RESEARCH METHODOLOGY
3.4 Population and Sampling
3.4.1 Target Population
This study analyzes organization level population for small and medium export enterprises that have been registered as a legal entity as of 2013 and are a member of the Department of International Trade Promotion, Ministry of Commerce according to Thailand's Exporters Directory database. Table 3.3 below shows a total number of 17,122 manufacturing companies.
Table 3.3 Industrial Group of Export Enterprises Registered a Member of the Department of Export Promotion of International Trade, Ministry of Commerce
Sequence Thailand’s Exporters Directory Sectors
Companies
1 Agricultural Products 1,074
2 Bags / Footwear / Leather Products 757
3 Chemicals / Plastic Resin 390
4 Electronics / Electrical Products and Parts 821
5 Furniture 801
6 Home Textiles 306
7 Machinery / Equipment 360
8 Pet and Farming Products 93
9 Safety Products 34
10 Sporting Goods 96
11 Textiles, Garments and Fashion Accessories
1,731
12 Watches / Clocks / Gems and Jewelry 1,103 13 Automotive / Auto Parts and Accessories 644 14 Building Materials / Hardware Items 1,066 15 Cosmetics/Toiletries/Medical
Supplies/Optical Goods
1,098
16 Food 2,041
Table 3.3 (continued)
Sequence Thailand’s Exporters Directory Sectors
Companies
17 Gifts and Decorative Items / Handicrafts 1,680
18 Household Products 879
19 Minerals / Fuels 76
20 Printing Products and Service / Packaging 570
21 Service Trade 1,103
22 Stationery / Office Supplies & Equipment 184
23 Toys and Games 215
Total Companies in all Sectors 17,122
This researcher focuses on the target population according to the following criteria:
1) Small and medium enterprises exporters 2) Manufacturing firms
3) Top 20 export firms in the four SMEs industrial groups, of which SMEs value of exports in 2013 accounted for 39.55 percent of SMEs GDP (data from Office of Small and Medium Enterprises Promotion, 2013). The SMEs four industrial groups are as follows:
(1) Agricultural products, processed agricultural products, and food (2) Textiles, leather, clothing, and jewelry
(3) Furniture, home decorations, crafts, and souvenirs (4) Automotive parts, chemicals, plastics, and rubber
4) Firm age of two years and up follows recommendations from John P. Kotter that an entrepreneur or leader should realize or focus on the importance of leading changes or innovation to the firm at least in every few years in order to increase the firm‟s competitive advantages and firm performance. Therefore, in this study this criteria was used in order to have reliable data.
3.4.2 Sample Size
This study employs a sample by applying 336 organizations as the unit of analysis. Details of the sample size selection are as follows:
Step 1 Criteria: sample size criteria for Structural Equation Modeling (SEM) analysis follows recommendations from Kelloway in 1998, along with Diamantopoulos and Siquaw, 2000: 97 that a sample size of 200 and over are satisfactory for Structural Equation Modeling. Schumacker and Lomax, 1996 cited in Nongluk Wiratchai, 1999: 311) suggested that appropriate sample size for the research utilizing the LISREL Model for causal analysis is 10-20 times the observed variables. This research contains 12 observed variables; therefore, the applicable sample size for analysis should be between 200 and 240 samples.
Primary data for the survey was collected via telephone. Data on a sample of enterprises was directly collected through an exporter seminar in order to compensate incomplete, incorrect, or unreturned questionnaires. The maximum response rate is determined from the formula N+(NX0.4) = 240+(240X0.4), which equates to 336 organizations (Kanlaya Vanichbuncha, 2006). Subsequently, the sample size for this research is 336 organizations, which is considered adequate and more than the sample size needed for a Structural Equation Modeling analysis.
Step 2 Sample selection: this researcher employs classification criteria for small and medium enterprises export businesses, as shown in Table 3.4 below.
Table 3.4 SMEs Classification Criteria
MB=Million Baht
Type of SMEs SE ME LE
Product Fixed assets value not
exceeding 50 MB
Fixed assets value between 50- 200 MB
Fixed assets value exceed 200 MB
Employment of 50 people or less
Employment of 51-200 people
Employment of more than 200 people
Source: Ministerial Regulation on Classification of Employment and Fixed Assets of Small and Medium Enterprises, 2002.
SMEs size can be classified via 1) fixed assets value and 2) the number of employees. In this study, the researcher focused only on small and medium export enterprises. Large enterprises were excluded. The export value according to the classification of corporate bodies by size, large enterprises (LE) amount to 5.03 trillion baht, or 72.75 percent of the total export value. Small and medium enterprises (SMEs) were valued at 1.76 trillion baht or 25.50 percent of the total export value, which is only a fraction when compared to large enterprises and firm‟s with an age of two years and up. The global trade upsurge during domestic market saturation has critically contributed small and medium enterprises‟ boost in export performance to the national economy. Thai small and medium enterprises in the export sector must adapt in order to compete and survive in this modern economy. They need efficient business management through systematic operations, along with concepts and paradigms that are different from the past. This is because competition needs to go along with environmental conditions. Findings from The Achievement of Export Performance of Small and Medium Enterprises (SMEs) in Thailand can be used as a direction for both public and private policy making with respect to entrepreneurship development. This leads to sustainable performance for the export sector of small and medium enterprises. It further promotes the national economy in terms of gross domestic product and employment.
Step 3 Sample selection from the organization level as a representative for the research: the unit of analysis for this study is the organization level. However, the researcher specifies that entrepreneurs or owners, successors, partners, and executives of small and medium enterprises in the exporting business whose responsibilities involve exporting and policy decision on behalf of the organization (Gartner, et al., 1994) as being the representative of the unit for the analysis. This is in concert with Maria Jose & Enrique (2009) whose study indicates that senior executives play a key role in an organization and research often specifies them as information providers acting as an organization representative.
3.4.3 Sampling Technique
The sampling method employs a purposive sampling of the industrial sector, i.e. the top 20 exporters in the four SMEs industrial groups, of which SMEs value of