Linking Performance Appraisal with Sustainable Performance Through Innovative Behaviours: Contributions to SMEs’ Long-Term Viability
Main Article Content
บทคัดย่อ
This article aims to review the relevance of existing literature on the critical roles of performance appraisal and innovative behaviour, including its role in promoting sustainable performances. Despite increasing attention on the role of performance appraisal in organizational performance, limited research has explored how it indirectly promotes sustainable performance through innovative behaviours, particularly in the SME context of Thailand. Drawing on HR system strength (HRSS) theory, this review shows that the interplay between performance appraisal and innovative behaviour can encourage and contribute to sustainability performances, ultimately fostering their long-term viability, particularly in the context of SMEs in Thailand. Furthermore, within the framework of employee performance, this review unpacks the role of performance appraisal in stimulating innovative work behaviours to enhance the overall performance of SMEs, viewed through the lens of their long-term viability. This review also offers several useful policy implications relevant to the growth of SMEs. Hopefully, it is anticipated that this article will be beneficial to practitioners, researchers, and policymakers involved in the context of SMEs, providing a fuller understanding of these concepts within specific research fields.
Article Details

อนุญาตภายใต้เงื่อนไข Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
เนื้อหาและข้อมูลในบทความที่ลงตีพิมพ์ในวารสารวิชาการมหาวิทยาลัยราชภัฏภูเก็ต ถือเป็นข้อคิดเห็นและความรับผิดชอบของผู้เขียนบทความโดยตรง ซึ่งกองบรรณาธิการวารสารฯ ไม่จำเป็นต้องเห็นด้วยหรือร่วมรับผิดชอบใด ๆ
บทความ ข้อมูล เนื้อหา รูปภาพ ฯลฯ ที่ได้รับการตีพิมพ์ในวารสารวิชาการมหาวิทยาลัยราชภัฏภูเก็ต ถือเป็นลิขสิทธิ์ของวารสารวิชาการมหาวิทยาลัยราชภัฏภูเก็ต หากบุคคลหรือหน่วยงานใดต้องการนำทั้งหมดหรือส่วนหนึ่งส่วนใดไปเผยแพร่ต่อหรือเพื่อกระทำการใด ๆ จะต้องได้รับอนุญาตเป็นลายลักษณ์อักษรจากวารสารวิชาการมหาวิทยาลัยราชภัฏภูเก็ตก่อนเท่านั้น
เอกสารอ้างอิง
Amabile, T. M., Conti, R., Coon, H., Lazenby, J., & Herron, M. (1996). Assessing the work environment for creativity. Academy of Management Journal, 39(5), 1154–1184.
Anderson, N., Potočnik, K., & Zhou, J. (2014). Innovation and creativity in organizations: A state-of-the-science review, prospective commentary, and guiding framework. Journal of Management, 40(5), 1297–1333.
Andreeva, T., Vanhala, M., Sergeeva, A., Ritala, P., & Kianto, A. (2017). When the fit between HR practices backfires: Exploring the interaction effects between rewards for and appraisal of knowledge behaviours on innovation. Human Resource Management Journal, 27(2), 209–227.
Aziz, S. (2022). Individual characteristics and innovation performance in SMEs: Moderating role of psychological capital. Journal of Advanced Research in Social Sciences and Humanities, 7(3), 122–135.
Baer, M. (2012). Putting creativity to work: The implementation of creative ideas in organizations. Academy of Management Journal, 55(5), 1102–1119.
Barbieri, M., Micacchi, L., Vidè, F., & Valotti, G. (2023). The performance of performance appraisal systems: A theoretical framework for public organizations. Review of Public Personnel Administration, 43(1), 104–129.
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120.
Bednall, T. C., Sanders, K., & Runhaar, P. (2014). Stimulating informal learning activities through perceptions of performance appraisal quality and human resource management system strength: A two-wave study. Academy of Management Learning & Education, 13(1), 45–61.
Biron, M., Farndale, E., & Paauwe, J. (2011). Performance management effectiveness: Lessons from world-leading firms. The International Journal of Human Resource Management, 22(6), 1294–1311.
Bos-Nehles, A. C., & Meijerink, J. G. (2018). HRM implementation by multiple HRM actors: A social exchange perspective. The International Journal of Human Resource Management, 29(22), 3068–3092.
Bowen, D. E., & Ostroff, C. (2004). Understanding HRM–firm performance linkages: The role of the "strength" of the HRM system. Academy of Management Review, 29(2), 203–221.
