Abstract
The rising trend of “strategic human resource management practices” is significantly leading the way to enhance the performance and competitive advantages of the banking sector. Thus, the banking sector in developing countries still using traditional HRM practices to sustain the competitive advantages and to achieve the business goals. The current study investigates the influence of organizational culture, employees’ commitment, and sustainable competitive advantages on the strategic human resource management practices in the banking sector of Saudi Arabia. We applied a resource-based view to achieve the research objectives. “Structural equation modelling-partial least square” (SEM-PLS) technique were applied to investigate the relationship among constructs under study. A cross-sectional method was applied to collect data from 181 employees working in different banks in Saudi Arabia. We found organizational culture significantly influence employees’ commitment and sustainable competitive advantages. Hence, employees’ commitment does not influence strategic human resource management practices; merely, sustaining competitive advantages significantly influence strategic human resource management practices. Additionally, employees’ commitment not mediates the relationship between organizational culture and strategic human resource practices. Thereby, sustainable competitive advantages mediate the relationship between organizational culture and strategic human resource management practices. Finally, the present study will help the banking sector to unearth the best implication of strategic human resource management practices as they can sustain the competitive advantages and achieve the business goals.
Highlights
Strategic human resource management (HRM) educates the organizations on developing dynamic human resource strategies, potentially leading to competitive advantage by emerging valuable and unique employee-based resources (Andersen et al, 2007; Ratna and Singh, 2013)
The current study investigates the influence of organizational culture, employees’ commitment, and sustainable competitive advantages on the strategic human resource management practices in the banking sector of Saudi Arabia
Considering the empirical gap, this study proposed investigating the association between organizational culture, employees’ commitment, and sustainable competitive advantages on adopting strategic HRM practices in the banking sector of Saudi Arabia
Summary
Strategic human resource management (HRM) educates the organizations on developing dynamic human resource strategies, potentially leading to competitive advantage by emerging valuable and unique employee-based resources (Andersen et al, 2007; Ratna and Singh, 2013). Prior studies identified that strategic HRM policies significantly motivate the employees towards the work environment, which influence the overall productivity and performance of an organization (Elorza et al, 2011; Sourchi and Liao, 2015; Abu, 2016; Para-González et al, 2019; Hamadamin and Atan, 2019). Thereby, Hamadamin and Atan (2019) suggested organizations should develop unique strategic HRM policies as could lead to the emergence of different employee-based resources considering the characteristics of organizational culture. Effective strategic HRM practices support leaders to identify an effective way to monitor the employees and make them responsible for the sustainability of competitive advantages (Sourchi and Liao, 2015)
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