Factors influencing a firm’s decision to conduct remanufacturing: evidence from the Thai automotive parts industry

Abstract

This paper aims to investigate the key factors influencing the decision-making process of firms in conducting remanufacturing activities, using the Thai automotive parts as a case study. Our results show that on average, business feasibility is the most influential determinant driving the decision-making of firms, followed by areas of the firm’s strategic factors, and policy factors. In terms of individual factors, product maturity is ranked first as the most important factor for a firm to engage in remanufacturing activities, followed by financial aspects, availability of skilled workers and technical aspects. Policies related to trade, intellectual property rights and the environment are identified as the least crucial factors in affecting the decisions of firms. Characteristics of firms and products matter in ranking the factors influencing a firm’s decision to conduct remanufacturing.