Measuring Smiling Curves in Community Enterprises: Evidence from the One Tambon One Product Entrepreneurship Programme in Border Thailand

Abstract

Stan Shih’s smiling curve concept has been applied for use in describing manufacturing industries of various sizes around the world; yet, no studies, so far, have ever been undertaken using small enterprises, like community enterprises. The objective of this article is to explain the use of the smiling curve concept in community enterprises in Thailand as a case study. From a survey of 101 community enterprises under the One Tambon One Product (OTOP) entrepreneurship programme in a border province of Thailand, it was found that the smiling curve concept can also be applied in the case of community businesses. Emphasizing the importance of upstream activities, like applying concepts of creativity and research and development in production as well as focusing on downstream activities such as marketing, sales promotion and branding strategies are found to enhance business performance (profit) of those community enterprises. Therefore, the relevant government agencies or business sectors should step in to provide support and collaborative assistance by focusing on both activities (upstream activities and downstream activities) to add value to community products and make community businesses more competitive in both national and international markets.