Strategic and sustainable human resource management: Twin weapon for achieving competitive advantage in organization
DOI:
https://doi.org/10.55942/pssj.v5i6.401Keywords:
Strategic Human Resource Management, Sustainable Human Resource Management, Competitive Advantage, Organizational DynamicAbstract
This perspective explores the integration of strategic human resource management (strategic HRM) and sustainable human resource management (sustainable HRM) as a dual strategy for organizational competitive advantage. Strategic HRM focuses on aligning HR policies with business goals to maximize employee engagement, innovation, and productivity, thereby enhancing organizational performance. Key strategic HRM practices include performance management, talent development, and fostering a cohesive company culture that values inclusivity and adaptability. However, strategic HRM’s strategic focus often prioritizes immediate organizational needs over long-term societal concerns. In contrast, sustainable HRM emphasizes a broader, long-term perspective, addressing economic, social, and environmental impacts. This approach integrates multi-stakeholder engagement, ethical practices, and a commitment to societal well-being, thus ensuring the organization’s resilience and sustainability. The research highlights the evolving nature of HRM, noting that the contemporary business landscape requires organizations to balance financial success with social responsibility and environmental stewardship. The findings underscore the complementary nature of strategic HRM and sustainable HRM. While strategic HRM drives performance and competitive advantage, sustainable HRM ensures ethical governance and societal impact. Implementing both approaches enhances organizational adaptability, employee satisfaction, and long-term success. This paper concludes with strategic recommendations for HR leaders, emphasizing the need for strategic alignment, stakeholder engagement, and flexible HR practices that promote both organizational excellence and sustainability.
References
Agustian, K., Pohan, A., Zen, A., Wiwin, W., & Malik, A. J. (2023). Human Resource Management Strategies in Achieving Competitive Advantage in Business Administration. Journal of Contemporary Administration and Management (ADMAN), 1(2), 108-117. https://doi.org/10.61100/adman.v1i2.53 DOI: https://doi.org/10.61100/adman.v1i2.53
Akingbola, K., Kerekou, S., & Tohon, A. (2023). Employee engagement in nonprofit organizations: the role of perception of HR and organizational culture. Journal of Management Development, 42(3), 215-233. https://doi.org/10.1108/JMD-09-2022-0232 DOI: https://doi.org/10.1108/JMD-09-2022-0232
Aliyev, J. (2024). Strategic Human Resource Management (SHRM) and Competitive Advantage. Available at SSRN 4772231. https://doi.org/10.2139/ssrn.4772231 DOI: https://doi.org/10.2139/ssrn.4772231
Al-Jedaiah, M. N., & Albdareen, R. (2020). The effect of strategic human resources management (SHRM) on organizational excellence. Problems and Perspectives in Management, 18(4), 49. http://doi.org/10.21511/ppm.18(4).2020.05 DOI: https://doi.org/10.21511/ppm.18(4).2020.05
Almarzooqi, A. H., Khan, M., & Khalid, K. (2019). The role of sustainable HRM in sustaining positive organizational outcomes: An interactional framework. International Journal of Productivity and Performance Management, 68(7), 1272-1292. https://doi.org/10.1108/IJPPM-04-2018-0165 DOI: https://doi.org/10.1108/IJPPM-04-2018-0165
Aust, I., Matthews, B., & Muller-Camen, M. (2020). Common good HRM: a paradigm shift in sustainable HRM? Human Resource Management Review, 30(3), 100705. https://doi.org/10.1016/j.hrmr.2019.100705 DOI: https://doi.org/10.1016/j.hrmr.2019.100705
Boselie, P. (2014). Strategic human resource management: A balanced approach. McGraw-Hill.
