HR Practices: A Source of Sustainable Competitive Advantage or Competitive Parity – A Systematic Literature Review

Abstract

High Performance Work Practices or High Commitment Work Practices in HRM are often said to be a potential source of sustainable competitive advantage. However, some researchers have questioned that notion. Therefore, the objective of this paper is to review and analyze relevant literature to determine whether the HR practices can be considered as a real source of sustainable competitive advantage. This study followed the Systematic Literature Review method. This paper analyzes theoretical base for such claim as well as available empirical evidences and suggests that HR practices (often called as High Performance Work Practices) are more likely to be a source of competitive parity than a source of sustainable competitive advantage. The major significance of this paper is that it addresses a key question within Strategic Human Resource Management: whether HR practices can be considered as a source of sustainable competitive advantage. Further, this may be the first to discuss HR practices as a source of competitive parity. It also highlights research gaps in the area of the relationship between HRM and firm-performance.