The Effect of Information Technology and Dynamic Capabilities on Human Resources Competencies and Innovative Performance

Abstract

The objective of this research is to study the relationships and influences of information technology capabilities, dynamic capabilities, human resources competencies and the innovative performance of listed companies in the Stock Exchange of Thailand (SET), the largest capital market in the country. A quantitative research method was carried out using questionnaires as the instruments for data collection. Questionnaire respondents were either the president, managing director, assistant managing director, general manager, or human resources manager of their respective companies. The research results revealed that all observed variables of these companies are presently at a high level. PLS-SEM was used to assess the structural models and verify the research hypotheses. The research results revealed significant influences among three pairs of variables: (1) IT capabilities had a positive effect on Dynamic capabilities, (2) IT capabilities had a positive effect on HR competencies, and (3) HR competencies had a positive effect on innovative performance. Thus, this research provides useful information for companies, emphasizing the importance of supporting and developing IT capabilities and HR competencies to increase the organization’s innovative performance, in turn supporting survival in a rapidly changing and highly competitive environment.