Building Thai automotive parts and components manufacturer's competitiveness through localization strategies.

Abstract

Case studies research was carried out to explore "how and why" regarding localization strategy that realized building competitiveness in Thai automotive parts and components manufacturers. Using a qualitative approach, primary data were collected by in-depth interviews with key informants where secondary data were from other sources. Analysis was based on localization categories defined by previous studies in association with an extended content grouping technique. Four frameworks of localizations were found including: localization of human resources, localization of R&D, localization of product, and localization of distribution channels. A logic model, which is a cause-effect diagram, was proposed to display the how-and-why of localization frameworks and linkage to outcomes and competitiveness. The findings suggest that all these localization frameworks should work in tandem and some of them were interconnected. The model also systematically illustrates the benefits of those localization frameworks that were to improve and enhance the firm's production capability, internal knowledge gained and, external insight information. It made change or improvement in firm's practice and hence, a greater competiveness. Implication of this case study research can light up the usefulness of localization strategy, especially, for SME and family business.