Production Employee Competency of Small and Medium-sized Enterprises (SMEs) in Developing Countries: A Case Study of the Thai Automotive Parts Manufacturing Industry
Creators: name: Saicharoen, Noppong
Publisher: name: RMIT University
Year: 2025
Subjects: classificationCode: 350909
subject: Supply chains

description: This study aims to develop an individual production employee competency model. Production employees in Thai automotive parts SMEs are identified as the primary source of information. The incorporation of the perspectives of production managers/owners allowed the research to encompass key insights regarding production employee competencies. 
Identifying individual competencies is crucial for developing effective human resource management strategies and enhancing human performance in the supply chain domain. However, the literature on individual competency research reveals four significant limitations.
Most of the existing competency research focuses on companies or managers, with only a handful of studies addressing employee competencies. Given this circumstance, this study aimed to achieve new knowledge and add to the limited body of knowledge concerning competencies needed for production employees in the automotive parts industry sector in Thailand. Despite the importance of the production sector, there is a noticeable lack of research on enhancing the competencies of production employees. Third, there is a scarcity of studies on individual competencies within small and medium-sized manufacturing enterprises (SMEs) in developing countries, where human resource management for production employees is often inefficient. Finally, there has been limited exploration of the mechanisms or relationships among these individual competency types. Therefore, this study addresses the following research questions: (1) What individual competencies are required for production employees of SMEs in developing countries, using the Thai automotive parts manufacturing industry as a case study? (2) How do the different groups of individual production employee competencies influence one another?
This research is focused on the complexity of theories and concepts pertinent to competency-based human resources. This research aims to address these deficiencies by developing a model for individual production employee competencies, using research participants from SMEs in the Thai automotive parts industry sector. Given the exploratory nature of the research and the absence of a clearly defined problem in existing literature, a qualitative methodology is employed. Semi-structured interviews were conducted to gather data with participants represented by 10 production managers/owners and 20 production employees within manufacturers based within Thai automotive parts SMEs industry subsector. The analysis was undertaken using grounded theory coding techniques.
The study provides detailed insights into the essential competencies of production employees, specifically inquisitiveness, functional skills, emotional intelligence, and integration competencies. Key findings reveal that employees combine these competencies to create synergistic effects. A deeper understanding of the interactions among these individual competencies enhances comprehension of the core mechanisms driving their development.
This study contributes to both knowledge and practice. Firstly, it initiates a comprehensive exploration of the competencies essential for production employees, making it a pioneering effort, especially in Thailand. This is particularly significant within a developing country, where SMEs are prevalent across various organisational scales. Consequently, the approach significantly enriches the knowledge base, providing SMEs with insights into the crucial competencies needed for their production staff. Furthermore, the findings offer valuable guidance to managers and owners of Thai automotive parts SMEs, helping them enhance their HRM practices concerning production employees.
Secondly, this study deepens the understanding of the interrelationships among competence groups. Building on prior research, it introduces a framework that elucidates the relationships between individual competence groups within the supply chain. While previous studies identified key competencies, they often failed to detail the pathways to achieve them. A clearer comprehension of how competencies interrelate has the potential to significantly enhance their value within the context of the supply chain. 
This research establishes a theoretical reference point for future studies by identifying required competencies and conceptualising competency mechanisms. The empirical findings offer detailed insights into how production employees operate and how their various competencies influence one another. Future research can build on these insights through the complementary employment of quantitative methods to enhance generalisability.