DOI: 10.14457/tu.the.2019.759
title: Supply chain and internal knowledge management for innovation in the Thai manufacturing industry

description: Innovation helps firms to gain competitive advantages in this globalization. This leads us to study supply chain and internal knowledge management to improve firm innovation in the Thai manufacturing industry. The methodology consists of both a qualitative approach and a quantitative approach. In the qualitative approach, in-depth case studies were conducted to investigate firm innovation development. Then an empirical statistical analysis was conducted to prove its consistency. In the quantitative approach, innovation development by using supply chain knowledge management and internal knowledge management were investigated. In the supply chain knowledge management, we study on (1) knowledge-based management practices for innovation within formal and non-formal Research and Development (R&D) firms and (2) innovation among different types of supply chain ownership structures. For internal knowledge management, we investigate roles of knowledge sharing approaches as mediators between internal knowledge sources and firm innovation. Results from the qualitative approach show that firms mainly adopt incremental product innovation and process innovation because they mostly have limited resources for R&D and university collaboration. Knowledge for innovation mainly achieves through collaboration with customers and suppliers, where different levels of collaboration lead to different levels of innovation. This innovation also depends on types of customers that they collaborate with. Joining international trade fair and seminars; somehow, improve firm knowledge for innovation too. From these case studies, results also indicate the importance of a proactive owner and a professional manager in creating space for innovation development. For the quantitative approach, results, first, indicate that formal R&D firms have better knowledge management practices, comparing to non-formal R&D firms. These knowledge management practices help firms to improve product innovation and process innovation. The non-formal R&D firms may need to improve their absorptive capacity such that they are capable of knowledge transfer from their supply chain members. This knowledge helps firms to upgrade their innovation capabilities. Second, firms in a Pure MNC Chain have the highest level of product innovation and process innovation. Then firm innovation is declined for a Pure JV Chain, Export Chain, Import Chain, and Pure Domestic Chain in decreasing order. This means that firms that joined global supply chain networks tend to have higher innovation capabilities than firms in a local supply chain network. This is because local firms may enhance their innovation capabilities through knowledge spillover after joining global supply chain networks. Third, documentation helps sources of knowledge, e.g., middle manager-in-charge, line group manager, and R&D personnel, to transform into firm process innovation. Documentation and group discussions; moreover, mediate R&D personnel to create product innovation. Thus, this is important for Thai firms to understand the role of documentation and group discussions to mediate ideas from the source of knowledge to become firm innovation. The supply chain and internal knowledge management practices; in conclusion, are critical in developing, improving, and creating product and process innovation. This is proved by the case studies and empirical analysis. These help to improve firm capabilities to be a knowledge-based and a learning organization.