Innovation in Human Resource Methods and Organizational Performance: The Mediating Role of Employees’ Competitive Advantage

Authors

Keywords:

innovation, human resources, innovation in human resources methods, organizational performance, competitive advantage

Abstract

This study aimed to explain the relationship between innovation in human resource methods and organizational performance, considering the mediating role of competitive advantage among employees of the Education Department in Ilam. This applied study employed a descriptive-correlational design based on structural equation modeling. The statistical population consisted of 376 employees of the Education Department in Ilam, of whom 251 were selected through simple random sampling. Data were collected using the Wang and Wang Organizational Performance Questionnaire, the Hill and Jones Competitive Advantage Questionnaire, and the Innovation in Human Resource Methods Questionnaire. Face and content validity were confirmed by experts, construct validity was assessed through confirmatory factor analysis, and reliability was established using Cronbach’s alpha. Pearson correlation analysis and structural equation modeling were conducted using SPSS and LISREL. Inferential results indicated that innovation in human resource methods was positively correlated with organizational performance (r=.54, p<.01) and competitive advantage (r=.53, p<.01), while competitive advantage was also positively correlated with organizational performance (r=.48, p<.01). Structural equation modeling showed significant positive effects of human resource innovation on competitive advantage (β=.56, t=6.17) and organizational performance (β=.39, t=3.71), as well as a significant effect of competitive advantage on organizational performance (β=.50, t=4.32). The indirect effect of human resource innovation on organizational performance through competitive advantage was also significant (β=.28). The model explained 44% of the variance in organizational performance and 32% of the variance in competitive advantage and demonstrated acceptable fit (χ²/df=1.33, RMSEA=.052, GFI=.94, AGFI=.92, CFI=.98, NFI=.96). Innovation in human resource methods can improve organizational performance both directly and indirectly by strengthening employees’ competitive advantage; therefore, adopting innovative recruitment, training, evaluation, participation, and employee-management practices may enhance competitiveness and organizational effectiveness in educational organizations.

Downloads

Download data is not yet available.

References

Ali, Q. M., Nisar, Q. A., Qammar, R., & Abbass, K. (2022). Greening the Workforce in Higher Educational Institutions: The Pursuance of Environmental Performance. Environ Sci Pollut Res, 4(7), 1-14. https://doi.org/10.1007/s11356-022-19888-3

Alipour, N., NazariShirkouhi, S., Sangari, M. S., & Rezaeivandchali, H. (2022). Lean, Agile, Resilient, and Green Human Resource Management: The Impact on Organizational Innovation and Organizational Performance. Environmental Science and Pollution Research, 12(4), 16-30. https://doi.org/10.1007/s11356-022-21576-1

Allameh, S. M., & Moghadami, M. (2018). Examining the Relationship between Organizational Learning and Organizational Performance: Case Study of the Propulsion Unit of Iran Khodro Company. Executive Management Research Quarterly, 2(38), 75-100.

Annarelli, A., Battistella, C., & Nonino, F. (2020). Competitive Advantage Implication of Different Product Service System Business Models: Consequences of 'Not-Replicable' Capabilities. Journal of Cleaner Production, 24(7), 114-121. https://doi.org/10.1016/j.jclepro.2019.119121

Anwar, G., & Abdullah, N. N. (2021). The Impact of Human Resource Management Practice on Organizational Performance. Int J Eng Bus Manag, 5(1), 35-47. https://doi.org/10.22161/ijebm.5.1.4

Arokodare, M. A., & Asikhia, O. U. (2021). Strategic Agility: Achieving Superior Organizational Performance through Strategic Foresight. Global Journal of Management and Business Research (A), 2(3), 7-16. https://doi.org/10.34257/GJMBRAVOL20IS3PG7

Basheer, S. e. (2026). Artificial Intelligence in Human Resource Management: Opportunities for Digital Transformation and Administrative Performance Improvement Among Employees in the Palestinian Health Sector. https://doi.org/10.21203/rs.3.rs-9666254/v1

