The Effect of Human Capital Capabilities on Entreprenuerial Capabilities and the Performance of Thailand's small and Medium Enterprises
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Published:
Aug 31, 2018
Keywords:
Human capital capabilities entrepreneurial capabilities small and medium enterprises
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Abstract
The main purpose of this study is to investigate the effect between human capital capabilities and SMEs performance via entrepreneurial capabilities as positive mediating effect on the relationship. The model is tested by collecting data from 302 small and medium enterprises in Thailand and using a mail survey questionnaire as instrument. The multiple regression analysis is statistic for testing the hypothesized relationships. The results revealed that three dimensions of human capital capabilities (professional knowledge and skills, learning and development, and social competence and network) have positive impact on entrepreneurial capabilities and SMEs performance. All of dimensions can explain the predication of entrepreneurial capability at 48.80% and SMEs performance at 52.90 %. In addition, two independent variables such as learning and development, and social competence and network are fully support hypotheses. Overall, this study contributes to manager by exploring human capital capabilities and entrepreneurial capabilities can be achieved by SMEs performance.
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References
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Thipsri, N. and Ussahawanitchakit, P. (2008) Effects of technological capability on new product development and export performance: an empirical research of exporting cosmetics business in Thailand. International Journal of Strategic Management 8(2): 1-14.
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Ucbasaran, D., Wright, M. and Westhead, P. (2008) Opportunity identification and pursuit does an entrepreneur’s human capital matter?. Small Business Economics 30(2): 153-173.
Wambugu, A. W., Gichira, R., Wanjau, K. N. and Mung’atu, J. (2015) The relationship between risk and performance of small and medium agro processing enterprises in Kenya. International Journal of Economics, Commerce and Management 3(12): 441-455.
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Zheng, C. (2009) Keeping talents for advancing service firms in Asia. Journal of Service Management 20(5): 482-502.
Armstrong, J., Scottand, O. and Overton, T.S. (1977) Estimating non-response bias in mail surveys. Journal of Marketing Research 14(3): 396-402.
Arowomole, A. M. (2003) The impact of entrepreneurial alertness on business performance. The case of selected companies in Nigeria. Journal of Business Management 1: 64-75.
Auw, E. (2009) Human capital, capabilities and competitive advantage. International Review of Business Research Papers 5(5): 25-36.
Badriyah, N. and Noermijati, N. (2015) Social competence, human capital and entrepreneurial success (A Study on the Owner of Fish Trading Business). Asia-Pacific Management and Business Application 3(3): 182-195.
Carmeli, A. (2004) Strategic human capital and the performance of public sector organisations. Scandinavian Journal of Management 20(4): 375-392.
Chang, C. and Lee, M. (2008) The linkage between knowledge accumulation capability and organizational innovation. Journal of Knowledge Management 12(1): 3‐20.
Chenuos, Nehemiah, K. and Maru, L. (2015) Entrepreneurial orientation and firm performance: evidence from small and Micro-Enterprises in Kenya. European Journal of Business and Management 7(27): 187-196.
Eniola, A. A., Entebang, H. and Sakariyau, O. B. (2015) Small and medium scale business performance in Nigeria: Challenges faced from an intellectual capital perspective. International Journal of Research Studies in Management 4(1): 59-71.
Hair, J. F., Black, B. B., Anderson, R. and Tatham, R. L. (2010) Multivariate data analysis, New Jersey, NJ. Pearson Education.
Haslinda, A. And Hiok, O. (2009) Modelling HRD practices in Malaysian manufacturing firms. European Journal of Social Sciences 8(4): 640-652.
Hayton, J. (2015) Leadership and management skills in SMEs. Warwick Business School: Department of Business, Industry and Skills. [Online URL: https://www.gov.uk/government/uploads/system/uploads/attachmentdata/file/407624/Leadership_and_Management_Skills_in_SMEs.pdf] accessed on Nov 22, 2016.
Kogut, B. and Zander, U. (1992) Knowledge of the firm combinative capabilities, and the replication of technology. Organizational Science 3: 383-397.
Lumpkin, G. T. and. Dess, G. G. (2001) Linking two dimensions of entrepreneurial orientation to firm performance: the moderating role of environment and industry life cycle. Journal of Business Venturing 16(3): 429-451.
Marimuthu, M., Arokiasamyl, A. and Ismail, A. (2009) Human capital development and its impact on firm performance: evidence from developmental economics. The Journal of International Social Research 2(8): 265-272.
Markman, G. and Baron, R. (2003) Person-entrepreneurship fit: why some people are more successful as entrepreneur than others. Human Resource Management Review 13(2): 281-301.
Meehan, J. and Muir, L. (2008) SCM in Merseyside SMEs: Benefits and barriers. The TQM Journal 20(3): 223-232.
Meutia. (2013) Improving competitive advantage and business performance through the development of business network, adaptability of business environment and innovation creativity: an empirical study of batik small and medium enterprises (SME) in Pekalongan. Central Java, Indonesia. Aceh International Journal of Social Sciences 2(1): 11-20.
Miller, D. (1983) The correlates of entrepreneurship in three types of firms. Management Science 29(7): 770-791.
Nahapiet, J. and Ghoshal, S. (1998) Social capital, intellectual capital, and the organizational advantage. Academy of Management Review 23(2): 242-266.
