The Study of Readiness of Thai Transportation Service Provider liberalization towards the ASEAN ECONOMIC COMMUNITY

Transcription

1 The Study of Readiness of Thai Transportation Service Provider liberalization towards the ASEAN ECONOMIC COMMUNITY Sarat Thuansuwan 1 and Phatdhanant Plodpai 1 International Maritime College, Kasetsart University, imcsrt@src.ku.ac.th Abstract This study focused on how to solve problems related to competitive in logistics. The purpose of this study was to explore the relationship among the competitive abilities of Thai transportation service providers, the factor of operations in Thai transportation service providers and the factors for participation in the ASEAN Economic Community. To achieve research s aim, the researcher gathered the information from different sources such as literature review about education and related articles secondary sources. The primary sources were collected from 254 samples in Thai transportation service provider.the results were analyzed using the significance level at 0.01 by using Statistical Package for Social Science: SPSS version 16.0 Based on Pearson s Correlation Coefficient the result indicated that the more potential of transportation service providers have, the more operation in the world market they will gain. In conclusion, the study discovered that the major factors towards Thai transportation service providers in the ASEAN Market depend on logistics background knowledge, supply chain, investment capital and technological aspects. In addition, Thai transportation service providers should pay more attention to the quality of the services as well as the marketing and resource management in order to achieve more efficiently in the world market. Keywords: Thai transportation service providers, AEC, ASEAN market accessibility 1 International Maritime College, Kasetsart University 199 Thungsukla, Si Racha, Chonburi,Thailand Tel.(66) Fax (66)

2 1. Introduction According to the roadmap for ASEAN Economic Community each members state are focusing and preparing on developing their regulations, logistics including capacity on trade and investment for it. The regional integration's objective is to create a competitive market of over 600 million people in ASEAN countries. ASEAN Economic Community (AEC) including with main objectives are to create a: single market and production base, highly competitive economic region, region of equitable economic development and a region fully integrated into the global economy. As economic integration, AEC is dealing directly with economic stuff. The part of AEC that impacts directly and it s facing obstacles of cooperation especially transportation which more highly is important to representative of infrastructure development and global supply chain networks (Sarat, 2012). In Addition, several transportation activities have been carried out by the AEC member which high significant of problem or obstacle recently for Transportation in doing business practice in Thailand, they are building a highly competitive economic region and started liberalization towards ASEAN Economic Community in 2015 such as improvement and expansion of the business to attractive ASEAN country customer and etc. This paper will study about Thai transportation service provider preparations for AEC, its situations, competency, how AEC impacts on competitive abilities and the factors for participation.. 2. ASEAN Economic Community 2.1 General According to the liberalization towards an ASEAN Economic Community on 1st January 2015 the establishment of ASEAN Economic Community is intended to deepen economic integration in East Asia as a whole. It envisages the free flow of goods and free flow of capital. (Dee, 2008) In services sector it is intended to that by 2015, there should be substantially no restriction to ASEAN services supplier in providing services and establishing companies across national border with in the region, issue to domestic regulation. Once of ASEAN Economic Community liberalization commitment that no restrictions on service delivery via mode 1 (cross-border trade, where neither the producer nor the consumer moves and trade often occurs via the internet) and mode 2 (consumption aboard, where the consumer moves temporarily to the country of the producer) except where there are bona fide regulatory, such as public safety (The Association of Southeast Nation, 2008). 2.2 The competitive advantage of logistics service provider competency To enhancing higher competition by the service industry improvement factors such as a corrective related logistics knowledge, information technology, networking, government policy and supporting, infrastructure, integrated database between public and private sector (office of the National Economic and Social Development Board,2005). 2.3 The influenced factors of logistics doing business When liberalization started it is more alternative service provider both national and ASEAN Economic Community but restriction on business operation also condition, regulation for properly business operation (UNCTAD, 1996). 2.4 The influenced factors market accessibility of logistics It also considered that the readiness of Thai transportation service provider liberalization towards the ASEAN Economic Community, this study will examine 3 points; the competitive advantage of logistics service provider competency, the influence factor of logistics doing business, the influence factor market accessibility of logistics.

