Abstract:
To analyze the interactions among different business, which pose as a barrier to the role of domestic business groups in developing the national tyre industry. The thesis studies the investment promotion policy of the Board of investment characteristics of different business groups so tat it may be understood how domestic business groups have adjusted themselves in order to build production capacity and competitiveness in the national tyre industry The study finds that the development of tyre industry has significant effect on the current development of the industry due to the role of multinational corporations in connecting the automobile and tyre industries, an action has been promoted and provided cooperation by public sector and resulted in the dominance of multinational corporations influences over domestics business groups. Furthermore, with the help of business groups with ties to political groups and public sector and their role in influencing the policy-making to the benefits of multinational corporations, the domestic business groups have become subordinate to the higher bargaining power of multinational corporations. This situation is also attributed to the lack of capacity in developing and capital accumulation, in addition to technological constrains, industrial networks, effective mechanism in managing production networks and connectivity to tyre market, all of which are capacities that multinational corporations have an advantage over domestic groups. The tyre industries development in Thailand, thus, has a characteristic of depending on multinational corporations and political groups, which slows the progress of the development, due to insufficient investment in research and development (R&D) to increase production efficiency and personnel with expertise in development business R&D and production progress to the national and international standard. Majority of domestic business groups do produce bias tyre rather than radial tyre due to the complexity involved with the production process. Therefore, it can be summarized that the domestics tyre business groups play a marginal role in influencing the direction of public policy and tyre market due to the barriers created by multinational corporations, Such factor limits an opportunity for growth and creates a needs for state promotion in order for the industry to effectively compete in the national market.