AgBioForum, 25(3): 44-51. ©2023 AgBioForum Charoenpanich et al. - Guidelines for Managing the Organic Agriculture Industry in Organic Plant Types for Sustainable Growth Guidelines for Managing the Organic Agriculture Industry in Organic Plant Types for Sustainable Growth Pimyada Charoenpanich* Faculty of Business Administration, Department of Industrial Business Administration, King Mongkut's University of Technology North Bangkok E-mail: pimyadalaw21@gmail.com Punsavadee Pongsiri Assistant Professor Dr. Faculty of Business Administration, Department of Industrial Business Administration, King Mongkut's University of Technology North Bangkok E-mail: punsavadee.p@fba.kmutnb.ac.th Thitirat Thawornsujaritkul Assistant Professor Dr. Faculty of Business Administration, Department of Industrial Business Administration, King Mongkut's University of Technology North Bangkok E-mail: administrative.fba@fba.kmutnb.ac.th The organic agricultural industry in Thailand is a major economic activity that involves a significant population. This study explored the necessary guidelines for effectively managing the industry in a sustainable manner. This study examines the relationship between entrepreneurship, supply chain management (SCM), knowledge management, and innovation management. The study utilized primary data collected from respondents via survey questionnaires. The study also used the smart-PLS to analyse the relationship between variables. The findings indicated a strong and positive connection between entrepreneurship, SCM, knowledge management, and innovation management. The hypothesis test indicated that the size of the industrial business attached equal significance to guidelines for managing the organic agriculture industry for sustainability. The study guides policymakers in developing policies related to enhancing knowledge management and supply chain management using effective entrepreneurial mindsets. Keywords: Entrepreneurship, Supply Chain Management, Knowledge Management, Innovation Management, Organic Agricultural. Introduction Organic agriculture is of utmost importance in driving the progress of the United Nations Sustainable Development Goals (SDGs) in at least seven significant areas. It contributes to mitigating negative effects and enhancing positive effects in order to achieve a variety of objectives, such as improving local food production for communities. 2) offering enhanced nutritional benefits. 3) Improving soil quality to enhance water storage, filtration, and minimise chemical pollution in water sources. 4) Reducing chemical use leads to improved occupational health. 5) Enabling consumers to make informed decisions when selecting certified organic products that meet established standards. 6) Addressing greenhouse gas emissions and storing carbon in the soil. 7) Tackling soil degradation and the decline of natural ecosystems (Ferdous et al., 2021; Rosati et al., 2021). An analysis of the global organic agricultural areas revealed a noticeable trend of expansion. Based on a report that surveyed 190 countries, the Organic Agriculture Research Institute and the International Federation of Organic Agriculture found that the global organic farming area saw a significant increase of 43.24 million rai, which accounted for 9.96 percent between 2017 and 2022. The organic farming area has seen significant growth, going from 434.33 million rai in 2017 to 477.57 million rai in 2022 (Gamage et al., 2023). Looking at organic agriculture from a global perspective, it's evident that there is a consistent growth trend every year. The global organic agriculture data report, presents strategies for developing a sustainable organic farming system with potential (Willer et al., 2024). Nevertheless, the production of organic agricultural products in Thailand encounters notable challenges, especially regarding the certification of production standards and the principles of organic agriculture to establish international credibility. There is a lack of a unified organisation in Thailand that certifies reliable product standards at the global level. This has resulted in variations in organic product standards across different countries, including differences in production standards, product inspection, and labelling standards for organic products. This challenge poses a barrier to the growth of the international market for organic products, leading to a consistent decrease in the value of Thai organic agricultural products in the global market (Arunrat et al., 2022; Yao et al., 2022). Today, consumers are more aware of health and food safety, which influences their choices in agricultural products and food consumption. It is evident that health products have been experiencing continuous growth (Liao et al., 2022). Thailand is actively working to develop organic agriculture as a means of moving away from a reliance on chemical fertilizers and chemicals. The country aims to achieve self-reliance by producing organic fertilizers and biological substances, guided by the principles of the Sufficiency Economy. According to Panyasing et al. (2022), organic