Impact of Strategic Knowledge Management and Technological Development Capabilities on Organizational Competency and Performance: A Case Study of Auto and Automotive Parts Manufacturing Industries in Thailand
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Published:
Sep 30, 2018
Keywords:
Strategic Knowledge and Technological Management Capabilities Organizational Competency Organizational Performance Auto and Automotive Parts Industries in Thailand
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Abstract
This article aims to share a three-folded perspective as the key results of the case study in the auto and automotive parts manufacturing industries in Thailand. Firstly, it points to the roles and interrelations of the four capability factors of the enterprises concerning strategic technological capabilities, knowledge management capabilities, operation and production competency and organizational performance. Secondly, it draws up and shows an integrated model used for assessment of such capability factors and impacts on organizational competency and performance. Lastly, it refers to an investigation and illustration of some critical parameters and effects of these factors. A mixed approach has been deployed, encircling literature review and desk-study & field observations for construction of images of industrial organizations and clusters. A questionnaire of 78 items was designed for surveying. A quantitative analysis applying multiple software packages was carried out upon the sample of 105 cases of the industrial enterprises that responded. Some statistical tools comprising MS Excel, SPSS, AMOS and SmartPLS were implemented based on structural equation modelling. The results have statistically discovered some interrelationships between the conceptualized factors and components. Substantially, it finds tangible correlations between these organizational capabilities, particularly influencing organizational competency and performance.
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Chomphuka, M., NaRanong, A., & Lorsuwannarat, T. (2018). Impact of Strategic Knowledge Management and Technological Development Capabilities on Organizational Competency and Performance: A Case Study of Auto and Automotive Parts Manufacturing Industries in Thailand. NIDA Development Journal, 58(3), 245–275. Retrieved from https://so04.tci-thaijo.org/index.php/NDJ/article/view/163891
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References
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Amaro, S., Abrantes, J. L., & Seabra, C. (2015). Comparing CB-SEM and PLS-SEM results: an empirical example.
Antani, K. R. (2014). A Study of the Effects of Manufacturing Complexity on Product Quality in PIMixed-Model Automotive Assembly. (PhD Dissertation), Clemson University.
Aujirapongpan, S., Vadhanasindhu, P., Chandrachai, A., & Cooparat, P. (2010a). Knowledge Management Capability: Role and Capability of Entrepreneurs in Innovation. Songklanakarin J. of Social Sciences & Humanities, 16(4), 20.
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Blunch, N. (2013). Introduction to structural equation modeling using IBM SPSS statistics and AMOS: Sage.
BOI. (2015). THAILAND: GLOBAL GREEN AUTOMOTIVE PRODUCTION BASE. Retrieved April 1, 2017, from http://www.boi.go.th/upload/content/BOI-brochure%202015-automotive-20150325_70298.pdf.
Bracker, J. (1980). The historical development of the strategic management concept. Academy of management review, 5(2), 219-224.
Certo, S. C., & Peter, J. P. (1991). STRATEGIC MANAGEMENT (2nd ed) Concepts and Applications (2nd ed.): McGraw-Hill Inc.
Chakravarthy, B. S. (1982). Adaptation: A promising metaphor for strategic management. Academy of management review, 7(1), 35-44.
Collinson, S. (1999). Knowledge management capabilities for steel makers: A British-Japanese corporate alliance for organizational learning. Technology Analysis & Strategic Management, 11(3), 337-358.
Chiamchittrong, W. (2010). The influence of entrepreneurship to small and medium sized enterprises performance. Doctor of Public Administration DPA Dissertation, National Institute of Development Administration.
Chomphuka, M. (2018). The Interplay and Impact of Strategic and Knowledge Management on Organizational Performance: An Integrative View of Organizational Competency in the Thai Auto and Automotive Parts Industries. Doctor of Public Administration DPA Dissertation, National Institute of Development Administration.
Cole, G. A. (2004). Management theory and practice: Cengage Learning EMEA.
Cole, R. (2011). What Really Happened to Toyota. MIT Sloan Management Review, 52(4), 29-35.
