Components for the Success of the Development of the Flavoring Agent Manufacturing Business in Thailand

Abstract

Flavoring agent manufacturing business is a business operating under the main concept of developing and adding value to products from the agricultural sector. The operation of this business is consistent to the development and implementation of the Bio-Circular-Green Economy (BCG model) which is included in the 12^th National Economic and Social Development Plan (2018-2022). The flavor agent manufacturing business has been recognized as one of targeted industries of the country that will drive the economy to enjoy a leapfrogging growth. At present, the flavoring agent manufacturing companies in Thailand are owned by foreign firms. Thailand has a potential as it has raw materials from agricultural products, and it is the world’s top food producer and exporter. Flavoring agents are ones of the essential raw materials that are indispensable in the production of products in food industry. The objectives of this research were to: 1) study components of the development of a flavoring agent manufacturing business in Thailand, consisting of potential of industry, government policies, technology and innovations, human capital and knowledge management, and networking; 2) examine levels of potential of industry, government policies, technology and innovations, human capital and knowledge management, and networking; and 3) develop a model for the development of the flavoring agent manufacturing business in Thailand. This research employed a mixed research methodology combining quantitative and qualitative methods. For the quantitative research part, the research sample consisted of 400 individuals who were executives and employees of flavoring agent manufacturing companies, executives or technical personnel in the food industry, and academics and researchers in the field of food or flavoring agents. The sample size was determined based on the criterion of 20 times the observed variables. They were selected via stratified sampling. Data were collected with the use of a questionnaire and analyzed with confirmatory factor analysis. As for the qualitative research component, in-depth interviews were conducted with 16 key informants consisting of experts and executives in the flavoring agent manufacturing business. The findings showed that: 1) potential of industry, government policies, technology and innovations, human capital and knowledge management, and networking were all the components for the success of the development of the flavoring agent manufacturing business in Thailand; 2) potential of industry, government policies, technology and innovations, human capital and knowledge management, and networking were all rated at a high level; and 3) based on the research, the model for the development of the flavoring agent manufacturing business in Thailand was developed. After obtaining the findings based on the research objectives, the researcher has developed the “Flavor Business in Thailand Model” which was the business model for the development of the flavoring agent manufacturing business in Thailand. In addition, the findings from the qualitative research which gained from the interviews with the stakeholders involved in the flavoring agent manufacturing business revealed that there was an agreement that the components could be used to create and drive for the flavoring agent manufacturing business in a new industry. In addition, it was also found that there was a potential for the establishment of networks and cooperation between the government sector, the private sector and the educational institutions in creating mutual understanding to work according to the government policies that were suitable for the condition of the business. Such networks and cooperation represent the starting point for creating human capital and technology transfer. At the same time, educational institutions can use the networks in the development of curriculums on the creation of sustainable human capital for the flavoring agent manufacturing business in Thailand in the long run.