Integrating ESG into competitive strategies: The role of employee behavior, organizational culture, and communication in Thailand’s automotive industry

Abstract

This study aimed to investigate the relationship between employee behavior, organizational culture, and environmental communications, and the practice of ESG and organizational competitiveness in the automotive industry in Thailand using a quantitative study that utilized a questionnaire-based sampling method on 400 perspectives of automobile industry employees. The data analysis applied the partial least squares structural equation modeling (PLS-SEM). The study results offer evidence that employee environmental behavior has a direct effect on ESG practices and organizational competitiveness among the three factors of employee environmental behavior, organizational culture, and environmental communication as mediating variables. This study shows that to create ESG practices in Thailand’s automotive industry, companies should build an organizational culture focused on sustainable practices, encourage pro-environment behavior among employees, and emphasize the importance of organizational communication. This practical study can serve as a roadmap for optimizing the international competitiveness of organizations and is of interest to the business sector, investors, and regulators in order to create appropriate relevance for the future of the automotive industry in accordance with ESG standards.