agriculture prioritises the well-being of farmers, producers, and local communities. Its goal is to ensure agricultural stability for farmers while also preserving and restoring the traditional way of life within the agricultural community. The production method of organic agriculture in Thai society necessitates that farmers adopt a humble approach and adjust their production techniques to align with natural methods that are in harmony with the local agricultural community (Kangogo et al., 2021; Suwanmaneepong et al., 2020). The importance of enhancing the management of the organic agricultural industry for sustainable growth has been emphasised. The researcher aims to investigate the management guidelines for sustainable growth in the organic agriculture industry, specifically focusing on organic plants. The researcher expects that the research findings will provide useful guidance for private sector organisations in future management of their organic agriculture industry. Literature Review The researcher has gathered significant information on the mailto:pimyadalaw21@gmail.com AgBioForum, 25(3), 2023 | 45 Charoenpanich et al. - Guidelines for Managing the Organic Agriculture Industry in Organic Plant Types for Sustainable Growth guidelines for sustainable growth in the organic agricultural industry. Various forms of organic farming operation and management exist, which differ across countries. The Japanese management style of farming adopts a humble approach, guided by the principle of avoiding four practices: refraining from ploughing the land, abstaining from using chemical fertilisers, minimising weeding, particularly by avoiding pesticides, and strictly prohibiting the use of chemicals. Fukuoka's natural agricultural approach is seen as having a significant influence on the Thai alternative agriculture movement in the near future (Sapbamrer & Thammachai, 2021; Uthai & Boonrahong, 2023). The Korean management style emphasizes natural agriculture and soil fertility enhancement. Utilizing local microorganisms to ferment agricultural waste, such as animal manure, enhances soil fertility and boosts economic profitability. Compared to the Fukuoka method, which requires a longer adjustment period, the natural agricultural system based on Korean methods has gained more widespread adoption and popularity (Liao et al., 2022). Thailand employs a holistic agricultural production management method that differs from modern agriculture. This method prioritises maximising production through the development of techniques for providing plant nutrients and preventing or eliminating organisms that may reduce productivity. Farmer entrepreneurs perceive farms as agro-industrial businesses and aim to integrate the economy with the community. Farmer entrepreneurs primarily engage in value addition to agricultural products and continuous industry innovation (Deka & Goswami, 2020). Farmer entrepreneurs possess superior characteristics and behaviours compared to farmers. Farmers primarily produce agricultural raw materials and generate income from selling them (Kangogo et al., 2021). Agricultural entrepreneurs strategically manage agricultural businesses to achieve their goals, showcasing leadership and management skills. This finding aligns with previous studies that investigated the relationship between entrepreneurial behaviour and factors such as innovation, creativity, value creation, and continuous opportunity-seeking (Janker et al., 2021). The environment has undergone significant changes within and outside organisations in the era of globalisation. Hence, organisations must avoid stagnation as it hampers their ability to compete with rivals and survive in the long run (Condor, 2020). In order to achieve a competitive advantage, entrepreneurs must consistently engage in self-development to ensure that their businesses maintain a leading position (Manyise & Dentoni, 2021). The creation of a competitive advantage involves extracting value from organisational resources, which consist of four essential elements as follows: 1) The creation of operational value through the utilisation of existing resources is a valuable resource. 2) The second strategy involves utilizing limited or rare resources. 3) Leveraging resources that are challenging to imitate or replicate (imperfectly imitable resources) 4) Implementing non-substitutable resources. These elements are essential for maintaining the organisation's sustained competitive advantage (Umar et al., 2020). Knowledge management is essential in the organic farming industry to ensure the appropriate quality and quantity that align with the added value. According to Tindiwensi et al. (2020), a comprehensive understanding of management in organic agriculture involves familiarity with tasks such as crop selection, site suitability assessment, and consideration of key success factors. Effective weather information management and knowledge of suitable cultivation areas are crucial for achieving success in organic farming. Due to the wide range of agricultural products and geographical regions, each