Cluster-based and Diamond Model Analysis of Herbal City in Thailand: A Case Study of Surin Province
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Published
Dec 25, 2024
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Abstract
Clusters are a crucial component that helps create differentiation and competitiveness within industries at both the national and provincial levels in Thailand. This study aims to identify the components and the details of herbal cluster, and assessing the competitiveness of the herbal sector by applying the diamond model concepts in Surin province, recognized as the herbal city of Thailand. This study utilized a qualitative approach, conducting semi-structured interviews with 27 key informants selected based on their expertise or involvement in the development of the herbal sector in Surin province. The findings reveal that Surin province has elements of the diamond model, which include both factors that provide advantages and factors that hinder the development of the herbal sector in the province. Advantageous factors include natural resources, traditional herbal knowledge, the expanding and growing herbal market, a supporting business structure in the herbal sector, as well as numerous government agencies, private organizations, and supporting industries for herbal development. In contrast, several obstacles consist of the production management of herbs from upstream to downstream, business strategies to meet consumer demands, a well-integrated network system in the herbal sector, and inconsistency in policies and promotions by governmental agencies. To enhance the competitiveness of the herbal sector, policy recommendations are drawn to take immediate action to improve conditions in disadvantaged dimensions in the model.
Keywords: Cluster, Diamond Model, Herbal City, Surin Province
References
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Chunxiang, Z. (2018). The Evaluation of Industrial Competitiveness of Regional Cultural Tourism Based on the Diamond Model. Chinese Journal of Management, 15(12), 1781–1788.
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Cronjé, D. F., & du Plessis, E. (2020). A Review on Tourism Destination Competitiveness. Journal of Hospitality and Tourism Management, 45, 256–265. https://doi.org/10.1016/j.jhtm.2020.06.012
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Jhamb, P. (2016). An Application of Porter’s Diamond Framework: A Case of Sports Goods Cluster at Jalandhar. Pacific Business Review International, 8(8), 141-146.
Jinachai, N., Anantachoti, P., & Winit-Watjana, W. (2016). Exploring Competitiveness of Thailand’s Cosmetic Industry Using Porter’s Diamond Model. Thai Journal of Pharmaceutical Sciences, 40(4), 172-178. Retrieved from http://www.tjps.pharm.chula.ac.th/ojs/index.php/tjps/article/view/207
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Land Development Department, Ministry of Agriculture and Cooperatives. (2021). Guidelines for Promoting Appropriate Agriculture Based on Agricultural Map Data in Surin Province. Retrieved from https://www.ldd.go.th/Agri-Map/Data/NE/srn.pdf
Li, H., de Zubielqui, G. C., & O’Connor, A. (2015). Entrepreneurial Networking Capacity of Cluster Firms: A Social Network Perspective on How Shared Resources Enhance Firm Performance. Small Business Economics, 45(3), 523–541. https://doi.org/10.1007/s11187-015-9659-8
Merrell, I., Rowe, F., Cowie, P., & Gkartzios, M. (2021). ‘Honey Pot’ Rural Enterprise Hubs as Micro-clusters: Exploring Their Role in Creativity-led Rural Development. Local Economy, 36(7-8), 589-605. https://doi.org/10.1177/02690942221085498
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Board of Investment, Ministry of Industry. (n.d.). Ministry of Public Health’s Annual Inspection for the Fiscal Year 2020. Retrieved from https://www.opsmoac.go.th/sustainable_agri-knowledge-files-431291791813
Boja, C. (2011). Clusters Models, Factors and Characteristics. International Journal of Economic Practices and Theories, 1(1), 34-43.
Brown, P., McNaughton, R. B., & Bell, J. (2010). Marketing Externalities in Industrial Clusters: A Literature Review and Evidence from the Christchurch, New Zealand Electronics Cluster. Journal of International Entrepreneurship, 8(2), 168–181. https://doi.org/10.1007/s10843-010-0053-y
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Chunxiang, Z. (2018). The Evaluation of Industrial Competitiveness of Regional Cultural Tourism Based on the Diamond Model. Chinese Journal of Management, 15(12), 1781–1788.
