalty.
  • 20. The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 13 ideals and practical guidance throughout Delta’s supply chain with cooperation for between efficiency. Delta group to establish business network which enables the Company to have customer relations offices worldwide to provide effective marketing and after sales service to its clients at the competitive costs. Commissions are normally charged based on transaction size (e.g. sales or purchase amount) and considered general business condition. ISO Systems: ISO 9001, TS16949, TL900; ISO/IEC17025, ISO 27001, ISO 13485:2003. The company strives to bring the highest level of satisfaction to its customers by offering high quality products and impressive services. Supply Chain Risk Management: The Company assesses the major risk factors throughout the supply chain, this is because any misalignment in the supply management would affect the confidence of consumers and other stakeholders as well as impact future operations. To ensure good quality and continuity of supply, the Company always places strong emphasis on managing ‘Key/Critical suppliers’ and ‘Key/Critical parts’
  • 21. The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 14 in the supplier management framework. SVI Electronics Nothing related to reverse logistics is highlighted. Operations Management: Offer a complete, dynamic, turn-key service to customers by providing materials procurement to customers who require SVI to be their material supplier. SIV provide design services for test equipment in order to test finished products before delivering to ensure customers’ satisfaction. KCE Nothing related to reverse logistics is highlighted. Policy commitment in keeping a long-term relationship with the customers by providing the most valuable service – the reputation of quality product, that gain trust from customers ever since. In addition, the Company place an important on stakeholders and social responsibility by developing “Green technology.” Quality Policy: KCE is committed to providing products and services to meet or exceed agreed requirements for all of their customers through continuous improvement and by Customer Service Quality: The Company endeavors to achieve customer satisfaction by providing quality products that meet or exceed customers’ expectations and delivering exceptional service to customers. The Company develops and maintains a sustainable relationship with their customers. Customers’ satisfaction was evaluated throughout the supply chain, starting from accepting customers’ order, raw materials procurement, quality inspection before delivery and after-sales service. During 2015, the Company conducted Customer Satisfaction Customer Satisfaction Right the first time in meeting customer expectation
  • 22. The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 15 doing it right the first time. surveys in various categories, such as technical area, on-time delivery, problem responsiveness, logistics, accuracy, accuracy of the document and communication. The results of which are satisfactory (in the level of 80% - 100%). HANA Microelectroni cs Business Operating Policy: Hana has the policy to diversify its business to multiple cost competitive manufacturing locations and setting up the necessary companies for customer service, purchasing center, trading and holding companies to serve the group requirement. CSR Policy: CSR policies for sustainable development to ensure compliance with the CSR objectives toward sustainable development with regards to the economic, social and environmental impact. Recycle water: The company has continued to reduce the use of water. The waste water from the production process shall be treated and filtered to recycle enabling the increase the recycling water by 40%. KPI: Recycled water consumption is at 40% of total water consumption in year 2015. Recycle waste: The company has implemented the separation of waste into three categories: general waste, recycle waste and hazardous waste. The waste disposition is managed according to legal standards of the Department of Industrial Works. Minimization of reverse recycle: Hana places the highest value on customers, aiming to meet or exceed Minimized environmental impact Efficient use of resources Cost saving Total quality improvement Receiving various awards from their customers such as “Suppliers Valuable Contribution and Strategic Partnership,” “Excellent Support,” and “Supplier of the Year,” and “20- Year Partnership Recognition.”
  • 23. The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 16 customers’ expectations for product quality, delivery, reliability and competitive prices, through accreditation to Quality Management System (QMS) with the aim to deliver high quality products on time. The company policy is to strive for the customer satisfaction, zero defects, and meeting the international standard requirements. Supply Chain Synergy: The company and its subsidiaries continue to support the supply chain management so that all the members from suppliers to customers could coordinate their business activities and processes to minimize their total costs and maximize their effectiveness in the marketplace. In the past years, the Company and their subsidiaries received various awards from their customers such as “Suppliers Valuable Contribution and Strategic Partnership,” “Excellent Support,” and “Supplier of the Year,” and “20-Year Partnership Recognition.”
  • 24. The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 17 Green Meeting to sustainable development of MICE CITY: Chiang Mai Province Niramol Prasertphongkun1 , Pairach Piboonrungroj2 and Prof.Tzong-Ru Lee3 1 Economic of Faculty, Chiang-mai University E-mail: Niramol1405@gmail.com 2 Economic of Faculty, Chiang-mai University E-mail: Me@Pairach.com 3 National Chung Hsing University E-mail: trlee@dragon.nchu.edu.tw ABSTRACT This article is part of an independent structural equation of factors that influence the green meetings. The objective of this study is the factors that influence the Green Meeting of Chiang Mai, to develop a model for the structure equation of the factors influencing the Green Meeting of Chiang Mai to analyze and verify the consistency of the structural factors influencing the Green Meeting for Chiang Mai and to propose solutions to problems and developing green meeting in Chiang Mai. It also pushed Chiang Mai which a MICE hub of the northern region in Thailand. Chiang Mai is distinction in the field of tourism, there are a good culture, good food and good place to MICE City of sustainable development. In this study was to study theory and related research regarding structural equation, theory sustainability, MICE Industry, Green Meeting Policy, as well as other domestic and foreign green policies. Tool to collect data from people who have been involved in meetings in the MICE industry. The data were analyzed with statistical tools is CFA: Confirmatory Factor Analysis The Study is expected to known the factors that influence in green meeting to conform to Chiang Mai. The factors include the following: Laws and Policy of the Government, Corporate Policy, Executive Vision, Trend (Green Global), Cost/Benefit, Human Resource, Pollution and Weather, Perception and Local Resource. And have the suggestion for firm and government to develop green meeting of MICE city to sustainable growth. Keywords: Green Meeting, Sustainable Growth, MICE industry
