Automation and ‘Thailand +1” Strategy of Japanese Companies in Thailand by Thai Engineers

<p><strong>Abstract</strong></p><p>Japanese companies have the second largest number of overseas manufacturing sites in Thailand after in China. To cope with labor cost increase, on one hand, they automate their production processes using robots. On the other hand, they establish satellite manufacturing sites in neighboring lower labor cost countries. This movement is called “Thailand+1” Strategy. The paper discusses these two movements comparing with the experiences of Japanese companies in Japan in the late 1980s coping with rapid Japanese Yen appreciation. The paper discusses that the automation in Thailand now is more systematic and needs system integrators and that local engineers need to be trained as system integrators since the technological operation in Thailand is already heavily localized. In the case of Japan in the late 1980s, shop-floor workers were needed to be mechatronics operators since individual machines became IT (Information Technology) -based. For the “Thailand +1” Strategy, only a part of production process, which is heavily labor-intensive, is moved out as a satellite factory, while in the case of Japan in the 1980s a whole assembling process was moved out and many parts suppliers followed. Another difference is that local engineers (Thai engineers) play an important role in technology transfer in the case of the “Thailand +1” Strategy, while Japanese engineers transferred technology to overseas factories in the case of Japanese companies in the late 1980s. Japanese companies have become globally operated from Japan-centered.</p><p> </p>Keywords: Automation, Thailand+1 Strategy, Japanese Companies, Thai Engineers

Is Establishing a New Partnership Useful Information for Investors in the Smartphone Supply Market?

This study analyzed partner volatility (new, old, revocation partners) and country-specific signal effects (United States (US), Taiwan, Japan, and South Korea) for Apple iPhone parts suppliers from 2007 to 2018. Mid- to long-term stock price movements were also analyzed to define trading patterns by investor type. The results using logit regression analysis revealed that new partners and revocation partners each have a signaling effect perceived as positive and negative information in the short term, and the excess returns by country showed a positive signaling effect in the order of the US, Taiwan, South Korea, and Japan. The findings also suggest that the change in the new partners’ stock price after the preannouncement of new products was useful investment information. Moreover, information asymmetry was found between individual investors, institutions, and foreigners. Results indicate that new partner selection in the smartphone market impacts corporate value and serves as useful investment information.

Quality and innovation as drivers for manufacturing competitiveness of automotive parts suppliers

PurposeThe purpose of this paper is to identify the causal relationship between the independent variables such as process quality and product innovation in regard to the dependent variable of competitiveness, in the manufacturing sector of the automotive industry, specifically for Tier 1 auto parts manufacturing companies in the state of Nuevo León, México.Design/methodology/approachBased on a thorough review of the literature, an instrument was designed to measure the competitiveness of automotive industry manufacturing; it was applied to Tier 1 suppliers of automotive parts in the state of Nuevo León, México. Various statistical analysis tests were applied to the results; first, Cronbach's alpha to determine the reliability of the instrument, and next, a factor analysis to measure construct validity. In addition, a multiple linear regression analysis was carried out to identify the causal relationships between the variables analysed.FindingsThis study found that process quality as well as product innovation have independent and positive causal relationships with respect to competitiveness in automotive manufacturing.Research limitations/implicationsThe limitations of this paper are its focus on a single manufacturing sector, application in a single country and small sample size.Practical implicationsCompanies that supply automotive parts will be able to invest in the key elements of quality and innovation while focusing their efforts on reinforcing their competitiveness.Originality/valueAuto parts suppliers will be able to perform specific actions to improve their quality processes through lean manufacturing and quality assurance practices and by designing new and innovative products that will enhance their competitiveness.

Competitive Advantage of Auto-Parts Suppliers: What Can Be Worth Beyond the Price?

Objetivo: Fazer um contraponto ao entendimento de que as empresas fornecedoras de suprimentos buscam a vantagem competitiva sustentável pela liderança em custos, na sua relação B2B, em situação de mercado oligopsonista mantida pelos clientes. Método: O estudo foi exploratório, descritivo, qualitativo, fundamentado na Resource Based View com a realização de uma pesquisa junto a três montadoras de veículos e quatro fornecedores de autopeças (sistemistas), dentre as empresas de maior participação no mercado automobilístico no país, localizadas no Estado de São Paulo. Originalidade/Relevância: Caracterização dos recursos e das capacidades consideradas como estratégicas para a criação de valor superior aos produtos dos fornecedores, na relação B2B, que são decisivos para a manutenção da sua vantagem competitiva em relação à dos concorrentes. Resultados: Foi evidenciado que as empresas que oferecem valor superior nos seus produtos, em relação aos concorrentes, focam nas suas capacidades estratégicas como, as habilidades de identificar o valor do produto para os clientes, de compartilhar o conhecimento global para dar rápidas respostas aos clientes e de apresentar continuadamente inovações, diante do preço padrão. Contribuições teóricas/metodológicas: Mostrar que abordagens dentro da Administração estratégica, como a Resourece Based View, são limitadas ao focar apenas os aspectos econômicos da vantagem competitiva. Contribuições para a gestão: Oferecer indicações aos tomadores de decisão que a consideração do preço é um dado limitante em mercados concorrências, como o exemplo da indústria automobilística, mas que as estratégias de conquista e manutenção da vantagem competitiva estão na descoberta do que cria valor superior em relação aos concorrentes.