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Research Journal of Business Management
  Year: 2015 | Volume: 9 | Issue: 1 | Page No.: 25-46
DOI: 10.3923/rjbm.2015.25.46
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AEC Garment Industry Competitiveness: A Structural Equation Model of Thailand’s Role

Chavalit Nimlaor, Jirasek Trimetsoontorn and Wanno Fongsuwan

This study is concerned with the analysis of factors that affect the AEC garment industry and Thailand’s ability to compete within it. Given the 2035 projected 850 million AEC consumer market along with the tripling of economic output by 2025, the ramifications of policy are enormous for both Thailand and the garment industry’s competitiveness. Therefore, this study was undertaken to conduct analysis and structural equation modeling of the variables from membership input from the Thai Garment Manufacturers Association (TGMA). The importance of this study can’t be underestimated, as Thai garment exports in 2012 declined to US$2.8 billion while textile exports dropped to US$3.5 billion, 10 and 15% drops, respectively. Study results however found that to maintain competitiveness, larger industry members are expanding their operations by relocating their production to lower wage members of the AEC such as the CLMV countries of Cambodia, Laos, Myanmar and Vietnam while smaller Thai garment industry SMEs have already ceased trading. Although, the trend is negative for Thailand’s garment enterprises, factors studied which can influence change and growth include leadership, investment, teamwork and R and D. Given greater understanding of these variables, Thailand can challenge global players and create brands that overcome what otherwise appears to be a continued contraction and loss of competitive advantage. Using decades of industry knowledge, researchers obtained quantitative data from 178 entrepreneurial TGMA members while qualitative data was gathered from in-depth interviews of 10 senior industry executives.
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How to cite this article:

Chavalit Nimlaor, Jirasek Trimetsoontorn and Wanno Fongsuwan, 2015. AEC Garment Industry Competitiveness: A Structural Equation Model of Thailand’s Role. Research Journal of Business Management, 9: 25-46.

DOI: 10.3923/rjbm.2015.25.46






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