Impact of Business Strategies of Automobile Manufacturers in Thailand

Phongpetra, Vichak and Johri, Lalit (2011) Impact of Business Strategies of Automobile Manufacturers in Thailand. International Journal of Emerging Markets, 6 (1). pp. 17-37.


Purpose – The paper aims to investigate automobile manufacturers in Thailand and the effects that their business strategies had on their organizational performance.

Design/methodology/approach – For empirical analysis, the method of confirmatory factor analysis and the structural modeling method were applied in order to refine business strategies, functional strategies, financial, and marketing organizational scales.

Findings – This research reveals that there are three significant business strategies of automobile manufacturers in Thailand which have a positive effect on the organization's financial and marketing performance: cost focus (the first priority), cost leadership (the second priority), and integrated cost an differentiation (the third priority). All the priorities of functional strategies that have a positive effect on the financial and marketing organization performance were subsequently analyzed as follows: manufacturing strategy (most significant), human resource management (the second most significant), marketing strategy (the third most significant), and the financial strategy (the least significant).

Research limitations/implications – Future research should select different random samples to assess the perceptions of front line managers of automobile manufacturers, dealers and automobile part firms.

Practical implications – The management of automobile manufacturers and automobile part firms should implement and improve their business strategies in terms of cost focus, cost leadership, and integrated cost leadership strategies achieve higher financial and marketing performance.

Originality/value – This paper contributes to the existing literature by reexamining the impact of business strategies of automobile manufacturers on organizational performance.

Item Type: Article
Keywords: Automotive industry; Corporate strategy; Organizational performance; Thailand
Subject(s): Strategy; Entrepreneurship & Global business
Date Deposited: 14 Jun 2012 10:51
Last Modified: 17 Oct 2018 14:26

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