  • 25. The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 18 Modeling a Decision Making to Attend Tradeshows in the MICE Industry Napapol Somrit1 and Pairach Piboonrungroj2 , and Prof.Tzong-Ru Lee 1 Faculty of Economics, Chiang Mai University E-mail: rockmanpoom@gmail.com 2 Faculty of Economics, Chiang Mai University E-mail: me@pairach.com 3 National Chung Hsing University E-mail: trlee@dragon.nchu.edu.tw ABSTRACT With increasing of number of MICE tradeshows that oppose to considering in many factors to attend tradeshows of sellers in MICE industry. This study will propose about what factors affected to decision making to attend tradeshows of sellers in MICE industry and how tradeshow exhibitor can develop their events to attract entrepreneurs to attend. The literature reviews included motivation and decision making to attend exhibition of attendees which most of them represented structural equation model. This study will collect data from sellers in MICE industry by survey method. The data analysis will use structural equation model to analyze relationship between observed factors and decision making to attend of sellers. Keywords: MICE industry, Tradeshow, Choice Structural Equation Mode 1. Introduction Nowadays business travel industry in Thailand has grown rapidly. Meeting industry, Intensive Travel industry, Convention industry and Exhibition industry which we call them “MICE” industry are parts of business travel industry. MICE industry has grown as same as business travel industry and become most of GDP of Thailand economy. MICE industry can make a lot of revenue that higher than general tourism because MICE can make income distribution for many parts in business travel for both directly and indirectly. Direct business in MICE industry such as high revenue for accommodations, restaurants, transportation and stores can get a lot of profit from MICE events because attenders in MICE events have high purchasing power. For indirect results from MICE industry are Foreign Direct Investment (FDI) from foreigners, development in new innovation in that areas where MICE events occurred. (TCEB, 2015) Figure 1 shows for number of MICE events occurred in Thailand during 2007 to 2015. Number of MICE events in Thailand decreased in 2008-2009 because of global crisis. After
  • 26. The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 19 recovery since 2009, MICE industry in Thailand grown until now and have tendency to grow more in the future. (TCEB, 2015) Figure 1: Number of MICE events in Thailand from 2007 – 2015 Source: TCEB (2015) Exhibition is one type of MICE industry. This is the event that sellers come to introduce and sell their products to buyers and other attenders. Although number of exhibition is least in MICE events, but exhibition is one of industry that can affect to whole economy more than some industry because in addition to showing and purchasing products in exhibition, exhibition can make many activities between attenders more than introducing and selling the products. For example, exhibition can show about communication of all attenders in that event, sellers can gain competitors’ information, development in new innovation from introduction new products, all of attenders can know about trends or problems of Exhibition industry from attending and every events can make public relation from mass media who attends, etc. (TCEB, 2015) Figure 2 shows for number of exhibitions occurred in Thailand during 2007 to 2015. Since 2010, Thailand became interesting area to create exhibition because of famous of attractions and quality of facilities. (TCEB, 2015) Figure 3 shows for revenue from MICE exhibitions occurred in Thailand during 2007 to 2015 comparing with other parts of MICE events. Although number of MICE exhibitions is less than others but we will see that revenue from MICE exhibitions is much. (TCEB, 2015) 0 1000 2000 3000 4000 5000 6000 7000 8000 9000 2007 2008 2009 2010 2011 2012 2013 2014 2015 Number of MICE events Years Total MICE
  • 27. The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 20 Figure 2: Number of MICE Exhibitions in Thailand during 2007 to 2015 Source: TCEB (2015) Figure 3: Comparing revenue from each industry in MICE in Thailand during 2007 to 2015 Source: TCEB (2015) Tradeshows is one type of Exhibition. In general tradeshows, this is the events that both sellers and buyers are business sector in specific industry who come to demonstrate their products and services and not open fornormal people. But for about tradeshows in MICE industry, both sellers and buyers are attenders who were invited to come to attend the events for Meeting Intensive Travel Convention Exhibition 2007 2000 1271 2088 93 2008 2225 1779 2292 114 2009 2197 1601 2157 76 2010 2354 1520 2260 70 2011 2641 1810 2397 81 2012 2751 1900 2643 88 2013 2925 2032 2812 97 2014 2674 1980 2637 86 2015 2764 2039 2716 89 0 5000 10000 15000 20000 25000 30000 35000 2007 2008 2009 2010 2011 2012 2013 2014 2015 Revenue (Million Baht) Meeting Intensive Travel Convention Exhibition
  • 28. The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 21 communication in tradeshows. They wish for connection and communication between sellers and buyers in the future after tradeshows finished more than revenue that occurred within tradeshows. (Trade Show Public Relations, 2013) Moreover, attenders who attend tradeshows in must pay some fees and register before attending. Because of these costs, so both sellers and buyers who attend tradeshows will need serious communication for gain business benefit from attending tradeshows. (TCEB, 2015) Nowadays, Tradeshows industry in Thailand still has grown along to growth of economy. So number of tradeshows in Thailand increased more than before and there are some competitions in inviting sellers and attenders. But from previous paragraph, we will see that both sellers and buyers need serious communication for their benefit. So they must consider for many costs and something to tradeoff with attending tradeshows more than attending in other events. (TCEB, 2015) Because of this considering, we will see the problem that sellers can’t attend all tradeshows because they must consider for many factors that oppose to increasing of MICE tradeshows nowadays. (TCEB, 2015) So this research have purpose for study about factors that affect to decision making to attend tradeshows of sellers in MICE industry such as factors about costs, transportation and organization, etc. 2. Theory 2.1 Structural Equation Modeling Structural equation modeling is a statistical technique for analyzing relationships between observed variable and latent variables. This model can estimate multiple dependence in one analysis. The variables we need are exogenous variables that be independent variables and endogenous variables that be dependent variables. (Statistics Solutions, 2016) Structural equation model has two types of model as follow. 1) Measurement model This model shows about how observed variables can demonstrate the theory. (Statistics Solutions, 2016) 2) Structural model This model shows about how observed variables can represent relationships with the others. (Statistics Solutions, 2016)
