The Impacts of Management Practices on Firm-Level Performances in Thailand Trucking Services Industry
Interim Report
by Chawalit Jeenanunta, Tomohiro Machikita , Masatsugu Tsuji, Yasushi Ueki
Published in March 2014
Title Page (191KB)
The Impacts of Management Practices on Firm-Level Performances in Thailand Trucking Services Industry (181KB) / Chawalit Jeenanunta, Tomohiro Machikita, Masatsugu Tsuji, Yasushi Ueki
What does cause the firm-level performance in the trucking services in developing economies? This paper answers question on the role of managerial inputs influential to profitability, operation efficiency, and quality in truck service. We ran the in-depth interviews and unique and detailed firm-level survey to trucking industry in Thailand. Firm-level dataset presents there are large variation in basic firm-level characteristics and performances in trucking services even within trucking services. This is verified by field research. We ask how operation efficiency and quality in service drives firm’s profitability. The dataset implies increase in profitability is associated with increase in usage efficiency, increase in driving distance with cargo, and reduction in costs. Furthermore, to seek for the sources of variation in profitability, efficiency, and quality in service, this paper constructs score of management practices to know what managerial technologies firms have. This paper focuses on incentive payment scheme as main management practices in trucking industry. We then estimate the effects of incentive pay scheme on profitability, operation efficiency, and quality of services. Empirical results show the following findings: (1) an adoption of incentive scheme itself does not lead to higher profitability; (2) an adoption of incentive pay can increase profitability and efficiency as long as firms invest in firm-sponsored training for drivers; (3) a joint adoption of teamwork and training does not lead to improvement in efficiency and quality as well as profitability.