Strategic Change and Human Resources Development of Japanese & Thai Automotive Joint Venture Companies

Abstract

After Thai monetary crisis in July 1997, many Japanese & Thai Automobile joint venture companies have decreased sales in domestic market and faced mega-competition in ASEAN area. Many companies have changed market strategy to increase exports. In order to meet the high quality standard of export markets, the transfer of Japanese style management and the development of human resources management have become vital for these companies.

The state of the art on the human resources development at 16 Japanese & Thai automobile joint venture companies has been investigated through the questionnaire and interview research in 1997 and 1999. Thus, it was confirmed how these companies changed the market strategy and improved the human resources development.

From the empirical and case studies, export oriented companies have the following characteristics as compared to domestic market oriented companies. Firstly, export market oriented companies tend to transfer more Japanese style management and develop the local core managers and engineers, having job security with the long-term employment. Secondly, Thai middle managers who work at export market oriented companies have higher job satisfaction because of lots of challenging jobs and training programs for them. From these implications, it is important for the local middle managers to participate in autonomous management and to create knowledge in their work organization.