STRUCTURAL MODELS RELATIONSHIPS BETWEEN FACTORS AFFECTING AUTOMOTIVE PARTS AND PARTS PRODUCERS' OPERATIONS IN THE EASTERN ECONOMIC CORRIDOR (EEC), THAILAND

Authors

  • ประจักษ์ พรมงาม Siam technology college
  • Chitpong Ayasanond College of Logistics and Supply Chain, Suansunandha Rajabhat University

DOI:

https://doi.org/10.14456/nrru-rdi.2021.75

Keywords:

Operations, Automotive Parts and Parts Producers, Structural Models

Abstract

    To strengthen the Thai automotive industry in having the opportunity to expand the production base was one of the important factors that led to this quantitative research. The objective was to study the influence of enterprise knowledge management, enterprise innovation management, enterprise supply chain risk management that affects the supply chain performance of parts manufacturer’s organization. The population of 1,261 companies was used to determine the sample size by means of variable estimation method 1: 20 equals 460 participants. The research tool was a questionnaire with a confidence value of 0.88. Data collection was conducted online and analyzed the data using inferential statistics with structural equation analysis techniques. The results of the supply chain performance in automotive parts and manufacturing were influenced by enterprise knowledge management, enterprise Innovation management, and supply chain risk management. As a result, operational potential and competitiveness were higher. It was also found out that the chosen model of factors achieved at a high level of the goodness with the empirical data. The coefficient of determination in 60.3 found that consumers had comfortable responses to relationships based on innovation and technology which can support all aspects. Manufacturers should focus on service innovations, gained from sharing and transferring knowledge that can build flexibility in the organization's supply chain to achieve optimal cost control in order to meet the needs and support technological innovation and supply chain risk management in contrast to the cause of any interruption in the business's operation.

References

Aekphan, M. (2019). Structural Relationship Model of Organizational Learning Capability, Organizational Innovativeness, Competitive Advantage and Firm Performance: An Empirical Investigation from Parts Automotive in Thailand. Journal of Modern Management Science, 12(2), 1-20. (In Thai)

Ar, I. M., & Baki, B. (2011). Antecedents and performance impacts of product versus process innovation. European Journal of Innovation Management, 14(2), 172-206.

Asamoah, D., Agyei-Owusu, B., Andoh-Baidoo, F. K., & Ayaburi, E. (2020). Inter-organizational systems use and supply chain performance: Mediating role of supply chain management capabilities. International Journal of Information Management, 102195, 1-11.

Best, J. W. (1977). Research in Education (3rd ed.). Englewod cliffs, N.J. : Prentice-Hall.

Chaemfah, A. (2018). Electric cars and the Thai car industry. Retrieved June 17, 2020, from https://www.gsbresearch.or.th/wp-content/uploads/2018/03/16IN_hotissue_car_electronic _detail.pdf (In Thai)

Cronbach, L. J. (1984). A research worker's treasure chest. Multivariate behavioral research, 19(2-3), 223-240.

Daud, S., & Yusoff, W. F. W. (2010). Knowledge management and firm performance in SMEs: The role of social capital as a mediating variable. Asian Academy of Management Journal, 15(2), 135-155.

Delic, M., Eyers, D. R., & Mikulic, J. (2019). Additive manufacturing: empirical evidence for supply chain integration and performance from the automotive industry. Supply Chain Management: An International Journal, 24(5), 604-621.

Department of Industrial Works. (2020). Factory licensed to operate an industrial factory including monthly and yearly factory licensed statistics according to the Factory Act B.E. 2535. Retrieved July 20, 2020, from https://www.diw.go.th/hawk/content.php?mode= dataservice (In Thai)

Dogan, M., & Dogan, H. (2020). Knowledge Sharing, Innovation and Firm Performance: Evidence from Turkey. Financial Studies, 24(1), 36-52.

Eber, L., Vega, D., & Grant, D. B. (2019). Using key supplier relationship management to enable supply chain risk management in the automotive industry. Journal of Supply Chain Management: Research and Practice, 13(1), 14-26.

Electricity Generating Authority of Thailand. (2017). Electric Infrastructure Development Plan Report to support electric vehicles of Thailand. Retrieved July 20, 2020, from https:// www.egat.co.th/index.php?option=com_content&view=article&id=1780&Itemid=207 (In Thai)

Faertes, D., (2015). Reliability of supply chains and business continuity management. Procedia Computer Science, 55, 1400-1409.

Heidari, S. S., Khanbabaei, M., & Sabzehparvar, M. (2018). A model for supply chain risk management in the automotive industry using fuzzy analytic hierarchy process and fuzzy TOPSIS. Benchmarking: An International Journal, 25(9), 3831-3857.

Hock, D. M., Clauss, T., Kraus, S., & Cheng, C. F. (2021). Knowledge management capabilities and organizational risk-taking for business model innovation in SMEs. Journal of Business Research, 130, 683-697.

