Academic journal article Academy of Strategic Management Journal

Mapping the Perceived Role of Strategic Human Resource Management Practices in Sustainable Competitive Advantage

Academic journal article Academy of Strategic Management Journal

Mapping the Perceived Role of Strategic Human Resource Management Practices in Sustainable Competitive Advantage

Article excerpt

INTRODUCTION

The global achievement in today business world of dynamic and proficient interchange of an idea, a Sustainable competitive advantage is no longer ingrained in organization visible resources, but inactive firm's human resources (Aronson, Halawi & McCarthy, 2005). The impression that sustainable competitive advantage is mostly to assess firm's achievement comparative to its competitors. The comparative achievement could be assessed by the financial success that firm is able to create (Ong & Ismail, 2008). Other scholars have expounded on the particular capabilities and assets which enhance sustainable competitive advantage. For instance, Barney (1991) supports the debate by investigating the link among organization resources and sustainable competitive advantage. Barney noted that not all organization resources have the potential enhancing sustainable competitive advantages; rather, the resources must possess the following potential: uniqueness or scarcity, values addition, not easily imitable and not easily substituted. The most frequent named theory for describing the relationship in strategic HRM practices is a behavioral approach which postulated that divergent role behaviors are essential for various kinds of strategies that organization pursues (Jackson & Schuler, 1987). These approach emphases on individual employee behavior as a mediator between firm's strategy and outcome (Wright & McMahan, 1992) or between strategic HRM approach and sustainable competitive advantage (McMahan et al., 1999). According to Petttigrew & Whipp firms that continuous practices and promote learning, teamwork, participation and flexibility will be able to build a sustainable competitive advantage. The integrative approach of strategic HRM practices and sustainable competitive advantage approach are rooted in appropriate theories such as resource- based view, behavioral based view and social exchanges theory. The perception HRM practices was utilized in the research and explained in detail from the perspective of human capacity development and employee commitment. Based on the theories mention above, the research aims to examine the perceived roles of strategic HRM practices to understand sustainable competitive advantage in the academic environment from the strategic HRM perspective.

BACKGROUND, HYPOTHESES AND RESEARCH MODEL

Background

Strategic HRM practices are defined as the pattern of plan organizational HR deploys and behavior that anticipated facilitating organization to attain its objectives (McMahan & Wright, 1992). There are two ideas suggested in this explanation, the firm is able to influence their organization level of output or outcome through their HRM and secondly, the activities of a bundle of organization HRM performance in a system rather than in isolation which explain the capability of HRM to influence organization at a strategic level. Strategic HRM practices to an extent are all about integration and adaption. Its ensure that organizations HRM are fully integrated into organization strategic need; secondly, to ensure that HR strategic and policies coexist across all level of the organization; and finally, HRM police are recognizable, established and employ by supervisor (line managers) and other staff as a daily routine. Human resource center around the ability of organization align its HR practices, policies and programs with business and organization's need (Greer, 2001).In strategic HRM practices, employees are a very important resource and vital component in firm's performance. The major justification for strategic HRM practices is the incorporating HR practices with business needs and applying specific HR management system, the organization will manage their employee competence, thereby improving both employee and organization performance (Farnham, 2010). Strategic human resource management emphasizes on organization internal factors rather than external resources that affect firms' performance. …

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