An Analysis of Total Quality Management (TQM) within the Thai Auto Parts Sector

Abstract

The study intended to investigate the factors that affect the total quality management (TQM) process in the 1,800 firm Thai auto parts industry. Automotive parts export shipments from Thailand are ranked 13th globally and are destined for over 100 countries, with Thailand’s combined automotive industry representing 12% of GDP. Therefore, with the authors understanding the importance of this economic sector, a research tool was developed, which contained a five-level scale to investigate 455 auto parts managers, executives, and owners’ opinions. Topics surveyed included the respondents’ opinions on the effects of knowledge management (KNG), product quality (QLY), strategic planning (STY), and technology and innovation (TIN) on the Thai auto part industry TQM process. The study’s eight hypotheses made use LISREL 9.1 software to analyze the final structural equation model (SEM). Results showed that all the model's variables had a positive influence on TQM, which can be combined to explain the variance of the factors affecting TQM (R²) by 78%. Additionally, the variables affecting TQM ranked in importance were STY, KNG, QLY, and TIN. Disruptive change has also arrived within the automotive sector, as Industry 4.0 technologies, the Internet of Things (IoT), and artificial intelligence (AI) are being used in the development of a new generation of autonomous and electric vehicles (EVs), making many current manufacturers' technologies and processes obsolete. Therefore, management and vendors must embrace these changes for their survival. The study's results highlight the necessity for international firms to embrace innovation and technological change to retain a competitive advantage or even their survival. Governments and educational institutions must also go the ‘extra mile' to support their domestic automotive and auto parts sectors.