The Dynamics of Human Capital Development, Employee Commitment, and Sustainable Competitive Advantage: A Strategic Perspective

Abstract

The purpose of this study was to see the impact of “strategic human resources management (HRM) practices” on achieving “competitive advantages” that will be long-lasting, as well as the contribution of “human capital development” and “employee commitment” in information technology sector. IT sector works to establish, preserve, and perpetuate their competitive advantages, similar to other corporate organisations. The data were collected using questionnaire method and this study was conducted on 277 randomly selected employees working in different reputed IT companies. To achieve the objective of the study primary and secondary data were used and were analyzed using descriptive statistics, exploratory factor analysis, confirmatory factor analysis, mediation analysis and likewise using AMOS 22.0, SPSS23. The results of the study showed a linear and favourable relationship between strategic HRM practices and sustainable competitive advantage (SCA). Strategic HRM was also found to positively influence human capital development and employee commitment of the IT sector firms. This study further suggests IT sector to prioritise human resources management in their businesses, which will improve human capital development by allowing staff members to acquire implicit expertise that will be challenging and difficult for the rivals to mimic and also add to the literature on sustainable competitive advantages, employment, and human capital development. The finding highlights about IT sector management as well and also the results made an additional argument for employee commitment to achieving a sustained competitive edge. The study further suggested some theoretical and other implications for researchers as well.