Abstract:
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Organizational strategy, knowledge, capability and competency are some of
the key factors contributing to the survival, growth and sustainability of business
enterprises that operate in an era of complex and highly dynamic environments. This
study explores essential organizational capability factors in auto and automotive parts
enterprises amidst such environments, and discusses the relevance they have, either
on or being imposed upon, by each other.
The purposes of this research are to contain and reveal the following: 1) to
observe empirically the relationships in an integrated view of the multi-dimensions of
an organization’s competency and capabilities; and 2) to develop a framework for the
perceived result of the review of the literature thru empirical investigation, inference
and understanding of the critical indicators and paths, as well as to scan how each
interrelates and has effects on organizational performance. The aim is to describe the
ways this learning process has taken over the years. This ambition is to provide a
flavor of the spectrum of endeavors deployed, from the beginning of the study till the
results are conveyed.
The study was initially conducted using various approaches, including an
extensive review, qualitative enquiry, observations on and participations in the
industrial promotion initiatives. Such involvement was to be more familiar and be
near to the phenomena for development and trying out of the framework. The proposed framework was then employed empirically for a quantitative survey prior to
analyses and conclusion. The sample set of 105 automotive parts manufacturing
enterprises of all sizes were realized, represented by the owners (or entrepreneurs), the
senior executives and director partners, who took part and provided thorough
information thru the questionnaire.
A spreadsheet with MS Excel and statistic programs, i.e. SPSS, AMOS and
PLS, were applied for the quantitative analyses, both descriptive and inferential.
Estimation techniques, including factor analysis and structural equation modelling for
statistical tests of the hypotheses were performed according to the research proposed
framework (or model). In particular, this model illustrates and includes a certain
number of hypothesized relationships between the four concepts of interest. The
estimates and tests were applied and based on a preset probability, with a p-value of
.05 (point zero five) significance level as the determining threshold.
The results show and support the validity of the proposed model, as well as the
fitness of the model and the associated hypotheses, along with the data set of the
sample. In addition, this study provides the inference of the interrelationship – the
interplay (various alternatives of paths) and impact of strategic and knowledge
management on organizational competency based on the extent of resource efficiency
improvement and technical quality improvement, and on the organization’s
performance in terms of its profitability and growth.
A discussion of meaningful implications for this alternative managerial
approach to organizational development is provided to give the managers and owners
some pragmatic principles and guidelines for organizational competency- and
performance-oriented management through efficiently managing the organization’s
knowledge, knowledge network and technological capabilities. Moreover, the
conclusion and recommendations should be found to be beneficial and crucial for the
stakeholders, particularly those policy and decision makers involved in the promotion
of any industrial cluster development.
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