Modeling the Relationship between Organizational Competency, Entrepreneurship, Human Resource Management, Technology Management, and Organizational Performance

Atitarn  Thongchua; Vichit  U-On

doi:10.60027/iarj.2025.280078

Authors

Atitarn Thongchua Sripatum University, Thailand https://orcid.org/0000-0003-3086-9359
Vichit U-On Sripatum University, Thailand https://orcid.org/0009-0009-1480-2745

DOI:

https://doi.org/10.60027/iarj.2025.280078

Keywords:

Organizational competency, Entrepreneurship, Human resource management, Technology management, Organizational performance

Abstract

Background and Aims: Organizational competency development is an important factor enabling community enterprises to respond to customer needs and effectively adapt to changing environments. This article aims to study the factors, components, and relationships among organizational competency factors, entrepreneurship, human resource management, technology management, and organizational performance, and to create a model of the relationship between organizational competency, entrepreneurship, human resource management, technology management, and organizational performance.

Methodology: A literature review was conducted using the EBSCO database with the keyword “organizational competency”. This search yielded 195 articles, of which 125 were deemed non-redundant and suitable for analysis. Content analysis was employed to analyze the data. The review revealed that the key variables studied about organizational competency were entrepreneurship, human resource management, and technology management. These competencies were found to impact organizational performance significantly.

Results: The study findings suggest that community enterprises seeking to enhance operational efficiency and improve overall performance should adopt the concept of organizational competency. To foster these competencies, organizations should focus on entrepreneurship, human resource management, and technology management. The relationships between these variables are illustrated in the proposed conceptual model.

Conclusion: The study found that organizational competency is a critical determinant of organizational performance. Five key factors were identified: entrepreneurship, human resource management, technology management, organizational competency, and organizational performance. The empirical evidence suggests a positive correlation between the implementation of organizational competency and improved performance. Consequently, organizations aiming to enhance their performance should consider adopting the concept of organizational competency.

References

Abidin, Z. Z., Rahayu, S. M., Pamungkas, M. G. W. E. N., Handayani, S. R., & Utami, R. B. (2022). Entrepreneurial Knowledge, Market Orientation, Digitalization, and Entrepreneurial Competencies: Evidence from SMEs in Indonesia. Journal of Economics, Finance and Accounting Studies, 4(2), 91-103.

Achlison, U., & Soegito, A. T. (2019). Adaptive Leadership to Potential Industry for Competencies Development: A Case Study. International Journal on Leadership, 7(1).

Akkermans, J., Brenninkmeijer, V., Huibers, M., & Blonk, R. W. (2013). Competencies for the contemporary career: Development and preliminary validation of the career competencies questionnaire. Journal of Career Development, 40(3), 245-267.

Asibu-Yartey, P.H.I.L.I.P. (2021). Entrepreneurial Competencies, The Mediating Role of Culture and its Impact on SME Success. Business Management Dynamics, 11(2).

Azmi, I. A. G., Ahmad, Z. A., & Zainuddin, Y. (2009). Competency-based pay and service quality: an Empirical study of Malaysian public organizations. Asian Academy of Management Journal, 14(1), 21-36.

Bagheri, A., & Pihie, Z. A. L. (2011). Entrepreneurial leadership: Towards a model for learning and development. Human Resource Development International, 14(4), 447-463.

Bartram, D. (2005). The Great Eight competencies: a criterion-centric approach to validation. Journal of Applied Psychology, 90(6), 1185.

Behling, G., & Lenzi, F. C. (2019). Entrepreneurial competencies and strategic behavior: A study of micro Entrepreneurs in an emerging country. BBR. Brazilian Business Review, 16, 255-272.

Bergman, S., Yassine, A., & Roemer, T. (2004). Competencies development framework based on best practices. Information Knowledge Systems Management, 4(1), 35-53.

Chaston, I., & Mangles, T. (2002). E-commerce in small UK manufacturing firms: A pilot study on internal competencies. Journal of Marketing Management, 18(3-4), 341-360.

Clardy, A. (2007). Strategy, core competencies and human resource development. Human Resource Development International, 10(3), 339-349.

Cragg, P. (2008). Identifying key information systems competencies in small firms. Total Quality Management, 19(1-2), 29-35.

Dainty, A. R., Cheng, M. I., & Moore, D. R. (2004). A competency‐based performance model for Construction project managers. Construction Management and Economics, 22(8), 877-886.

De Vos, A., De Hauw, S., & Willemse, I. (2015). An integrative model for competency development in organizations: The Flemish case. The International Journal of Human Resource Management, 26(20), 2543-2568.

Debrah, Y. A., & Ofori, G. (2005). Emerging managerial competencies of professionals in the Tanzanian construction industry. The International Journal of Human Resource Management, 16(8), 1399-1414.

