F KENNEDY” – Ilo.

RBIs located in southern Thailand were chosen to be the research participants in this study. This is because southern Thailand is the main NR producing area of the country, if not the world (Soontaranurak and Dawson, 2015). Moreover, the NR market in the south relies mainly on local traders and market-based PRM. The importance of the role of the intermediaries in supply chain efficiency is vital as they connect the millions of producers to the hundreds of exporters. However, commodity markets have become more volatile in recent years (Khin and Thambiah, 2014), which may impact on their PRM performance, which in turn affects the NR supply chain as a whole. Therefore, RBIs are the main focus of this research.

 Snowball Sampling Application

It is perhaps a common belief that the main purpose of qualitative research is the generation of a deep understanding and that the concern of representation is not as essential as it is in quantitative studies (Bryman and Bell, 2011). Snowball sampling is a non-probability sampling technique generally used when the research population is difficult to identify. This is in line with the fact that the official RBI population is unavailable as previously mentioned in Section 1.2.2. Though the results of this type of sampling may mean low levels of representation of the population, they have anticipated characteristics consistent with what research requires (Bryman and Bell, 2011). “Concerns about external validity and the ability to generalize do not loom as large within a qualitative research strategy as they do in a quantitative research one” (Bryman and Bell, 2011, p. 193). Moreover, the snowball sampling “is associated with the interpretivist studies where it is essential to include people with experience of the phenomenon being studied in the sample” (Collis and Hussey, 2009, p. 212). As a result, the snowball sampling technique was chosen because this research required in-depth information from RBIs, who sometimes like to keep their strategy of business secret. Therefore, a good way to obtain the desired information is to use people who one trusts and knows well in that this guarantees a level of contact with appropriate interviewees.

In the research, twenty-four RBIs were recruited, which is consistent with the suggestion that where interviews is the appropriate method for research, the number of participants is recommended to be 20 or more (Green and Thorogood, 2009), and “[s]ingle case studies should generally contain 15 to 30 interviews” (Marshall et al., 2013, p. 20). As a consequence, this enhances the research creditability due to the possibility of approaching saturation in terms of information and the knowledge generated. The three snowball chains used in this research are shown in Figure 3.2.

Using the snowball sampling technique, the RBIs were recruited from the southern region of Thailand. The first link in the chain was introduced by an alumnus of Suratthani Rajabhat University, where the researcher works. The second and third links were introduced by the facilitator and one of the members of a discussion board on the website, ‘rakayang.com’ (Rakayang, 2012), where rubber price information and price movements are actively discussed by, mainly, RBIs and other rubber chain players on a daily basis. It is worth noting that ‘rakayang’ in Thai means ‘rubber price’. Therefore, it is the potential place for attracting those who are interested in rubber prices. Although the snowball sampling method is criticised for its bias issues (Cohen and Arieli, 2011), the

access to both RBIs who tend to actively manage price risks and RBIs who may not. Moreover, the issue of bias is less problematic in the context of this research, since this research is not seeking to generalise from the findings. The recruitment was stopped when every type of RBI was recruited and the data seemed to be saturated as not much new information was found.

Figure 3.2: A snowball sampling illustrating research participant recruitment used in this

research. Pilot Root 1 RBI06 RBI05 RBI03 RBI02 RBI04 RBI01 RBI07 Root 2 Root 3 RBI09 RBI10 RBI11 RBI12 RBI14 RBI22 RBI13 RBI19 RBI17 RBI20 RBI21 RBI23 RBI08 RBI24 RBI16 RBI18 RBI15

 Recruitment Criteria

The recruitment criteria used in this research are as follows:

 RBIs who play a role in collecting NR products from farmers or other RBIs and who resell these products to processors or other RBIs; This is because the aims of this research are focused on PRM in the context of NR supply chain players who play a role in forming a link between producers (farmers) and processors (exporters).

 RBI businesses located in southern Thailand; This is due to this research being conducted using a case study approach as a “bounded system”, as previously described in Section 3.4.2, in the setting of the NR sector in the south of Thailand.

 RBIs who trade in latex, cup lump, rubber sheets or who process latex into rubber sheets; In keeping with the nature of this exploratory research, as the aim suggests, this research focuses on RBIs who trade in a range of NR products, including RBIs in which business is considered as a “value added process”, rather than emphasising a particular type of NR product.

 RBIs who volunteer to take part in the research. The willingness to be a volunteer is an important factor in terms of trustworthiness as a qualitative research source. The following are the results of participant recruitment using the methods outlined above. They are presented in terms of their business locations, personal profiles and business demographics.

