A Structural Equation Model of Factors Affecting Thai Tea Grower Enterprises in Chiang Mai’s Mae Taeng Pa Pae Subdistrict

RESEARCH STUDY

Ladda Pinta
Dr.
Faculty of Business Administration and Liberal Arts
Rajamangala University of Technology Lanna

Surachai Utama-ang
Dr.
Faculty of Business Administration and Liberal Arts
Rajamangala University of Technology Lanna

Ladda Pinta and Surachai Utama-ang

Reference to this paper should be made as follows:

Pinta, L., & Utama-ang, S. (2016). A Structural Equation Model of Factors Affecting Thai Tea Grower Enterprises in Chiang Mai’s Mae Taeng Pa Pae Subdistrict. Asian International Journal of Social Sciences, 16(1), 34 – 55.

Abstract

This study examines the factors that affect Thai tea grower enterprises in Northern Thailand’s Chiang Mai Mae Taeng Pa Pae subdistrict. The selected sample of 101 smallholder tea growers was selected by use of a cluster sampling technique due to the relatively homogeneous grouping within the statistical population. The Structural Equation Modeling (SEM) analyzed through PLS-Graph revealed the production process and marketing mix both have positive and direct effects on tea grower enterprises with tea prices being the key variable that affects the growers the most. Results indicated that higher prices motivated the growers to labor more. PEST analysis showed that environmental and political factors do not affect their enterprises since the growing areas are small tea plantations within public forest preservations.

Keywords: production, marketing mix, PEST, tea smallholders, small tea growers