Influence of Organizational Culture, Sustainable Competitive Advantages, and Employees’ Commitment on Strategic Human Resources Management in the Banking Sector of Saudi Arabia

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.