Project Evaluation Trend in Thailand Based on Critical Factors Index

  • Kereboon Champathed Shinawatra International University
  • Chuvej Chansa-ngavej Shinawatra International University


Abstract: This paper aims to investigate the recent trend of the use of project evaluation techniques based on opinions of financial managers in Thai firms. The research uses a questionnaire built on a Sense and Respond (S&R) method called Critical Factors Index (CFI). It examines the trend using such CFI terms as importance, experiences, expectations, gaps, deviations and direction of development. The results show several critical areas for improvement needed including customer perspective and the traditional use of payback technique for project evaluation in the firm. The results also show that the needed improvement is more critical in small firms than in medium and large firms. The results further show that the improvement needed is more critical for merchandizing firms than for manufacturing and service firms.


Download data is not yet available.


Bradley, S. P. & Nolan R. L. (1998). Sense and Respond: Capturing Value in the Network Era. Harvard Business School Press. Baiman, S. & Baldenius, T. (2009). Non-Financial Performance Measures as Coordination Devices. The Accounting Review, 84(2), 299-330. Champathed, K. & Chansa-ngavej, C. (2012). A contingency model of capital budgeting decisions in the new economy. International Seminar on Science and Technology innovations 2012. Jakarta. Champathed, K. & Chansa-ngavej, C. (2015). Capital budgeting practice of Thai firms. Information Management and Business Review, 7(1), 59-66. Chansa-ngavej, C. (2009). Total Profitability Analysis. Thailand: Sinthu Creation Co.,Ltd. Chareonsuk, C. & Chansa‐ngavej, C. (2010) Intangible asset management framework: an empirical evidence. Industrial Management & Data Systems, 110(7), 1094 – 1112. Chen, S. (2008). DCF techniques and non financial measures in capital budgeting: a contingency approach analysis. Behavioral Research in Accounting, 20(1), 13-29. Dossi, A. & Patelli, L. (2010). You learn from what you measure: Financial and non-fiancial performance measures in multinational companies. Long Range Planning, 43, 498-526. Eccles, R. G. (1991). The Performance Measurement Manifesto. Harvard Business Review, 69, 131-137. Graham, J. R. & Harvey C. R. (2001). The theory and practice of corporate finance: Evidence from the field. Journal of Financial Economics, 60, 187–243. Kaplan, R. S. & Norton, D. P. (1992). The Balanced Scorecard: Measures that Drive Performance. Harvard Business Review, 2, 71-79. Nadler, D. & Takala, J. (2010). The development of the critical factor index method. Proceedings of the 7th International Conferrence on Innovation & Management, 1333-1338. Ong, T. S. & Teh, B. H. (2009). The use of financial and non-financial performance measures in the Malaysian manufacturing companies. The lcfai Journal of Accounting Research, 8(1), 23-30. Peterson, P. P. & Fabozzi, F. J. (2002). Capital Budgeting: Theory and Practice. Canada: John Wiley & Sons, Inc. Ranta, J. M. & Takala, J. (2007). A holistic method for finding out critical features of industry maintenance servicces. International Journal of Services and Standards, 3(3), 312-325. Ryan, P. A. (2002). Capital budgeting practices of the Fortune 100" How have things changed? Journal of Business and Management, 8(4), 1-15. Schall, L. D., Sundem, G. L. & Geijsbeek Jr., W. R. (1978). Survey and Analysis of Captial Budgeting Methods. Journal of Finance, 33(1), 281-287. Scheepers, C. (2003). Capital finance decisions for project managers- a reflection on current methods. Acta Commercii, 3(1), 23-28. Seitz, N. & Ellison, M. (1990). Capital Budgering and Long-Term Financial Decisions (Third ed.). Harcourt College Publishers.
How to Cite
CHAMPATHED, Kereboon; CHANSA-NGAVEJ, Chuvej. Project Evaluation Trend in Thailand Based on Critical Factors Index. Information Management and Business Review, [S.l.], v. 8, n. 5, p. 6-13, dec. 2016. ISSN 2220-3796. Available at: <>. Date accessed: 28 feb. 2017.
Research Paper