Introduction

The change of workforce, global competition, information technology advancement, new knowledge discovery, an uneven recovery from global recession, demands for organizational performance improvement, and a host of other changes are forcing organizations to constantly examine and re-evaluate how they perform. They are operating with new technologies, changing their organization structures, redesigning work processes, relocating their workforces, and improving work processes to respond to an increasingly demanding, unpredictable, and global competitive environment (Lawler & Worley, 2011).

Supply chain is considered as the essential element, especially the logistics development for all industries. It leads to the improvement of efficiency and effectiveness of each organization, particularly on product transferring, information sharing between the complex hierarchies of all the tiers. Supply Chain Management (SCM) pays great deal of attention on marketing, product development and customer service which reveals that one of the classified characteristics of SCM is to establish an approach that obtains customer satisfaction (Hugo, 2003).

The important changes of supply chain have a significant impact on human capital and human resource management. Therefore, human resource functions should consider human resource management policies, practices, and processes and redesign their human resource functions by examining the change of competitive environment.

Over the past decade, it has been difficult to find a management or business material that does not highlight how many of the changes in the business world have made human capital—people— an organization’s most important asset. Human capital management has been the focus of a great deal of writing focused on finding, motivating, developing, and monitoring the right talent. The annual reports of many corporations in North America, Europe, and Australia argue that their human capital and intellectual property are their most important assets. In many organizations, compensation is one of the largest costs, if not the largest one. In service organizations, it often represents 70 to 80 percent of the total cost of doing business. Adding the training cost and costs of other human resource management activities to compensation costs implies that the human resource function often has the responsibility for a very large and growing portion of an organization’s total expenditures.

In most organizations, the compensation cost of human capital is not the only, or even the most, important determinant of an organization’s effectiveness. Although compensation accounts for very little of the cost of doing business, human capital has a significant impact on the performance of most organizations (Cascio & Boudreau, 2011). In essence, without effective human capital, organizations are likely to have little or no revenue. Although the organizations that have the most automated production facilities, they still require skilled, motivated employees to operate them. Knowledge intensive organizations focus on human resource development and manage their workforce as the most important asset. Although human capital does not appear on the balance sheet of corporations, it represents an increasingly large percentage of many organizations’ market valuation (Huselid et al., 2005).

In an increasing number of organizations, having the best talent and talent management processes can be a continuous, difference-making source of competitive advantage. It can make companies more innovative and agile, better able to develop superior products and customer knowledge, and offer superior services (Warley et al., 2014). As it is difficult for a firm to gain control over external factors to prevent organizational disruption. Therefore, it would be more beneficial to improve internal areas that are directly under the firm’s control. Achieving higher-level human performance regarding their task requires a unique set of HRM practices to produce better responses from employees (Capelli & Singh, 1992).

HR functions can play a major role in implementing supply chain strategy by building it into HR strategy, policy, and practices. They also can help organizations manage the changes that are required in order for them to be sustainably effective. Human resource professionals can play a central role in change management, culture change, organizational design, and competency building, all of which are critical components of a sustainable business strategy.

In many respects, human resource has also had a major role in determining and assessing how its organization’s employees are treated. As employees are key drivers related to the execution of supply chain strategy. In this regard, managing human assets effectively by focusing attention on employee engagement helps firms to improve their performance toward given task and therefore, human performance is vitally important for every organization in creating value for both the company and customers (Arthur, 1994).

From the above articles, human resource management plays the important role for the firm performance and could significantly impact the supply chain performance of the firm significantly. This paper focuses on the study of supply chain management level and the factors affecting supply chain performance in an oil and gas firm in Thailand.

