Approaches to Developing the Manufacturing Industry of Small and Medium Enterprises for Readiness Towards Large Businesses in Thailand

Abstract

This research aims to 1) study the structure and operational characteristics of the manufacturing industry in small and medium-sized enterprises (SMEs) in Thailand for readiness towards becoming large-scale businesses; 2) investigate the components of development approaches for the manufacturing industry in SMEs for readiness towards becoming large-scale businesses; and 3) develop a structural equation model (SEM) for the development approaches of the manufacturing industry in SMEs for readiness towards becoming large-scale businesses. The study employed a mixed-methodology approach, incorporating both quantitative and qualitative research. The qualitative research involved in-depth interviews with a sample of 9 experts from 3 different groups: 3 entrepreneurs or executives in the manufacturing industry, three from the government sector, and three academics. For quantitative research, data was collected via surveys from 500 entrepreneurs or executives and analyzed using frequency, percentage, average, standard deviation, and structural equation modeling (SEM) with the advanced statistical analysis software AMOS. The research on the general characteristics of organizations found that they have been operating for 10-15 years, are predominantly Thai-owned, use financial institutions for funding, are established as limited companies, and mostly have offices located in Thailand. In terms of structure and operational characteristics, the research revealed that the most suitable business strategy for these organizations is creating a product advantage, emphasizing mentorship systems from knowledgeable employees, and key leadership qualities, including treating colleagues with kindness and generosity and developing leadership at various levels focusing on experience, comprehensive knowledge, and business expertise.The study on the importance of different components indicated that all aspects were highly important, with the order of importance from highest to lowest being digital technology, entrepreneurial leadership, knowledge management, and innovative organization. The results of the analysis of the structural equation model for small and medium-sized enterprises management for sustainable strength found that the chi-squared probability (CMIN-r) was 0.128, the relative chi-squared (CMIN/DF) was 1.126, the GFI was 0.955, and the root mean squared index of error estimation (RMSEA) was 0.015. It can be concluded that the model is consistent with the empirical data.