  • 29. The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 22 In the other word, structural equation model can propose causal relationship between variables. There are some assumptions as follow. (Statistics Solutions, 2016) - The relationship between endogenous and exogenous variables is linearity. - Our data is multivariate normal distribution. - The data should not have outlier because it can affect to significance of the model. - The observed relationship must be true. - Amount of sample should be 200 – 400 samples with more than 10 variables. - We assume that our error terms have autocorrelation property. - The equations must be rather than the estimated parameters or models should be over identified or exact identified. Under identified models are not considered. 2.2 Customer Satisfaction Theory Rai (2008) shows the basic formula of customer satisfaction as Customer satisfaction = Customer Perception of the Service Received – Customer Expectation of Customer Service It’s easy to infer that if the perception of the service received is higher than the expectations of the service, customer satisfaction will be positive. If the perception of the of the service received is less than the level of expectation of the service, it will lead to customer dissatisfaction. (John Dudovskiy, 2012) According to Dodds et al (1985), Zeithaml (1988) and Lee and Cunningham (1996), They explain that a set of earlier studies on the topic of customer satisfaction and service perceptions were mainly undertaken on the basis of studying the relationships between three or four variables. (John Dudovskiy, 2012) The important mistakes of these studies are that they believe in increasing qualitative aspects and do not consider about psychological aspects of customer experiences. When related to the current research such customer experience psychological aspects will be stress associated with the longer waiting times in London Underground and National Rail Services terminals and stress and pressure caused by train carriages being overcrowded. This study on the other hand addresses the psychological aspects of service sector organisation customer experiences as well. (John Dudovskiy, 2012)
  • 30. The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 23 According to Yi (1989), he mentions confirmation or disconfirmation framework when discussing the issues of customer satisfaction. According to the framework customers have a set of pre-established standards in their mind when they are about to purchase a product or a service. The level of customer satisfaction is a result of comparison of this standard to the perception of the product bought or the service received. If the level of perception of product or service bought does match the established customer standards this will result in customer satisfaction, and if it fails to meet customer standards customers will be left dissatisfied. (John Dudovskiy, 2012) According to Czepiel et al (1974), he maintains the validity of two factor theory related to analyzing customer satisfaction. Two factor theory states that customers can be satisfied and dissatisfied with a product or service at the same time because satisfaction and dissatisfaction will be about different aspects of the product or service. So they will be not related. (John Dudovskiy, 2012) According to Swan and Combs (1976), they developed their theory to change the names of factors to instrumental performance and expressive performance. According to this theory instrumental performance relates to physical aspects of the product or service, whereas expressive performance refers to psychological aspects. The theory specifies expressive performance as a necessary component of customer satisfaction. Customers will be left unsatisfied if they are not satisfied with expressive performance of products and services, regardless of the fact that their instrumental performance have been satisfactory or not. (John Dudovskiy, 2012) 2.3 Rational Choice Theory Rational choice theory is a theory in social science that used for understand human interaction and information, allowance, time and fame are the resources that were exchanged. From this theory, individuals are motivated by their own goals and wants and are driven by personal requirements. It is impossible for individuals to achieve all of things that they wish because they must make choices related to both their objectives and the means of achieving their goals. Individuals must expect the results of alternative courses of action and consider which action will lead to the best results for them. Finally, the rational individuals will choose the action that give the best satisfaction for them. (About Education, 2016)
  • 31. The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 24 One of important element in rational choice theory is the belief that all of individuals action is based on rational is character. This element differs from other theory because it denies all action other than purely rational action. (About Education, 2016) The assumption which central to all forms of rational choice theory is that complicated social phenomena can be explained in term of individual actions that leads to that phenomenon. So if we want to explain social change and institutions, we must show how they occur from result of individual interaction and action. (About Education, 2016) 2.4 Transaction Cost Theory Transaction cost theory is a theory which explains why company exist or expand and source out activities to the external environment. The transaction cost theory supposes that companies try to minimize the costs of exchanging resources with the environment and that companies try to minimize the bureaucratic costs of exchanges within the company. The companies must consider about ratio of these two types of costs. When external transaction costs are more than the company's internal bureaucratic costs, the company will grow because it means the company can make their activities cheaper. But if the bureaucratic costs for coordinating the activity are higher than the external transaction costs, the company will be downsized. (BusinessMate.Org, 2010) According to Ronald Coase (1937), every company will expand as long as they can make it cheaper within the company than outsourcing the activities to external providers in the market. (BusinessMate.Org, 2010) According to Williamson (1981), transaction costs occur all the times when the product or service was transferred from one stage to another where new sets of technological capabilities are needed to make the product or service. (BusinessMate.Org, 2010) The transaction costs related to the exchange of resources with the external environment could be reflected by some factors. These are Environmental Uncertainty, Risks, Main assets of company, Opportunism and Bounded Rationality. These factors will make the external transaction costs more expensive for a company to control these factors. So maintaining the internal cost for activity in-house will better. The company will not use external resources with meetings, suppliers and supervision, etc. (BusinessMate.Org, 2010)
  • 32. The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 25 3. Literature Review Bussakorn Khumhome and staff Ubon Ratchathani University (2012) studied about Factors influencing the Decision to Participate in a Green industry Project of Entrepreneurs in Ubon Ratchathani. They collected data from 25 entrepreneurs in type3 factories in Ubon Ratchathani by interviews and questionnaires as instrument. Their statistical method in analysis data were means, percentage, and standard deviation. The results showed that the 3 most influential factors in decision making to participate in the Green Industry project of entrepreneurs were the need to enhance image of corporation, the convenient procedures for participation and the determination to decrease environmental effects. The entrepreneurs stated that average level of barrier in decision making to participate in Green Industry project was in moderate level. Those factors were insufficient support from the government, lack of knowledge and experience in requesting for Green Industry certification, the complicated process in requesting for that certification, lack in information and difficulties in accessing source of information. Overall, demand for benefit from participation in Green Industry project of the entrepreneurs was at moderate level. After considering we found that the most benefit that the entrepreneurs wanted was a better in image of corporation. Most of entrepreneurs wanted to request the certification for Green Industry at level 1, followed by level 5, 3 and 2. If the entrepreneurs already received the certification in Green Industry, 50% of them wanted government’s supporting by setting up a consulting center for helping and planning for a working process system, followed by providing training organized by the government and low interest rate loans to set up the system. Young Ki Lee (2011) studied about a cultural perspective on motivation factors affecting Exhibition participation. He collected data from 328 participants who attended an exhibition in Las Vegas, USA by using questionnaires as instrument. 191 of 328 participants were Eastern from 17 countries and another 137 were Western from 11 countries. He used Principle Axis Factoring (PAF) and Maximum likelihood (ML) for analyzed extracting method. The results showed that as for the Western and Eastern factor analyzed, the local factor (safety) and the exhibition factor from the Western group showed different motivation when compared to those from the Western group. The Western analysis was divided into total cost factors and other exhibition factors and the attributes fell into each category so clearly. But the Eastern analysis couldn’t show why