Blickle, G., Meurs, J. A., Wihler, A., Ewen, C., Merkl, R., & Missfeld, T. (2021). Extraversion and Job Performance: How Context Relevance and Bandwidth Specificity Create a Non-Linear, Positive, and Asymptotic Relationship. Journal of Vocational Behavior, 87(12), 80-88. https://doi.org/10.1016/j.jvb.2014.12.009

Chen, C., Yeh, P., & Madsen, J. (2019). Contingent Worker and Innovation Performance in Electronics Manufacturing Service Industry. Chinese Management Studies, 13(4), 1003-1018. https://doi.org/10.1108/CMS-09-2018-0676

Chenari, V., & Isund, M. (2023). Investigating the Effect of Emotional Intelligence on Organizational Ingenuity with the Mediating Role of Collaborative Leadership: Case Study of Ahvaz Pipeline Workers. Journal of Management and Accounting, 3(2), 41-57.

Chiu, C. N., & Yang, C. L. (2019). Competitive Advantage and Simultaneous Mutual Influences between Information Technology Adoption and Service Innovation: Moderating Effects of Environmental Factors. Structural Change and Economic Dynamics, 49, 192-205. https://doi.org/10.1016/j.strueco.2018.09.005

Dehghani Soltani, M., & Azar, A. (2019). The Effect of Comprehensive Quality Management on Competitive Advantage by Explaining the Mediating Role of Innovation Performance of Exporting Companies in the Apparel Industry. International Business Management, 3(2), 1-22.

Donate, M., Ruiz-Monterrubio, E., Sanchez-de Pablo, J., & Pena, I. (2019). Total Quality Management and High-Performance Work Systems for Social Capital Development: Effects on Company Innovation Capabilities. Journal of Intellectual Capital, 21(1), 87-144. https://doi.org/10.1108/JIC-07-2018-0116

Eide, A. E., Saether, E. A., & Aspelund, A. (2020). An Investigation of Leaders Motivation, Intellectual Leadership, and Sustainability Strategy in Relation to Norwegian Manufacturers' Performance. Journal of Cleaner Production, 12(15), 45-68. https://doi.org/10.1016/j.jclepro.2020.120053

Ghasemzadeh, I., Bagherzadeh, M. R., Jafarikalarijani, S. A., & Yalouijamkhane, E. (2022). Designing an Organizational Innovation Model with an Emphasis on Lean Human Resource Management with an Interpretive Structural Modeling Approach. Marine Science Education Quarterly, 1(1), 194-208.

Ghsouri, A. (2022). The Role of Human Resource Management in the Performance of the Organization. Specialized Scientific Quarterly of New Research Approaches in Management and Accounting, 6(20), 81-91.

Heikka, J., Pitkäniemi, H., Kettukangas, T., & Hyttinen, T. (2021). Distributed Pedagogical Leadership and Teacher Leadership in Early Childhood Education Contexts. International Journal of Leadership in Education, 24(3), 333-348. https://doi.org/10.1080/13603124.2019.1623923

Hoang, G., Luu, T. T., Nguyen, T. T., Du, T., & Le, L. P. (2022). Examining the Effect of Entrepreneurial Leadership on Employees' Innovative Behavior in SME Hotels: A Mediated Moderation Model. International Journal of Hospitality Management, 10(2), 103142. https://doi.org/10.1016/j.ijhm.2022.103142

Iqbal, T., Huq, F., & Bhutta, M. K. S. (2018). Agile Manufacturing Relationship Building with TQM, JIT, and Firm Performance: An Exploratory Study in Apparel Export Industry of Pakistan. International Journal of Production Economics, 20(3), 24-37. https://doi.org/10.1016/j.ijpe.2018.05.033

Jasimuddin, S. M., & Naqshbandi, M. M. (2018). Knowledge-Oriented Leadership and Open Innovation: Role of Knowledge Management Capability in France-Based Multinationals. International Business Review, 27(2), 102-131. https://doi.org/10.1016/j.ibusrev.2017.12.001

Kamalirad, I., Afsharnesab, S., & Khiracheshm, B. (2023). Investigating the Impact of Large Human Resource Management on Organizational Innovation and Organizational Performance. Quarterly Journal of New Research Approaches in Management and Accounting, 7(90), 1206-1226.

