Gaining competitive advantage status through human resource practices: A study of Indian banks

Abstract

The current situation calls for effective Human Resource (HR) operations. In order to perform well and remain competitive, especially in service organizations, HR strategies must be given more attention due to ongoing changes in banking, the workplace, Reserve Bank of India (RBI) rules, and rising consumer wants and expectations. It has grown to be one of the most significant differentiators that has an impact on how competitive the Indian banking sector is. The study seeks to assess the current state of the Indian banks' HR system and its status as a competitive advantage. For the final study, a total of 600 replies from Indian banks were gathered. The methodology utilized in the study is partial least-squares structural equation modeling using the Chi-Square test and descriptive analysis, which is based on a large number of independent variables and one dependent variable. There are twelve HR system factors identified that lead to competitive advantage status. Further, these twelve factors collectively explained 63.59 percent of the total variance have been retrieved and all hypotheses lent good support to this study. By concentrating on the HR function, banks can not only survive in this cutthroat economic environment but also obtain a competitive advantage, according to the study's conclusions. There are intersectional variations in the HR systems used by banks and the competitive advantage status they have attained and it is needed to maintain fine-tuning.