Strategic HRM and competitiveness of Hotels in the Central Region of Ghana: the Mediating role of employee competencies

Abstract

The main purpose of this study was to examine the effect of strategic HR practices on the competitiveness of hotels in the Central Region of Ghana. A secondary objective was to assess the mediating role of employee competencies on the link between strategic HR practices and competitive advantage. The study adopted an explanatory research design, using a purely quantitative approach. The target population comprised of all managers of registered hotels in the Central Region of Ghana. Data were collected through a self-administered survey questionnaire. The available data were analyzed using Structural Equation Modelling. It was established that strategic HRM practices have a positive influence on employee competencies, which in turn has a significant positive effect on competitive advantage. As a consequence, it was concluded that internal capabilities and competencies are the major sources of sustainable competitive advantage in the hospitality industry in Ghana. The effect of strategic HR practices on competitive advantage was, however, found to be insignificant. These findings require managers in the hospitality industry to continuously employ strategic HR practices such as training and development activities, linking incentive pay to performance, providing staff with a flexible compensation structure and promoting skill-based pay elements in employees’ pay package.