The Application of Enterprise Resource Planning System Affecting Entrepreneurs’ Competitive Advantages in Thailand’s Automotive Parts Manufacturing Industry
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Abstract
The research article aimed at 1) investigating the effects of applying the enterprise resource planning system on production speed; 2) exploring the effects of applying the enterprise resource planning system on the organizational efficiency of entrepreneurs in Thailand’s automotive parts manufacturing industry; and 3) examining the congruence of enterprise resource planning system application on production speed, organizational efficiency, and competitive advantage of entrepreneurs in Thailand’s automotive parts manufacturing industry. The study used a mixed-method approach, with qualitative data obtained through in-depth interviews with seven key informants and quantitative data acquired through questionnaires sent to employees in Thailand's automotive parts manufacturing industry. Harry's criteria was used to calculate the sample size, which included 536 individuals selected using convenience sampling. The structural equation model was used to analyze the obtained data.
From the study, it appears that the structural equation model is congruent with the empirical data in the following respects: Chi-square = 106.268, df = 97, Chi-square/DF = 1.096, GFI = 0.979, CFI = 0.998, RMSEA = 0.013. The research results also found as follows: 1) The application of the enterprise resource planning system has a positive effect on production speed of 0.90, organizational efficiency of 0.38, and entrepreneurs’ competitive advantages of 0.32; and 2) Production speed has a positive effect on organizational efficiency of 0.48, while organizational efficiency has an effect on entrepreneur’s competitive advantages of 0.38. As a result, the application of an enterprise resource planning system plays an important role in developing the organizational efficiency and competitive advantages of enterprises in Thailand’s automotive parts manufacturing industry.
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