The Relationship Between Dynamic Capabilities and Digital Transformation Components of Performance in The Automobile Manufacturers Industry in Thailand
Main Article Content
Abstract
This academic paper aimed to study the relationship between dynamic capabilities and digital transformation components of performance in the automobile manufacturing industry and to propose development guidelines to drive the automaker industry in Thailand. Thailand entered the ASEAN region and the world level respectively. The results showed that the dynamic capabilities factor and digital transformation components contribute to positive organizational adaptation and activation as well as policy benefits for the development of organizational potential and efficiency. During the past year, Thailand faced problems with domestic purchasing power that have not recovered and the production process has paused temporarily, resulting in a lack of growth in exports and a continuous slowdown. As a result, exports grew and caused a slowdown in the domestic market. Additionally, it is also affected by the mutation and widespread spread of the coronavirus 2019. The automobile industry has been affected in many ways, such as production, strategic management, operations management, human resource management, the cost and expenses are higher, and including reduced efficiency from the work of employees. In today's world, it drives the economy with new technologies and innovations to support the rapid digital transformation, including the various economic stimulus measures. In addition, the clarity of preventive measures for the prevention and control of infectious diseases of the coronavirus 2019. The impact and adaptation of the business sector in the export and domestic market by integrating dynamic capabilities and digital transformation together with the organization's operational management model appropriately. To increase competitiveness and support organizational capabilities and performance to help create opportunities and sustainable business growth for the automobile manufacturing industry in Thailand.
Article Details
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
Views and opinions appearing in articles in the Journal of Arts of Management It is the responsibility of the author of the article. and does not constitute the view and responsibility of the editorial team I agree that the article is copyright of the Arts and Management Journal.
References
Acharya, A., Singh, S. K., Pereira, V., & Singh, P. (2018). Big data, knowledge co-creation and decision making in fashion industry. International Journal of Information Management, 42, 90-101. https://doi.org/10.1016/j.ijinfomgt.2018.06.008
Andriole, S. J. (2017). Five myths about digital transformation. MIT Sloan Management Review, 58(3), 20-22.
Aral, S., & Weill, P. (2007). IT assets, organizational capabilities, and firm performance: How resource allocations and organizational differences explain performance variation. Organization science, 18(5), 763-780. https://doi.org/10.1287/orsc.1070.0306
Autio, E., Nambisan, S., Thomas, L. D., & Wright, M. (2018). Digital affordances, spatial affordances, and the genesis of entrepreneurial ecosystems. Strategic Entrepreneurship Journal, 12(1), 72-95. https://doi.org/10.1002/sej.1266
Bank of Thailand. (2020). Business outlook report quarter 4/2021. Bank of Thailand.
Barak, M. E. M. (2016). Managing diversity: Toward a globally inclusive workplace. Sage Publications.
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of management, 17(1), 99-120. https://doi.org/10.1177/014920639101700108
Day, G. S., & Schoemaker, P. J. (2016). Adapting to fast-changing markets and technologies. California Management Review, 58(4), 59-77. https://doi.org/10.1525/cmr.2016.58.4.59
Del Giudice, M. (2016). Discovering the Internet of Things (IoT) within the business process management: A literature review on technological revitalization. Business Process Management Journal, 22(2), 263-270. https://doi.org/10.1108/BPMJ-12-2015-0173
Eisenhardt, K. M., & Martin, J. A. (2000). Dynamic capabilities: what are they? Strategic Management Journal, 21(10‐11), 1105-1121. https://doi.org/10.1002/1097-0266(200010/11) 21:10/11<1105: AID-SMJ133>3.0.CO;2-E
Fernandes, C., Ferreira, J. J., Raposo, M. L., Estevão, C., Peris-Ortiz, M., & Rueda-Armengot, C. (2017). The dynamic capabilities perspective of strategic management: a co-citation analysis. Scientometrics, 112(1), 529-555. https://doi.org/10.1007/s11192-017-2397-8
Ferraris, A., Mazzoleni, A., Devalle, A., & Couturier, J. (2019). Big data analytics capabilities and knowledge management: impact on firm performance. Management Decision, 57(8), 923-1936. https://doi.org/10.1108/MD-07-2018-0825
Ferràs-Hernández, X., Tarrats-Pons, E., & Arimany-Serrat, N. (2017). Disruption in the automotive industry: A cambrian moment. Business Horizons, 60(6), 855-863. https://doi.org/10.1016/ j.bushor.2017.07.011
Fitzgerald, M., Kruschwitz, N., Bonnet, D., & Welch, M. (2014). Embracing digital technology: A new strategic imperative. MIT Sloan Management Review, 55(2), 1-12.
Gaur, A. S., Kumar, V., & Singh, D. (2014). Institutions, resources, and internationalization of emerging economy firms. Journal of World Business, 49(1), 12-20. https://doi.org/10.1016/ j.jwb.2013.04.002
Hess, T., Matt, C., Benlian, A., & Wiesböck, F. (2016). Options for Formulating a Digital Transformation Strategy. MIS Quarterly Executive, 15(2), 123–139.