area necessitates specialised knowledge (Żywiołek et al., 2021). Thailand's extensive agricultural history and diverse regions contribute to its abundant agricultural knowledge, which offers a competitive edge. Knowledge management refers to the systematic management of knowledge within an organization. The process involves identifying and collecting existing knowledge, classifying it, disseminating and exchanging it, and fostering a conducive learning environment. The objective is to utilise acquired knowledge to support organisational goals (Salavisa et al., 2021). The sustainable management of the organic agricultural industry is crucial for the advancement of both smallholder farmers and larger agricultural systems in Thailand. These practices aim to promote sustainability in terms of the economy, society, and the environment. The following factors are crucial for the sustainable management of the organic farming industry: 1) Enhancing soil quality Ensuring and enhancing soil quality is crucial for maximising crop yields. Nowadays, there are numerous organic methods available that improve soil quality without the use of chemicals. 2) utilisation of suitable technology. It is important for farmers to utilise suitable technology for organic production, as certain stages of the production process may necessitate the use of labour-saving machines to minimise human labour expenses and other factors (Anderberg, 2020) Regulating the use of chemicals. Minimising the use of chemicals in crop cultivation holds significant value in organic agriculture. Currently, certain farmer factions have successfully adopted a completely chemical-free farming approach. 4) Exploring sustainability in agricultural systems. Emphasising the significance of sustainability in food and crop production, environmental conservation, and establishing stability in the organic farming system is crucial to supporting the future generation of farmers and fostering progress in various aspects. 5) Organic agriculture is a viable option for small farmers in need of support, particularly those who currently lack access to government assistance. It is critical to improve the agricultural system's sustainability while also providing support and education to farmers about organic farming. Efforts should be made to improve the efficiency of managing the organic agricultural industry, ensuring its long-term viability, and facilitating its transfer to future generations (Lu et al., 2020) Supporting and promoting entrepreneurs in the organic agriculture industry is crucial for creating sustainability in the Thai agricultural sector. By reducing obstacles and increasing opportunities for further business expansion, we can ensure a brighter future for this industry. They play a critical role in the production and development of the agri-food industry, which includes: 1) Organic farming methods promote safety for farmers by reducing the use of chemicals, protecting them from toxins, improving their health, and enhancing their agricultural efficiency and AgBioForum, 25(3), 2023 | 46 Charoenpanich, Pongsiri, Thawornsujaritkul. — Guidelines for Managing the Organic Agriculture Industry in Organic Plant Types for … continuity. Currently, there is a significant increase in the number of patients from the agricultural sector, attributed to multiple factors leading to various diseases (Mungkung et al., 2022). Using organic methods in agriculture reduces the release of toxic substances into the soil and water, which is environmentally for the environment in terms of environmental friendliness. Environmentally friendly agricultural products can enhance their value through sustainable production methods. Preserving future farmland and employing organic methods help maintain soil fertility. This study focuses on the utilisation of plants for soil nourishment after harvesting and the application of organic fertilisers to enhance the topsoil's nutrient content. As a result, farmland maintains its fertility, ensuring its suitability for future agricultural production. Organic farming has multiple benefits for farmers, the environment, and society. Therefore, we should carefully evaluate it as a viable option for expanding agricultural businesses and promoting sustainable growth (Ahmed et al., 2020). Research Hypotheses H1: The Entrepreneurship components directly influence Knowledge Management components. H2: The Entrepreneurship component directly influences the components of Innovation Management. H3: The Entrepreneurial components directly influence Supply Chain Management components. H4: Innovation Management components directly influence Knowledge Management components. H5: Innovation Management components directly influence Supply Chain Management components. Theoretical Framework The theoretical framework of this research represents the coherence between the variables in the study which can be considered as follows: 1) Entrepreneurship is indicated as the independent variable, directly influencing both Innovation Management and Supply Chain Management. 