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Innovative Organization: Innovative Organization Development Model in Thailand 4.0 Era of Smes Manufacturing Industries in Nakhon Pathom Province, Thailand (Phase 1)

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Innovative Organization: Innovative Organization Development Model in Thailand 4.0 Era of Smes Manufacturing Industries in Nakhon Pathom Province, Thailand (Phase 1) Innovative Organization: Innovative Organization Development Model in Thailand 4.0 Era of SMEs Manufacturing Industries in Nakhon Pathom Province, Thailand (Phase 1) by Benjabhon Mee-ngoen* College of Logistics and Supply Chain www.cls.ssru.ac.th Suan Sunandha Rajabhat University 1 U-Thong Nok Road, Dusit, Bangkok, 10330. Thailand www.ssru.ac.th +662 160 1000 E-mail: [email protected] Tel: +6685 232 6952 Abstract: The objectives of this research were (1) to study the qualifications of the factors affecting on the innovative organization development (2) to study the positive linear relationship of the factors affecting on the innovative organization development (3) to create the model of innovative organization development in Thailand 4.0 era of SMEs manufacturing industries in Nakhon Pathom province, This research was divided into two phases, as following; phase 1; to study the qualifications of the factors and the factors affecting on the innovative organization development using for the components of innovative organization development model, and phase 2; to create the model of the innovative organization in Thailand 4.0 era for SMEs manufacturing industries. For the methodology, this research used mixed methods research that combined together with the quantitative research and the qualitative research. The phase 1, the quantitative research was used for, by using descriptive statistics (frequency, descriptive, mean and Standard Deviation) and inferential statistics (multiple regression analysis) from the 450 firms of the SMEs manufacturing industries in Nakhon Pathom province, Thailand. Furthermore, the qualitative research would be used in phase 2, by using an indebt interview with the 10 experts of innovative organization development in Thailand. The findings of this research found that the innovative organization development model in Thailand 4.0 of SMEs manufacturing industries in Nakhon Pathom Province, Thailand consist of the research and development for innovation and the Innovation development in leading the modern production and services depends on the important factors such as innovative leadership, research and development (R&D) collaboration, organizational culture focusing on innovation as well as government sector support which are statistically significant (p-value < .05) Keywords: Innovation, Innovative Organization, R&D in SMEs, Thailand 4.0 INTRODUCTION Background SMEs are the group of manufacturing that is very important in driving Thailand's economy, according to the statistics of the Office of Small and Medium Enterprises Promotion (OSMEP) in 2014, the total number of SMEs is 2,736,744, or 99.7% of the total enterprises, employing 10,501,166 people or 80.3% of all employment, this can build up Gross Domestic Product (GDP) amount at 5,212,004 million bath or 39.60 % of GDP of the country. However, last year, SMEs business generated 13.0 percent of GDP in Thailand which considered relatively as a low income SMEs business in Thailand. Compared with the high-income countries in the world, SMEs business accounted for 50% of GDP, indicating that Thai SMEs lacks the ability to compete in the global marketplace. It can also be developed to reach at the level 3 in ASEAN countries. If SMEs get supported by the government, it will help strengthening the SMEs' ability to survive and be competitive with foreign country accordingly. At present, SMEs businesses are directly affected by government policy to bring Thailand into the Thailand 4.0 Era, using the strength of the industry to create innovation in order to drive the country to a sustainability economy development by linking all dimensions of production systems to information technology for communication and industrial development, SMEs business in Thailand need to accelerate the adaptation in all aspects, especially the continuous in research and development in * Asst. Prof. in Business Administration, College of Logistics and Supply Chain Suan Sunandha Rajabhat University innovation development to support the Thailand 4.0 Era industry as the standard of production and marketing as well as a competitiveness on a global scale. On the other hand, most of SMEs businesses still lack the knowledge of the model of business management towards an innovative organization during the Thailand 4.0 Era, which is still needed to be in concerned. The researcher is realizing that Thailand is entering Thailand 4.0 Era and need to strengthen the innovative organization to drive the economy of the country; they need to speed up the adjustment in all aspects, especially in