Upgrade strategies in the Thai silk industry: balancing value promotion and cultural heritage

Abstract

Purpose – The purpose of this paper is to substantiate Porter's ideas through multiple case studies of firms in one of Thailand's potential niches – Thai silk. Design/methodology/approach – This study examined upgrading strategies adopted by six companies involved in the production and distribution of silk and silk products in Thailand. Information was gathered from company documents and interview statements given by company executives and government policy makers. Standard approaches to organizing and analyzing qualitative case study data, including description, pattern identification, concept categorization and generalization were utilized. Findings – The companies have implemented upgrading strategies in the following four main areas: first, balancing efficiency and old customs in production; second, innovating new products while preserving unique traditional features; third, developing modern marketing and distribution techniques with a cultural flare; and fourth, building linkages and clusters. Practical implications – Stakeholders of traditional- or cultural-related industries may increase their chances of successfully renewing their businesses’ competitive advantage by carefully balancing the needs to both preserve and modernize key processes in their industries’ value chains. Originality/value – The paper's findings and recommendations may to be useful to other traditional industries that share similar challenges both in Thailand and in other Southeast Asian countries.

Increasing Potential of Distribution Channels for Creative Thai Hand-Woven Textile Products in the Digital Economy

“…The abovementioned problems have commanded the attention of some researchers, for example, (Fayaz & Azizinia, 2016;Herhausen et al, 2015;Kluge & Fassnacht, 2015;Patichol et al, 2014;Menon Vadakepat & Al Khateeb, 2012), who studied the challenges of different distribution channels for creative products with special features, including how these are affected by changes in consumers' behaviors due to advances in digital technology. Moreover, garments made from hand-woven fabrics need to be touched and tried on by the customer before any purchasing decision is made.…”

“…Previous research has found a number of limitations in the means traditionally adopted in marketing the products of local weaving CEs (Fayaz & Azizinia, 2016;Herhausen et al, 2015;Kluge & Fassnacht, 2015;Patichol et al, 2014;Menon Vadakepat & Al Khateeb, 2012). The distribution channels are rather limited and traditionally, only physical distribution channels were employed.…”

“…The research reported in this paper was conducted to study CEs that produce and sell traditonal hand-woven textiles, which represent the cultural heritage of each region (Chai-Arayalert & Suttapong, 2018;Patichol et al, 2014). Traditonal hand-woven textiles are channels for cultural representation and creative expression.…”

Managing cultural specificity and cultural embeddedness when internationalizing: Cultural strategies of Japanese craft firms

“…While some craft productsespecially in the domain of food and beveragehave become highly popular even outside their original cultural boundaries, others may require some degree of cultural knowledge to facilitate aesthetic appreciation (Jenkins, 1978;Kida & Takayama, 2010) or to recognize their cultural significance (Micelli & Sacchetti, 2014;Patichol et al, 2014). As our cases also illustrate, in the absence of this knowledge, foreign customers may be reluctant to pay the premium price often associated with the quality materials and the labour-intensive, small-scale production that characterizes these products.…”

“…Diligent commitment to local traditions and social pressure in the local community may secure some producers a premium position in foreign markets, to the extent that they manage to build a distinctive collective reputation for the country (Arikan et al, 2019;Bertacchini & Borrione, 2013) or region of origin (Ger, 2000;Guy, 2002). In the absence of this effect, however, cultural embeddedness may effectively hamper the capacity of a producer to adapt its offering in an early stage of their internationalization process, when, because of cultural specificity, some degree of detachment from the home culture may be important to meet foreign tastes (Fan & Tan, 2015;Patichol, Wongsurawat & Johri, 2014) and accommodate expectations in host countries (Asakawa et al, 2013).…”