1 AIT Asian Institute of Technology

Industrial competitiveness analysis : a multi-criteria model for the automotive components manufacturing industry in Thailand

AuthorSajee B. Sirikrai
Call NumberAIT Diss. no.SM-06-13
Subject(s)Competition--Thailand
Manufacturing industries--Thailand
NoteA dissertation submitted in partial fulfillment of the requirements for the degree of Doctor of Philosophy
PublisherAsian Institute of Technology
AbstractIndustrial competitiveness underlies the economic growth of nations and becomes a public concern in light of global competition. Attempts to understand industrial competitiveness encompass two main questions: how competitiveness is measured and what drives a superior competitive performance. Previous research on this topic has tended to focus on either the macro-economic environment (firm-external factors) or the individual firm (film-internal factors) but the use of multiple theories may help bridge the gap that can be overlooked by focusing on either of these two perspectives. This study fills this gap by using the Analytic Hierarchy Process (AHP), which is a multi-criteria decision analysis technique, to develop a model of competitiveness analysis. The model was built on theories in the strategic management and operations management fields of study to analyze industrial competitiveness by addressing both the macro and micro aspects of the analysis. It helps to identify the degrees to which organizational performance indicators are important in defining the competitiveness of an industry as a whole. It also helps to examine the extent to which drivers of the performance affect overall competitiveness. This study set out to analyze competitiveness of parts makers in the automotive components manufacturing industry in Thailand that incorporates three markets - the OEM, REM and SPM segments. The major indicators of competitiveness for parts makers in OEM supply chains (those in the OEM and SPM segments) were found to be Manufacturing Excellence and Value Added of Products, while ones relevant to companies in the REM segment were Financial Returns and Market Expansion. The competitiveness of parts makers participating in OEM supply chains is defined mainly by the fulfillment of QCD rules. This achievement is, however not a primary concern for REM parts makers. Similarly, the creation of high value added products is of concern only to companies in OEM chains. REM parts makers seem reluctant to offer high quality products, since agreements on product quality can vary according to different buyers in the market. Their competitiveness was believed to be measured in terms of financial and marketing performance. Companies in OEM supply chains, in contrast, have a limited chance to access new customers or ask for high profit rates given the complex arrangement of automaker production and supply networks and their influence on cost reduction. Despite the different competitive priorities, competitiveness of parts makers in the three market segments seems to be driven by similar factors. For example, compared with roles of the government, competitive conditions of the market are believed to have a more significant affect on the competitiveness of parts makers. Therefore, the influence of firm-external drivers is strong only in terms of market forces. On the other hand, film-internal drivers - Managerial resources and Technological capabilities - have a substantial impact on the industrial competitiveness of the parts makers. In fact, parts makers are facing common challenges regarding their endeavor to maintain and improve competitiveness. These challenges specifically involve strong buyer power, deficiency in governmental services, heavy reliance on top management and a critical need for advanced technological capabilities.
Year2007
TypeDissertation
SchoolSchool of Management (SOM)
DepartmentOther Field of Studies (No Department)
Academic Program/FoSMaster of Business Administration (MBA) (Publication code=SM)
Chairperson(s)Tang, John C. S.
Examination Committee(s)Do Ba Khang ;Voratas Kachitvichyanukul ;Hyun, Young-suk
Scholarship Donor(s)The Royal Thai Government ;Faculty of Commerce and Accountancy Thammasat University, Thailand
DegreeThesis (Ph.D.) - Asian Institute of Technology, 2007


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