3 The ASEAN Economic Community liberalization of logistics service lacks of clarity in scope of the readiness of transportation service provider liberalization for example; the factors of competitive advantage of logistics service provider competency, the influenced factors of logistics in doing business, the influenced factors market accessibility of logistics. There are highly significant for competition competency. 3. Research Method 3.1 Conceptual Framework This study was analyzed by quantitative method and constructed on the basis of the following conceptual framework. The competitive performance ability of transportation service provider might be influenced by various factors among other factors. Concerning with transportation service provider aspect, it is assumed that such as management technical readiness, market accessibility, doing business vision, quality of employee, organizational culture, logistics and supply chain, knowledge background, investment capital, information technology, cost management, networking and world alliance, one stop service process, and quality service. These factors are separated into 3 groups with Factor Analysis: Technique group, Management group and Network group. 3.2 Data Collection Techniques This is a type of study in which transportation service provider opinion However, to complete the questionnaire items, respondents who were selected randomly are located in their various working areas such as Laem-Chabang (Chonburi), Bangkok and others in Thailand. To obtain the data, the study used a sample of 286 randomly selected respondents which included both Thai and ASEAN Economic Community stakeholders. This number of questionnaires was based on a randomly stratified sampling. The rate of response was very good with 254 respondents, or percent. The context variables in the questionnaire, Respondents chose answers that correspond to the attitudes and perceptions held. The answer is available in a choice graded (Likert scale 1-5). Score 1 means less likely to have contributed. Score 5 means that there is a tendency to have contributed. 3.3 Method of Analysis To determine the readiness of transportation service liberalization in Thailand towards an ASEAN Economic Community; Factor Analysis method was used. Several factors are included in the factor for participation in the ASEAN Economic Community and the independent and dependent variables. To test the close relationship between the variables, tool of Pearson s Correlation Coefficient was used to explain the level of relationship the competencies on competitive advantage of Thai logistics service provider and doing business of Thai logistics service provider and ASEAN market accessibility when ASEAN Economic Community liberalization started The method of analysis framework of this study consists of 3 factors such as competitive advantage of logistics service provider competency, logistics doing business, market accessibility of logistics. competitive advantage Competencies logistics doing business market accessibility Figure 1 the stimulated relationship model of Thai logistics service provider in competencies on competitive advantage. The result of Thai logistics service provider in doing business and ASEAN market accessibility when ASEAN Economic Community liberalization started, The relationship between competencies on competitive advantage of Thai logistics service provider and ASEAN market accessibility are separated to 2 groups as follows;

4 1. The competencies on competitive advantage of Thai logistics service provider (X) and doing business of Thai logistics service provider (Y) when ASEAN Economic Community liberalization started. 2. The competencies on competitive advantage of Thai logistics service provider (X) and ASEAN market accessibility (Y) when ASEAN Economic Community liberalization started. The competencies on competitive advantage (X) Figure 2 the relationship between the competencies on competitive advantage of Thai logistics service provider and doing business of Thai logistics service provider and ASEAN market accessibility. For factor of competencies on provider and doing business of Thai logistics service provider and ASEAN market accessibility as follows when ASEAN Economic Community liberalization started; The factors of competitive advantage of logistics service provider competency (X) as follows; X 1 = the degree of knowledge related of logistics and supply chain X 2 = the readiness of capital investment X 3 = the readiness of technology X 4 = the readiness of networking and world alliance X 5 = the readiness of technical management especially logistics X 6 = the readiness of one stop service X 7 = the market accessibility X 8 = the doing business vision X 9 = the enhancing to world class service X 10 = the cost management in operation X 11 = the quality of internal employee X 12 = the organizational culture to response the world business change 12 By X= x i Ri doing business and ASEAN market accessibility (Y 1 Y 2 ) The factors of Thai logistics service provider in doing business when ASEAN Economic Community liberalization (Yi) as follows. Y 11 = the highly competition of Import-Export to improvement the quality service Y 12 = the importer and exporter have more alternative of logistics service provider Y 13 = the highly competition in the rivalry among their business Y 14 = the cutting price off in the rivalry among their business By Y i =Y 11 +Y 12 +Y 13 +Y The factors of market accessibility when ASEAN Economic Community liberalization (Yi) as follows. Y 21 = Thai logistics service provider could be expand to ASEAN market Y 22 = enhancing export a goods and services to ASEAN market Y 23 = Thai exporter could be expand capital investment to ASEAN market Y 24 = better integrated market and efficiency allocated the resource By Y 2 =Y 21 +Y 22 +Y 23 +Y Research Questions To answer all above issues the study defines the following questions: 1. Which of the factors influences to competitive advantage for Thai logistics service provider (when compared with ASEAN Economic Community logistics service provider)? 2. Which of the factors influences to Thai logistics service provider in doing business liberalization. 3. Which of the factors influences to ASEAN Economic Community market accessibility when ASEAN Economic Community liberalization. 3.5 Research Hypotheses This study therefore examined a relationship of the variables under following hypotheses.

