The Role of Human Resources in Gaining Competitive Advantage

Abstract

It is given that Human Resources are a key source of competitive advantage in firms. Starting from the proven link between human resources and competitive advantage in developed firms worldwide, and on the other side, the generally unsatisfactory handling of human resources in Kosovan firms, we decided to undertake this research. The study was conducted in seven wholesale distribution firms of food and non-food products in the Republic of Kosovo. A total of 35 directors and managers within these firms were surveyed. We have proposed that wholesale distribution firms of food and non-food products in Kosovo do not consider human resources significant resources in providing competitive advantage. Therefore, they do not possess a standard strategy for human resource development. Another assumption was that most of these firms have human resource departments, but in practice these departments mainly deal with administrative work. Additionally, we have proposed that human resource practices are more or less similar in firms that have or do not have human resource departments. The results of empirical study are generally consistent with the assumptions set out in this research.