Cook, S. D., & Yanow, D. (1993). Culture and organizational learning. Journal of management inquiry, 2(4), 373-390.
Creswell, J. W. (2013). Research design: Qualitative, quantitative, and mixed methods approaches (2nd ed.): Sage Publications, Incorporated.
Daft, R. (2010). Understanding the Theory and Design of Organization: SOUTH-WESTERN CENGAGE Learning.
DBD. (2012-2017). Business Data Warehouse. Retrieved from http://datawarehouse.dbd.go.th
/bdw/home/main.html
Gold, A. H. (2001). Towards a theory of organizational knowledge management capabilities. PhD Dissertation), University of North Carolina.
Grant, R. M. (1996a). Prospering in dynamically-competitive environments: organizational capability as knowledge integration. Organization science, 7(4), 375-387.
Grant, R. M. (1996b). Toward a knowledge-based theory of the firm. Strategic management journal, 17(S2), 109-122.
Grant, R. M. (1997). The knowledge-based view of the firm: implications for management practice. Long range planning, 30(3), 450-454.
Grant, R. M., & Baden‐Fuller, C. (2004). A knowledge accessing theory of strategic alliances. Journal of management studies, 41(1), 61-84.
Hair, J. F., Sarstedt, M., Pieper, T. M., & Ringle, C. M. (2012). The use of partial least squares structural equation modeling in strategic management research: a review of past practices and recommendations for future applications. Long range planning, 45(5), 320-340.
Hatrawang, C. (2012). Innovation management on managerial skill and production technology toward competitive potential of auto parts establishments. (PhD), Graduate School of Suan Sunandha Rajabhat University, Bangkok, Thailand.
Henseler, J., Hubona, G., & Ray, P. A. (2016). Using PLS path modeling in new technology research: updated guidelines. Industrial Management & Data Systems, 116(1), 2-20.
Ireland, R. D., Hitt, M. A., Camp, S. M., & Sexton, D. L. (2001). Integrating entrepreneurship and strategic management actions to create firm wealth. The Academy of Management Executive, 15(1), 49-63.
Jones, G. R. (1995). Organizational theory: text and cases: Addison-Wesley.
Knight, R. V. (1995). Knowledge-based development: policy and planning implications for cities. Urban studies, 32(2), 225-260.
Kogut, B., & Zander, U. (1992). Knowledge of the firm, combinative capabilities, and the replication of technology. Organization science, 3(3), 383-397.
Kogut, B., & Zander, U. (1993). Knowledge of the firm and the evolutionary theory of the multinational corporation. Journal of international business studies, 625-645.
Kulkarni, U. R., & Freeze, R. D. (2011). Measuring Knowledge Management Capabilities.
Leonard-Barton, D. (1995). Wellspring of knowledge. Boston: Harvard Business School.
Lorsuwannarat, T. (2005). The knowledge organization: from concept to practice. Thailand.
MOI. (2012). National Industrial Development Master Plan B.E. 2555-2574 (Thai). Retrieved from http://www.oie.go.th/sites/default/files/attachments/industry_plan/National_Industrial_Development_Master_Plan.pdf.
Nonaka, I., Toyama, R., & Konno, N. (2000). SECI, Ba and leadership: a unified model of dynamic knowledge creation. Long range planning, 33(1), 5-34.
Nonaka, I., Reinmoeller, P., & Senoo, D. (1998). TheART'of knowledge: Systems to capitalize on market knowledge. European management journal, 16(6), 673-684.
Nonaka, I., & Toyama, R. (2007). Strategic management as distributed practical wisdom phronesis). Industrial and corporate change, 16(3), 371-394.
Ohmae, K. (1989). The global logic of strategic alliances. Harvard business review, 67(2), 143-154.
Omerzel, D. G. (2010). The impact of knowledge management on SME growth and profitability: a structural equation modelling study. African Journal of Business Management, 4(16), 3417-3432.
Porter, M. E., & Van der Linde, C. (1995). Toward a new conception of the environment-competitiveness relationship. The journal of economic perspectives, 9(4), 97-118.