research and development to create the innovation towards an innovative organization during Thailand 4.0 Era. Therefore, the researcher brings these research questions into research process to study and develop proper SMEs business model in Thailand 4.0 Era accordingly. RESEARCH QUESTIONS The research questions are as follows. RQ1: What should be the qualification of factors affecting on the innovative organization development? RQ2:How will various factors such as innovative leadership, research and development collaboration factor, government sector support factors, affecting on the innovative organization development? RQ3:How will the created innovative organization development model in Thailand 4.0 Era of SMEs manufacturing industries be suitable for SMEs manufacturing industries in Nakhon Pathom province, Thailand? RESEARCH OBJECTIVES This research aims to: RO1: To study the importance level of factors affecting on the innovative organization development RO2: To study various factors such as innovative leadership factor, research and development collaborations factor, government support factor affecting on the innovative organization development RO3: To create the SMEs innovative organization development model in Thailand 4.0 Era of SMEs manufacturing industries in Nakhon Pathom province, Thailand RESEARCH HYPOTHESIS The research hypotheses are as follows: The hypothesis for the answers of research objectives No.2 as following: H1: The various factors such as innovative leadership factor, research and development (R&D) collaboration factor, organizational culture focusing on innovation factor, and government sector support factor have a positive linear relationship to SMEs innovative organization development in case of research and development for innovation H2: The various factors such as Innovative leadership, Research and development (R&D) collaboration, Organizational culture focusing on innovation and Government sector support factors have a positive linear relationship to SMEs innovative organization development in case of Innovation development in leading the modern production and services RESEARCH CONTENT In this research, the researcher investigates the Innovative Organization Development Model in Thailand 4.0 Era of SMEs Manufacturing Industries in Nakhon Pathom Province (Phase 1). The researcher studied the concepts, theories and related research to Innovative leadership, Research and development collaboration, Organizational culture focusing on innovation. Government sector support and the innovative organization for finding out the answer of research objectives No.1 and 2 as following: CONCEPT AND THEORIES Innovative leadership: is a philosophy and technique that combines the differences in leadership styles that influence employees in innovative organization development model in Thailand 4.0 Era of SMEs manufacturing industries to create ideas, create new products and services. The important role of innovative leadership is to lead the 2 organization to the innovative era which related to lead the organization in 3 aspects, as to lead the organization to an innovative management, to lead the organization to the innovative working environment, to lead the organization to the innovative leadership via an important process which are leading to learn, leading to think, leading to change and leading to create innovative thinking. (Dess, G. G., & Pickens, J. C. , 2000); (McEntire, L. E., Greene- Shortridge, T. M., 2011); (Sarros, J. C., Cooper, B. K., & Santora, J. C., 2008); Shipton, H., Fay, D., West, M. A., Patterson, M., & Bird, K., 2005); Tushman, M., & O’Reilly, C., III.,1996) Research and development collaborations: is the collaboration on research and development between private and government sector to develop the process of new product development or improve the existing product or service of SMEs manufacturing industries. Wherewith, the government must prioritize national strategies as a guideline for many research institutes to conduct the research in the same direction, as well as invest seriously in infrastructure and research funding to develop research and create innovation in science, technology, social sciences and more, to response to human needs, society, environment and region around the world (Investopedia, 2003) (Suthiporn Chitmitrapab, 2014) Organizational culture focuses on innovation: is a business as an SMEs industrial factory type that their organization culture focusing on innovation which emphasized on research and development to achieve the new concept, new product, new service and new production process, as well as promoting the organization's employee to be more creative in workplace. The management must accept the difference opinion (Diversity) of their employees, which consists of: the participation of their employee (Challenge and Involvement), the independence and the freedom to initiate their idea, the ability and freedom to set the rules of working
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