Boxall, P., & Macky, K. (2009). Research and theory on high‐performance work systems: Progressing the high‐involvement stream. Human Resource Management Journal, 19(1), 3–23.
Brown, M., Hyatt, D., & Benson, J. (2010). Consequences of the performance appraisal experience. Personnel Review, 39(3), 375–396.
Canet-Giner, T., Redondo-Cano, A., Saorín-Iborra, C., & Escribá-Carda, N. (2020). Impact of the perception of performance appraisal practices on individual innovative behaviour. European Journal of Management and Business Economics, 29(3), 277–296.
Chams, N., & García-Blandón, J. (2019). On the importance of sustainable human resource management for the adoption of sustainable development goals. Resources, Conservation and Recycling, 141, 109–122.
Curzi, Y., Fabbri, T., Scapolan, A. C., & Boscolo, S. (2019). Performance appraisal and innovative behavior in the digital era. Frontiers in Psychology, 10, Article 1659.
Das, M., Rangarajan, K., & Dutta, G. (2020). Corporate sustainability in SMEs: An Asian perspective. Journal of Asia Business Studies, 14(1), 109–138.
De Jong, J., & Den Hartog, D. (2010). Measuring innovative work behaviour. Creativity and Innovation Management, 19(1), 23–36.
DeLeon, L., & Ewen, A. J. (1997). Multi-source performance appraisals: Employee perceptions of fairness. Review of Public Personnel Administration, 17(1), 22–36.
Demircioglu, M. A. (2021). Sources of innovation, autonomy, and employee job satisfaction in public organizations. Public Performance & Management Review, 44(1), 155–186.
Demortier, A.-L., Delobbe, N., & El Akremi, A. (2014). Opening the black box of HR practices–performance relationship: Testing a three pathways AMO model. Academy of Management Proceedings, 2014(1), 14932.
Elkington, J. (1997). The triple bottom line. Environmental Management: Readings and Cases, 2, 49–66.
Escribá-Carda, N., Balbastre-Benavent, F., & Canet-Giner, M. T. (2017). Employees' perceptions of high-performance work systems and innovative behaviour: The role of exploratory learning. European Management Journal, 35(2), 273–281.
Ferris, G. R., Judge, T. A., Rowland, K. M., & Fitzgibbons, D. E. (1994). Subordinate influence and the performance evaluation process: Test of a model. Organizational Behavior and Human Decision Processes, 58(1), 101–135.
Findley, H. M., Giles, W. F., & Mossholder, K. W. (2000). Performance appraisal process and system facets: Relationships with contextual performance. Journal of Applied Psychology, 85(4), 634–644.
Fisk, P. (2010). People planet profit: How to embrace sustainability for innovation and business growth. Kogan Page Publishers.
Fletcher, C. (2001). Performance appraisal and management: The developing research agenda. Journal of Occupational and Organizational Psychology, 74(4), 473–487.
Fletcher, C., & Williams, R. (1996). Performance management, job satisfaction and organizational commitment. British Journal of Management, 7(2), 169–179.
Folger, R., & Konovsky, M. A. (1989). Effects of procedural and distributive justice on reactions to pay raise decisions. Academy of Management Journal, 32(1), 115–130.
Folger, R., Konovsky, M. A., & Cropanzano, R. (1992). A due process metaphor for performance appraisal. Research in Organizational Behavior, 14, 129–177.
Folger, R. G., & Cropanzano, R. (1998). Organizational justice and human resource management (Vol. 7). Sage Publications.
Galbraith, J. R. (1982). Designing the innovating organization. Organizational Dynamics, 10(3), 5–25.
Garavan, T., McCarthy, A., Sheehan, M., Lai, Y., Saunders, M. N., Clarke, N., & Shanahan, V. (2019). Measuring the organizational impact of training: The need for greater methodological rigor. Human Resource Development Quarterly, 30(3), 291–309.
Ghazi, K. M., El-Said, O., Salem, I. E., & Smith, M. (2023). Does performance appraisal legitimacy predict employee sabotage and innovative behaviors? The mediating role of performance appraisal satisfaction. Tourism Management Perspectives, 47, 101117.
Giles, W. F., Findley, H. M., & Feild, H. S. (1997). Procedural fairness in performance appraisal: Beyond the review session. Journal of Business and Psychology, 11(4), 493–506.