Literature Review

Ethical Values

Ethics can be defined as the agreed-on standards of what is desirable and undesirable, of right and wrong conduct or behavior of a person, group or entity (Cressy et al., 2010). Hijal-Moghrabi, et al., (2015) has pointed out that it considers essential for the organizations to set ethical values for its employees alongside providing an to enable atmosphere that encourages ethical behavior, capable leadership, trust, commitment and creates workforce value to improve OP. The result of this study is consistent with some prior studies (Bowman & Knox, 2008; Sabiu et al., 2016a). Additionally, Mathenge (2014) examined ethical values among enforcement employees and found them to be more easily exposed to corruption, and the researcher concluded that high ethical values (competence, confidence and professionalism) would reduce the likelihood of employee fraud. Chen, et al., (2013) found that the employees lacking ethical values would tend to conduct bribery and corruption. In this regards, ethical behavior of employees viewed as essential in realizing organizational success and performance (Brown et al., 2005; Barney, 2001; Sabiu et al., 2016b).

Recruitment

Recruitment is the process of searching for the best candidates and attracting them to consider job offers (Bhupendra & Swati, 2015). The appropriate recruitment process with the consideration of superior talent acquiring and retaining is essential to the organization’s image. (Oginni & Ogunyomi, 2012; Bouton, 2015). It could be considered as a valuable weapon for an organization that has workforce of good quality talent (Tlaiss et al., 2017). However, it becomes a huge cost for the organization when it hire the wrong candidates for the job positon either erroneously or intentionally hiring process (Ekwoaba et al., 2015). Therefore, the establishment of recruitment process as a human resource strategy that can determine the fortune of an organization is a key source of sustainable competitive advantage as it helps the organization to get high-quality talents and competent workforce (Hiltrop, 1999; Bondarouk et al., 2014).

Compensation

Reward and compensation are a form of pay given to employees as a result of their employment status (Dessler, 2008; Aswathappa, 2013) has pointed out that compensation can influence employees living standard, status in the society, productivity and lastly employee work and organizational satisfaction. Therefore, it is essential for the organization to consider external equity when design compensation system by linking with the performance (Mak & Akhtar, 2003; Youndt et al., 1996; Huselid, 1995).

Pfeffer (1994) argued that one of the elements of what effective firms do with people is the use of incentive pay. The design of compensation systems in terms of the form of incentive compensation used is critical to the success of the organization. In fact, in examining human resource practices, the use of incentive compensation is positively related to organizational performance (Huselid, 1995; Delaney & Huselid, 1996). The theory suggests that using incentive compensation better motivates individuals to perform than by simply relying on fixed rewards., for instance. Handel (2000) showed that compensation and remunerations in form of commissions, stock options and cash recognitions increase employee satisfaction.

In this view, HR compensation and reward practices in a firm can enhance employee job satisfaction, which, in turn, enhance organizational performance.

Well-being

Within the behavioral sciences in general and occupational health psychology in particular, there has been a specific focus on the importance of well-being, both physical and mental health, in affecting success in many life domains, including the workplace. While well-being has been shown to have reciprocal effects on work-related outcomes such as job satisfaction, the means for understanding and affecting these reciprocal processes have received little attention (Aveyet al., 2010). Accordingly, understanding the impact these extreme family demands in conjunction with heightened levels of work autonomy and thereby self-responsibility can have on employees’ productivity and well-being, and which practices can alleviate such new avenues of family to work conflict, will be important. For example, insights into whether and how additional types of organizational support, beyond those emotional or instrumental in nature, can help to combat family-work conflict, can support organizations aiming to sustain employee well-being (French, Dumani, Allen & Shockley, 2018).

Development

Training and development denotes efforts and strategies by an organization to improve the skills, abilities and knowledge of current employees (Jiang et al., 2012; Chadwick & Dabu, 2009; Shaw et al., 2013; Nguyen et al., 2010) pointed out that training and development leads to the accumulation of knowledge and the development of human capital, which eventually influences the welfare of employees and job satisfaction. This is because employees can carry out assigned tasks easily and without difficulties. Nguyen, et al., (2010) pointed out that training and development leads to the accumulation of knowledge and the development of human capital, which eventually influences the welfare of employees and job satisfaction. This is because employees can carry out assigned tasks easily and without difficulties. Broadly, employee job satisfaction improves the financial and non-financial performance of an organization. As a result, over the long term, employee job satisfaction creates a competitive advantage for the organization. In this sense, training and development has a significant impact on employee satisfaction, and satisfied employees contribute to competitive advantage.

