The Effect of Disruptive Technology in Thai Automotive Industry

Abstract

The automotive industry is a major industry that has driven the economy of Thailand, which has been supported by the government since the Second National Economic and Social Development Plan. Make Thailand become one of the world's major automotive car maker and automotive parts manufacturers. Due to the rapidly changing air pollution and natural environment, worldwide are looking for vehicles that are more energy-efficient and environmentally friendly. For this reason, the demand for vehicle in the world market has changed from the internal combustion engine vehicles, in which Thailand has expertise in both assembly and production of the change to new demand for electric vehicle in Thailand is still in the period of development plan only. Electric vehicles are seen as a disruptive technology that will make a difference and affect the automotive industry worldwide. The supply chain of Thai automotive industry has to face modern technology that comes with electric vehicles. The Resources Base View and Operation Capability that the organization has under normal conditions may not be sufficient under the environmental turbulence situation. Dynamic capability is therefore an important role in managing the organization's strategy to be suitable for the competitive and highly dynamic situations. This article would like to presents guidelines for development of dynamic capability in Thai automotive industry, in terms of sensing, seizing and transforming to be a guideline for preparing the adaptation of the Thai automotive industry to keep up with the changes that will occur in the future.