2) Innovation Management is indicated as a mediating variable, influencing both Knowledge Management and Supply Chain Management. 3) Knowledge Management and Supply Chain Management are indicated dependent variables, influenced by both Entrepreneurship and Innovation Management. Figure 1: Theoretical Framework. The theoretical framework represents the coherence between the variables in the study, including: 1. Entrepreneurship is the independent variable in this study, meaning it is the factor being manipulated to observe its impact on other variables. 2. Innovation Management acts as a mediating variable, impacting the relationship between entrepreneurship and other variables, such as knowledge management and supply chain management. 3. Knowledge Management is a dependent variable that is measured based on changes in entrepreneurship and innovation management. 4. Supply Chain Management is a dependent variable that is predicted based on changes in entrepreneurship and innovation management. Research Methodology This study examines the influence of entrepreneurship on supply chain management (SCM), knowledge management, and innovation management. Additionally, it investigates the impact of innovation management on knowledge management and SCM. The study utilized primary data collected from respondents via survey questionnaires. This study derived its questionnaires from previous research. The entrepreneurship section consists of six questions adapted from Alsafadi et al. (2020). The innovation management section includes six questions taken from Didonet & Diaz- Villavicencio (2020). The knowledge management section comprises eight items extracted from Abdulmuhsin et al. (2021). Lastly, the supply chain management section consists of four questions taken from Astuty et al. (2021). Furthermore, the employees were chosen from the organic agricultural sector. The selected employees are the respondents of the study. The employees were selected through simple random sampling. The surveys were distributed to employees through personal visits and emails. A total of 622 surveys were distributed, resulting in 357 valid responses, indicating a response rate of approximately 57.40 percent. The study also employed smart-PLS to analyse the relationship between variables. The statistical tool is effective for analysing primary data and yields excellent outcomes, even when complex models are used by researchers (Hair et al., 2017; Hair Jr et al., 2020). Finally, the study employed one independent variable, entrepreneurship (ENT), along with two mediator variables, innovation management (INM) and knowledge management (KNM), and one predictive variable, supply chain management (SCM). The variables mentioned in Figure 1 are referenced above. Study Results This study investigates the correlation between the items using Alpha. The results indicate that the values exceed the threshold of 0.70. The study investigates the correlation between the items using composite reliability (CR). The results indicate that the values exceed the threshold of 0.70. The study investigates the correlation between the items using factor loadings. The results indicate that the values exceed the threshold of 0.50. The study investigates the correlation between the items using average variance extracted (AVE). The results indicate that the values exceed the threshold of 0.50. The values indicate a high correlation between the items. The figures are presented in Table 1. AgBioForum, 25(3): 44-51. ©2023 AgBioForum Charoenpanich et al. - Guidelines for Managing the Organic Agriculture Industry in Organic Plant Types for Sustainable Growth Table 1: Convergent Validity. Constructs Items Loadings Alpha CR AVE Entrepreneurship ENT1 0.878 0.922 0.939 0.720 ENT2 0.799 ENT3 0.810 ENT4 0.877 ENT5 0.861 ENT6 0.863 Innovation Management INM1 0.831 0.860 0.896 0.591 INM2 0.824 INM3 0.735 INM4 0.773 INM5 0.760 INM6 0.678 Knowledge Management KNM1 0.838 0.905 0.923 0.602 KNM2 0.795 KNM3 0.794 KNM4 0.694 KNM5 0.791 KNM6 0.776 KNM7 0.764 KNM8 0.745 Supply Chain Management SCM1 0.780 0.794 0.865 0.617 SCM2 0.810 SCM3 0.781 SCM4 0.769 The study investigates the correlation between the variables using the Fornell Larcker method. The first value in the column is larger than the other values in the same column. The values indicate a low correlation between the variables. The figures are presented in Table 2. Table 2: Fornell Larcker. ENT INM KNM SCM ENT 0.849 INM 0.467 0.769 KNM 0.463 0.534 0.776 SCM 0.599 0.672 0.640 0.785 This study investigates the correlation between variables using cross-loadings. The values indicating the association with the variable itself are larger than the values indicating the association with other variables. The values indicate a low correlation between the variables. The figures are presented in Table 3. Table 3: Cross-Loadings. ENT INM KNM SCM ENT1 0.878 0.425 0.390 0.544 ENT2 0.799 0.398 0.385 0.523 ENT3 0.810 0.354 0.440 0.447 ENT4 0.877 0.387 0.382 0.511 ENT5 0.861 0.436 0.389 0.532 ENT6 0.863 0.371 0.371 0.484 INM1 0.373 0.831 0.498 0.610 INM2 0.373 0.824 0.375 0.542 INM3 0.452 0.735 0.434 0.528 INM4 