Dirani, K. M., Abadi, M., Alizadeh, A., Barhate, B., Garza, R. C., Gunasekara, N., ... & Majzun, Z. (2020). Leadership competencies and the essential role of human resource development in times of crisis: a response to Covid-19 pandemic. Human resource development international, 23(4), 380-394.

Dzansi, D. Y., Chipunza, C., & Mashavira, N. (2019). Managerial interpersonal competencies and the performance of family-and non-family-owned small and medium-sized enterprises in Zimbabwe and South Africa. SA Journal of Human Resource Management, 17(1), 1-15.

Elg, M., Palmberg Broryd, K., & Kollberg, B. (2013). Performance measurement to drive improvements in Healthcare practice. International Journal of Operations & Production Management, 33(11/12), 1623-1651.

Escrig‐Tena, A. B., & Bou‐Llusar, J. C. (2005). A model for evaluating organizational competencies: An application in the context of a quality management initiative. Decision Sciences, 36(2), 221-257.

Galanaki, E., Bourantas, D., & Papalexandris, N. (2008). A decision model for outsourcing training functions: distinguishing between generic and firm-job-specific training content. The International Journal of Human Resource Management, 19(12), 2332-2351.

Han, L. L. V., Arumugam, V., & Arokiasamy, L. (2018). Creating better humans towards sustainable Competitive advantage for small and medium-sized accounting firms in Malaysia. In SHS Web of Conferences (Vol. 56, p. 04006). EDP Sciences.

Henderson, L. S. (2008). The impact of project managers’ communication competencies: Validation and extension of a research model for virtuality, satisfaction, and productivity on project teams. Project Management Journal, 39(2), 48-59.

Hsu, C. C., Tan, K. C., Jayaram, J., & Laosirihongthong, T. (2014). Corporate entrepreneurship, Operations core competency and innovation in emerging economies. International Journal of Production Research, 52(18), 5467-5483.

Hurd, A. R., & Buschbom, T. (2010). Competency development for chief executive officers in YMCAs. Managing Leisure, 15(1-2), 96-110.

Hussain, A., Akbar, M., Shahzad, A., Poulova, P., Akbar, A., & Hassan, R. (2022). E-commerce and SME performance: The moderating influence of entrepreneurial competencies. Administrative Sciences, 12(1), 13.

Hwang, W. S., Choi, H., & Shin, J. (2020). A mediating role of innovation capability between Entrepreneurial competencies and competitive advantage. Technology Analysis & Strategic Management, 32(1), 1-14.

Jintana, S., & Puripanik, T. (2019). A Problem, Limitations and Approaches for Strengthening of Community- Based Enterprises in Thailand. Journal of Politics, Administration and Law, 12(3), 179-194.

Khalilzadeh Salmasi, M., Talebpour, A., & Homayounvala, E. (2016). Identification and classification of organizational-level competencies for BI success. Journal of Intelligence Studies in Business, 6(2), 17-33.

Kim, J., & McLean, G. N. (2015). An integrative framework for global leadership competency: Levels and dimensions. Human Resource Development International, 18(3), 235-258.

Kim, S. K., & Hong, J. S. (2005). The relationship between salesperson competencies and performance in the Korean pharmaceutical industry. management revue, 259-271.

Leme Fleury, M. T., Correa Fleury, A. C., & Correa Fleury, A. C. (2005). In search of competence: aligning strategy and competencies in the telecommunications industry. The International Journal of Human Resource Management, 16(9), 1640-1655.

Levenson, A. R., Van der Stede, W. A., & Cohen, S. G. (2006). Measuring the relationship between Managerial competencies and performance. Journal of Management, 32(3), 360-380.

Li, J. M., Yang, J. S., & Wu, H. H. (2009). Analysis of competency differences among frontline employees from various service typologies: integrating the perspectives of the organisation and customers. The Service Industries Journal, 29(12), 1763-1778.

Lin, H. C., Lee, Y. D., & Tai, C. (2012). A study on the relationship between human resource management strategies and core competencies. International Journal of Organizational Innovation (Online), 4(3), 153.

Lo, K., Macky, K., & Pio, E. (2015). The HR competency requirements for strategic and functional HR practitioners. The international journal of human resource management, 26(18), 2308-2328.

Long, C. S., & Ismail, W. K. W. (2011). An analysis of the relationship between HR professionals' competencies and firms' performance in Malaysia. The International Journal of Human Resource Management, 22(5), 1054-1068.

Makhloufi et al. (2021). Effect of IT capability and intangible IT resources on sustainable competitive advantage: Exploring moderating and mediating effect of IT flexibility and core competency, Cogent Business & Management, 8 (1), 1935665, DOI: 10.1080/23311975.2021.1935665.

McClelland, D. C. (1973). Testing for competence rather than for" intelligence.". American psychologist, 28(1), 1.

Migdadi, M. M., & Abu Zaid, M. K. S. (2016). An empirical investigation of knowledge management competence for enterprise resource planning systems success: insights from Jordan. International Journal of Production Research, 54(18), 5480-5498.