Porter, M. E. (1998a). Competitive strategy: Techniques for analyzing industries and competitors: with a new introduction/ Michael E. Porter: Free Press.
Porter, M. E. (1998b). Cluster and the new economics of competition.
Porter, M. (2008). Clusters, innovation, and competitiveness: New findings and implications for policy. Paper presented at the Presentation given at the European Presidency Conference on Innovation and Clusters in Stockholm.
Porter, M. E. (2011). Competitive advantage of nations: creating and sustaining superior performance: Simon and Schuster.
Ringle, C. M., Wende, S., & Becker, J.-M. (2015). SmartPLS 3. Boenningstedt: SmartPLS GmbH, http://www. smartpls.com.
Schein, E. H. (1983). Organizational culture: A dynamic model.
Schreiber, J. B., Nora, A., Stage, F. K., Barlow, E. A., & King, J. (2006). Reporting structural equation modeling and confirmatory factor analysis results: A review. The Journal of educational research, 99(6), 323-338.
Schubring, S., Lorscheid, I., Meyer, M., & Ringle, C. M. (2016). The PLS agent: Predictive modeling with PLS-SEM and agent-based simulation. Journal of Business Research, 69(10), 4604-4612.
Spender, J. C. (1996). Making knowledge the basis of a dynamic theory of the firm. Strategic management journal, 17, 45-62.
Spender, J.-C., & Grant, R. M. (1996). Knowledge and the firm: overview. Strategic management journal, 17, 5-9.
Schilling, M. A. (2008). STRATEGIC MANAGEMENT of Technological Innovation., 2nd Edition: McGraw-Hill International Edition.
Schilling, M. A., & Phelps, C. C. (2007). Interfirm collaboration networks: The impact of large-scale network structure on firm innovation. Management Science, 53(7), 1113-1126.
Stocchetti, A., & Volpato, G. (2007). Knowledge Management in the automotive supply chain: exploring suppliers' point of view. International Journal of Automotive Technology and Management, 7(2), 184-199.
Sveiby, K. E. (1997). The new organizational wealth: Managing and measuring knowledge-based assets: Berrett-Koehler Publishers.
Sveiby, K.-E. (2001a). A knowledge-based theory of the firm to guide in strategy formulation. Journal of intellectual capital, 2(4), 344-358.
Sveiby, K.-E. (2001b). Knowledge management–Lessons from the pioneers. Retrieved July, 4, 2007.
TAI. (2017). Retrieved September 19, 2017, from Source: http://www.sti.or.th/uploads/files/files/20170427%20Automotive%20Industry%20Situation%2C%20Master%20Plan%20K_Rachanida).pdf
Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic management journal, 18(7), 509-533.
Teddlie, C., & Tashakkori, A. (2009). Foundations of mixed methods research: Integrating quantitative and qualitative approaches in the social and behavioral sciences: Sage Publications Inc.
Tseng, S.-M., & Lee, P.-S. (2014). The effect of knowledge management capability and dynamic capability on organizational performance. Journal of Enterprise Information Management, 27(2), 5-5.
Vinzi, V., Chin, W. W., Henseler, J., & Wang, H. (2010). Handbook of partial least squares: Springer.
Von Krogh, G., Nonaka, I., & Aben, M. (2001). Making the most of your company's knowledge: a strategic framework. Long range planning, 34(4), 421-439.
Wiig, K. M. (1997). Integrating intellectual capital and knowledge management. Long range planning, 30(3), 399-405.
Williams, J., Peterson, T., Couch, L., & Parris, A. (2016). 2016 Top Markets Report Automotive Parts. Retrieved April 15, 2018, from https://www.trade.gov/topmarket/pdf/autoparts_Top_Markets_Report.pdf
Wong, K. K.-K. (2013). Partial least squares structural equation modeling PLS-SEM) techniques using SmartPLS. Marketing Bulletin, 24(1), 1-32.
Wong, W. P., & Wong, K. Y. (2011). Supply chain management, knowledge management capability, and their linkages towards firm performance. Business Process Management Journal, 17(6), 940-964.
