The effect of human capital, employee performance on work process improvement and employee performance on work productivity on sustainable competitive advantage in Thai banks

Employee performance is critical to maintaining a commercial advantage in today's highly innovative banking environment, as it affects efficiency and goal attainment. This study aims to test the mediator of employee performance on human capital and examine if a high rate of employee performance gives a company a sustainable competitive advantage (SCA). The data for this study was collected by distributing 342 questionnaires to employees, senior staff, and executive managers in Thai banks. The data was analysed using exploratory factor analysis (EFA) and confirmatory factor analysis (CFA). The EFA revealed two dimensions of employee performance that affected a company's competitiveness: work productivity and work process improvement. The findings suggest that the improvement of processes plays a mediative role in this relationship. Therefore, bank managers should focus on improving their processes and reducing costs to maintain a SCA. This study provides unique empirical evidence supporting the application of resource-based and human capital theories in Thai banks.