The moderating effect of human resource management practices on the relationship between knowledge absorptive capacity and project performance in project-oriented companies

In response to recent calls for research on human resource management (HRM) in project management, this research investigates the links between HRM practices, the project teamʹs knowledge absorptive capacity (ACAP) and project performance in project-oriented companies (POCs). Based on survey data from 198 projects in multinational companies (MNCs) in the Thai automotive industry, this research finds that HRM practices moderate the effects of a project teamʹs knowledge ACAP on project performance, in particular of potential ACAP on long-run project performance. In addition, HRM practices covary with a project teamʹs realized ACAP, the other dimension of ACAP, to affect short-run project performance. This research sheds light on the different roles that HRM practices play in a project, finding that HRM practices not only facilitate knowledge management from the current project to future projects but also strengthen the relationship between a project teamʹs knowledge ACAP and long-term project performance. This research contributes to the understanding of HRM in the literature of project management.