Delery, J. E., & Roumpi, D. (2017). Strategic human resource management, human capital, and competitive advantage: is the field going in circles?. Human Resource Management Journal, 27(1), 1-21. https://doi.org/10.1111/1748-8583.12137 DOI: https://doi.org/10.1111/1748-8583.12137
Diefenhardt, F., Rapp, M. L., Bader, V., & Mayrhofer, W. (2024). ‘In God We Trust. All Others Must Bring Data’: Unpacking the Influence of Human Resource Analytics on the Strategic Recognition of Human Resource Management. Human Resource Management Journal. https://doi.org/10.1111/1748-8583.12583 DOI: https://doi.org/10.1111/1748-8583.12583
Duvnjak, B., & Kohont, A. (2021). The Role of Sustainable HRM in Sustainable Development. Sustainability, 13(19), 10668. https://doi.org/10.3390/su131910668 DOI: https://doi.org/10.3390/su131910668
Ejibe, I., Nwankwo, T. C., Nwankwo, E. E., Okoye, C. C., & Scholastica, U. C. (2024). Advancing environmental sustainability in the creative sectors: A strategic HR framework based on data analytics and eco-innovation. World Journal of Advanced Research and Reviews, 21(3), 050-060. https://doi.org/10.30574/wjarr.2024.21.3.0659 DOI: https://doi.org/10.30574/wjarr.2024.21.3.0659
Griep, Y., Hansen, S. D., & Kraak, J. M. (2024). The dynamic influence of personality on psychological contract evaluations: A 2-study investigation of approach/avoidance goals and emotion regulation strategies. Journal of Business and Psychology. Advance Online Publication. https://doi.org/10.1007/s10869-024-09943-w DOI: https://doi.org/10.1007/s10869-024-09943-w
Gunawan, W. B., Oktavia, Y. D., Budiman, A. H., & Diptawibowo, N. D. (2025). The Strategic Approach to Recruitment and Selection at WIKA Rekayasa Konstruksi: Implication and Recommendation. Contemporary Public Administration Review, 2(2), 120-142. https://doi.org/10.26593/copar.v2i2.8733.120-142 DOI: https://doi.org/10.26593/copar.v2i2.8733.120-142
Gupta, A. D. (2020). Strategic human resource management: Formulating and implementing HR strategies for a competitive advantage. Productivity Press. https://doi.org/10.4324/9780429327728 DOI: https://doi.org/10.4324/9780429327728
Hamadamin, H. H., & Atan, T. (2019). The impact of strategic human resource management practices on competitive advantage sustainability: The mediation of human capital development and employee commitment. Sustainability, 11(20), 5782. https://doi.org/10.3390/su11205782 DOI: https://doi.org/10.3390/su11205782
Hu, C., Wu, C., & Yu, L. (2023). Research on Strategic Human Resource Management and Its Issues and Challenges. Journal of Human Resource Development, 5(5), 18-25. https://doi.org/10.23977/jhrd.2023.050504 DOI: https://doi.org/10.23977/jhrd.2023.050504
Iqbal, J., & Parray, Z. A. (2024). Leading with integrity: illuminating the pathway to positive job outcomes through ethical leadership and CSR. Social Responsibility Journal. https://doi.org/10.1108/SRJ-08-2023-0464 DOI: https://doi.org/10.1108/SRJ-08-2023-0464
Khalid Alrashedi, A. (2024). The key sustainable strategies criteria for effective human resource management practices. Sustainability, 16(12), 5250. https://doi.org/10.3390/su16125250 DOI: https://doi.org/10.3390/su16125250
Kramar, R. (2014). Beyond strategic human resource management: is sustainable human resource management the next approach?. The International Journal of Human Resource Management, 25(8), 1069-1089. https://doi.org/10.1080/09585192.2013.816863 DOI: https://doi.org/10.1080/09585192.2013.816863
Laverty, K. J. (1996). Economic “short-termism”: The debate, the unresolved issues, and the implications for management practice and research. Academy of Management Review, 21(3), 825-860. https://doi.org/10.5465/amr.1996.9702100316 DOI: https://doi.org/10.5465/amr.1996.9702100316
Malik, N., & Yuli, S. B. C. (2022). An innovative strategic human resource management in uncertain world: A systematic literature review. Social and Political Issues on Sustainable Development in the Post Covid-19 Crisis, 235-246. https://doi.org/10.1201/9781003263586-28235 DOI: https://doi.org/10.1201/9781003263586-28
Mariappanadar, S. (2020). Characteristics of sustainable HRM system and practices for implementing corporate sustainability. Sustainable Human Resource Management: Transforming Organizations, Societies and Environment, 9-35. https://doi.org/10.1007/978-981-15-5656-2_2 DOI: https://doi.org/10.1007/978-981-15-5656-2_2
Mushtaq, S., & Akhtar, S. (2024). Sustainable HRM strategies, enhancing organizational resilience and advancing sustainability goals. Journal of Management Development, 43(5), 712-726. https://doi.org/10.1108/JMD-02-2024-0072 DOI: https://doi.org/10.1108/JMD-02-2024-0072
Neves, R. (2024). Evaluating and Developing Your Team. In The Engineering Leadership Playbook: Strategies for Team Success and Business Growth (pp. 295-346). Berkeley, CA: Apress. https://doi.org/10.1007/979-8-8688-0140-2_6 DOI: https://doi.org/10.1007/979-8-8688-0140-2_6
Noe, R., Hollenbeck, J. R., Gerhart, B., Wright, P. M., & Eligh, L. (2016). Strategic human resource management: Gaining a competitive advantage. McGraw-Hill.