Hess, T., Matt, C., Benlian, A., & Wiesböck, F. (2020). Options for formulating a digital transformation strategy. In Strategic Information Management (pp. 151-173). Routledge.
Kamble, S. S., Gunasekaran, A., & Gawankar, S. A. (2020). Achieving sustainable performance in a data-driven agriculture supply chain: A review for research and applications. International Journal of Production Economics, 219, 179-194.
https://doi.org/10.1016/j.ijpe.2019.05.022
Kaplan, R. S., & Norton, D. P. (1992). The balanced scorecard-measures that drive performance. Harvard Business Review, 70(1), 71-79.
Katiyar, R., Meena, P. L., Barua, M. K., Tibrewala, R., & Kumar, G. (2018). Impact of sustainability and manufacturing practices on supply chain performance: Findings from an emerging economy. International Journal of Production Economics, 197, 303-316. https://doi.org/10.1016/j.ijpe. 2017.12.007
Mathivathanan, D., Kannan, D., & Haq, A. N. (2018). Sustainable supply chain management practices in Indian automotive industry: A multi-stakeholder view. Resources, Conservation and Recycling, 128, 284-305. https://doi.org/10.1016/j.resconrec.2017.01.003
McAfee, A., Brynjolfsson, E., Davenport, T. H., Patil, D., & Barton, D. (2012). Big data: the management revolution. Harvard Business Review, 90(10), 60-68.
Nuruzzaman, N., Gaur, A. S., & Sambharya, R. B. (2019). A microfoundations approach to studying innovation in multinational subsidiaries. Global Strategy Journal, 9(1), 92-116. https://doi.org/ 10.1002/gsj.1202
Pelled, L. H. (1996). Demographic diversity, conflict, and work group outcomes: An intervening process theory. Organization science, 7(6), 615-631. https://doi.org/10.1287/orsc.7.6.615
Popli, M., Ladkani, R. M., & Gaur, A. S. (2017). Business group affiliation and post-acquisition performance: An extended resource-based view. Journal of Business Research, 81, 21-30. https://doi.org/10.1016/j.jbusres.2017.08.003
Rogers, D. (2016). The digital transformation playbook. Columbia University Press.
Saleem, S. & Amin, S. (2013). The impact of organizational support for career development and supervisory support on employee performance: an empirical study from Pakistani academic sector. European Journal of Business and Management, 5(5), 194-207.
Siebel, T. M. (2017). Why digital transformation is now on the CEO’s shoulders. McKinsey Quarterly, 4(3), 1-7.
Simons, T., Pelled, L. H., & Smith, K. A. (1999). Making use of difference: Diversity, debate, and decision comprehensiveness in top management teams. Academy of Management Journal, 42(6), 662-673. https://doi.org/10.2307/256987
Singh, A., & Hess, T. (2017). How chief digital officers promote the digital transformation of their companies. In Strategic Information Management (pp. 202-220). Routledge.
Sungmala, N., & Verawat, A. (2021). The impact of socio-demographic factors on employee engagement at multinational companies in Thailand. Journal of Multidisciplinary in Humanities and Social Sciences, 4(2), 694–711.
Teece, D. J. (2009). Dynamic capabilities and strategic management: Organizing for innovation and growth. Oxford University Press.
Teece, D. J. (2018). Business models and dynamic capabilities. Long Range Planning, 51(1), 40-49. https://doi.org/10.1016/j.lrp.2017.06.007
Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509-533. https://doi.org/10.1002/(SICI)1097-0266 (199708)18:7<509::AID-SMJ882>3.0.CO;2-Z
Thailand Automotive Institute. (2021). Report of ASEAN and Thailand automotive industry, Quarter 2/2021. Thailand Automotive Institute.
Velu, C. (2017). A systems perspective on business model evolution: the case of an agricultural information service provider in India. Long Range Planning, 50(5), 603-620. https://doi.org/ 10.1016/j.lrp.2016.10.003
Von Leipzig, T. et al. (2017). Initialising customer-orientated digital transformation in enterprises. Procedia Manufacturing, 8, 517-524. https://doi.org/10.1016/j.promfg.2017.02.066
Wamba, S. F., Gunasekaran, A., Akter, S., Ren, S. J.-f., Dubey, R., & Childe, S. J. (2017). Big data analytics and firm performance: Effects of dynamic capabilities. Journal of Business Research, 70, 356-365. https://doi.org/10.1016/j.jbusres.2016.08.009
Yook, K. H., Choi, J. H., & Suresh, N. C. (2018). Linking green purchasing capabilities to environmental and economic performance: The moderating role of firm size. Journal of Purchasing and Supply Management, 24(4), 326-337. https://doi.org/10.1016/j.pursup.2017.09.001
Zhao, S. (2021). Combined AHP-TOPSIS-IPA and statistical analyses for implications to one belt one road initiatives. International Journal of Multidisciplinary in Management and Tourism, 5(2), 100-121. https://doi.org/10.14456/ijmmt.2021.10