  • 33. The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 26 the attributes didn’t have a specific category. The pull factors and exhibition factors can be applied to the local factors that showed the difference between Western and Eastern participants. Deborah Breiter and Ady Milman (2006) studied about Attendees’ needs and service priorities in a large convention center: Application of the importance-performance theory. They collected data from 566 participants in five different exhibitions which held at Orange County Convention Center in Orlando, Florida, USA by using questionnaires as instrument. The results showed that overall cleanliness of the convention center, a well- maintained facility, and helpfulness of guest service staff were the most importance factors which attendees regarding about the convention center’s facility services. The other high importance factors which attendees regard to the convention center’s facility services were directional signage in the convention center, availability of high quality residence near the convention center, sufficient restrooms throughout the facility and ability to get mobile phone signal. Moreover, they found the differences of significance between the importance level and performance level of the majority of the facility services of the convention center. Hyunjeong Spring Han and Rohit Verma (2014) studied about a Comparison of Exhibitors and Attendee’s Performance in Attending Tradeshows. They collected data from exhibitors and attendees from 26 different companies in industrial sectors within USA. The results showed that the core factors that affected to decision of both exhibitors and attendees were speakers, their topics, the resulting education value, namely, location, cost, number of exhibitors and number of attendees. The results showed that differences between exhibitors and attendees were cost, preferences for technology, scheduling and sustainability options such as the relative importance of criteria for tradeshow selection and relative utilities of various tradeshow attributes. The moderate important factors that used to identify subgroup level within attendees and exhibitors groups were attendance frequency, technology preference, age and career level. This study concluded that tradeshows organizers may need to focus about factors that showed about differences between attendees and exhibitors such as age, career level, frequency of tradeshow attendance and their need for knowledge in new technology. Jarawee Inthum (2016) studied about A Structural Equation Model of Logistics Service Provider Selection in Exhibitions. She collected data from 300 entrepreneurs who attended the exhibition by using questionnaire as instrument and using structural equation
  • 34. The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 27 model (SEM) in analysis. The results showed that the core factors which affected to selection of third-party logistics providers were factors of quality of third-party logistics providers and factors of cost in services from third-party logistics providers. The big companies (more than 12 employees) only considered in factors of quality of third-party providers, but the small companies (less than 12 employees) considered in both factors of quality of third-party logistics providers and factors of cost in services from third-party logistics providers.
  • 35. The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) |28 Table 1 Summarize previous researches and related variables Bussakorn Khumhome (2012) Young Ki Lee (2011) Deborah Breiter and Ady Milman (2006) Hyunjeong Spring Han and Rohit Verma (2014) Jarawee Inthum (2016) Country Thailand USA USA USA Thailand Population Type 3factories in Ubon Ratchathani Participants who attended an exhibition in Las Vegas, USA Participants in different exhibitions which held at Orange County Convention Center in Orlando, FL Exhibitors and attendees from different companies in industrial sectors within USA Entrepreneurs who attended the exhibitions Amount of samples 25 191 Eastern 137 Western 566 26 300 Analyzing SEM and SPSS analysis PAF and ML Importance and Performance Analysis Likert type scales and maximu - difference choice analysis SEM and SPSS analysis
  • 36. The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) |29 Table 1 Summarize previous researches and related variables (Continue) Bussakorn Khumhome (2012) Young Ki Lee (2011) Deborah Breiter and Ady Milman (2006) Hyunjeong Spring Han and Rohit Verma (2014) Jarawee Inthum (2016) Total Observed variables Convenient transportation * Venue’s capacity * Famous attraction * Distance from hometown * Fix cost * * Variable cost * * * Reputation of host area * Reputation of exhibitor * Reputation of tradeshows * *
  • 37. The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) |30 Event’s purpose * * * Number of invited sellers * * Buyer’s nationality * Relationship * Public relation * * Facilities * * * Registration * * Profit guarantee *
  • 38. The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 31 4. Purpose of the study 4.1 To know about factors that affect to decision making to attend tradeshows of sellers in MICE industry 4.2 To help tradeshows exhibitors to develop their tradeshows to become better events to attract Entrepreneurs to attend 5. Advantage of the study 5.1 It is expected that the result of this study would show about factors that affect to decision making to attend tradeshows of sellers in MICE industry 5.2 It is expected that the result of this study would be information to help tradeshows exhibitors to manage their organization to invite Entrepreneurs to attend their tradeshows 5.3 In government sector, expected that the result will point the purpose or factor improvement ways to support MICE industry of Thailand 6. Research Designs, Scope and Methods 6.1 Scope of the Study This research will study about factors that affect to decision making to attend tradeshows of sellers in MICE industry Scope of population is Entrepreneurs who attend tradeshows in MICE industry as sellers. Figure 4 shows about SEM which is model of this research. There are some variables as follow. There are four external variables as follow. i) Factor about Venue. They include for observed variables. They are Convenient Transportation, Capacity, Famous Attraction and Distance from Entrepreneurs’ Hometown. ii) Factor about Cost iii) Factor about Reputation. They include for observed variables. They are Reputation of Host Area, Exhibitor and Tradeshows. iv) Factor about Organization. They include for observed variables. They are Event’s Purpose, Number of Invited Sellers, Buyers’ Nationality, Relationship, Public Relation, Facilities, Registration and Profit Guarantee.
