THE EFFECT OF STRATEGIC HUMAN RESOURCES MANAGEMENT PRACTICES ON ORGANIZATIONAL COMPETITIVENESS: AN APPLICATION OF MARKET SHARE AS CONDITIONAL PROCESS ANALYSIS THE CASE OF SELECTED PRIVATE BANKS IN GURAGE ZONE

Abstract

The study delves into how strategic HRM practices impact competitiveness in private banks within Gurage Zone, using market share as the yardstick. It employs conditional process analysis to explore the relationship between strategic HRM practices and competitiveness, studying how Market Share mediate the link between Strategic HRM and organizational competitiveness. Using both descriptive and explanatory methodology, it thoroughly assesses current strategic HRM practices and their correlation with competitiveness and market share. The findings underscore the need to align HR strategies with goals, nurture a positive organizational culture, and adapt to market dynamics to bolster competitiveness and secure a larger market share. Regression analysis validates significant connections between strategic HRM practices, competitiveness, and market share, underscoring their pivotal role. This study's practical implications are considerable, providing actionable insights for practitioners aiming to enhance competitiveness through adept HRM strategies. By pinpointing impactful HRM practices, it aids decision-making in HR management, assisting organizations in maximizing competitiveness and market share. The research adds to the theoretical understanding of the HRM-market share-competitiveness nexus. It also utilizes a conditional process analysis model, unraveling intricate relationships among strategic HRM practices, market share, and competitiveness. This model unveils crucial insights into underlying mechanisms and conditional effects, elucidating the specific pathways through which HRM practices shape organizational competitiveness. Ultimately, the research emphasizes the pivotal role of strategic HRM practices in augmenting organizational competitiveness, offering practical recommendations tailored for private banks in Gurage Zone to refine their HRM practices and gain a competitive edge.