Causal Analysis Models Influence the Business Environment of the Agricultural Industry in Thailand

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Pattarapon Chummee

Abstract

The crisis of the covid-19 virus epidemic severely affects the economy many industrial sectors had to close. The situation of the products agricultural industry decreased by 3.9 percent. This research aims (1) to research factor analysis of the business environment affecting export planning, and (2) to analyze the causal effect between the components business environment that are related to the export planning. The target population for this study includes entrepreneurs in the agricultural industry in Thailand using a Purposive random sampling of 145 cases. The instrument used for data collection was a questionnaire developed from the literature review. Statistical analyzes used confirmatory factor analysis and causal analysis with the structural equation modelling techniques.


Confirmatory factor analysis results found that the domestic market environment includes the domestic market condition, process barrier to export, and government export assistance. Moreover, the foreign market environment consists of foreign markets condition and foreign government regulations. These results are consistent with the exploratory factor analysis. 


The results of the assessment of the causal analysis fit index revealed that the conceptual framework was consistent with the empirical data. The fit index showed that x2 = 788.88, df. = 431, x2/df. = 2.00, GFI = 0.95, NFI = 0.89, and RMSEA = 0.056


 Recommendation and new finding: pay attention to hygiene, Cleanliness, and safety in production to build consumer confidence, including packaging that must be free from germs. Moreover, employees and operators must be inspected for an adverse germ-free condition or obtaining a safe vaccination. New findings revealed that the situation of foreign markets, such as political, social, and legal status in foreign countries, does not affect export planning. Due to the outbreak of the Covid-19 epidemic, this makes it impossible to perform different or reduced export operations. As a result, the situation in the international market does not affect export planning.


 

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