A structural equation model was used to verify both the direct and indirect influences on research and development and innovation capabilities that affect Thai automotive parts enterprises competitive advantage. Thailand’s automotive sector is a major driver of the economy with a multi-thousand network of both domestic and international companies contributing a significant amount to both domestic and Asian economic growth. After peaking in 2013 and reaching the Top 10 automotive nations, there has been a slide backwards. Competition is fierce and the pace of change ever quickening. Therefore, the researchers sought to determine how the automotive parts sector needed to improve in capability, skills and infrastructure to maintain a sustainable competitive advantage. From the structural equation model analysis of 220 regional automotive parts sector managers and use of AMOS software, it was determined that research and development combined with innovation plays key roles in the industry’s profitability and survivability. Additionally, there must be support across a wide sector of the economy, including universities, government agencies and institutions. Once championed as the ‘Detroit of Asia’, Thailand’s recognized success as a global automotive hub is a classic case of a well-executed industrial plan but that lead can potentially slip away without embracing new technologies and innovative thinking.

No abstract

Accepted: 16 November 2017 This study concerned clusters as well as research and development affecting the competitive advantage of the Thai automotive industry's mould and die sector. The study of development, examination of the consistency of the structural equation model, and the direct influence of linkage and association of cluster, as well as research and development for competitive advantage of operational locations in the Thai automotive mould & die sector was carried out as well. Data was collected from 320 mould and die industry operators in Thailand with the goal of obtaining key information to align the business direction in response to market opportunities. An additional goal was to elevate the competitiveness of the Thai automotive mould and die industry toward positive growth and continual sustainability.

The objectives of this study were to develop a framework of the collaboration network, operational performance, and reverse logistics determinants on the performance outcomes of the auto parts industry, and to study the direct, indirect, and overall effects of the factors that influence the performance outcomes of the auto parts industry. This quantitative research utilized a questionnaire as the tool for data collection, which was completed by the managers in the auto parts industry from 320 companies. According to the analysis with the Structural Equation Modeling (SEM), it was found that the collaboration networks, operational performance, and reverse logistics positively affect the performance outcomes; whereas, the collaboration networks mainly affect the development of organizations by causing performance outcomes to continue growing unceasingly, including the enhancement of sustainable competitive capacity and the operational results of the auto parts industry.