The Market Mechanisms Development for Consultancy Service Provider

Abstract

This research is designed to study the factors that stimulate the demand for the consultancy service and the guidelines for market mechanism development of consultancy service. The data was collected from different approaches, including a focus group of 11 business development service providers and interviews with four consultancy service providers and four SMEs. The results show that consultancy service provider with high experiences and skills is the most important factor
for SMEs’ decision for using the advisory service. In addition to support SMEs as an economic development strategy, the ecosystem is introduced as the guidelines for market mechanism development of consultancy service provider. The processes of developing such ecosystem comprise 1) increasing supply for consultancy service 2) increasing demand for consultancy service 3) creating an environment to increase consultancy service efficiency. Since this is the first research on the market mechanisms development of consultancy service, therefore, the findings of this study contributes to the academic field to propose a framework for the market mechanisms
development of consultancy service industry in Thailand.