Groh, A. P., Guenther, C., Schweizer, D., & Vismara, S. (2025). Entrepreneurial finance in an extended period of crises. Small Business Economics, 64(1), 1–14.
Gustina, A., Liu, J. S., Indartono, S., & Laili, N. N. (2025). Bridging imagination and strategy in SMEs: The role of ideas and strategy in SME performance. The Southern African Journal of Entrepreneurship and Small Business Management, 17(1), Article 909.
Harney, B., & Dundon, T. (2006). Capturing complexity: Developing an integrated approach to analysing HRM in SMEs. Human Resource Management Journal, 16(1), 48–73.
Holden, E., Linnerud, K., & Banister, D. (2014). Sustainable development: Our common future revisited. Global Environmental Change, 26, 130–139.
Huber, V. L. (1983). An analysis of performance appraisal practices in the public sector: A review and recommendations. Public Personnel Management, 12(3), 258–267.
Ilgen, D. R., & Feldman, J. M. (1983). Performance appraisal: A process focus. Research in Organizational Behavior, 5, 141–197.
Issau, K., Soni, S., & Acquah, I. S. K. (2022). Ghanaian SMEs' perspective on the interrelationship between market and entrepreneurial orientations. Revista de Gestão, 29(2), 139–157.
Janssen, O. (2000). Job demands, perceptions of effort‐reward fairness and innovative work behaviour. Journal of Occupational and Organizational Psychology, 73(3), 287–302.
Judge, T. A., & Ferris, G. R. (1993). Social context of performance evaluation decisions. Academy of Management Journal, 36(1), 80–105.
Kanter, R. M. (1988). Three tiers for innovation research. Communication Research, 15(5), 509–523.
Kellough, J. E., & Nigro, L. G. (2002). Pay for performance in Georgia state government: Employee perspectives on Georgia Gain after 5 years. Review of Public Personnel Administration, 22(2), 146–166.
Kharub, M., Mondal, S., Singh, S., & Gupta, H. (2025). Evaluation of competency dimensions for employee performance assessment: Evidence from micro, small, and medium enterprises. International Journal of Productivity and Performance Management, 74(1), 107–138.
Kleysen, R. F., & Street, C. T. (2001). Toward a multi‐dimensional measure of individual innovative behavior. Journal of Intellectual Capital, 2(3), 284–296.
Knezović, E., & Drkić, A. (2021). Innovative work behavior in SMEs: The role of transformational leadership. Employee Relations: The International Journal, 43(2), 398–415.
Kramar, R. (2022). Sustainable human resource management: Six defining characteristics. Asia Pacific Journal of Human Resources, 60(1), 146–170.
Latham, G. P., Borgogni, L., & Petitta, L. (2008). Goal setting and performance management in the public sector. International Public Management Journal, 11(4), 385–403.
Latham, G. P., & Wexley, K. N. (1977). Behavioral observation scales for performance appraisal purposes. Personnel Psychology, 30(2), 255–268.
Li, L., & Duan, L. (2025). Human centric innovation at the heart of industry 5.0–exploring research challenges and opportunities. International Journal of Production Research, 1–33. https://doi.org/10.1080/00207543.2024.2446622
Locke, E. A., & Latham, G. P. (2002). Building a practically useful theory of goal setting and task motivation: A 35-year odyssey. American Psychologist, 57(9), 705–717.
Malek, R., Yang, Q., & Dhelim, S. (2024). Toward sustainable global product development performance: Exploring the criticality of organizational factors and the moderating influence of global innovation culture. Sustainability, 16(10), Article 3911.
Mariotti, S. (2024). "Open strategic autonomy" as an industrial policy compass for the EU competitiveness and growth: The good, the bad, or the ugly? Journal of Industrial and Business Economics, 52, 1–26.
Mashavira, N., Guvuriro, S., & Chipunza, C. (2022). Driving SMEs' performance in South Africa: Investigating the role of performance appraisal practices and managerial competencies. Journal of Risk and Financial Management, 15(7), Article 283.
Mathis, R. L., Jackson, J. H., Valentine, S. R., & Meglich, P. A. (2017). Human resource management (15th ed.). Cengage Learning.
Mumford, M. D. (2000). Managing creative people: Strategies and tactics for innovation. Human Resource Management Review, 10(3), 313–351.
Murphy, K. R., & Cleveland, J. N. (1995). Understanding performance appraisal: Social, organizational, and goal-based perspectives. Sage Publications.
