International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online) DOI: 10.30845/ijbss

Performance Implication of the Relationship between Competitive Strategy and SHRM Practices on Employee Outcomes in Saudi Banks a Field Study
Reda Mesilhy Ahmed Ismail

This search investigates the interaction effects of two competitive strategies (differentiation and low-cost) and strategy human resource management (SHRM) practices (recruitment & selection, training & development, compensation, performance management, employment security and work-life balance) on employee outcomes (organizational commitment, turnover intention, employee involvement and job satisfaction). These relationships are further analyzed on the extent of differences between Public and private banks in Saudi Arabia. Structural Equation Modeling (SEM) is used to examine the effect of the three variables and the invariance effect of the two types of banks. The results show that SHRM practices mediate the interaction of competitive strategy and employee outcomes. Furthermore, the effects of competitive strategy and SHRM practices on employee outcomes in Public banks are only slightly different from the ones implemented in Private Banks specifically, the moderation analysis shows invariant between differentiation strategy and variant in low-cost strategy.

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