An Evaluation Model for Success in the Business Operation of the Auto Parts Industry

Authors

  • Niyom Suwandej
  • Chatkaew Hartrawung
  • Bundit Pungnirund

Keywords:

Model, Success Evaluation, Business Operation, Auto Parts Industry

Abstract

           To adjust to the contemporary situation of intense competition as well as to respond to the 12th National Economic and Social Development Plan, an industrial development and an adaptation to the Industry 4.0 era is required. The automotive and auto parts industry needs to pay more attention to standards and manufacturing technologies. At the same time, it should utilize innovation to enhance its business management. In the operation of the auto parts industry, however, an understanding of factors that had an influence on the success of its operation is needed. The objectives of this research were to 1) study the levels of leadership, planning, support, operation, efficiency evaluation, improvement, and success in business operation of the auto parts industry; and 2) study the influences of leadership, planning, support, operation, efficiency evaluation, and improvement on the success in business operation of the auto parts industry. This research utilized a mixed method, combining quantitative and qualitative methods. In the quantitative research part, the sample consisted of 600 executives of the establishments that manufacture both raw materials and auto parts and distribute them to automotive assembly plants. They were selected via stratified sampling. The sample size was determined based on the criterion of 20 times the observed variables. Data were collected via a questionnaire and analyzed with a Structural Equation Model. In the qualitative research component, in-depth interviews were performed with 17 key informants, including experts who had experience in both academia and management, executives of the automotive assembly plants, and executives of the auto parts manufacturing plants. They were selected by purposive sampling. Data were then analyzed with content analysis. The research findings showed that:
1) leadership, planning, support, operation, efficiency evaluation, and improvement were rated at a high level, whereas success in business operation of the auto parts industry was rated at a moderate level; and 2) leadership, planning, support, operation, efficiency evaluation, and improvement had an influence on the success in business operation of the auto parts industry, with a .05 level of statistical significance. It was also found that all factors together could predict the success of business operation by 96 percent. Moreover, the findings from the qualitative research also indicated that administrative innovation could be used in the management of the organization to reduce manufacturing cost and enable improvement strategies to shorten the working process by the minimum period of time and at the same time provide maximum benefits by using management principles to control. The perfect management of manufacturing technologies in the future should take positive social and environment impacts into account in order to enhance and improve the auto parts manufacturing process by using a clean process and controlling pollutive emissions. This could reduce negative impacts on people and wildlife. It also helped enhance the performance of Thai auto parts entrepreneurs. Moreover, the entrepreneurs could utilize the administrative innovation to determine a direction to produce new products that could meet with the standards and quality criteria of the international quality standards. They could also use it to build competitive advantage to compete with other organizations at the global level.

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Published

2020-06-28

How to Cite

Suwandej น. ., Hartrawung ฉ., & Pungnirund บ. (2020). An Evaluation Model for Success in the Business Operation of the Auto Parts Industry. Research and Development Journal Suan Sunandha Rajabhat University, 12(1). Retrieved from https://so05.tci-thaijo.org/index.php/irdssru/article/view/243992

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Section

Research Articles