Engagement

According to Becker & Huselid (1998), HR planning is strongly linked with positive enterprise outcomes, through work engagement (Batt, 2002) and firm economic performance (Sánchez et al., 2015) and subsequently competitive advantage. Some meta-analyses have argued that work engagement influences the attitudinal, behavioral and performance of employees (e.g. Halbesleben, 2010; Chetthamrongchai, Jermsittiparsert & Saengchai, 2019; Ghani, Kaliappen & Jermsittiparsert, 2019).

Supply Chain Performance

Supply Chain Performance is a measure of how well the supply chain is able to meet its functional objectives (Sezen, 2008; Won Lee, Kwon & Severance, 2007; Hotrawaisaya & Jermsittiparsert, 2020). Three dimensions of supply chain performance identified in the literature include; reliability, efficiency (cost containment) and flexibility (Sezen, 2008; Won Lee et al., 2007). These three forms of performance are explored in this study. Reliability performance refers to how well the organization is able to meet customer orders, minimize stock outs and eliminate other operational supply chain bottlenecks (Sezen, 2008; Won Lee et al., 2007). Efficiency performance refers to how well firms are able to minimize their supply chain costs (Sezen, 2008). Flexibility Performance measures how well organizations are able to deliver customized and differentiated product offerings to their customers as a result of their supply chain (Sezen, 2008). Hartono, et al., (2010) noted that higher levels of information sharing resulted in higher levels of operational supply chain performance.

Hypothesis

Values and Ethics, Recruitment, Compensation, Well-being, Development and Engagement affect supply chain performance in an Oil and Gas Firm in Thailand.

Research Methodology

A quantitative survey research approach using descriptive and cross-sectional design was employed in this study to understand the influence of human resource management practices on supply chain performance. For this study, a probability sampling method and techniques were used; each unit of the population has an equal chance of being selected in the sample. Simple random sampling technique was being utilized in this study.

Population and Sample

The populations in this research were employees who worked in an oil and gas firm in Thailand. The sample size was 350 employees who had main responsibilities related to supply chain. Simple random sampling method was applied for data gathering.

Conceptual Framework

Independent variables are Values and Ethics, Recruitment, Compensation, Well-being, Development and Engagement

Dependent variable is supply chain performance

Research Instrument

The research instrument used in this study was questionnaire. The researcher used 5 point Likert Scale to ask respondents rate the level of each variables according to their opinion. Questionnaire was divided into three sections. The first section was respondents’ information. The second section was focusing on respondents’ opinion towards factors affecting supply chain. The section consists of values and ethics, recruitment, compensation, well-being, development, and engagement. The third section was focusing on supply chain performance of the firm.

The research instrument was validated by five experts for content validity. Questionnaire was revised and then piloted for reliability. Internal consistency of items was measured by using Cronbach’s alpha coefficient. According to Nunnally (1978) & Pallant (2010), the alpha coefficient of more than or equal 0.7 would be acceptable for internal consistency. From the analytical results, the Cronbach’s alpha coefficient for values and ethics, recruitment, compensation, well-being, development, engagement, and supply chain performance was recorded as 0.921, 0.886, 0.877, 0.901, 0.823, 0.782, and 0.836, respectively. Therefore, the results confirmed internal consistency of the research instrument see Table 1 and 2.