Zack, M. H. (1999). Developing a knowledge strategy. The strategic management of intellectual capital and organizational knowledge, 255-276.
Zaied, A. N. H. (2012). An integrated knowledge management capabilities framework for assessing organizational performance. International Journal of Information Technology and Computer Science IJITCS), 4(2), 1.
Zander, U., & Kogut, B. (1995). Knowledge and the speed of the transfer and imitation of organizational capabilities: An empirical test. Organization science, 6(1), 76-92.
Alfaro, A. L., Bizuneh, G., Moore, R., Porter, M., Ueno, S., & Wang, R. (2012). South Africa: Automotive Cluster: Retrieved from Harvard Business School, Microeconomics of Competitiveness website: http://www.isc.hbs.edu/pdf/Student_Projects/2012% 20MOC% 20Papers/MOC.
Amaro, S., Abrantes, J. L., & Seabra, C. (2015). Comparing CB-SEM and PLS-SEM results: an empirical example.
Antani, K. R. (2014). A Study of the Effects of Manufacturing Complexity on Product Quality in PIMixed-Model Automotive Assembly. (PhD Dissertation), Clemson University.
Aujirapongpan, S., Vadhanasindhu, P., Chandrachai, A., & Cooparat, P. (2010a). Knowledge Management Capability: Role and Capability of Entrepreneurs in Innovation. Songklanakarin J. of Social Sciences & Humanities, 16(4), 20.
Aujirapongpan, S., Vadhanasindhu, P., Chandrachai, A., & Cooparat, P. (2010b). Indicators of knowledge management capability for KM effectiveness. Vine, 40(2), 183-203.
Asawachintachit, D. (2014). “Thailand-Automotive Hub of Asia”. Retrieved January 8, 2016, from http://thailand.ahk.de/fileadmin/ahk_thailand/downloads/bw-i/Thailand_Auto_Hub_of_Asia_April_2014.Rev__23Apr14_.pdf.
Blunch, N. (2013). Introduction to structural equation modeling using IBM SPSS statistics and AMOS: Sage.
BOI. (2015). THAILAND: GLOBAL GREEN AUTOMOTIVE PRODUCTION BASE. Retrieved April 1, 2017, from http://www.boi.go.th/upload/content/BOI-brochure%202015-automotive-20150325_70298.pdf.
Bracker, J. (1980). The historical development of the strategic management concept. Academy of management review, 5(2), 219-224.
Certo, S. C., & Peter, J. P. (1991). STRATEGIC MANAGEMENT (2nd ed) Concepts and Applications (2nd ed.): McGraw-Hill Inc.
Chakravarthy, B. S. (1982). Adaptation: A promising metaphor for strategic management. Academy of management review, 7(1), 35-44.
Collinson, S. (1999). Knowledge management capabilities for steel makers: A British-Japanese corporate alliance for organizational learning. Technology Analysis & Strategic Management, 11(3), 337-358.
Chiamchittrong, W. (2010). The influence of entrepreneurship to small and medium sized enterprises performance. Doctor of Public Administration DPA Dissertation, National Institute of Development Administration.
Chomphuka, M. (2018). The Interplay and Impact of Strategic and Knowledge Management on Organizational Performance: An Integrative View of Organizational Competency in the Thai Auto and Automotive Parts Industries. Doctor of Public Administration DPA Dissertation, National Institute of Development Administration.
Cole, G. A. (2004). Management theory and practice: Cengage Learning EMEA.
Cole, R. (2011). What Really Happened to Toyota. MIT Sloan Management Review, 52(4), 29-35.
Cook, S. D., & Yanow, D. (1993). Culture and organizational learning. Journal of management inquiry, 2(4), 373-390.
Creswell, J. W. (2013). Research design: Qualitative, quantitative, and mixed methods approaches (2nd ed.): Sage Publications, Incorporated.
Daft, R. (2010). Understanding the Theory and Design of Organization: SOUTH-WESTERN CENGAGE Learning.
