Through the efforts of the company and government support, China's cross-border e-commerce has taken a leading position in the world, especially in Asia. Alibaba will also help establish a Smart Digital Hub in the Eastern Economic Corridor to support cross-border trade with China and other markets.
Importance and Contribution of This Study
Purpose of Study
LITERATURE REVIEW
- Definition of E-commerce
- Definition of Small and Medium Enterprises (SMEs)
- The Current Situation and Problem Faced for SMEs in Thailand SMEs are the key sector in today’s global economy and also a fundamental
- Current Situation of E-commerce in China
- Current Situation of E-Commerce in Thailand
- Factors Affecting E-commerce Adoption by SMEs
Jahongir, Aripov & Ho Kyun Shin, 2014 explain that e-commerce has played an important role in small and medium-sized enterprises (SMEs) as it can improve efficient competition for SMEs in the global market. Meanwhile, it will also become a new growth point for China's economy in the development of strategic emerging industries.
RESEARCH METHODOLOGY
Research Design
Therefore, qualitative research will enable us to understand the factors that influence the use of e-commerce by SMEs in Thailand, such as factors that influence the choice of use, difficulty factors, opportunity factors, outcomes that influence factors, external factors, and internal factors. The results of this study will be very useful in further analysis in the e-commerce industry in Thailand. Based on the scope and objective of this study, the author decided to use multiple approaches, including interviews and multiple case studies to understand the factors influencing the adoption of e-commerce/China e-commerce by SMEs in Thailand.
A popular qualitative research method is the case study (Stake 1995 and Yin 1989), which examines 'purposive samples' in depth to better understand a phenomenon (eg family support; Racino, 1999). The case study method illustrates qualitative researchers' preference for depth, detail, and context, often working with smaller and more focused samples versus large samples that are primarily of interest to statistical researchers looking for general patterns (Given, 2008). Therefore, in this study, the researcher will plan to find SMEs in five different industries in Bangkok, Thailand for interviews and case studies.
Research Design
After all interviews and surveys are completed, the author will compare the influencing factors of e-commerce adoption across the five different industries and find common factors for analysis. The author makes an appointment to determine the time and location of the interview. Nevertheless, the author still believes that the purposive sampling is appropriate for this research topic.
Therefore, the author will find an appropriate sample and focus on the number of case repetitions for the study, if necessary, conduct case studies of more companies until there is no data redundancy, no new information. To obtain primary data and information, the author will use personal semi-structured interviews with open questions (appendix). At the same time, if necessary, the author will also analyze relevant documents, reports, activities and materials of the surveyed company.
FINDINGS ANALYSIS
Market Research and Market Strategy
- Market Research
- Market Strategy
In this way, it is possible to make correct strategies to open the Chinese market with lower risk. To enter the Chinese market, he did a market research and found that many Thai businessmen who blindly entered the Chinese market without a good market strategy failed. Most of them lack Chinese market information, including language, culture, customs and customer behavior.
Due to the large size of the Chinese market, SMEs need to have a very clear STP, 4P or enough marketing analysis when incorporating Chinese e-commerce. Lack of money and motivation for market research to enter the Chinese market. Marketing strategy seems to have less impact on the hostel industry. Entering the Chinese market is impossible.
Manager’s Experience and Knowledge
Most SME owners believe that a good market strategy can improve business performance in the e-commerce market. During his interview, he repeatedly said that many Thai SME managers lack the awareness to learn how to use e-commerce, especially the older generation. 2013) reported that lack of knowledge and understanding of e-commerce is one of the barriers to e-commerce adoption among SMEs.
He admitted that using various online platforms to sell durian has become the company's main sales channel especially in the Chinese market. Most of the participants believe that the good and advanced perception or experience of using e-commerce of SME owners/managers can influence the adoption of e-commerce by the whole company. Learning will be one of the good methods to improve using the perception of the SME owner or manager.
Competitive Pressure
On the other hand, as a medium-sized SME aiming to enter the Chinese market like Participant 9, it is a necessary choice to use e-commerce. It is worth noting that in the context of current celebrity culture, an Internet celebrity, Internet celebrity, or Internet personality is someone who has become famous through the Internet. There are many online celebrities from China who want to shop in some famous stores with special products, good location and high traffic, and then they will share the video on the Internet, which will bring many potential customers to shop.