Piwowar-Sulej, K. (2021). Human resources development as an element of sustainable HRM–with the focus on production engineers. Journal of Cleaner Production, 278, 124008. https://doi.org/10.1016/j.jclepro.2020.124008 DOI: https://doi.org/10.1016/j.jclepro.2020.124008
Ren, S., Cooke, F. L., Stahl, G. K., Fan, D., & Timming, A. R. (2023). Advancing the sustainability agenda through strategic human resource management: Insights and suggestions for future research. Human Resource Management, 62(3), 251-265. https://doi.org/10.1002/hrm.22169 DOI: https://doi.org/10.1002/hrm.22169
Riley, S. M., Michael, S. C., & Mahoney, J. T. (2017). Human capital matters: Market valuation of firm investments in training and the role of complementary assets. Strategic Management Journal, 38(9), 1895-1914. https://doi.org/10.1002/smj.2631 DOI: https://doi.org/10.1002/smj.2631
Rondinelli, D. A., & Berry, M. A. (2000). Environmental citizenship in multinational corporations: social responsibility and sustainable development. European Management Journal, 18(1), 70-84. https://doi.org/10.1016/S0263-2373(99)00070-5 DOI: https://doi.org/10.1016/S0263-2373(99)00070-5
Saha, N. (2021). Strategic HRM and organizational agility enable firms to respond rapidly and flexibly to the changing environment. In Encyclopedia of Organizational Knowledge, Administration, and Technology (pp. 2551-2569). IGI Global. DOI: https://doi.org/10.4018/978-1-7998-3473-1.ch177
Singh, V. K., Singh, P., Karmakar, M., Leta, J., & Mayr, P. (2021). The journal coverage of Web of Science, Scopus and Dimensions: A comparative analysis. Scientometrics, 126(6), 5113–5142. https://doi.org/10.1007/s11192-021-03948-5 DOI: https://doi.org/10.1007/s11192-021-03948-5
Stahl, G. K., Brewster, C. J., Collings, D. G., & Hajro, A. (2020). Enhancing the role of human resource management in corporate sustainability and social responsibility: A multi-stakeholder, multidimensional approach to HRM. Human Resource Management Review, 30(3), 100708. https://doi.org/10.1016/j.hrmr.2019.100708 DOI: https://doi.org/10.1016/j.hrmr.2019.100708
Taamneh, A., Alsaad, A. K., & Elrehail, H. (2018). HRM practices and the multifaceted nature of organization performance: The mediation effect of organizational citizenship behavior. EuroMed Journal of Business, 13(3), 315-334. https://doi.org/10.1108/EMJB-02-2018-0010 DOI: https://doi.org/10.1108/EMJB-02-2018-0010
Wagner, M. (2015). A European perspective on country moderation effects: Environmental management systems and sustainability-related human resource benefits. Journal of World Business, 50(2), 379-388. https://doi.org/10.1016/j.jwb.2014.08.005 DOI: https://doi.org/10.1016/j.jwb.2014.08.005
Wang, G. (2025). Corporate Sustainability and Employee Engagement: Fostering a Green Workplace Culture. Journal of Lifestyle and SDGs Review, 5(5), e06601. https://doi.org/10.47172/2965-730X.SDGsReview.v5.n05.pe06601 DOI: https://doi.org/10.47172/2965-730X.SDGsReview.v5.n05.pe06601
Wan, D., Ong, C. H., & Kok, V. (2002). Strategic human resource management and organizational performance in Singapore. Compensation & Benefits Review, 34(4), 33-42. https://doi.org/10.1177/0886368702034004006 DOI: https://doi.org/10.1177/0886368702034004006
Yasin, R., Huseynova, A., & Atif, M. (2023). Green human resource management, a gateway to employer branding: Mediating role of corporate environmental sustainability and corporate social sustainability. Corporate Social Responsibility and Environmental Management, 30(1), 369-383. https://doi.org/10.1002/csr.2360 DOI: https://doi.org/10.1002/csr.2360
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 William Ben Gunawan, Lukas Mikhail

This work is licensed under a Creative Commons Attribution 4.0 International License.