Kaiyawan, Y. (2013). Structural equation model analysis with AMOS. Bangkok : V. print (1991). (In Thai)

Kasikorn research. (2017). The electric vehicle era is booming, supporting the rising Thai SMEs. Retrieved June 17, 2020, from https://www.kasikornbank.com/th/business/sme/KSMEKnowledge/article/KSMEAnalysis/Documents/Electric-Vehicle_Full.pdf (In Thai)

Kline, R. B. (2015). Principles and Practice of Structural Equation Modeling. United States of America : New York.

Liao, S. H., Hu, D. C., & Ding, L. W. (2017). Assessing the influence of supply chain collaboration value innovation, supply chain capability and competitive advantage in Taiwan's networking communication industry. International Journal of Production Economics, 191, 143-153.

Nawaz, M. S., & Shaukat, S. (2014). Impact of knowledge management practices on firm performance: Testing the mediation role of innovation in the manufacturing sector of Pakistan. Pakistan Journal of Commerce and Social Sciences, 8(1), 99-111.

Pichayasupakoon, T., & Wanarat, S. (2020). The Causal Relationship of Risk in Accounting and Finance, Firm Internal Management, and Firm Performance within Supply Chain of Automotive and Automotive Parts Industry in Thailand. Journal of Economics and Management Strategy, 7(2), 75-92. (In Thai)

Posttoday. (2021). It is estimated that in the next 7 years, Thai people use electric cars to touch a million cars. Retrieved July 7, 2021, from https://www.posttoday.com/finance-stock/news/ 656007 (In Thai)

Praipaisarnkit, K. (2021). Electric Vehicles : Trends, Motives and Investment Opportunities. Retrieved July 7, 2021, from https://www.setinvestnow.com/th/knowledge/article/198-investment -opportunity-from-automotive-industry (In Thai)

Read, A. (2000). Determinants of successful organizational innovation: a review of current research. Journal of management practice, 3(1), 95-119.

Rehman, A. U., & Anwar, M. (2019). Mediating role of enterprise risk management practices between business strategy and SME performance. Small Enterprise Research, 26(2), 207-227.

Sakuramoto, C., Di Serio, L. C., & de Vicente Bittar, A. (2019). Impact of supply chain on the competitiveness of the automotive industry. RAUSP Management Journal, 54(2), 205-225.

Schumacker, E., & Lomax, G. (2016). A beginner’s guide to structural equation modeling (3th ed). New York: Taylor & Francis.

Serpella, A. F., Ferrada, X., Howard, R., & Rubio, L. (2014). Risk management in construction projects: a knowledge-based approach. Procedia-Social and Behavioral Sciences, 119, 653-662.

Shakerian, H., Dehnavi, H. D., & Shateri, F. (2016). A framework for the implementation of knowledge management in supply chain management. Procedia-Social and Behavioral Sciences, 230, 176-183.

Silcharu, T. (2017). Statistical Data Analysis and Research by SPSS and AMOS (17th ed). Bangkok : Business R & D Ordinary Partnership. (In Thai)

Suksawang, P. (2014). The Basics of Structural Equation Modeling. Princess of Naradhiwas University Journal, 6(2), 136-145. (In Thai)

Supply Chain Council. (2012). SCOR Supply Chain Operations Reference Model Revision 11.0. Retrieved August 7, 2020, from https://docs.huihoo.com/scm/supply-chain-operations-reference-model-r11.0.pdf

Tirakanan, S. (2007). Research Methodology in Science : Guideline on Practice. Bangkok : Chulalongkorn University. (In Thai)

Wang, Z., & Wang, N. (2012). Knowledge sharing, innovation and firm performance. Expert systems with applications, 39(10), 8899-8908.

Weerapong, P., Manisri, T, & Sivabrovornvatana, N. (2017). Modeling of Supply Chain Continuity Management Effect to Business Performance of Automobile Industries in Thailand. Veridian E-Journal, Silpakorn University (Humanities, Social Sciences and arts), 10(3), 752-768. (In Thai)

Wiig, K. M. (1995). Knowledge management methods. Schema Press. Arlington : Texas.

Yang, S., Ishtiaq, M., & Anwar, M. (2018). Enterprise risk management practices and firm performance, the mediating role of competitive advantage and the moderating role of financial literacy. Journal of Risk and Financial Management, 11(3), 1-17.

Yoopraphat, P., & Tantakool, T. (2020). Development of Technology Innovation to Promote Competitiveness of Industry Entrepreneurs Automotive Parts Manufacturing in Thailand. Journal of Suvarnabhumi Institute of Technology (Humanities and Social Sciences), 6(1), 480-494. (In Thai)

Downloads

Published

2021-12-08

How to Cite

พรมงาม ป., & Ayasanond, C. (2021). STRUCTURAL MODELS RELATIONSHIPS BETWEEN FACTORS AFFECTING AUTOMOTIVE PARTS AND PARTS PRODUCERS’ OPERATIONS IN THE EASTERN ECONOMIC CORRIDOR (EEC), THAILAND. Research Community and Social Development Journal, 15(4), 196–209. https://doi.org/10.14456/nrru-rdi.2021.75

Issue

Section

Research Articles