  • 39. The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 32 There are one internal variable. It is Decision Making of sellers to attend tradeshows. It includes for two observed internal variables. They are Attend and Not attend. Signs for this model as follow. is external variables is internal variables is causal relationship and weight of relationship
  • 40. The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) |33 6.2 Conceptual framework / Model Figure 4: Structural Equation Model Decision Making Venue Cost Reputation Organization Attend Not attend Convenient Transportation Capacity Famous Attraction Distance from Hometown Host Area Exhibitor Tradeshow Fix Cost Variable Cost Event’s Purpose Number of Invited Sellers Buyers’ Nationality Relationship Public Relation Facilities Registration Profit Guarantee
  • 41. The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 34 6.3 Data collection This research will use Survey Research to study about factors that affected to decision making to attend tradeshows of sellers in MICE industry, so data collection of this research will use these methods as follow. 6.3.1 Population and Sample This research will study about factors that affected to decision making to attend tradeshows of sellers in MICE industry that be primary data. Our population is Entrepreneurs who attend tradeshows in MICE industry as sellers. For sampling, Structural Model can define the most appropriate number of for estimating samples from all population. It means that we will define number of sample from number of parameter by ratio 10 samples for 1 parameter. So we will collect data from 250 samples from 25 parameters. 6.3.2 Instrument Our instrument is questionnaire for collecting data for study about factors that affected to decision making to attend tradeshows of sellers in MICE industry that come from literature reviewing. Our questionnaire can be divided to three parts as follow. Part 1 General information such as sex, ages and types of business, etc. Part 2 The factors that affected to decision’s sellers to attend tradeshows in MICE industry. They are factors of venue, factors of cost, factors of reputation and factors of organization. In part 2 from the questionnaire, there are 5 rating levels for the personal to give to each factor Very important 5 score Important 4 score Moderately important 3 score Less important 2 score Not important 1 scores Part 3 Suggestion / Other factors that maybe affected to decision’s sellers to attend tradeshows in MICE industry
  • 42. The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 35 6.4 Research Methodologies / Data Calculating Method This research will use Survey Method for study about factors that affect to decision making to attend tradeshows of sellers in MICE industry. We will use primary data from collecting data then analyze as follow. For the first objective which is study about related factors that affect to attending tradeshows. We will analyze two parts from questionnaire. (1) General information analysis for study about characteristics of sellers who attend tradeshows. We will find the results by mean and percentage. (2) Related factors analysis for study about importance of each factor that affect to attend tradeshows. We will find the results by mean, percentage and set hypothesis that each factors relate to decision making to attend tradeshows of sellers. 7. Reference About Education. (2016). Rational Choice Theory. (http://sociology.about.com/od/ Sociological-Theory/a/Rational-Choice-Theory.htm). (accessed December 30, 2016). BusinessMate.Org. (2010). Transaction Cost Theory. (http://www.businessmate.org/ Article.php?ArtikelId=182). (accessed December 30, 2016). Bussakorn, K. (2012). Factors Influencing the Decision to Join Green Industry Project of Ubonratchathani Entrepreneurs. Ubon Ratchathani University. Deborah, B., Ady, M. (2006). Attendees’ needs and service priorities in a large convention center: Application of the importance-performance theory. University of Central Florida, Orlando, FL. Hyunjeong, S. H., Rohit, V. (2014). Comparison of Exhibitors and Attendee’s Performance in Attending Tradeshows. Cornell University School of Hotel Administration Jarawee, I. (2016). A Structural Equation Model of Logistics Service Provider Selection in Exhibitions. Chiang Mai University. John Dudovskiy. (2012). Concepts of Customer Services and Customer Satisfaction: Introduction. (http://research-methodology.net/concepts-of-customer-services-and-customer- satisfaction-introduction/). (accessed December 30,2016) Statistics Solutions. (2016). Structural Equation Model, (http://www.statisticssolutions. com/structural-equation-modeling/). (accessed December 8, 2016). TCEB. (2015). Introduction to MICE industry. Trade Show Public Relations. (2013). “Difference Between General Tradeshow and MICE Tradeshow”. (http://www.trade-show-pr.com/2013/02/22/trade-show- fair-or-exhibition-part-1/). (accessed December 6, 2016). Young, K. L. (2011). A Cultural Perspective on Motivation Factors Affecting Exhibition Participation. University of Nevada, Las Vegas.