Although competitive pressure is important for business development, it cannot be used as an important factor affecting Thai SMEs' use of e-commerce. Competitive pressures have less impact on SMEs with special products or marketing positioning such as the fashion industry. The Internet celebrity culture in China can help SMEs in the specialty industry (fashion industry) or who have unique/high quality products to propagandize brand and products online proactively.
Operating System
- Logistics and Payment Systems
- Human Resources
He said that IT is not an important factor influencing decisions to use e-commerce, as there are many ways to help solve this problem, such as outsourcing. In contrast, small-sized SMEs or sole proprietorships cannot invest too much money and energy in building and managing websites due to lack of money and scale. Human resources are one of the organizational factors that can affect the adoption of e-commerce (Al-Qirim, 2004; Huang, 2004).
Most of the participants said that this is a solution, but new problems may arise in intercultural communication. Intercultural communication will be one of the issues that may challenge HR managers in Thai SMEs when using foreign employees. Intercultural communication will be one of the issues that may challenge HR managers in Thai SMEs when using foreign employees.
The Government Supports
Especially for SMEs in the rice industry, government support can help them better control cost, manage capital flows, inventory and find buyers in overseas markets. On the other hand, participant 8 said that the government does not need to support all SMEs and should only support a number of important SMEs that have a significant impact on economic development. This can reduce the burden on the government and can spend money where it is needed.
The public support can motivate SME business owners/managers to adopt e-commerce, especially for the adoption of Chinese e-commerce. Today, the support for SMEs from the Thai government is not enough, especially for small and individual SMEs. The Thai government lacks education and training in the use of e-commerce by SMEs, which causes them to lose many opportunities.
New Finding Factors
- Information
- Self-Satisfaction
- Poor Productivity
- Partner Selection
During the research, the author found that the timeliness, completeness and objectivity of a company's information control will affect the use of Chinese e-commerce by SMEs in Thailand. The author believes that the understanding of a country cannot continue to rely on the few cases, which are one-sided and inaccurate. Therefore, the author believes that the completeness and timeliness of information can be regarded as one of the factors affecting SMEs' decision to use Chinese e-commerce.
Compared to the factors that influence the use of e-commerce, the author believes that this may also be one of the reasons that limit the development of SMEs in Thailand. According to the study, the author finds that poor productivity is a major factor limiting the use of Chinese e-commerce by SMEs in Thailand. Therefore, the author believes that when SMEs consider whether to enter the Chinese market through e-commerce, they should consider whether there is sufficient production capacity to meet market demand.
CONCLUSION AND RECOMMENDATION
- Conclusions
- Recommendations for Action
- Limitation in the Scope of Study
- Recommendations for Further Research
The authors suggest that SME business owners who may wish to implement e-commerce should be properly prepared before taking action. The first recommendation is that small and medium-sized business owners who may want to do e-commerce can consider using outsourcing as a cost-effective strategy. Also, small and medium-sized business owners who may want to launch e-commerce in China or other countries can consider working with partners to reduce the risk of entering a new market.
Another suggestion is that small and medium-sized business owners who may want to introduce e-commerce can consider how to gather effective and useful information, which may include sufficient market research and different customer behavior or social culture in the local market. From the author's proposal, SME business owners or managers can learn through: (a) customer feedback, (b) learning from established industry players, (c) formal training, and (d) experience. In the paper, the author uses qualitative analysis and purposive sampling strategy as a research methodology.
Information and Communication Technology (ICT) for Small and Medium Exporter Development in East Asia: Thailand. The White Paper on Small and Medium Enterprises of Thailand in 2003 and Trends 2004, Office of Small and Medium Enterprises Promotion. The White Paper on Small and Medium Enterprises of Thailand in 2009 and Trends 2010, Office of Small and Medium Enterprises Promotion.
Number and employment of SMEs in 2014, situation and structural indicators of SMEs, Office of Small and Medium Enterprises Promotion. An empirical study of factors influencing e-commerce adoption among SMEs in Malaysia, Journal of Business Economics and Management. Market Entry Strategy Selection of China's Cross-Border E-Commerce Platform to Thailand-A Case Study Based on Aliexpress.
APPENDICES
Appendix A: Interview Questions
What is the biggest HR problem when using e-commerce/Chinese e-commerce Competitive pressure Do you feel any competitive pressure. The government support In your opinion, whether the Thai government provides enough support for the development of SMEs. Explore new factors In addition to the factors mentioned above, do you think there are other factors that will influence or limit the use of Chinese e-commerce by Thais.
Appendix B: Information of Participants
4 Rice industry To have own factories and sell their own brands in the local market in Thailand and overseas.
