Balancing Traditional Practices and International Standards for Herbal Medicine Manufacturing based on Business Scale

Abstract

Traditional herbal medicine production in Thailand is deeply rooted in ancestral knowledge, often practiced by local healers and small drugstores. In response to rising healthcare costs, the Thai government has integrated herbal medicine into the national health system and introduced regulatory standards for production, quality control, packaging, and advertising. While these reforms aim to enhance trade and global competitiveness, many traditional producers struggle to comply, leading to operational discontinuities.This study aims to explore management approaches for herbal medicine production that preserve traditional practices while advancing methods to meet international standards and enhance global competitiveness. Businesses were categorized by annual production value below and above 20 million baht. The research methodologies used included in-depth interviews with nine specialists and a survey of 500 producers.The analysis revealed statistically significant differences in three of four factors. The most notable differences were found in the following areas: Supply Chain Management, including production protocols and quality assurance, Integrated Market Communication, such as branding and consumer engagement, and Networking, which includes partnerships with academic institutions and supply chains. These findings suggest that larger businesses tend to prioritize standardized processes and innovation, while smaller producers value traditional knowledge and community-based practices.