  • 43. The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 36 Theme B Economic Modeling
  • 44. The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 37 A Supply Chain Analysis of Determinants Factor Affecting Spending of Elderlies in Maephrik District Supaporn Fanchompoo1 , Pairach Piboonrungroj2 , and Prof.Tzong-Ru Lee3 Faculty of Economics, Chiang Mai University Vitamilk_m@hotmail.com 2 Faculty of Economics, Chiang Mai University E-mail: me@pairach.com 3 National Chung Hsing University trlee@dragon.nchu.edu.tw ABSTRACT This paper aims to examine determinants of factor affecting spending of elderly people under the concept of supply chain. The literature usually study factors affecting spending under a transaction concept. However spending could be studied under the concept of supply chain; upstream, midstream and downstream. Data are collected in Meaprik district in Lampang province of Thailand since it is one of the provinces in Thailand where the propotion of elderlies are highest. Then we use Tobit model to estimate the impacts of proposed factors. Supply chain concept is then applied to comprehend spending pattern along the supply chain. Keywords: Supply Chain Analysis, Spending model, Elderly people, Tobit model
  • 45. The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 38 A Supply Chain Analysis of Saving Life Cycle: A Case of Elderly people in Mae Phrik District Prapassorn Kamkeaun1 , Pairach Piboonrungroj2 , and Prof.Tzong-Ru Lee3 Faculty of Economics, Chiang Mai University prapassorn_k@cmu.ac.th 2 Faculty of Economics, Chiang Mai University E-mail: me@pairach.com 3 National Chung Hsing University trlee@dragon.nchu.edu.tw ABSTRACT The objectives of this study are to explore the Saving Life Cycle of People in Mae Phrik District and socio-economic characteristics of the elder in Mae Phrik District, Lampang, and to understand factors that affect to the elderly people during each supply chain stage. Such factors are income, expenses, saving. The samples consist of 400 elders who live in Mae Phrik District, Lampang Province / people who live in Mae Phrik District. Questionnaire is used to collect information of 400 elders who live in Mae Phrik District, Lampang, Province to analyze the relationship between income, expenses and saving and the general information of the samples in age, occupation and the number of descendants. Tobit model is used to analyse the data to understand factors that affect Saving Life Cycle and provide suggest in each supply chain states; upstream, midstream and downstream to the policy makers. Keywords: Supply Chain Analysis, Saving Life Cycle, Elderly people
  • 46. The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 39 The effect of the payment system on Smart Mobile of Chinese tourists to the supply chain Thiranun Khamhom1 , Pairach Piboonrungroj2 , and Prof.Tzong-Ru Lee3 Faculty of Economics, Chiang Mai University Vitamilk_m@hotmail.com 2 Faculty of Economics, Chiang Mai University E-mail: me@pairach.com 3 National Chung Hsing University trlee@dragon.nchu.edu.tw ABSTRACT The research studies the effect of the payment system on Smart Mobile of Chinese tourists to the supply chain. To serve as a guide for entrepreneurs who are involved in payments technology progressed. The objective was to study option of payment of Chinese tourists in Chiang Mai. In this case, the author selected the study areas in the central business that provides services to Chinese tourists. From the guidelines, the road Nimman Heamin in Chiang Mai was the main area for data collection. The study was used questionnaire to collect data. The questionnaires with alternatives were distributed to Chinese tourists. The research found that Alternative Payment of Chinese tourists have various forms that comprising a cash, Debit card (Visa / Master card) and Online Payment with a Laptop or Mobile application. There is also sergeant money by third party payment Platform, which includes a payment method by PC, application functionality or scan QR code by Smart Mobile of Chinese tourists. This system can provide convenience to Chinese tourists, quickly and thoroughly considered alternatives that have been popular with Chinese tourists that traveling to Thailand. However, form the payment of Chinese tourists is happening. Inevitably cause an effect on supply chain that involved in the tourism sector. The Institute is Bank in Thailand which previously had income from fee for service payment that is debit card (Visa or Master Card) of Chinese tourists. The bank's income in this segment will disappear immediately. While looking back on the side of the store to get various benefits. Besides the convenience is The Chinese tourists can buy and pay more pleasant. It is good for the turnover of the stores in Chiang Mai to be high. Keywords: Tourism supply chain, Mobile payment, Chinese tourists
  • 47. The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 40 Theme C Global Supply Chain
  • 48. The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 41 An Analysis of Supply Chain and Market Potential of Thai Sweet Tamarind Roengchai Tunsuchat1 and Suthep Nimsai2 1 Faculty of Economics, Chiang Mai University E-mail: roengchai_t@yahoo.com 2 School of Management, Mae Fah Luang University E-mail: n_suthep@hotmail.com ABSTRACT The objectives of this study were to study the current situation of Thai sweet tamarind production industries and export, and to analyze logistics and supply chain management of Thai sweet tamarind in order to enhance Thai sweet tamarind competitiveness. The researchers conducted a survey and in-depth interviews with key informant from stakeholders of public and private sectors in fresh and processed sweet tamarinds in both domestic and international markets especially Vietnam, India and United State of America. This study focuses on providing information on production and market connectivity of Thai fresh and processed sweet tamarind as well as high-potential value chain development in Thai sweet tamarind businesses. The results found that although Thai tamarind is a potential exotic fruit and has high competitiveness because is the only one of the world's plant tamarind, it lacks of diversity in field of transportation and encounters the trade barriers in international markets. Therefore, Thai government and private sector need to plan the marketization strategies for trade facilitation and value – added production plan such as new processed tamarind, innovation for processed tamarind and processed tamarind for niche market to enhance trade competitiveness and reduce various trade risks. Keywords: Sweet Tamarind, Supply Chain, Value Chain Development, Competitiveness, Thailand JEL Classification: Q17, Q13
  • 49. The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 42 Marketing Logistics of Coffee Bean Products in China Chun Jiang1 , Suthep Nimsai2 , Chai-Ching Tan3 Business Excellence and Logistics Research Centre (BE-Logist) 1 School of Management, Mae Fah Luang University E-mail : jcstan@gmail.com 2 School of Management, Mae Fah Luang University. E-mail : suthep.mfu@gmail.com, 3 School of Management, Mae Fah Luang University. E-mail : drcctan@yahoo.com. ABSTRACT Both the trade of coffee and its state of competition have been expanded in China at an accelerated pace in the past decade. As a way of enhancing competitive advantage, coffee traders have to work on their logistics planning in combination of marketing strategy. However, literature on coffee-beans marketing logistics in China is limited. This paper, by adopting a mixed method, investigates both demand and supply sides of the coffee bean value chain and provides insights towards marketing logistics. Qualitative data from the supply side revealed many variables, such as business model innovation and customer education, amongst the traditional marketing mix factors that contribute to increased consumption. These variables, including product quality, packaging elements and marketing efforts, are further studied through quantitative survey. The quantitative and qualitative data are then compared and analyzed. Based on the analysis, recommendations are provided to suggest how coffee traders in China can better formulate supply chain strategies that enhance competitive advantage. Keywords: China, Coffee Beans, Marketing Logistics, Logistics and Supply Chain JEL Classification: O13, Q42, Q43