0.287 0.773 0.430 0.500 INM5 0.297 0.760 0.334 0.464 INM6 0.352 0.678 0.366 0.425 KNM1 0.429 0.446 0.838 0.593 KNM2 0.433 0.408 0.795 0.536 KNM3 0.309 0.459 0.794 0.417 KNM4 0.326 0.387 0.694 0.447 KNM5 0.394 0.447 0.791 0.567 KNM6 0.359 0.365 0.776 0.507 KNM7 0.263 0.422 0.764 0.382 KNM8 0.336 0.371 0.745 0.500 SCM1 0.445 0.540 0.511 0.780 SCM2 0.458 0.661 0.407 0.810 SCM3 0.521 0.450 0.561 0.781 SCM4 0.463 0.429 0.557 0.769 The study investigates the correlation between the variables using the Heterotrait Monotrait (HTMT) ratio. The results indicate that the values are below 0.90. The values indicate a low correlation between variables. The figures are presented in Table 4. AgBioForum, 25(3): 44-51. ©2023 AgBioForum Charoenpanich et al. - Guidelines for Managing the Organic Agriculture Industry in Organic Plant Types for Sustainable Growth Table 4: Heterotrait Monotrait Ratio. ENT INM KNM SCM ENT INM 0.519 KNM 0.504 0.599 SCM 0.699 0.794 0.761 Figure 2: Measurement Assessment Model. The results indicate a significant and positive relationship between entrepreneurship and supply chain management (SCM), knowledge management, and innovation management. This supports hypotheses H1, H2, and H3. The results indicate a significant and positive association between innovation management, SCM, and knowledge management. This supports the acceptance of hypotheses H4 and H5. Table 5 provides the relationships. Table 5: Path analysis. Relationships Beta Standard deviation T statistics P values ENT -> INM 0.467 0.051 9.155 0.000 ENT -> KNM 0.273 0.051 5.387 0.000 ENT -> SCM 0.364 0.044 8.350 0.000 INM -> KNM 0.407 0.058 6.965 0.000 INM -> SCM 0.502 0.045 11.209 0.000 Figure 3: Structural Assessment Model. Discussions The analysis reveals that entrepreneurship is vital in organisational management, specifically in knowledge management, innovation management, and supply chain management. The study suggests that entrepreneurship has a direct impact on knowledge management, as indicated by H1. Li et al. (2020) conducted a prior study that underscores the crucial role of entrepreneurs in shaping and utilising knowledge within organisations. Knowledge management encompasses AgBioForum, 25(3), 2023 | 49 Charoenpanich et al. - Guidelines for Managing the Organic Agriculture Industry in Organic Plant Types for Sustainable Growth key processes including knowledge search, creation, collection, and utilisation, which are crucial for enhancing organisational competitiveness and personnel growth. H2, according to a study conducted by Mokbel Al Koliby et al. (2024), it has been found that entrepreneurship has a direct impact on innovation management. The study also highlights the significant influence of entrepreneurs' ideas for product development on the success of businesses. Innovation management is the process of developing and launching fresh products or services, leveraging technology to enhance their worth and stand out from rivals. The quality of innovative products is essential for meeting customer needs and ultimately improving business success. H3, confirms the direct influence of entrepreneurship on supply chain management, aligning with the findings of Ketchen Jr & Craighead (2020). Their research emphasizes the importance of effective logistics management and marketing strategies in order to compete in highly competitive markets. Efficient supply chain management involves utilising information technology and innovation to optimise processes and enhance cost-effectiveness and efficiency within the organisation. The study by Zhou et al. (2023) supports the notion that innovation management has a direct impact on knowledge management, specifically in relation to organisational efficiency. This finding emphasises the importance of promoting innovative management practices. Risk management and knowledge sharing are crucial for innovation management in organisations. H5 indicates that innovation management directly affects supply chain management, as supported by Adnani et al. (2023) study. This study highlights the strategic importance of supply chain management in implementing new methods and innovations to enhance process efficiency and reduce costs across the supply chain. Effective supply chain management facilitates the smooth movement of materials, goods, or services, leading to overall organisational success. This study aimed to establish guidelines for managing the organic agriculture industry in Thailand in order to facilitate sustainable growth. The study identified four key factors that contribute to the success of sustainable organic agriculture: Supply Chain Management, Knowledge Management, Innovation Management, and Entrepreneurship. The factors were ranked based on their importance, with Supply Chain Management identified as the most critical factor. The results are consistent with prior research highlighting the significance of supply chain management in advancing sustainable agriculture. Efficient supply chain management can enhance profitability for farmers and producers by reducing costs and improving efficiency. Additionally, Knowledge