 Locations

The business locations explored during the recruitment process are geographically spread throughout southern Thailand, as seen in Figure 3.3. They are located in 20 districts in seven provinces, as illustrated in Table 3.2. This list includes the three biggest NR producing provinces in Thailand where the three main auction markets are situated. This geographical spread allows the researcher to gain a bigger picture of the RBI business in the south, even though this research does not seek to formulate a comprehensive study due to the research approach utilised.

Table 3.2: The locations of research participant businesses

Province District

Surat Thani Khian Sa, Ban Na San, Ban Na Doem, Kanchanadit, Phunphin and Mueang

Nakhon Si Thammarat Tham Phannara, Thung Song, Thung Yai and Bang Khun

Songkhla Khuan Nian, Sadoa and Hat Yai

Phatthalung Tamot, Khuan Khanun and Mueang

Chumphon Pathio and Mueang

Ranong Kra Buri

Krabi Mueang

 Personal Profiles

The research participant profiles in terms of gender, age, education, trading experience and source of professional knowledge are shown in Table 3.3. Regarding gender, for the 24 participants, nine are female and 15 are male. They are mainly over 35-years-old, with 14 of the participants aged over 40. The youngest is 29 and the oldest is 60-years- old. This range allows the researcher to study the potential differences between genders and ages in PRM behaviour.

The level of education of the research participants in this study is ranked as the following: nine hold a degree lower than a Bachelor's degree; eleven hold a Bachelor's degree with a variety of majors, such as Community Development, Education, Mechanics, Accounting, Management and Animal Science, and; four hold a Master’s degree, including two participants with MBAs. However, the level of education of the participants is helpful to the research process. They have comfortability with the aims of the research and the potential complexity of the issues and questions presented. The personal profiles in terms of education vary within the types of RBI businesses. This may be because there is not a particular course of study preparing an individual to trade NR as an RBI.

Table 3.3: Research participant profiles and their business demographics

RBIs Personal Profiles Business Characteristics

RBI01  Female  47 years old  Bachelor's degree in Community Development  20 years’ experience in NR trading

 Latex (some are processed into RSS)

30,000 - 40,000 kgs/day  9 employees

 Self funding 80%, Earning from NR plantation 15% and Bank loan 5%  Business located in NR producing

area, Suratthani  1,000,000 - 1,500,000 Bath cash flow RBI02  Female  47 years old  Bachelor's degree in Administration  20 years’ experience in NR trading  Latex 30,000 kgs/day  5 employees

 Bank loan 70% and Self funding 30%

 Business located in NR producing area, Suratthani

 500,000 Bath in cash flow

RBI03  Female

 29 years old

 Bachelor's degree in Management

 6 years’ experience in NR trading (successive business from her father)

 Latex

50,000 kgs/day  15 employees

 Self funding 50%, Bank loan 30% and parent gift 20%

 Business located in NR producing area, Suratthani

 1,500,000 Bath in cash flow

RBI04  Female

 37 years old

 A degree lower than a Bachelor’s

 7 years’ experience in NR trading (working in a latex company for 9 years before trading NR)

 Latex

70,000 kgs/day  10 employees

 Self funding 70% and Bank loan 30%

 Business located in NR producing area, Suratthani

 1,000,000 Bath in cash flow

RBI05  Male

 51 years old

 A degree lower than a Bachelor’s  12 years’ experience in NR trading  Cup lump 100,000 kgs/day  10 employees

 Self funding 50% and Bank loan 50%

 Business located in a processor's collecting point of cup lumb, Suratthani

 3,000,000 - 5,000,000 Bath in daily cash flow

Table 3.3: Research participant profiles and their business demographics (cont.)

RBIs Personal Profiles Business Characteristics

RBI06  Male

 32 years old

 A degree lower than a Bachelor’s  13 years’ experience in NR trading  Cup lump 60,000 - 250,000 kgs/day  USS 5,000 - 15,000 kgs/day  15 employees

 Self funding 50% and Bank loan 50%

 Business located in NR producing area and a collecting point, Suratthani

 3,500,000 - 7,000,000 Bath in daily cash flow

RBI07  Male

 58 years old

 A degree lower than a Bachelor’s  35 years’ experience in NR trading  USS 1,000 -2,500 kgs/day  1 employee  Self funding 100%

 Business located in a town (a successive business), Pattalung  300,000 Bath in daily cash flow

