Acta Universitatis Danubius. Œconomica, Vol 14, No 3 (2018)

Call for Innovation-Driven Development: A Grounded Theory Study of Thai Export-Oriented Garment Industry Facing Competitive Challenges in the Context of Industry 4.0 Era

John Christopher Walsh, Zeng Yan


The importance of the export-oriented garment industry in the economy of Thailand is very high. Currently, this industry is facing great challenges with respect to its growth rate. Competition in international markets is high due to problems such as low productivity, the high cost of production due to better labour wages, limited capability for development, inefficient management structures, limitations in skills training and inefficient systems. To take advantage of global market opportunities in the context of the Industry 4.0 Era, actors in the sector should accurately identify all dimensions of competitive challenges facing them. This paper focuses on the analysis of the current situation of TEOG (Thai Export-Oriented Garment) industry with respect to its competitive challenges and attempts to develop a model for competitive challenges. It is useful for understanding the groupings of TEOG industry challenges and the related theoretical underpinning, which shows an interactive relationship between the various categories of competitive challenges that are encountered. Additionally, presentation is made of the possible innovation-driven approaches to be used by TEOG industry actors which are suggested for overcoming these competitive challenges. 


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