DBD. (2012-2017). Business Data Warehouse. Retrieved from http://datawarehouse.dbd.go.th
/bdw/home/main.html
Gold, A. H. (2001). Towards a theory of organizational knowledge management capabilities. PhD Dissertation), University of North Carolina.
Grant, R. M. (1996a). Prospering in dynamically-competitive environments: organizational capability as knowledge integration. Organization science, 7(4), 375-387.
Grant, R. M. (1996b). Toward a knowledge-based theory of the firm. Strategic management journal, 17(S2), 109-122.
Grant, R. M. (1997). The knowledge-based view of the firm: implications for management practice. Long range planning, 30(3), 450-454.
Grant, R. M., & Baden‐Fuller, C. (2004). A knowledge accessing theory of strategic alliances. Journal of management studies, 41(1), 61-84.
Hair, J. F., Sarstedt, M., Pieper, T. M., & Ringle, C. M. (2012). The use of partial least squares structural equation modeling in strategic management research: a review of past practices and recommendations for future applications. Long range planning, 45(5), 320-340.
Hatrawang, C. (2012). Innovation management on managerial skill and production technology toward competitive potential of auto parts establishments. (PhD), Graduate School of Suan Sunandha Rajabhat University, Bangkok, Thailand.
Henseler, J., Hubona, G., & Ray, P. A. (2016). Using PLS path modeling in new technology research: updated guidelines. Industrial Management & Data Systems, 116(1), 2-20.
Ireland, R. D., Hitt, M. A., Camp, S. M., & Sexton, D. L. (2001). Integrating entrepreneurship and strategic management actions to create firm wealth. The Academy of Management Executive, 15(1), 49-63.
Jones, G. R. (1995). Organizational theory: text and cases: Addison-Wesley.
Knight, R. V. (1995). Knowledge-based development: policy and planning implications for cities. Urban studies, 32(2), 225-260.
Kogut, B., & Zander, U. (1992). Knowledge of the firm, combinative capabilities, and the replication of technology. Organization science, 3(3), 383-397.
Kogut, B., & Zander, U. (1993). Knowledge of the firm and the evolutionary theory of the multinational corporation. Journal of international business studies, 625-645.
Kulkarni, U. R., & Freeze, R. D. (2011). Measuring Knowledge Management Capabilities.
Leonard-Barton, D. (1995). Wellspring of knowledge. Boston: Harvard Business School.
Lorsuwannarat, T. (2005). The knowledge organization: from concept to practice. Thailand.
MOI. (2012). National Industrial Development Master Plan B.E. 2555-2574 (Thai). Retrieved from http://www.oie.go.th/sites/default/files/attachments/industry_plan/National_Industrial_Development_Master_Plan.pdf.
Nonaka, I., Toyama, R., & Konno, N. (2000). SECI, Ba and leadership: a unified model of dynamic knowledge creation. Long range planning, 33(1), 5-34.
Nonaka, I., Reinmoeller, P., & Senoo, D. (1998). TheART'of knowledge: Systems to capitalize on market knowledge. European management journal, 16(6), 673-684.
Nonaka, I., & Toyama, R. (2007). Strategic management as distributed practical wisdom phronesis). Industrial and corporate change, 16(3), 371-394.
Ohmae, K. (1989). The global logic of strategic alliances. Harvard business review, 67(2), 143-154.
Omerzel, D. G. (2010). The impact of knowledge management on SME growth and profitability: a structural equation modelling study. African Journal of Business Management, 4(16), 3417-3432.
Porter, M. E., & Van der Linde, C. (1995). Toward a new conception of the environment-competitiveness relationship. The journal of economic perspectives, 9(4), 97-118.
Porter, M. E. (1998a). Competitive strategy: Techniques for analyzing industries and competitors: with a new introduction/ Michael E. Porter: Free Press.
Porter, M. E. (1998b). Cluster and the new economics of competition.
Porter, M. (2008). Clusters, innovation, and competitiveness: New findings and implications for policy. Paper presented at the Presentation given at the European Presidency Conference on Innovation and Clusters in Stockholm.
Porter, M. E. (2011). Competitive advantage of nations: creating and sustaining superior performance: Simon and Schuster.