Mohammed, K., Ibrahim, H. I., & Mohammad Shah, K. A. (2017). Empirical evidence of entrepreneurial competencies and firm performance: A study of women entrepreneurs of Nigeria.

Mulugeta, M., & Tsehay, B. (2017). Entrepreneurial Competency Assessment: Evidence from Mizan- Aman Business Community in Mizan-Aman City Administration-Ethiopia. ITIHAS The Journal of Indian Management, 7(4), 52-60.

Nair, A. K., & Bhattacharyya, S. S. (2022). Sustainability competencies and its link to innovation capabilities. European Business Review, 34(6), 819-836.

Niven, P. R. (2002). Balanced scorecard step-by-step: Maximizing performance and maintaining results. John Wiley & Sons.

Pan, G., & Seow, P. S. (2016). Preparing accounting graduates for digital revolution: A critical review of information technology competencies and skills development. Journal of Education for Business, 91(3), 166-175.

Parameswaran, H. (2020). Strategic Human Resource Development–A manoeuvre for future competencies. Serbian Journal of Management, 15(2), 353-370.

Poba-Nzaou, P., Uwizeyemunugu, S., Gaha, K., & Laberge, M. (2020). Taxonomy of business value underlying motivations for e-HRM adoption: An empirical investigation based on HR processes. Business Process Management Journal. ahead-of-print. Doi: 10.1108/BPMJ-06-2018-0150.

Prasad, A., & Green, P. (2015). Organizational competencies and dynamic accounting information system capability: Impact on AIS processes and firm performance. Journal of Information Systems, 29(3), 123-149.

Rasmussen, E., Mosey, S., & Wright, M. (2015). The transformation of network ties to develop entrepreneurial competencies for university spin-offs. Entrepreneurship & Regional Development, 27(7-8), 430-457.

Redmond, E. (2013). Competency models at work: The value of perceived relevance and fair rewards for employee outcomes. Human resource management, 52(5), 771-792.

Samei, H., & Feyzbakhsh, A. (2015). A framework of successor competencies to promote corporate entrepreneurship in family firms. Journal of Enterprising Culture, 23(03), 321-355.

Subramaniam, T., Nizam, I., & Kamil Eissa, A. M. (2019). The Impact of Core Competencies of IT Professionals on Business Success in Malaysia. International Journal of Management, Accounting & Economics, 6(7).

Teng, Y. T., Bonk, C. J., & Kim, K. J. (2009). The trend of blended learning in Taiwan: perceptions of HRD practitioners and implications for emerging competencies. Human Resource Development International, 12(1), 69-84.

Tsou, H. T. (2012). The effect of interfirm co-development competency on the innovation of the e-service process and product: the perspective of internal/external technology integration mechanisms. Technology Analysis & Strategic Management, 24(7), 631-646.

Uwizeyemungu, S., Bertrand, J., & Poba-Nzaou, P. (2020). Patterns underlying required competencies for CPA professionals: a content and cluster analysis of job ads. Accounting Education, 29(2), 109-136.

Van Esch, E., Wei, L. Q., & Chiang, F. F. (2018). High-performance human resource practices and firm performance: The mediating role of employees’ competencies and the moderating role of climate for creativity. The International Journal of Human Resource Management, 29(10), 1683-1708.

Wang, N., Liang, H., Zhong, W., Xue, Y., & Xiao, J. (2012). Resource structuring or capability building? An empirical study of the business value of information technology. Journal of Management Information Systems, 29(2), 325-367.

Wei, F., Li, Y., Zhang, Y., & Liu, S. (2018). The interactive effect of authentic leadership and leader competency on followers’ job performance: The mediating role of work engagement. Journal of Business Ethics, 153(3), 763-773.

Wei, L. Q., & Lau, C. M. (2005). Market orientation, HRM importance and competency: Determinants of strategic HRM in Chinese firms. The International Journal of Human Resource Management, 16(10), 1901-1918.

Wickramasinghe, V., & De Zoyza, N. (2011). Managerial competency requirements that enhance organizational competencies: a study of a Sri Lankan telecom organization. The International Journal of Human Resource Management, 22(14), 2981-3000.

Wren, J., & Dulewicz, V. (2005). Leader competencies, activities and successful change in the Royal Air Force. Journal of Change Management, 5(3), 295-309.

Wu, M. H. (2018). Comparative analysis of perceived employable competency by restaurant managers of Taiwan. International Journal of Organizational Innovation, 11(1).

Yuan, C. C., & Lo, S. H. (2018). Relationship among team temporal leadership, competency, followership, and performance in Taiwanese pharmaceutical industry leaders and employees. Journal of Career Development, 45(3), 227-238.

Zhao, X. Y., Frese, M., & Giardini, A. (2010). Business owners’ network size and business growth in China: The role of comprehensive social competency. Entrepreneurship and Regional Development, 22(7-8), 675-705.