Author(s): Sutuch Wetpanich, Tanawat Jariyapoom, Pairat Pornpundejwittaya
Aim: This research was to study the organization management guidelines in the chemical industry to deal with a changing environment in the digital economy.
Methodology: This was inductive research with mixed-methodology techniques including qualitative research through in-depth interviews and quantitative research by collecting the data of 500 questionnaires distributed to business executives of the chemical industry divided into Small and Medium Enterprises (SMEs) and large enterprises and analyzing the data using the Structural Equation Model (SEM). Finally, SEM was fit in accordance with empirical data.
Finding: The results reveal that: 1) The organization management guidelines in the chemical industry to deal with a changing environment in the digital economy consist of four factors i.e. Leading Change, Innovation and Technology, Marketing and Risk Control. The analysis of the importance level shows a high importance level overall and for each factor, 2) The development of SEM shows that the model fits with the empirical data at the 0.102 Chi-Square Probability level, Relative Chi-Square at 1.106, Goodness of Fit Index at 0.953 and Root Mean Squared Error of Approximation at 0.015, 3) The hypothesis results show the following influencing factors: Leading Change has direct influence on Risk Control at the statistically significant level of 0.001, Innovation and Technology at the statistically significant level of 0.001, and Marketing at the statistically significant level of 0.05. Risk Control has direct influence on Marketing at the statistically significant level of 0.001 and Marketing has direct influence on Innovation and Technology at the statistically significant level of 0.001.
Conclusion: This research found that the organization management guidelines in the chemical industry to deal with a changing environment in the digital economy are a successful strategy to adapt to volatile external factors, rapid change, uncertain change in technology, changes in consumer behavior and the need for increased long-term sustainable competitiveness. The evaluation of SEM in organization management in the chemical industry to deal with a changing environment in the digital economy showed the empirical data fit the passing criteria of the SEM model. It was found that Chi-Square Probability Level equaled 0.102, Relative Chi-Square was 1.106, Goodness of Fit Index was 0.953 and Root Mean Squared Error of Approximation was 0.015.