RBI08  Male

 43 years old

 A degree lower than a Bachelor’s  12 years’ experience in NR trading  Latex-RSS 6,000 - 8,000 kgs/day  10 employees

 Self funding 50%and parent gift 50%

 Business located in NR producing area, Songkhla

 200,000 - 300,000 Bath in daily cash flow

RBI09  Male

 41 years old

 Bachelor's degree in Mechanics  5 years’ experience in NR trading  USS 10,000 kgs/day  Cup lump 3,000 kgs/day  5 employees

 Self funding 50% and Bank loan 50%

 Business located in NR producing area, Songkhla

 800,000 Bath in daily cash flow

RBI10  Male  43 years old  MSc in Physics (BSc in Physics)  15 years’ experience in NR trading  USS 8,000 kgs/day  Cup lump 1,000 kgs/day  9 employees  Self funding 100%

 Business located in a town (a successive business), Songkhla  10,000,000 Bath cash flow

Table 3.3: Research participant profiles and their business demographics (cont.)

RBIs Personal Profiles Business Characteristics

RBI11  Male

 38 years old

 Bachelor's degree in Education  16 years’ experience in NR

trading (the third generation of successive business)  USS 7,000 kgs/day  Cup lump 10,000 kgs/day  3 employees

 Self funding 70% and Bank loan 30%

 Business located in NR producing area and close to processing factories, Suratthani  500,000 - 1,000,000 Bath in daily cash flow RBI12  Female  37 years old  Bachelor's degree in Accounting  20 years’ experience in NR trading  USS 50,000 - 100,000 kgs/day  Cup lump 50,000 - 100,000 kgs/day  10 employees

 Self funding 70% and Bank loan 30%

 Business located in NR producing area, Suratthani

 5,000,000 Bath in daily cash flow

RBI13  Male

 60 years old

 Bachelor's degree in Education  3 years’ experience in NR

trading (selling his own rubber products for 23 years before trading NR)

 Latex-RSS

1,500 - 2,000 kgs/day  6 employees

 Self funding 100%

 Business located in NR producing area and land owner, Nakhon Sri Thammarat

 134,000 - 200,000 Bath in daily cash flow

RBI14  Female

 38 years old

 MBA (Bachelor's degree in Accounting)  11 years’ experience in NR trading  USS 50,000 - 300,000 kgs/day  Cup lump 500,000 kgs/month  32 (10 officers) employees  Business located in a centre of

transportation, Nakhon Sri Thammarat

 24,000,000 Bath cash flow

RBI15  Female

 44 years old

 A degree lower than a Bachelor’s  23 years’ experience in NR trading  USS 1,000 -100,000 kgs/day  2 employees

 Self funding 60% and Bank loan 40%

 Business located in a town, Nakhon Sri Thammarat  100,000,000 Bath cash flow

Table 3.3: Research participant profiles and their business demographics (cont.)

RBIs Personal Profiles Business Characteristics

RBI16  Male

 41 years old

 A degree lower than a Bachelor’s

 7 years’ experience in NR trading (selling his own rubber products for 14 years before trading NR)

 Latex-USS 5,000 kgs/day  10 employees  Bank loan 100%

 Business located in, NR producing area and a land owner Nakhon Sri Thammarat

 350,000 - 500,000 Bath in daily cash flow

RBI17  Male

 53 years old

 Bachelor's degree in Mechanics  15 years’ experience in NR trading  USS 4,000 kgs/day  Cup lump 700 kgs/day  3 employees

 Self funding 70% and Bank loan 30%

 Business located close to NR producing area, Chumpon

 1,000,000 Bath in daily cash flow

RBI18  Female

 40 years old

 Bachelor's degree in Agriculture (Animal Sciences)  12 years’ experience in NR trading  USS 10,000 kgs/day  Cup lump 500 - 700 kgs/day  2 employees

 Bank loan 80% and Self funding 20%

 Business located in NR producing area, Chumpon

 1,000,000 - 2,000,000 Bath in daily cash flow

RBI19  Female

 56 years old

 A degree lower than a Bachelor’s

 5 years’ experience (selling her own rubber products for 15 years before trading NR)

 USS 2,000 - 10,000 kgs/day  Cup lump 200 - 300 kgs/day  1 employee  Bank loan 100%

 Business located as the first business in the area, Ranong  400,000 - 500,000 Bath in daily

Table 3.3: Research participant profiles and their business demographics (cont.)

