Managing human resource capabilities for sustainable competitive advantage

Abstract

Purpose The purpose of this article is to examine the role of human resource capability (HRC) in organisational performance and sustainable competitive advantage (SCA) in Indian global organisations. Design/methodology/approach To carry out the present study, an empirical research on a random sample of 300 line or human resource managers from nine Indian and foreign global organisations, from New Delhi (the National capital region of India) is carried out. The principal research method employed included the sample and measurements tools, and data analysis concerning the human resource capabilities for organisational performance and sustainable competitive advantage by using SPSS package 12. Findings The findings of the study reveal that human resource capabilities are positively correlated to organisational performance. Furthermore, human resource capability was found to be a significant predictor of sustainable competitive advantage. Research limitations/implications More samples from different Indian companies, especially middle and small scale industries, can enrich the current study. Practical implications This study contributes to the existing theory about the strategic importance of human capital for organisational performance and sustainable competitive advantage from resource‐based view of the firm in the Indian context. Originality/value The study will contribute to the understanding of Indian human resource management (HRM) as an imperative for strategic HRM and international human resource management. Business organisations will get an insight into the Indian business scenario and can chalk out their strategic policies and human resource planning with this perspective.