  • 50. The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 43 1. Introduction 1.1. Coffee Industry in China Coffee has assumed many significances: the second most traded commodity only after oil (Yin, 2005; Yang et al., 2014; 2012), the black gold (Murphy & Jenner-Leuthart, 2011), the most consumed drink after water (Yin, 2005), and the leading commodity in the Fair-Trade realm (Yang et al., 2014; 2012), to name just a few. For an emerging economy as big as China, even though the country is reputable for the rich cultural and historical kinship with tea drinking, it has been frequently reported as a potential market for coffee products (Yin, 2005; Yang et al., 2014; 2012; Zhang 2014). Not only does the consumption of coffee continues to grow at a two-digit rate for the past decade (Yang et al, 2014), the fact that it’s also a fast-growing production country might also surprise many coffee drinkers in the western world (Zhang 2014). Statistics of this trend can be seen from TABLE 1. TABLE 1. Coffee Statistics in China Source: ICO, 2015 According to According to the report by ICO (International Coffee Organization), although the coffee market in China is still dominated by instant coffee products, the growth rate of instant coffee has started to show decline, which is compensated by the ever-strong increase of fresh coffee consumption. This can be explained by the bamboo-shooting trend started by international coffee giants such as Starbucks, and numerous independent coffee shops bringing a new way of recreational style to Chinese cities. 1.1.1 Coffee Production and Consumption in China The plantation of coffee in China started in the 19th century when the French missionary first brought some coffee crops from Vietnam via the Yunnan-Vietnam railway (Yin, 2005 and Zhang, 2014). Until after 1980s, with the help of international program such as UNDP, large coffee companies like Nestle came to Yunnan and commercialized the coffee plantation there. By now, Yunnan produces 99% of China’s coffee beans. During the harvest season between 2015 and 2016, about 139,000 metric tons of coffee beans have been harvested in Yunnan. (Yunnan Coffee Association). Due to the high altitudes of Yunnan’s coffee plantations, the flavor of Yunnan coffee is welcomed by Europe, which is the biggest buyer of Y unnan coffee. In July 2015, the first Eurasian cargo train from Kunming embarked on a journey to Europe, and 100 containers of coffee products arrived Europe in only 15 days. The production of Yunnan coffee has been steadily growing, however, 70% of its quality green beans are exported despite the huge potential of domestic demand. (Yin, 2005) At the same time, 90% of coffee imports come from Vietnam (Yunnan Coffee Association). According to the prediction of Yunnan Provincial Department of Agriculture, the coffee bean demand in China is likely to grow up to 500,000 metric tons by 2020, and to meet this demand, Yunnan plans to keep an annual output of 200,000 metric tons of coffee beans by then. Apart from international players like Nestle, Maxwell, and Starbucks, who have set up coffee production bases in Yunnan, local brands such as Hogwood, have also signed up for the competition under support from the government. 1.1.2 Coffee Beans Demand in China In the latest report from ICO (Coffee in China,
  • 51. The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 44 2015), statistics show that China’s import of coffee beans has been increasing with an average annual growth rate of 15% in the past 10 years. With the consumption volume of 1.9 million bags1 in 2014, China has been ranked the 17th largest coffee consuming nation. The size of its population, 1.4 billion, however, dilutes the consumption per capita down to only 5~6 cups (or 83 grams) per year, while the world average is 240 cups. The market structure distributed unevenly across China, with urban metropolises significantly higher than suburban areas. Despite the fact that the No.1 hot beverage in Chinese homes is still tea, the coffee culture is swiping across all major Chinese cities in forms of café outlets which is basically an important configuration of every shopping complex. The report made an interesting comparison of current coffee consumption in China and that of Japan between 1960s and 1970s. The trend looks strikingly similar. Worth mentioning, Japan has become the world’s fourth largest coffee consumer since 2000, with a consumption volume of 7 million bags, and 3.5 kg per capita. See FIGURE 1. Source: ICO FIGURE 1. Coffee Consumption in China (2004/05 to 2013/14) Compared to Japan (1964/65 to 1973/74) The above figure could give the marketers of coffee in China great confidence as there is huge potential for coffee demand in this country. However, the coffee market structure is still remarkably uneven. 50% of coffee beans are consumed in various coffee shops, 40% in star hotels, and only 10 % consumed in households, restaurants, and offices (Yin, 2005), although the general growing trend is believed to be optimistic given the size of massive population. Even if coffee bean consumption is only to the niche market in China at present, the size of the market is big enough to cater to multiple competitors. This can be seen from the phenomena of bamboo-shooting coffee shops in major cities in China. They come and they go but they never stop coming up. 1.2. Integration of Marketing and Logistics Marketing and logistics have long been studied as two different disciplines, while the activities of both disciplines are actually interdependent (Svensson, 2002). Although marketing strives to create demand, nevertheless, to satisfy the demand it needs supportive logistics activities. With the increasing dynamics of market change, the traditional 4P mix of marketing alone, namely product, place, promotion, and price strategies are struggling in leading competitive success. Under such background, to compete in the volatile market, firms are leaning towards logistics efficiency at the strategic level in order to satisfy the demands of maturing customers (Christopher and Peck, 2003). At the interfaces of marketing and logistics, supply chain management strategies play important roles in minimizing total costs while delivering higher customer service