5 Assumption 1 H 0 = There is a relationship between provider competency and a competency of Thai logistics service provider in doing business. H 1 = There is a relationship between provider competency and increasing a competency of Thai logistics service provider in doing business. Assumption 2 H 0 = There is a relationship between provider competency and a competency of for ASEAN Economic Community market accessibility. H 1 = There is a relationship between provider competency and increasing a competency of ASEAN Economic Community market accessibility. 4. Results and Discussion 4.1 Test Results and Statistics The degree of relationship between the competencies on competitive advantage of Thai logistics service provider and doing business of Thai logistics service provider and ASEAN market accessibility when ASEAN Economic Community liberalization started could be negative (inverse relationship) and positive relationship (direct relationship);for the positive relationship (direct relationship) that mean if a competencies on competitive advantage of Thai logistics service provider increases, a doing business of Thai logistics service provider increases, and ASEAN market accessibility also increases when ASEAN Economic Community liberalization started (X i Y 1,Y 2 ) or negative relationship (inverse relationship) that mean if a competencies on provider decreases, a doing business of Thai logistics service provider decreases, and ASEAN market accessibility also decreases liberalization started (X i Y 1,Y 2 ) From the result of data processing as shown in Table 1, a validity test at a significance level (significance = 0.01, see the sign **) is obtained on factor. The result of the reliability test was obtained by cronbrach s alpha Thus it can be said that the study data is valid and reliable enough. Transportation service provider ability Pearson s Correlation Sig. (2-Tailed) Doing Business Thai transportation service Provider ASEAN Market Accessibility 0.647** **Correlation is significant at the 0.01 level (2- tailed). Table 1 the test of relationship between transportation service Provider ability and Doing Business Thai transportation service Provider when AEC liberalization started. The result has shown as follows: 1. The relationship between transportation service provider ability and doing business Thai transportation service Provider which the relation Pearson s Correlation is It means the 2 factors have non linear relationship or negative linear relationship. 2. The relationship between transportation service provider ability and ASEAN Market Accessibility which the relation Pearson s Correlation is It means the 2 factors have linear relationship and show Positive linear relationship. It means if transportation service provider higher ability, the ASEAN Market could be easier accessibility. 4.2 Factor Analysis 4.3 Discussion The results of this study discovered that Thai logistics service provider has medium degree of readiness when compared with ASEAN Economic Community logistics service provider. For their competency has shown that the low competitive advantage which consist of the readiness of networking and world alliance, the readiness of one stop

6 service, the readiness of capital investment, the readiness of technology, the readiness of technical management especially logistics, the organizational culture to response the world business change, and the market accessibility. The competitive advantage of logistics service provider competency discovered that the standardized degree of competency consists of quality of internal employee, the doing business vision, the cost management in operation, the degree of knowledge related of logistics and supply chain, and the enhancing to world class service. Furthermore, the influenced factors of doing business in the field of logistics when ASEAN Economic Community liberalization; almost factors are highly significant in doing business when compared with present business competition i.e. the importer and exporter have more alternative of logistics service provider, the cutting price off in the rivalry among their business, the highly competition in the rivalry among their business. For the influenced factors to ASEAN Economic Community market accessibility liberalization; Thai logistics service provider had a low degree of competency because possibly Thai logistics service provider has a few their business expansion to ASEAN market, and Thai exporter has a few capital investment expansion to ASEAN market. The results of this study indicate that the more potential of Thai transportation service provider have a more operation in the world market they will gain as follows: 1. Competitive performance ability s transportation service provider has strength enough especially technique more than management and networking service. 2. Doing business in a transportation service ability indicate most of all factors to have a high significance such as enhancing quality service, importer-exporter have many choices in a transportation industry and cut off pricing competition. For this factor indicates the high significance of business is enhancing the quality service and the less significance is high competition when ASEAN Economic Community liberalization started. 5. Conclusions The Study of readiness of Thai transportation service provider liberalization towards the ASEAN Economic Community discovered that Thai logistics service provider has medium degree of readiness when compared with ASEAN Economic Community logistics service provider. For their competency has shown that the low competitive advantage which consist of the readiness of networking and world alliance, the readiness of one stop service, the readiness of capital investment, the readiness of technology, the readiness of technical management especially logistics, the organizational culture to response the world business change, and the market accessibility. The competitive advantage of logistics service provider competency discovered that the standardized degree of competency consists of quality of internal employee, the doing business vision, the cost management in operation, the degree of knowledge related of logistics and supply chain, and the enhancing to world class service. Furthermore, the influenced factors of doing business in the field of logistics when ASEAN Economic Community liberalization; almost factors are highly significant in doing business when compared with present business competition i.e. the importer and exporter have more alternative of logistics service provider, the cutting price off in the rivalry among their business, the highly competition in the rivalry among their business. For the influenced factors to ASEAN Economic Community market accessibility liberalization; Thai logistics service provider had a low degree of competency because possibly Thai logistics service provider has a few their business expansion to ASEAN market, and Thai exporter has a few capital investment expansion to ASEAN market. The major factors towards Thai transportation service providers in the ASEAN Market depend on logistics background knowledge,

7 supply chain, investment capital, and technological aspects. Accordingly, Thai transportation service providers should pay more attention to service s quality as well as the marketing and resource management in order to achieve more efficiently in the world market. 6. References Dee,P.(2008). Service liberalization towards The ASEAN Economic Community In Deepening East Asian Economic Integration, eds J Corbett and S.Umezaki.ERIA Research Project Report 2008, No. 1.Jakarta: Economic Research Institute for ASEAN and East Asia. The Association of Southeast Nation. (2008). ASEAN Economic Community Blueprint. Jakarta: ASEAN Secretariat. Thuansuwan S.,P.plodpai.(2012).The Enhancing Thai logistics service provider towards AEC 2015 framework in the reverse logistics model. ICGSI Journal of the 3 rd international Conference on green and sustainable innovation (ICGSI:2012), Transportation and communication board the federation of Thai industry. (2005). The project of enhancing Thai competitive of competencies.bangkok: office of the National Economic and Social Development Board. UNTAD.(1996). World investment report 1996: investment, trade and international policy arrangements. New York and Geneva: United Nations.