Naldi, L., Nordqvist, M., Sjöberg, K. and Wiklund, J. (2007) Entrepreneurial orientation, risk taking, and performance in family firms. Family Business Review 20(1): 33-47.
Nunnally, J. C. and Bernstein, I. H. (1994) Psychometric Theory. New York: McGraw-Hill.
Okumagba, P. O. and Okinono, O. (2016) Human capability and entrepreneurial development in the Niger delta region of Nigeria. Information Management and Business Review 8(3): 406-414.
Office of Small and Medium Enterprises Promotion (OSMEP) (2015). Annual Report 2015.
Osaze, E. B. (2003) Corporate proactive management Lagos Centre for management development. Performance – A Replication Study: 175-198.
Otieno, S., Bwisa, H. M. and Kihoro, J. M. (2012) Influence of entrepreneurial orientation on Kenya’s manufacturing firms operating under East African regional integration. International Journal of Learning and Development 2(1): 299-320.
Quaye, D. M. and Acheampong, G. (2013) Are SMEs owner-managers entrepreneurs? evidence from Ghana. European Journal of Business and Management 5(23): 37-47.
Ramzan, M. and Zafar, M. (2014) Liquidity risk management in Islamic banks: A Study of Islamic banks of Pakistan. Interdisciplinary Journal of Contemporary Research in Business 5(12): 199-215.
Ritter, T. and Gemünden, H. G. (2002) The impact of a company’s business strategy on its technological competence, network competence and innovation success. Journal of Business Research 57(5): 548-556.
Roos, G., Bainbridge, A. and Jacobsen, K. (2001) Intellectual capital analysis as a strategic tool. Strategy and Leadership 29(4): 21-26.
Rosli, M. M. and Sidek, S. (2013) The impact of innovation on the performance of small and medium manufacturing enterprises: evidence from Malaysia. Journal of Innovation Management in Small and Medium Enterprise: 1-16.
Rauch, A., Wiklund, J., Lumpkin, G. T. and Frese, M. (2009) Entrepreneurial orientation and business performance: An assessment of past research and suggestions for the future. Entrepreneurship Theory and Practice 33(3): 761-787.
Santos Rodrigues, H. P. (2010) The influence of human capital on the innovativeness of firms. The International Business and Economics Research Journal 9(9): 53-64.
Savoiu, Gheorghe. (2016) Enterprise, entrepreneur and entrepreneurship: the main semantic chain in contemporary economics.[Online URL: oaji.net/articles/2014/941-403074429.pdf] accessed on December 26, 2016.
Sharabati, Abdel-Aziz A., Jawad, S. and Bontis, N. (2010) Intellectual capital and business performance in the pharmaceutical sector of Jordan. Management Decision 48(1): 105-131.
Sharabati, A. A. (2013) The Relationship between human capital and Jordanian pharmaceutical organizations' business performance. International Journal of Academic Research in Business and Social Sciences 3(1): 260-279.
Singh, A. (2012) Financial globalization and human development. Journal of Human Development Capability 13(1): 135-151.
Sun, Bo and Zeng, Z. (2014) Proactive Personality and Career Success: A Person-organization fit perspective. International Conference on Economic Management and Trade Cooperation (EMTC 2014): 21-26.
Taylor, A. and Greve, H. (2006) Superman or the fantastic four? Knowledge combination and experience in innovative teams. Academy of Management Journal 49: 723-740.
Tehseen, S. and Ramayah, T. (2015) Entrepreneurial competencies and SMEs business success: the contingent role of external integration. Mediterranean Journal of Social Sciences 6(1): 50-61.
Thipsri, N. and Ussahawanitchakit, P. (2008) Effects of technological capability on new product development and export performance: an empirical research of exporting cosmetics business in Thailand. International Journal of Strategic Management 8(2): 1-14.
Tilman, M. (2013) Risk Intelligence. The European financial review-December 2013. [Online URL: https://www.europeanfinancialreview.com/?p=591] accessed on December 22, 2016.
Tripopsakul, S. (2016) The study of entrepreneurial opportunities seeking in entrepreneurial process: the evidence from GEM data. NIDA Business Journal 19: 45-64.
Ucbasaran, D., Wright, M. and Westhead, P. (2008) Opportunity identification and pursuit does an entrepreneur’s human capital matter?. Small Business Economics 30(2): 153-173.
Wambugu, A. W., Gichira, R., Wanjau, K. N. and Mung’atu, J. (2015) The relationship between risk and performance of small and medium agro processing enterprises in Kenya. International Journal of Economics, Commerce and Management 3(12): 441-455.
Wang, H. K., Yu-Fang, Y., Cheng-Fei, T. and Yu-Chieh, L. (2008) An empirical research on the relationship between human capital and innovative capability: a study on Taiwan’s commercial banks. Total Quality Management 19(11): 1189-1205.
Wu, D. (2009) Measuring performance in small and medium enterprises in the information and communication technology industries. [Online URL https://researchbank.rmit.edu.au/eserv/rmit:6859/Wu.pdf] accessed on October 17, 2016.
Zheng, C. (2009) Keeping talents for advancing service firms in Asia. Journal of Service Management 20(5): 482-502.