Table 1 Definition and Alpha Coefficient of Independent Variable
Independent Variable	Definition
Values and ethics	The principles and ideals, which helps employees in making the judgment of what is more important and guide behavior
Recruitment	The process of attracting, selecting and appointing suitable candidates for jobs
Compensation	Monetary and non-monetary benefit which is given to an employee or worker giving their performance to the organization
Well-being	Employees’ happiness, psychological, emotional and mental state.
Development	The process where the employee with the support of firm undergoes various training programs to enhance skills and acquire new knowledge and skills.
Engagement	A workplace approach designed to ensure that employees are committed to their organization's goals, objectives and values, encouraged to contribute to organizational success

Table 2 Definition and Alpha Coefficient of Dependent Variable
Dependent Variable	Definition	Alpha Coefficient
Supply chain performance	The range of activities required to plan, control and execute a product's flow, from acquiring raw materials and production through distribution to the final customer, in the most streamlined and cost-effective way	0.836

Research Results

The first part of questionnaire focusing on respondents’ personal information. From descriptive analysis, the results of personal factors are demonstrated in table 3.

Table 3 Personal Factors
Personal factors	Frequency	Percentage
Gender
Male	200	57.1
Female	150	42.9
Total	350	100
Age (year)
21 - 30	147	42
31 - 40	163	46.6
41 – 50	29	8.3
>50	11	3.1
Total	350	100
Education
High School/Vocational	3	0.9
Diploma/High Vocational	20	5.7
Bachelor’s degree	112	32
Master’s degree	203	58
Doctor’s degree	12	3.4
Total	350	100
Experience (year)
≤ 5	142	40.6
>5 - 10	115	32.9
>10 – 15	44	12.6
>15 – 20	22	6.3
>20	27	7.7
Total	350	100

From table 3: It is found that the majority of the employees in an oil and gas firm in Thailand are male who graduated in master’s degree. They are 31-40 years old and have less than 5 years working experience in the firm.

The second part of questionnaire focusing on all independent variables. From descriptive analysis, the mean and standard deviation of each independent variables are demonstrated in table 4.

Table 4 Mean, Standard Deviation and Level of Factors Affecting Supply Chain Performance
Factors	Mean	S.D.	Level	Rank
Values and Ethics	4.182	0.51	High	2
Recruitment	4.027	0.572	High	4
Compensation	4.081	0.668	High	3
Well-being	4.213	0.569	High	1
Development	4.008	0.683	High	5
Engagement	3.988	0.649	High	6
Overall	4.083	0.508	High	-

From table 4: The results found that well-being was in the high level which was in the first rank, followed by values and ethics, compensation, recruitment, development, and engagement, respectively.

The third part of questionnaire focusing on dependent variable. From descriptive analysis, the mean and standard deviation of supply chain performance are demonstrated in table 5.

Table 5 Mean, Standard Deviation and Level of Supply Chain Performance
Supply chain performance	Mean	S.D.	Level
Overall	4.166	0.539	High

From table 5: The results found that the level of supply chain performance within the oil and gas firm was at high level.

For hypothesis testing, data were analyzed by using statistical program. Multiple linear regression was applied, the results was shown in table 6.

Table 6 Multiple Linear Regression Analysis of Factors Affecting Supply Chain Performance
Factors	bj	t	p-value
Constant	1.079	6.322	.000**
Values and Ethics	0.177	2.957	.003**
Recruitment	0.078	1.639	0.102
Compensation	-0.01	-0.249	0.804
Well-being	0.07	1.267	0.206
Development	0.152	3.385	.001**
Engagement	0.294	5.182	.000**

From table 6: it is found that F=75.854, p-value=0.000 (less than 0.01), R2=0.570, this can explain that all independent variables could explain the variation of supply chain performance at 57.0%. Engagement has most influence on the supply chain performance (b6=0.294), followed by values and ethics (b1=0.177), and development (b5=0.152), respectively. In addition, recruitment, compensation, and well-being have no influence on the supply chain performance.

Discussion and Conclusion

The results of this research showed that engagement affected on supply chain performance due to employees were proud of being an employee of this firm. The firm saw the important of employees’ welfare and took a good care of them. As a result, employees had a feeling of being part of the firm. They were loyal to the firm and willing to work hard for it. Employee engagement as ‘the degree to which employees are satisfied with their jobs, feel valued, and experience collaboration and trust (Johnson, 2004). Engaged employees will stay with the firm longer and continually find smarter, more effective ways to add value to the organization. The end result is a high performing firm where people are flourishing and productivity is increased and sustained’.