Kerrie, L., Unsworth, M. C., Davis, S. V., & Russell, C. B. (2021). Employee Green Behaviour: How Organizations Can Help the Environment. Current opinion in psychology, 4(2), 1-6. https://doi.org/10.1016/j.copsyc.2020.12.006

Khan, A. J., Muhammad Akbar, A. A., Tanveer, A., & Areeba, A. M. (2022). Green Human Resource Practices: A Sustainable Approach to Increase Employee Performance. iRASD Journal of Management, 4(1), 17-25. https://doi.org/10.52131/jom.2022.0401.0058

Lennerts, S., Schulze, A., & Tomczak, T. (2020). The Asymmetric Effects of Exploitation and Exploration on Radical and Incremental Innovation Performance: An Uneven Affair. European Management Journal, 38(1), 121-134. https://doi.org/10.1016/j.emj.2019.06.002

Li, Y. Q., & Liu, C. H. M. (2018). The Role of Problem Identification and Intellectual Capital in the Management of Hotels' Competitive Advantage: An Integrated Framework. International Journal of Hospitality Management, 7(7), 1-11. https://doi.org/10.1016/j.ijhm.2018.05.022

Liu, P. (2020). Motivating Teachers' Commitment to Change through Distributed Leadership in Chinese Urban Primary Schools. International Journal of Educational Management, 34(7), 1171-1183. https://doi.org/10.1108/IJEM-12-2019-0431

Lopez, R. (2020). Leadership Styles and Emotional Intelligence of Federal Employees in Diversified Work Environments Walden University].

Madhani, P. M. (2022). Lean Six Sigma Deployment in HR: Enhancing Business Performance. Int J Hum Resour Dev Manag, 22(1-2), 75-97. https://doi.org/10.1504/IJHRDM.2022.121314

Maury, B. (2018). Sustainable Competitive Advantage and Profitability Persistence: Sources versus Outcomes for Assessing Advantage. Journal of Business Research, 8(4), 100-114. https://doi.org/10.1016/j.jbusres.2017.10.051

Mohamed, F. R., & Ahamed, E. M. (2020). Nurse Managers Emotional Intelligence and Its Relation with Decision-Making Styles. IOSR Journal of Nursing and Health Science (IOSR-JNHS), 8(5), 1-6.

Mohammadi, S. (2024). Explaining the Relationship between Innovation in Human Resource Methods and Organizational Performance Bakhtar Institute of Higher Education].

Oliveira, P., & Cunha, M. P. E. (2021). Centralized Decentralization, or Distributed Leadership as Paradox: The Case of the Patient Innovation's COVID-19 Portal. Journal of Change Management: Reframing Leadership and Organizational Practice, 21(2), 203-221. https://doi.org/10.1080/14697017.2021.1917493

Phillips, D. R., & Roper, K. O. (2020). A Framework for Talent Management in Real Estate. Journal of Corporate Real Estate, 11(1), 7-16. https://doi.org/10.1108/14630010910940525

Rodgrenjad, Q. (2023). The Relationship between Innovative Organizational Climate and Teachers' Job Performance with Regard to the Mediating Role of Innovative Work Behavior in Technical and Vocational Conservatories in Gilan Province. Education Quarterly, 1(39), 73-90.

Roudsaz, H., Naqvi, M. A., & Massinan, F. (2020). The Impact of Open Innovation on Competitive Advantage with the Mediating Role of Knowledge Management. Scientific Quarterly Journal of Industrial Management Studies, 18(59), 117-150.