Community Enterprise Promotion Division, Department of Agricultural Extension. (n.d.). Results of Community Enterprise Registration. Retrieved from http://www.sceb.doae.go.th/regis.html
Cronjé, D. F., & du Plessis, E. (2020). A Review on Tourism Destination Competitiveness. Journal of Hospitality and Tourism Management, 45, 256–265. https://doi.org/10.1016/j.jhtm.2020.06.012
Delgado, M., Porter, M. E., & Stern, S. (2016). Defining Clusters of Related Industries. Journal of Economic Geography, 16(1), 1-38. https://doi.org/10.1093/jeg/lbv017
Deniz, M., Seçkin, Ş. N., & Cüreoğlu, M. (2013). Micro-economic Competitiveness: A Research on Manufacturing Firms Operating in TRB1 Region. Procedia-Social and Behavioral Sciences, 75, 465-472. https://doi.org/10.1016/j.sbspro.2013.04.050
Department of Business Development. (2024). New Registrations in the Third Quarter Continue to Increase. The Cumulative Establishments in the Past 7 Months Reached 54,000. It is Worth Noting That More Than Half are ‘Service Businesses’. Retrieved from https://www.dbd.go.th/news/17429082567
Department of Thai Traditional and Alternative Medicine, Ministry of Public Health. (n.d.). Report on Basic Information about Herbal City. Retrieved from https://www.moac.go.th/herbs-dwl-files-451391791962
Di Maria, E., De Marchi, V., & Gereffi, G. (2019). Local Clusters and Global Value Chains. In S. Ponte, G. Gereffi, & G. Raj-Reichert (Eds.), Handbook On Global Value Chains (pp. 403-416). UK.: Edward Elgar Publishing. https://doi.org/10.4337/9781788113779.00034
Dögl, C., Holtbrügge, D., & Schuster, T. (2012). Competitive Advantage of German Renewable Energy Firms in India and China: An Empirical Study Based on Porter’s Diamond. International Journal of Emerging Markets, 7(2), 191-214. https://doi.org/10.1108/17468801211209956
Fernando, I. (2021). Competitiveness of Sri Lanka’s Tourism in COVID Period by Porters’ Diamond Model. In Handbook of Research on Strategies and Interventions to Mitigate COVID-19 Impact on SMEs (pp. 1-22). Pennsylvania, USA.: IGI Global Publisher.
Fusch, P., Fusch, G. E., & Ness, L. R. (2018). Denzin’s Paradigm Shift: Revisiting Triangulation in Qualitative Research. Journal of Sustainable Social Change, 10(1), 19-32. https://doi.org/10.5590/JOSC.2018.10.1.02
García Ochoa, J. J., de Dios León Lara, J., & de la Parra, J. P. N. (2017). Proposal of a Model to Measure Competitiveness Through Factor Analysis. Contaduría y Administración, 62(3), 792-809. https://doi.org/10.1016/j.cya.2017.05.002
Grimstad, S., & Burgess, J. (2013). A Comparison of Two Agriculture Based Tourism Micro-clusters in Norway and Australia. In K. Brown, J. Burgess, M. Festing, & S. Royer (Eds.), Resources and Competitive Advantages in Clusters (pp. 66–96). München: Reyner Hampp Verlag.
Hfocus. (2022, August 15). The National Herbal Committee Reveals That in 6 Years, Thailand Has Exported Raw Materials and Herbal Products, Generating a Value of Over 1.2 Trillion Baht. Retrieved from https://www.hfocus.org/content/2022/08/25758#:~:text=คณะกรรมการนโยบายสมุนไพรแห่ง,ภูมิภาคเอเชียตะวันออกเฉียงใต้
Jaklič, M., Cotič-Svetina, A., & Zagoršek, H. (2004). Evaluation of the Measures for Fostering of the Cluster Development in Slovenia in 2001-2003 (Final Report). Ljubljana: Faculty of Economics, Institute of Competition and Co-operation.
