Thesis

Evolution of knowledge networks, technological learning and development of SME’s : a multi-level perspective of innovation and environmental trends in the automotive sector in Thailand

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Awarding institution
  • University of Strathclyde
Date of award
  • 2023
Thesis identifier
  • T16700
Person Identifier (Local)
  • 201762628
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Qualification Name
Department, School or Faculty
Abstract
  • Car producers are under pressure in the shift towards automotive technologies that are environmentally sustainable, from the use of internal combustion engine to technologies associated with electric mobility. The question remains how firms along the automotive supply chain react to such challenges posed by environmental trends. The issue raised by this research is crucial to the automotive industry in Thailand which is the main industry with a major contribution to the country’s economy. As SMEs constitute the lion’s share in the supply chain of the Thai automotive industries, it is crucial to examine their ability to adapt to evolving technologies and the factors influencing their capability development. This research aims to investigate how existing firms, particularly SMEs, react to the sustainability transition by elucidating their processes of technological learning and participation in knowledge networks. To explore potential shifts in practices, the Multi-Level Perspective (MLP) framework is employed. Specifically, the study centres on SMEs as established entities involved in niche innovations, examining how government interventions can facilitate their technological transition. In this study, the entrance of EV constitutes a concern for all firms, but SMEs tend to feel more of an impact than large firms. Most firms expect some product or process modification due to the advent of EV. To prepare for the shift, most firms show similar interest in joining the EV value chain and a diversification to new markets so as to maintain existing production capacity. Both SMEs and large firms primarily acquire technological knowledge using their own internal effort rather than networking with academia. The results also suggest that large firms seem to network with external partners for knowledge development activities more than SMEs. It is also found that firms required R&D capability improvement to support them in the transition to EV. This study has identified that SMEs have less absorptive capacity than large firms which is crucial for their adaptability and ability to innovate. Thus, the evidence of this study implies that, despite the responsiveness to change, SMEs may experience difficulties in the transition to EV more than large firms. The results also suggest that firms may increase their ability to learn new knowledge or increase their absorptive capacity through networking deeply with triple helix partners. It is found that the lack of an overarching EV policy framework at the landscape level and the lack of demand side policy tends to impact the direction of firm’s technological development or the regime shift. The role of government interventions is significant in terms of promoting investment policies to attract the establishment of the EV industry. However, the capability for niche technological improvement in local firms wishing to join the EV value chain seems to be mostly limited to large firms, either for incumbents or new entrants. Government policy intervention and strong implementation regarding the development of human resources and R&D support by providing researchers and funding are required, particularly for SMEs which lack both skills and resources. The focus on the establishment of EV industry without parallelly improving local technological capability is identified as a potential risk to the country’s future competitiveness.
Advisor / supervisor
  • Lord, Richard
  • Zawdie, Girma, 1948-
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