Author(s): Yotsakorn Bomlai, Sunee Wantanakomol, Thanin Silpcharu
Industry is considered an important foundation for the development of the country and a mechanism that drives the economy, society and social well-being for a long time. The economic slowdown has resulted in structural problems of the industrial sector in terms of adapting to the ever-changing changes, causing a large number of businesses to go out of business. This research was to study the factors that lead to the failure in industrial business operation. Afterwards, it was developed into a structural equation model. Both qualitative and quantitative researches were conducted and quantitative data surveys were conducted from 500 enterprises operating at a loss for three consecutive years in Small and Medium and large industrial businesses.
The results showed that the causal factors leading to the highest average industrial business failure in each aspect were 1) Accounting and Finance components - the registered capital was not suitable for receiving a job. 2) Marketing components - The target customer group was not clearly defined. 3) Resource Management components - Organizational indicators were inconsistent with policies and performance. 4) Innovation and Technology components - there was still a lack of planning for resource management through a network that could be accessed quickly inside and outside the organization. The hypothesis found that there was no statistically significant difference between Small and Medium and large industrial businesses in the causal factors leading to industrial business failure at the 0.05.
The analysis of the structural equation model showed that the results passed the assessment criteria with the empirical data. The Chi-square Probability Level (CMIN- ρ) was 0.085, The Relative Chi-square (CMIN/DF) was 1.126. The Goodness of Fit Index (GFI) was 0.956. The Root Mean Square Error of Approximation (RMSEA) was 0.016.