management and innovation management can enhance the development of new technologies and techniques for farmers and producers, leading to improved productivity and sustainability. Entrepreneurship can contribute capital for sustainable agriculture investment. The study's findings have implications for policymakers, farmers, and producers in Thailand's organic agriculture sector. The findings can inform policymakers in developing policies to support supply chain management, knowledge management, innovation management, and entrepreneurship in the agriculture industry. Farmers and producers can utilise the results to enhance their practices, adopt new technologies, and improve productivity and sustainability. Suggestions from the Research Results Government organisations should implement strategies to support and enhance the operations of organic agricultural businesses, ensuring their stability and success. Develop policies and regulatory frameworks to encourage organic agricultural practices, including subsidies for organic certification, tax incentives for organic farmers, and funding for research and development in organic farming techniques. Implement support programmes to facilitate market access for organic agricultural products, including initiatives to strengthen distribution channels, establish an organic product certification standard, and promote consumer awareness of the benefits of organic farming. The study guides policymakers in developing policies to enhance knowledge management and supply chain management through effective entrepreneurial mindsets. Organic farming entrepreneurs should prioritise enhancing the quality of organic agriculture and meeting the evolving demands of customers over time. Prioritising health-conscious consumers, who are likely to be the main customer group, can be achieved through social media distribution channels. Implement continuous training programmes for organic farming entrepreneurs to enhance their knowledge and skills in sustainable farming practices, innovative marketing techniques, and supply chain management strategies relevant to the organic agriculture industry. Promoting collaborations between organic farming entrepreneurs and research institutions or agricultural experts to utilise scientific knowledge and technological advancements for enhancing crop yields, improving product quality, and implementing sustainable farming practices. Recommendations for Future Research The aim is to enhance supply chain management, knowledge management, innovation management, and entrepreneurship in the sector by utilising case studies and pilot programmes. Design training programmes to enhance farmers' and producers' skills in supply chain management, knowledge management, innovation management, and entrepreneurship, aiming to improve sustainability and productivity. This study examines the influence of certification and labelling on consumer behaviour and market demand for organic products in Thailand. Facilitate collaborations and knowledge exchange among stakeholders in the organic agriculture industry to enhance supply chain management and promote innovation. This study aims to examine the social, economic, and environmental advantages of organic agriculture on local communities and the environment. The findings will be used to inform policies and programmes for sustainable development. Conclusion The analysis of the model based on the research hypotheses yielded the following key findings: 1. Entrepreneurship has a direct impact on knowledge management (H1), highlighting the importance of identifying essential knowledge for an organization's success. The key elements of knowledge management include searching for, creating, collecting, and utilizing knowledge. These elements are essential for entrepreneurs to effectively manage knowledge, support AgBioForum, 25(3), 2023 | 50 Charoenpanich, Pongsiri, Thawornsujaritkul. — Guidelines for Managing the Organic Agriculture Industry in Organic Plant Types for … competitive strategies, and facilitate personnel development. 2. Entrepreneurship has a direct impact on innovation management (H2) because entrepreneurs are crucial in developing new products to improve business success. Product innovation management entails developing and launching new products to fulfil customer demands, leveraging technology to enhance value, and distinguishing from rivals. 3. The influence of entrepreneurship on Supply Chain Management (H3) emphasises the importance of effective marketing strategies and efficient logistics management in a competitive business environment. The utilisation of information technology and innovation can provide businesses with advantages in optimising both products and processes. 4. Innovation Management (H4) has a direct impact on Knowledge Management, highlighting the significance of promoting innovative management practices to improve organisational efficiency and effectively manage business risks. 5. Innovation Management has a significant impact on Supply Chain Management (H5). 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