INNOVATION MANAGEMENT FOR SMALL AND MEDIUM SIZED AUTOMOTIVE PARTS MANUFACTURERS TO SUPPORT THE TRANSITION TO INDUSTRY 5.0

Abstract

This study examines the challenges faced by small and medium - sized enterprises (SMEs) in the automotive parts sector as they prepare for Industry 5.0, focusing on innovation and organizational development in response to government initiatives. The research addresses the paucity of tailored management innovations that align with the specific contexts and constraints of individual entrepreneurs. The study pursues three primary objectives: 1) to develop an index tool for measuring the significance of government - promoted initiatives; () to formulate strategies facilitating the transition to Industry 5.0; and 3) to design a continuous development cycle supporting this transition. Employing a qualitative methodology, the research combines document analysis with in - depth interviews of 20 key informants. The Quality Function Deployment (QFD) technique is applied to develop the measurement tool, which is subsequently validated through consultation with five SME entrepreneurs. The findings reveal that: 1) The developed index tool effectively quantifies the importance of promoted initiatives, with innovation for profit, market analysis, and network innovation emerging as the most critical factors. 2) Four strategic approaches for Industry 5.0 preparation are proposed, based on the TOWS Matrix: a proactive strategy (SO) emphasizing adaptation to agro - industry and high - value products; a corrective strategy (WO) focusing on reverse engineering and critical thinking; a preventive strategy (ST) aimed at software personnel development; and a defensive strategy (WT) promoting recycling and technology transfer. 3) The proposed continuous development cycle comprises 4 steps, utilizing modern business analysis tools and technologies, providing an effective approach to drive automotive parts sector Thai SMEs towards Industry 5.0