Sahoo, S. (2018). An Empirical Exploration of TQM, TPM and Their Integration from Indian Manufacturing Industry. Journal of Manufacturing Technology Management, 29(7), 1188-1210. https://doi.org/10.1108/JMTM-03-2018-0075

Sammut, R., Briffa, B., & Curtis, E. A. (2021). Distributed Leadership and Nurses' Job Satisfaction: A Survey. Leadership in Health Services, 34(1), 37-51. https://doi.org/10.1108/LHS-07-2020-0052

Shankar, S., & Tewari, V. (2021). Impact of Collective Intelligence and Collective Emotional Intelligence on the Psychological Safety of the Organizations. Vision, 3(10), 59-92. https://doi.org/10.1177/09722629211012256

Shekari, H., Jalalian, N., & Hezardastan, M. (2026). Structural Model of the Impact of Employees’ Digital Experience and Digital Literacy on Sustainable Human Resource Performance Considering the Mediating Role of Human Resource Agility. Study and Innovation in Education and Development, 6(2), 1-21.

Su, W., Lyu, B., Chen, H., & Zhang, Y. (2020). How Does Servant Leadership Influence Employees' Service Innovative Behavior? The Roles of Intrinsic Motivation and Identification with the Leader. Baltic Journal of Management, 15(4), 571-586. https://doi.org/10.1108/BJM-09-2019-0335

Sulthoni, Y., & Pandin, M. G. R. (2026). Artificial Intelligence in Human Resource Management and Its Impact on Employee Performance in Indonesian Companies: A Systematic Literature Review. https://doi.org/10.21203/rs.3.rs-10074758/v1

Sun, Z. (2025). Determining human resource management key indicators and their impact on organizational performance using deep reinforcement learning. Scientific reports, 15(1), 5690. https://doi.org/10.1038/s41598-025-86910-2

Sunggu, I. P. B., & Pandin, M. G. R. (2026). Green Human Resource Management Towards Sustainable Organizational Performance: A Systematic Literature Review. https://doi.org/10.21203/rs.3.rs-10137834/v1

Supian, D. S., & Fuad, M. (2025). The Strategic Role of Human Capital in Value Creation and Financial Performance: A Systematic Literature Review Based on the Resource-Based View. Jurnal Economic Resource, 8(1), 379-385. https://doi.org/10.57178/jer.v8i1.1396

Thien, L. M., Adams, D., & Koh, H. M. (2021). Nexus between Distributed Leadership, Teacher Academic Optimism and Teacher Organisational Commitment: A Structural Equation Modelling Analysis. International Journal of Educational Management, 35(4), 830-847. https://doi.org/10.1108/IJEM-05-2020-0278

Vaňova, A., Šurova, J., & Sekova, M. (2022). Human Resources and Competitiveness of the Territory. Acta Academica Karviniensia, 19(1), 106-118. https://doi.org/10.25142/aak.2019.009

Wang, L., Yeung, J. H. Y., & Zhang, M. (2019). The Impact of Trust and Contract on Innovation Performance: The Moderating Role of Environmental Uncertainty. International Journal of Production Economics, 134(1), 114-122. https://doi.org/10.1016/j.ijpe.2011.06.006

Weuffen, S., Andrews, T., & Roberts, K. (2020). Promoting Quality Learning and Teaching Pedagogy: Evaluating a Targeted Localised Academic Induction Program (AIP) for the Impact on Continuing Professional Development. Australian Journal of Adult Learning, 60(2), 245-267.

Yasa, N., Giantari, I., Sentini, M., & Rohmayanti, P. (2020). The Role of Competitive Advantage in Mediating the Effect of Promotional Strategy on Marketing Performance. Management Science Letters, 10(12), 2845-2848. https://doi.org/10.5267/j.msl.2020.4.024

Youssef, M., & Youssef, E. (2018). The Synergistic Impact of ISO 9000 and TQM on Operational Performance and Competitiveness. International Journal of Quality & Reliability Management, 35(3), 614-636. https://doi.org/10.1108/IJQRM-02-2016-0024

Publication Timeline

Published
Submitted
Revised
Accepted

Issue

Section

مقالات

How to Cite

Gholami, B., Ghafarinia, R., & Mohamadi, S. (1406). Innovation in Human Resource Methods and Organizational Performance: The Mediating Role of Employees’ Competitive Advantage. Journal of Personal Development and Organizational Transformation, 1-27. https://www.journalpdot.com/index.php/jpdot/article/view/395

Similar Articles

1-10 of 192

You may also start an advanced similarity search for this article.