SUPPLIER INVOLVEMENT ENHANCED THE KNOWLEDGE-PROCESSING CAPABILITIES OF PARTS MANUFACTURERS ON COMPARISON COMPOSITE MULTIGROUP MODELS
Keywords:
The Electric Vehicle Parts Manufacturer, Business Environment, Original Equipment Manufacturers, Replacement Equipment Manufacturers, The Measurement Invariance of Composite ModelsAbstract
Thailand is not only advancing its automotive manufacturing capabilities but also actively developing a localized supply chain and ecosystem through strategic partnerships with automakers and local parts manufacturers to support electric vehicle (EV) production. This study investigates the role of suppliers as co-creators and knowledge sources in the EV industry, utilizing structural equation modelling (SEM) to analyse relationships between market segments and EV manufacturing bases. To assess suppliers' role as knowledge contributors, the study applied measurement invariance of composite models through Partial Least Squares Structural Equation Modelling (PLS-SEM) and employed the MICOM approach to evaluate measurement invariance in composite modelling. Data were collected from 550 manufacturers, comprising 312 original equipment manufacturers (OEMs) and 238 replacement equipment manufacturers (REMs) in various locations, selected through random sampling. The findings underscore the predictive power of model evaluations and comparisons in supporting theoretical development and validation. Results indicate that supplier participation as a knowledge source is shaped by organizational management structure, alongside political and regulatory influences. Notably, REMs exhibited a greater emphasis on knowledge processing than OEMs, as OEMs appeared less impacted by management structures and types of supplier co-creation. Further analysis reveals that supplier co-creation mediates the interaction between management structure and organizational nature, highlighting its pivotal role in the knowledge development process within Thailand’s EV manufacturing ecosystem.