Jhamb, P. (2016). An Application of Porter’s Diamond Framework: A Case of Sports Goods Cluster at Jalandhar. Pacific Business Review International, 8(8), 141-146.
Jinachai, N., Anantachoti, P., & Winit-Watjana, W. (2016). Exploring Competitiveness of Thailand’s Cosmetic Industry Using Porter’s Diamond Model. Thai Journal of Pharmaceutical Sciences, 40(4), 172-178. Retrieved from http://www.tjps.pharm.chula.ac.th/ojs/index.php/tjps/article/view/207
Kärkkäinen, R. (2008). Clustering and International Competitiveness fo Information Technology Industry in the Saint Petersburg Area (Research Report). Lappeenranta: Lappeenranta University of Technology.
Kerdpitak, C. (2022). Business Performance Model of Herbal Community Enterprise in Thailand. Uncertain Supply Chain Management, 10(2), 345-352. Retrieved from https://growingscience.com/beta/uscm/5259-business-performance-model-of-herbal-community-enterprise-in-thailand.html
Kharub, M., & Sharma, R. (2017). Comparative Analyses of Competitive Advantage Using Porter Diamond Model (The Case of MSMEs in Himachal Pradesh). Competitiveness Review, 27(2), 132-160. https://doi.org/10.1108/CR-02-2016-0007
Kwankhao, P., Chuthaputti, A., Tantipidok, Y., Pathomwichaiwat, T., Theantawee, W., Buabao, S., ... Sermsinsiri, V. (2020). The Current Situation of the Herbal Medicinal Product System in Thailand. Journal of Health Science of Thailand, 29(Special), S82-S95. Retrieved from https://thaidj.org/index.php/JHS/article/view/8415
Land Development Department, Ministry of Agriculture and Cooperatives. (2021). Guidelines for Promoting Appropriate Agriculture Based on Agricultural Map Data in Surin Province. Retrieved from https://www.ldd.go.th/Agri-Map/Data/NE/srn.pdf
Li, H., de Zubielqui, G. C., & O’Connor, A. (2015). Entrepreneurial Networking Capacity of Cluster Firms: A Social Network Perspective on How Shared Resources Enhance Firm Performance. Small Business Economics, 45(3), 523–541. https://doi.org/10.1007/s11187-015-9659-8
Merrell, I., Rowe, F., Cowie, P., & Gkartzios, M. (2021). ‘Honey Pot’ Rural Enterprise Hubs as Micro-clusters: Exploring Their Role in Creativity-led Rural Development. Local Economy, 36(7-8), 589-605. https://doi.org/10.1177/02690942221085498
Mezmir, E. A. (2020). Qualitative Data Analysis: An Overview of Data Reduction, Data Display, and Interpretation. Research on Humanities and Social Sciences, 10(21), 15-27. https://doi.org/10.7176/RHSS/10-21-02
Michael, E. J. (2007). Micro-clusters and Networks: The Growth of Tourism. Amsterdam: Elsevier.
Ministry of Agriculture and Cooperatives. (2020). Agenda for the 2nd Herbal Raw Materials Subcommittee Meeting 2020. Retrieved from https://www.opsmoac.go.th/sustainable_agri-knowledge-files-431291791806
Mirčetić, V., Vukotić, S., & Cvijanović, D. (2019). The Concept of Business Clusters and Its Impact on Tourism Business Improvement. Economics of Agriculture, 66(3), 851-868. https://doi.org/10.5937/ekoPolj1903851M
Musikawong, S., Jampaklay, A., Khamkhom, N., Tadee, R., Kerdmongkol, A., Buckles, L., … Engblom, A. (2021). Working and Employment Conditions in the Agriculture Sector in Thailand: A Survey of Migrants Working on Thai Sugarcane, Rubber, Oil Palm and Maize Farms. Thailand: ILO Regional Office for Asia and the Pacific. Retrieved from https://www.ilo.org/publications/working-and-employment-conditions-agriculture-sector-thailand-survey
Naik, G., & Nagadevara, V. (2010). Spatial Clusters in Organic Farming–A Case Study of Pulses Cultivation in Karnataka (Working Paper). India: Indian Institute of Management Bangalore. Retrieved from https://repository.iimb.ac.in/handle/123456789/453
National Economic and Social Development Board. (2003). Thailand’s Competitiveness Development Study Project, Volume 2: Case Study of Industrial Clusters. Bangkok: Office of the National Economic and Social Development Council. Retrieved from https://www.nesdc.go.th/ewt_news.php?nid=3687&filename=economic_develop
Nordin, S. (2003). Tourism Clustering & Innovation (Research Report). Sweden: European Tourism Research Institute, Mid-Sweden University.
