Exploring human resource capabilities and organizational culture for sustainable competitive advantage

Purpose This study aims to examine strategies for sustaining and enhancing competitive advantages in the face of increasing global competition. The study examines the impact of human resource (HR) competence on achieving a sustainable competitive advantage (SCA) and organizational performance. Design/methodology/approach This research used a cross-sectional research design, vis-a-vis a survey method, to collect data from 300 HR managers in the United Arab Emirates. Findings The findings suggest that strategic human resource management (SHRM) initiatives can lead to SCAs if organizations invest in SHRM practices, provide a favorable culture to nurture HR capabilities development and increase employee motivation. It presents the case that SHRM practices promote the growth of human capital, both of which may ultimately lead to SCAs. The theoretical framework suggests that SHRM practices play a crucial role in indirectly influencing organizational competitiveness through these processes. It also directly links developing human capital, retaining competitive advantages and employee commitment. Research limitations/implications This study emphasizes that recognizing the strategic importance of HRM is essential for effective strategic and global HRM. By doing so, organizations can broaden their understanding of the business landscape and develop more informed strategic initiatives. Originality/value This study adopts a new insight into HRM by examining how HRM fosters innovation as a strategic tool for achieving an SCA. Examining the precise effects of organizational investment in human capital development on innovative outcomes bridges the gap in the existing body of literature. This study expands knowledge of how human capital can sustain competitive performance over time in dynamic market environments. Furthermore, the findings of this study reveal significant path coefficients and R² values, offering strong empirical support for the proposed model.