THE IMPACT OF ORGANIZATIONAL CULTURE ON THAI SMES PERFORMANCE: THE MEDIATING ROLE OF HIGH-PERFORMANCE WORK SYSTEM, HUMAN CAPITAL, AND ORGANIZATIONAL CITIZENSHIP BEHAVIOR

Abstract

This study examines the impact of organizational culture on Thai SME performance through the mediating roles of high-performance work systems (HPWS), human capital, and organizational citizenship behavior (OCB), employing a mixed-methods approach that combines quantitative analysis of 545 SMEs with qualitative insights from 40 in-depth interviews analyzed using ATLAS.ti. The findings demonstrate that organizational culture significantly influences SME performance indirectly through HPWS (β=0.56, p<0.01), which in turn strongly affects both human capital (β=0.81, p<0.01) and OCB (β=0.55, p<0.01). The model explains substantial variance in key mediators (R²=0.66 for human capital; R²=0.62 for OCB) and ultimately accounts for 32.5% of performance variance (R²=0.325). HPWS emerged as the most critical factor, with both direct (β = 0.43, p < 0.01) and indirect effects on performance, while OCB shows a particularly strong direct impact (β=0.51, p<0.01). Although human capital does not directly influence performance, it serves as an important mediator between HPWS and OCB (β=0.27, p<0.01). Qualitative findings reinforce these relationships while highlighting implementation challenges, particularly the need for leadership commitment and HR systems tailored to SME resource constraints. By integrating large-scale quantitative analysis with rich qualitative data, this research both advances theoretical understanding of the resource-based view in SME contexts and provides practical strategies for performance improvement. The proposed model provides actionable insights for cultivating competitive advantage through cultural alignment, strategic HR practices, and employee engagement within Thailand's dynamic business landscape.