Ringle, C. M., Wende, S., & Becker, J.-M. (2015). SmartPLS 3. Boenningstedt: SmartPLS GmbH, http://www. smartpls.com.
Schein, E. H. (1983). Organizational culture: A dynamic model.
Schreiber, J. B., Nora, A., Stage, F. K., Barlow, E. A., & King, J. (2006). Reporting structural equation modeling and confirmatory factor analysis results: A review. The Journal of educational research, 99(6), 323-338.
Schubring, S., Lorscheid, I., Meyer, M., & Ringle, C. M. (2016). The PLS agent: Predictive modeling with PLS-SEM and agent-based simulation. Journal of Business Research, 69(10), 4604-4612.
Spender, J. C. (1996). Making knowledge the basis of a dynamic theory of the firm. Strategic management journal, 17, 45-62.
Spender, J.-C., & Grant, R. M. (1996). Knowledge and the firm: overview. Strategic management journal, 17, 5-9.
Schilling, M. A. (2008). STRATEGIC MANAGEMENT of Technological Innovation., 2nd Edition: McGraw-Hill International Edition.
Schilling, M. A., & Phelps, C. C. (2007). Interfirm collaboration networks: The impact of large-scale network structure on firm innovation. Management Science, 53(7), 1113-1126.
Stocchetti, A., & Volpato, G. (2007). Knowledge Management in the automotive supply chain: exploring suppliers' point of view. International Journal of Automotive Technology and Management, 7(2), 184-199.
Sveiby, K. E. (1997). The new organizational wealth: Managing and measuring knowledge-based assets: Berrett-Koehler Publishers.
Sveiby, K.-E. (2001a). A knowledge-based theory of the firm to guide in strategy formulation. Journal of intellectual capital, 2(4), 344-358.
Sveiby, K.-E. (2001b). Knowledge management–Lessons from the pioneers. Retrieved July, 4, 2007.
TAI. (2017). Retrieved September 19, 2017, from Source: http://www.sti.or.th/uploads/files/files/20170427%20Automotive%20Industry%20Situation%2C%20Master%20Plan%20K_Rachanida).pdf
Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic management journal, 18(7), 509-533.
Teddlie, C., & Tashakkori, A. (2009). Foundations of mixed methods research: Integrating quantitative and qualitative approaches in the social and behavioral sciences: Sage Publications Inc.
Tseng, S.-M., & Lee, P.-S. (2014). The effect of knowledge management capability and dynamic capability on organizational performance. Journal of Enterprise Information Management, 27(2), 5-5.
Vinzi, V., Chin, W. W., Henseler, J., & Wang, H. (2010). Handbook of partial least squares: Springer.
Von Krogh, G., Nonaka, I., & Aben, M. (2001). Making the most of your company's knowledge: a strategic framework. Long range planning, 34(4), 421-439.
Wiig, K. M. (1997). Integrating intellectual capital and knowledge management. Long range planning, 30(3), 399-405.
Williams, J., Peterson, T., Couch, L., & Parris, A. (2016). 2016 Top Markets Report Automotive Parts. Retrieved April 15, 2018, from https://www.trade.gov/topmarket/pdf/autoparts_Top_Markets_Report.pdf
Wong, K. K.-K. (2013). Partial least squares structural equation modeling PLS-SEM) techniques using SmartPLS. Marketing Bulletin, 24(1), 1-32.
Wong, W. P., & Wong, K. Y. (2011). Supply chain management, knowledge management capability, and their linkages towards firm performance. Business Process Management Journal, 17(6), 940-964.
Zack, M. H. (1999). Developing a knowledge strategy. The strategic management of intellectual capital and organizational knowledge, 255-276.
Zaied, A. N. H. (2012). An integrated knowledge management capabilities framework for assessing organizational performance. International Journal of Information Technology and Computer Science IJITCS), 4(2), 1.
Zander, U., & Kogut, B. (1995). Knowledge and the speed of the transfer and imitation of organizational capabilities: An empirical test. Organization science, 6(1), 76-92.