Abstract

This article aims at studying the empirical evidence of the impacts of human resource management (HRM) on knowledge management (KM) and on non-financial OP of infrastructure construction firms in Thailand. We used structural equation modeling (SEM), a hybrid of factor analysis and path analysis, to investigate the relationship among these three construct. Once a conceptual model was developed, we then employed confirmatory factor analysis to verify the factor structure of a set of observed variables. Then, SEM was used to test the three proposed hypotheses. Results supported the theorized model, indicating that a positive and direct relationship exists between HRM and KM; between knowledge and non-financial OP; and between HRM and non-financial OP in Thai infrastructure construction firms. Additionally, KM was found to be a mediator between HRM and non-financial OP. This study provides additional empirical evidence of the importance of improving non-financial OP through people and their valuable knowledge.