Additionally, development also affected to supply chain performance. Due to firm provided effective training in order to develop employees’ knowledge’s, attitude, experiences and other important skills. Employees would be trained consistently so that they could be productive employees who were more likely to have high job performance. So, the results of the focusing on developing employees would make the firm sustainable. According to the concept of training and development (Kashmir, 2016), training and development is a function of human resource management concerned with organizational activity aimed at better the performance of individuals and groups in organizational settings. Training and development can also be described as ‘an educational process which involves the sharpening of skills, concepts, changing of attitude and gaining more knowledge to enhance the performance of employees

The values and ethics within firm affected to the supply chain performance as well because of the difference of beliefs, culture, and behavior of each individual. If the firm had a good values and ethics, it could direct every employee to the same direction. Therefore, the firm could thrive rapidly and constantly. Value clarification consists of "helping people clarify what their lives are for and what is worth working for (Santrock, 2007). It encourages students to define their own values and to understand others' values

Recruiting employees was an important activity for a firm. The firm had to select the right employee for the right position. The selecting process would be fair by selecting based on the ability of individual. If the firm had an effective recruiting process, it could get suitable and qualified employees that would support the supply chain performance of the firm in the future. Recruitment is described as “the set of activities and processes used to legally obtain a sufficient number of qualified people at the right place and time so that the people and the organization can select each other in their own best short and long term interests” (Schuler, 1987).

In Compensation, it is affecting to employees in motivation on work to excellence and making employee will working for the firm, forever. We could bring compensation system such as rewarding, promoting, bonus and etc. applied in the firm that makes employee work on our business strategy. Heavily emphasis the need to reward employees according to the value they bring to the organization (Lawler, 2000). An organization that profits from an employee's performance should share its success with that employee. Employees who bring value to the firm. These competencies require that employees not only have the abilities and resource, but must be autonomously motivated to use them.

Although the level of the well-being was high, yet it did not affect to the supply chain performance of the firm. The reasons were that the firm might create a friendly environment in the workplace or enhance both physical and mental health to employees so that they could work happily. This was like the firm provided personal benefit for employees, so that well-being did not create sustainability for a firm. The subjective well-being consists of three interrelated components: life satisfaction, pleasant affect, and unpleasant affect (Diener & Suh, 1997).

Recommendations

The Firm should contribute human resource management role, particularly in the term of engagement values and ethics, and development.

For engagement, it is the key to motivate employees to work more efficiently. This engagement will significantly affect the company’s performance. From previous study, it has found the positive relationship between employee engagement and organizational performance outcomes: employee retention, productivity, profitability, customer loyalty and safety (Markos & Sridevi, 2010). Researches also indicate that the more engaged employees are, the more likely their employer is to exceed the industry average in its revenue growth. Employee engagement is found to be higher in double-digit growth companies. Research also indicates that engagement is positively related to customer satisfaction. If the company has high engagement, the company will be sustainable.

For values and ethics, all participants of the supply chain process should exhibit a high standard of professionalism. It means that each entity should treat the other with an equal amount of respect and trust. Based on the underlying premise of stakeholder theory that business and ethics decisions are intertwined, the current research introduces the concept of Supply Chain Integrity (SCI) to explore how the interdependence of business and ethics decisions can lead to improvements in Sustainable Supply Chain Performance (SSCM) practices (Vincent et al., 2018). Firms will need to develop strategy, risk management, transparency, and organizational cultures that readily demonstrate integrity-laden approaches to supply chain management.

For development, the firm should provide employee’s performance development program individually, thoroughly, and continuously. Explicit career paths shall be identified and transferring employees between business units shall be allowable in order to encourage employees to realize the importance of each business function and progression. As a result, employees will be convinced for self-development and working through their highest capability. Finally, it leads to overall company’s development and sustainability because above at all, human resources are the most rewarding capital who drives company’s accomplishment.

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