The Innovative Management Model for Enhancing the Effectiveness of the Herbal City under the National Master Plan for Thai Herb Development

Abstract

The development of a herbal city requires the knowledge of management innovation knowledge as well as human capital and organization management, together with the application of modern technology in the production process. These factors enable the herbal products to be developed to meet the needs of the market and consumers and enjoy competitive potentials. The objectives of this research were to 1) study the levels of management innovation, human capital and organization management, ecological management system, and effectiveness of the herbal city under the National Master Plan for Thai Herb Development; 2) study the influences of management innovation, human capital and organization management and ecological management system on the effectiveness of the herbal city under the National Master Plan for Thai Herb Development; and 3) develop a management innovation model for enhancing the effectiveness of the herbal city under the National Master Plan for Thai Herb Development. This research employed a mixed research methodology combining quantitative and qualitative methods. The sample consisted of 280 executives and officers working in the herbal city at the provincial level and Thai herb entrepreneurs in the quantitative research part. They were selected via stratified sampling. The sample size was determined based on the 20 times the observed variables. Data were collected with the use of a questionnaire and analyzed with a structural equation model. In the qualitative research component, in-depth interviews were conducted with 17 key informants who were experts whose works related to the National Master Plan for Thai Herb Development. They were selected via purposive sampling. Data were analyzed with content analysis. The research findings showed that: 1) management innovation and ecological management were rated at a moderate level whereas human capital and organization management were at a high level; 2) management innovation, human capital and organization management, and ecological management system had an influence on the effectiveness of the herbal city at a .05 level of statistical significance, and these factors could predict the effectiveness of the herbal city by 87 percent; and 3) the management innovation model for enhancing the effectiveness of the herbal city developed by the researcher focused on the principle strategies which included the innovation of herbal products based on local wisdom or producing the products by using the local herbs in development of products that did not affect the environment, and the farming of herbs that were free from chemicals. In terms of quality and incorporating the complete loop in the global market, entrepreneurs needed to develop innovations and grow herbs that have consistent quality and cover the complete supply chain. In addition, the development of the herbal city needed to integrate from all sectors including the government sector, private sector, and communities to continuously increase the economic value. This management innovation model can be used as the guidelines for the efficient development of the herbal city and the enhancement of its global competitive advantage on a global scale.