THE RELATION BETWEEN INSTITUTIONAL CONTEXT AND BUSINESS PERFORMANCE OF THE FIRMS WITHIN VAT REFUND FOR TOURISTS IN CHIANG MAI

Abstract

          This article demonstrates the effects of business motivation on implementing value added tax refund for tourists’ systems (VAT refund). It examined the relationship between the institutional context and business performances of the firms within value added tax (VAT) refund for tourists in Chiang Mai, both in internal context and external context. The findings showed that internal institutional context, consisting of management factor and marketing factor had the positive effect on business performance. Therefore, a key decision for managers or owners was to focus on internal institutional context for making a decision to implement VAT refund which helped to achieve business performance.