Na-Nan, K., Chaiprasit, K., & Pukkeeree, P. (2017). Performance management in SME high-growth sectors and high-impact sectors in Thailand: Mixed method research. International Journal of Engineering Business Management, 9, 1–8.
Norris-Watts, C., & Levy, P. E. (2004). The mediating role of affective commitment in the relation of the feedback environment to work outcomes. Journal of Vocational Behavior, 65(3), 351–365.
Nzonzo, J. C., & Matashu, M. (2014). An insight into the human resource management practices adopted by entrepreneurs in South Africa. Journal of Small Business and Entrepreneurship Development, 2(3), 73–87.
Oduro, S. (2024). Eco-innovation and SMEs' sustainable performance: A meta-analysis. European Journal of Innovation Management, 27(9), 248–279.
Oduro-Nyarko, C. (2013). Assessment of performance appraisal techniques by small and medium size hotels in Central Ayawaso Metropolitan Area. Assessment, 3(12), 9–15.
Oly Ndubisi, N., & Iftikhar, K. (2012). Relationship between entrepreneurship, innovation and performance: Comparing small and medium‐size enterprises. Journal of Research in Marketing and Entrepreneurship, 14(2), 214–236.
Perry, J. L., Engbers, T. A., & Jun, S. Y. (2017). Back to the future? Performance-related pay, empirical research, and the perils of persistence. In Debating public administration (pp. 27–65). Routledge.
Potipiroon, W., & Chumphong, O. (2024). Authoritarian leadership and firm-level voluntary turnover among SMEs in Thailand: Does benevolent leadership matter? International Journal of Emerging Markets, 19(10), 3182–3201.
Prouska, R., Psychogios, A. G., & Rexhepi, Y. (2016). Rewarding employees in turbulent economies for improved organisational performance: Exploring SMEs in the South-Eastern European region. Personnel Review, 45(6), 1259–1280.
Rehman, S. U., Kraus, S., Shah, S. A., Khanin, D., & Mahto, R. V. (2021). Analyzing the relationship between green innovation and environmental performance in large manufacturing firms. Technological Forecasting and Social Change, 163, Article 120481.
Romzek, B. S. (2000). Dynamics of public sector accountability in an era of reform. International Review of Administrative Sciences, 66(1), 21–44.
Saunila, M. (2016). Performance measurement approach for innovation capability in SMEs. International Journal of Productivity and Performance Management, 65(2), 162–176.
Scott, S. G., & Bruce, R. A. (1994). Determinants of innovative behavior: A path model of individual innovation in the workplace. Academy of Management Journal, 37(3), 580–607.
Taticchi, P., Tonelli, F., & Cagnazzo, L. (2010). Performance measurement and management: A literature review and a research agenda. Measuring Business Excellence, 14(1), 4–18.
Thneibat, M. M., & Sweis, R. J. (2023). The impact of performance-based rewards and developmental performance appraisal on innovation: The mediating role of innovative work behaviour. International Journal of Productivity and Performance Management, 72(6), 1646–1666.
Toppo, L., & Prusty, T. (2012). From performance appraisal to performance management. IOSR Journal of Business and Management, 3(5), 1–6.
Tziner, A., Murphy, K. R., Cleveland, J. N., Beaudin, G., & Marchand, S. (1998). Impact of rater beliefs regarding performance appraisal and its organizational context on appraisal quality. Journal of Business and Psychology, 12(4), 457–467.
Veenendaal, A., & Bondarouk, T. (2015). Perceptions of HRM and their effect on dimensions of innovative work behaviour: Evidence from a manufacturing firm. Management Revue, 26(2), 138–160.
Vroom, V. H. (1964). Work and motivation. John Wiley & Sons.
Wagner, M., & Schaltegger, S. (2003). Introduction: How does sustainability performance relate to business competitiveness? Greener Management International, 44, 5–16.
Wang, G., Mansor, Z. D., & Leong, Y. C. (2024). Unlocking digital performance: Exploring the mediating role of employee competitive attitudes, behaviors, and dynamic capabilities in Chinese SMEs under high-involvement human resource management practice. Journal of Innovation and Entrepreneurship, 13(1), Article 37.
Wayne, S. J., & Kacmar, K. M. (1991). The effects of impression management on the performance appraisal process. Organizational Behavior and Human Decision Processes, 48(1), 70–88.
Wood, J., & Pereira, V. (2014). A case study of performance appraisal in a SME: Moving on from the 'tick-box' generation. HR Bulletin: Research and Practice, 9(1), 23–30.