A Decision Making Model for Outsourcing Flexible Automation System in Automotive Industry to SMEs Entrepreneurs and Executives in Thailand

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Somrerk Kanwivat
Naris Penpokai

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For everyday society, the competition in automotive industry is highly competitive. Most of SMEs cannot survive by merely relying on their source of production. Hence, using contractor is considered as an effective strategy for handling the competition. Therefore, the investment was found that executives who proceeded the process by themselves required higher capital and they also had confidence that they could handle the changing of products rapidly. The integration in cost unit was low. On the other hand, if the outsource was used, no capital was needed. The new revolution was found that the government support had a positive effect of long-term capacity to the statistical significance causing the highest value to the path coefficient. The survey was conducted by questionnaires to 311 management level samples by using structural equation model to analyze the outsourcing flexible automation system in automotive Industry to SMEs entrepreneurs and executives in Thailand. The confirmatory model of the variable question was consistent with the empirical data. The results of research findings had statistically significant relationships between all paths. and it is found that government support have a direct effect in positive to long-term capacity and the statistical significance is at the level of 0.01 and path coefficient has the highest value at 0.785. The significant finding illustrated that factors that mostly affect entrepreneurs’ decision-making are competitive factors in quality, price, durability and quantity or flexibility of flexible automation system. However, an external factor that matters is Thailand’s 20-year strategy, which mentioned that the government will support automotive industry

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