Obadić, A. (2013). Specificities of EU Cluster Policies. Journal of Enterprising Communities: People and Places in the Global Economy, 7(1), 23-35. https://doi.org/10.1108/17506201311315581
Office of the Prime Minister. (2021). Report on the Results of the Inspection by the Inspector General of the Office of the Prime Minister Surin Province Herbal City Development Fiscal Year 2021. Retrieved from https://pmi.opm.go.th/inspect_main/uploadfiles/8%20รายงานเมืองสมุนไพร%20v1.pdf
Pirantaowad, P., & Rojsurakitti, T. (2017). Sustainable Development Model for Thai Herb Retail Business of the Community Enterprise. Integrated Social Science Journal, Mahidol University, 4(2), 277-301. Retrieved from https://so02.tci-thaijo.org/index.php/isshmu/article/view/147531
Porter, M. E. (1990). The Competitive Advantage of Nations. New York: Free Press.
Porter, M. E. (1998). The Competitive Advantage: Creating and Sustaining Superior Performance. New York: Free Press.
Porter, M. E. (2008). The Five Competitive Forces That Shape Strategy. Harvard Business Review. Retrieved from https://hbr.org/2008/01/the-five-competitive-forces-that-shape-strategy
Quintão, C., Andrade, P., & Almeida, F. (2020). How to Improve the Validity and Reliability of a Case Study Approach. Journal of Interdisciplinary Studies in Education, 9(2), 264-275. https://doi.org/10.32674/jise.v9i2.2026
Rosenfeld, S. A. (1997). Bringing Business Clusters into the Mainstream of Economic Development. European Planning Studies, 5(1), 3–23. https://doi.org/10.1080/09654319708720381
Salvador, R., Lúcio, J., & Ferreira, J. (2011). Sustainable Tourism Micro-clusters: The Case of Alentejo Protected Areas. Revista Portuguesa de Estudos Regionais, 25-26, 5–23. Retrieved from https://www.redalyc.org/pdf/5143/514351890001.pdf
Schmiedeberg, C. (2010). Evaluation of Cluster Policy: A Methodological Overview. Evaluation, 16(4), 389-412. https://doi.org/10.1177/1356389010381184
Senate Monitoring and Processing Group, The Secretariat of the Senate. (2023). Guidelines for Transforming Thai Herbal Plants Through Research and Innovation. In 5th Senate Meeting, July 24, 2023. Retrieved from https://www.senate.go.th/assets/portals/185/fileups/485/files/รายงานคณะกรรมาธิการ/75.แนวทางการพลิกโฉมพืชสมุนไพรไทยด้วยการวิจัยและนวัตกรรม.pdf
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How to Cite
KUNGWANSUPAPHAN, Chonnatcha; SUWANNAPUSIT, Ubonwan.
Cluster-based and Diamond Model Analysis of Herbal City in Thailand: A Case Study of Surin Province.
Journal of Community Development Research (Humanities and Social Sciences), [S.l.], v. 17, n. 4, p. 39-61, dec. 2024.
ISSN 2985-0231.
Available at: <https://www.journal.nu.ac.th/JCDR/article/view/Vol-17-No-4-2024-39-61>. Date accessed: 30 apr. 2025.
doi: https://doi.org/10.14456/jcdr-hs.2024.26.