Strategic Human Resources Development Capability and Firm Performance: Empirical Evidence from the Information and Communication Technology Sector in Thailand

Abstract

This study focuses on strategic human resource development capability and firm performance in the context of the Thai information and communication technology (ICT) sector, which has been one of the main drivers of economic growth in the country. Specifically, it seeks to investigate the determinants of strategic human resource development capability and firm performance through the mediating effect of employee commitment awareness, valuable operational improvement, and business effectiveness with technology learning capability as a moderating variable on the relationship among strategic human resource development capability and consequence variables. A survey questionnaire was used to collect data. 389 managing directors or managing partners of Thai firms in the information and communication technology (ICT) industry were selected as key informants. An Ordinary Least Squares regression analysis was conducted to examine all the hypotheses. The results indicate that three dimensions of strategic human resource development capability (employee competency focus, strategic individual learning, and innovation creativity development) have a partial significant positive effect on employee commitment awareness, valuable operational improvement and business effectiveness. Moreover, employee commitment focus has a significant positive effect on valuable operational improvement and valuable operational improvement has a significant positive effect on business effectiveness. Similarly, all the consequence variables have a significant positive effect on firm performance. Suggestions and directions for future research are highlighted.