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Human Capital Orientation, Employee Creativity Development, Organizational Innovation Capabilities, and Outstanding Performance of SMEs Businesses in Thailand

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  • Dararat Thatrak

Abstract

Purpose: This research aims to study the effects of human capital orientation on employee creativity development, organizational innovation capabilities, and SME businesses' outstanding performance in Thailand. Design/Methodology/Approach: 400 SMEs businesses are the sample of this study from August to October 2020 by a mail survey procedure via the questionnaire; the database is derived from the Small and Medium Enterprise Promotion Office website in Thailand. Two hundred nineteen responses were received and usable. The structural equation model (SEM) investigated the effects of human capital orientation, employee creativity development, organizational innovation capabilities, and outstanding performance are investigated by structural equation model (SEM). Findings: The research results were found that the independent variable is human capital orientation has a direct positive influence on employee creativity development. Employee creativity development has a direct positive influence on organizational innovation capabilities, and organizational innovation capabilities have a direct positive influence on outstanding performance. Practical Implications: The results of this study point out that supporting the development of human capital orientation is an essential factor affecting creativity, organizational innovation capabilities, and outstanding firm performance which SMEs companies that are accelerating recovery, executives can apply information to benefit in the human capital development in the company. The company encourages employees to think joint initiative and create something new that is ready to cope with the organization's changes to relate with innovation and new information technology to lead the organization to survive and gain a competitive advantage. Originality/Value: This research integrates three concepts of the resource base theory, contingency theory, and dynamic capabilities that SMEs businesses use their resources to create values and competence in current situations facing threats from the external environment that severely impact their operations.

Suggested Citation

  • Dararat Thatrak, 2021. "Human Capital Orientation, Employee Creativity Development, Organizational Innovation Capabilities, and Outstanding Performance of SMEs Businesses in Thailand," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(2), pages 126-142.
    • Handle: RePEc:ers:ijebaa:v:ix:y:2021:i:2:p:126-142
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    References listed on IDEAS

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    More about this item

    Keywords

    Human capital orientation; employee creativity development; organizational innovation capabilities; outstanding performance.;
    All these keywords.

    JEL classification:

    • M0 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General

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