RBIs Personal Profiles Business Characteristics

RBI20  Male

 40 years old

 MBA (Bachelor's degree in Accounting)  15 years’ experience in NR trading  USS 50,000 kgs/day  Cup lump 500 kgs/day  6 employees

 Bank loan 60% and accumulated profit 40%

 Business located in close to NR producing area, Nakhon Sri Thammarat

 3,000,000 - 5,000,000 Bath in daily cash flow

RBI21  Male

 32 years old

 Bachelor's degree in Mechanics  6 years’ experience in NR

trading (his wife has over 20 years’ experience in her parents' NR business)  USS 1,000 - 10,000 kgs/day  Cup lump 200 kgs/day  1 employee  Bank loan 100%

 Business located in NR producing area, Nakhon Sri Thammarat  200,000 - 400,000 Bath in daily cash flow RBI22  Male  31 years old  Conducting Ph.D. in Mechanics (MSc in Physics, BSc in Mechanics)  8 years’ experience in NR trading (and also a consultant to NR farmers)

 Latex-RSS 1,000 kgs/day  4 employees  Bank loan 100%

 Business located in NR producing area, Pattalung

 100,000 Bath in daily cash flow

RBI23  Male

 50 years old

 A degree lower than a Bachelor’s

 16 years’ experience in NR trading (selling his own rubber products for 14 years before trading NR)  USS 50 kgs/day  Cup lump 100 kgs/day  No employee  Bank loan 100%

 Business located in a point that is convenient for transportation, Pattalung

 100,000 Bath cash flow

RBI24  Male  41 years old  Bachelor's degree in Accounting  12 years’ experience in NR trading  Latex-RSS 5,000 kgs/day  8 employees

 Self funding 50% and Bank loan 50%

 Business located in where a smoking factory is available for rental, Krabi

 350,000 - 700,000 Bath in daily cash flow

 Recruitment Results

The knowledge acquired from trading experience seems to be a more important source of knowledge than from formal education for the RBI business, although the method is likely to be less effective when markets become uncertain, such as when the market structure changes to become financialisation. It is clear that the majority of research participants are highly experienced in trading. More than half have ten years or more experience. The most experienced has 35 years of experience of working in NR trading. Although the least experienced has just three years’ experience in processing latex into rubber sheets, he had 26 years’ experience as an NR seller before he established his business.

The second source of knowledge, for some RBIs, is in acquiring knowledge from previous generations. This knowledge transfer method is a crucial source of knowledge as it is commonly known that RBI is mostly considered a family business. Four research participants can be considered as successive RBIs and one of participant is even third generation.

 Business Demographics

The business demographics from recruitment, as illustrated in Table 3.3, consist of all five types of RBI business, including latex, cup lump, USS and processors of latex into Ribbed Smoked Sheet rubber (RSS) and USS, respectively. It is not uncommon that one RBI may operate more than one type of RBI business; traders of USS usually also trade cup lump as some types of cup lump are by-products of USS production.

In terms of business size, the majority of RBIs participating in this study are considered to be medium to large, relative to the NR market size. At least five believed they are one of the biggest RBIs in Thailand in terms of trading capacity. This allows the researcher to study RBIs who have an active role in PRM since their trading in high volume needs means high price risk exposure. Although one RBI trades in relatively small volumes, he has more than 15 years’ experience in trading. His business has become smaller as the impact of farmers in his area has changed NR production from rubber sheets, which he traded, to latex.

The number of employees is less related to trading capacity but is relevant to the type of business. It is unsurprising that RBIs who are latex processors are likely to hire more employees than other kinds of RBIs because of the need for labour to transform latex into rubber sheets. On the other hand, there are few employees in businesses that

concentrate less on processing, even though the size of the business is relatively large. Latex and cup lump businesses are positioned between rubber sheet and latex- processor RBIs as they require some level of processing.

According to Table 3.3, it is surprising that the majority of RBIs operate their business through self-funding, even though some use their overdraft service on occasions when they require additional cash. Only five use 100% bank loans to fund their business. The reason for that may come from the fact that their businesses are considered to be short- cash flow businesses, centred on latex trading on a daily basis or the immediate resale of rubber sheets. Additionally, businesses may achieve a cash injection in a period of increasing price speculation by stocking some storable products. However, latex- processing RBIs require a longer cash flow to operate their businesses, as more time is required for processing.

Literature Reviews Qualitative Research Conceptual Model Research Findings  Semi-structured Interviews  Pre-interview Questionnaires  Documentations Template Analysis

Figure 3.4: Research design of this study

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