  • 52. The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 45 levels. Thus, to gain competitive advantage, it is necessary to understand the demand and based on the demand, devise appropriate strategies not only for marketing but in combination of logistics as well. 1.3 Problem Statement As a new product category to Chinese consumers, the marketing of fresh ground coffee (as opposed to instant coffee), should adapt to the local market by understanding the customers at the end of the supply chain. Traditionally, purchasing decision is largely dependent on the attributes of perceived cost and perceived quality (Alhabeeb, 2002), and the marketing mix theories are well studied. However, given the constant changing market trends in China, and the fact that coffee bean consumption in China is still at its developing stage, it doesn’t seem easy for local coffee traders, the suppliers, to compete with coffee giants. On the other hand, the 4P marketing mix has evolved over the past decades. It is necessary, therefore, to precisely identify the contemporary dimensions of the traditional 4P and utilize the concept to win over the market. This paper aims to study the nature of 4P marketing mix that contribute to the purchase intension of Yunnan coffee in the city of Kunming and generally China, while intercepting the views of the supply side in their current states of strategic pipelines, thereby provide some insights to Yunnan coffee bean traders and marketers seeking to improve coffee bean trade in China. 1.4 Research Objectives and Questions Objective 1. To understand the consumer behavior of Yunnan coffee bean products: RQ1. What are the roles of demographic and psychographic variables play in the study? RQ2. What are the dimensions of 4P mix in the industry of Yunnan coffee bean products? RQ3. How consumers’ purchase intention correlates to these dimensions? RQ4. What are the most important factors among the 4P dimensions that predict consumers’ purchase intention of Yunnan coffee bean products? Objective 2. To understand, from the supplier’s perspective, why the purchase intention of Yunnan coffee beans is influenced by the identified 4P factors – addressing both the significant and the insignificant ones. 1.5 Scope of Study 1.5.1 Yunnan Coffee Bean Products Although the coffee market in China is under development, and instant coffee and other three-in-one, ready to drink products are all taking up the shelves in market, this research is focused on the ground coffee, or the fresh coffee, which can either be in the form of roasted coffee beans or packed coffee grounds. Statistics have shown that the ground coffee sector has been increasing in China even though it is still largely consumed in non-home sectors. (ICO, 2015) 1.5.2 Geographical Scope The research is conducted in the city of Kunming as
  • 53. The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 46 Kunming is the capital of Yunnan Province, which is the single largest representative of China’s coffee industry, and the city is prone to coffee drinking cultures due to historical and geographical reasons. 1.6 Overview of Research Resign and Method The study is aimed in investigating the nature of consumer behaviors for the coffee-bean product markets in Yunnan by focusing on the role played by marketing mixes on purchase intentions, while intercepting the logistical and supply-side details and insights in the explanations. In doing so this research can provide significant contributions to both disciplines which this research acknowledges as marketing logistics. Three suppliers of Yunnan coffee bean products were interviewed to help construct the framework of research. Theoretical saturation was achieved which surface key variables such as product innovation and consumer education as key considerations in marketing mixes which have been neglected in the marketing literature. The themes or variables (constructs) identified in the interviews were subjected to further literature reviews to ensure construct validity in the questionnaire operationalization, while reliability is ensured through scrutiny over the item consistency and content validity efforts. 135 valid responses were collected and analyzed using descriptive and inferential techniques with SPSS version 23. However, statistical analysis showed that there is a gap in understanding between suppliers and consumers on the factors affecting consumers purchase intention. The empirical results were then communicated back to the suppliers and their comments were collected and analyzed which helps the suppliers understand the effectiveness of their intended strategy and the final empirical model shows not only the current states of consumer behavior reality but also the areas of strategy focus which the suppliers need to emphasize. 1.7. Limitations The research adopted a mixed method in investigating the marketing mix application to Yunnan coffee bean products. Although data were collected from both supply side and demand side, a gap was found in between. As a new product category, the supply chain tactics of coffee bean industry are not yet well considered. Knowing the customer’s needs and wants is the first step, and more researches need to be conducted on the logistics efficiency of the coffee industry. 2. Literature review A skillful use of methodological triangulation by means of mixed methods to study a single research problem can allow the research to speedily come to a conclusion in addressing the research objective (Tan, 2016). While the sequence of which method precedes remains flexible, suggesting qualitative interview as the first step, at the outset, it equips the researcher with the necessary substantive focus which provides a general guide, and when completed with further literature review, a direction of scope and depth for
  • 54. The 2nd International Conference of Asian Supply Chain Academy (ASCA2016) | 47 questionnaire development (Tan, 2016). In this way, the literature review can be minimalist in nature and the research allows the theoretical structure of the empirical results to emerge. This research focuses specifically to study consumer behaviors pertaining to Yunnan coffee bean products. This is mainly opposite to soluble coffee and ready-to- drink coffee products. Yunnan province produces 98% of China’s coffee beans which are mainly grown in coffee plantations in the southern and southwestern prefectures such as Pu’er, Xishuang Banna, Wenshan, Baoshan, and Dehong. The main variety of Yunnan coffee is the famous Arabica. There are three major varieties of Arabica grown in Yunnan, the Typica, Bourbon, and Catimor (with some Robusta gene, anti-rust, but lower in quality). The investigated product category, Yunnan coffee bean products, refers to the fresh ground coffee products, in forms of packed coffee beans, coffee grinds, and the convenient drip coffee bags using coffee beans produced in Yunnan. In studying the consumer behaviors, marketing mix concept would be the central focus, but the operationalization of the construct would be made with contemporary adaptation of each of the theme in particular with packaging innovation as a part of the product attribute, and is enabled by in-depth qualitative interviews so that the operationalization of marketing mix construct fits the market context in Yunnan. The model of marketing mix was first proposed by Neil Borden, the president of American Marketing Association in 1953. In his paper “The Concept of the Marketing Mix” (Borden, 1964), Borden made an analogy of Marketing mix as recipe ingredients, which can be followed, altered, or invented according to the marketer in different scenarios, but the concept of mix became dominant. The elements of 4P were classified by Jerome McCarthy (1960) into Product, Price, Place and Promotion. Since then, the 4P model has dominated marketing thought (Gronroos, 1994). To gain accurate understanding of the 4P mix in China’s coffee industry, the research started off by interviewing the coffee providers to extend the dimensions of each P. To allow the consumer behavior structure to form, this research attempts to focus particularly on how the marketing mix is contributing to purchase intention. Although plenty of literature devotes in refuting consumers’ purchasing intention as a precise predictor of their actual purchase behavior (Chapman, 2001, Morwitz, 2001), still, marketing managers often use purchase intention because self-reported intentions are easy and flexible to use. (Barber and Taylor, 2013). Furthermore, Barber and Taylor (2013) also argued that individual intention of purchase is a strong predictor to their actual behavior. Therefore, this study defines consumers’ purchase intention as the dependent variable of the possibility that consumers will buy Yunnan coffee bean products.