Developing A Competitive Advantage Through Human Capital: The Roles Of Hrm In Strategic Business Management In Nigeria
Abstract
This study explores the role of Human Resource Management (HRM) in strategic business management and its impact on developing a competitive advantage through human capital in Nigeria. The research employs a regression analysis to examine the relationship between HRM, strategic business management, and organizational performance in driving business success. The results show that human capital, strategic business management practices, and organizational performance are significant predictors of competitive advantage. Specifically, human capital was found to have the strongest influence, followed by organizational performance and strategic business management practices. The model explains 85% of the variation in the dependent variable, indicating a strong fit. Multicollinearity, heteroscedasticity, and autocorrelation were not significant concerns, and the residuals were normally distributed, validating the robustness of the model. The study provides practical implications for organizations in Nigeria to invest in HRM and strategic management to improve their competitive positioning. Furthermore, the findings suggest that policy interventions aimed at strengthening human capital and strategic management frameworks can contribute to organizational success and economic development in emerging economies.
Keywords: Human Resource Management (HRM), Strategic Business Management, Competitive Advantage, Human Capital, Organizational Performance
Introduction
The concept of competitive advantage has long been regarded as a critical factor in business
success. In a world characterized by rapid technological advancement, globalization, and
changing consumer demands, organizations are increasingly looking for innovative ways to
maintain and enhance their competitiveness. While several factors contribute to the
competitiveness of a firm, human capital—comprising the skills, knowledge, experience, and
abilities of employees—has become a key determinant in achieving long-term success (Barney, 1991; Wright et al., 1994). In recent years, the emphasis has shifted toward human capital
management (HCM) and its role in developing sustainable competitive advantage, particularly in
developing economies such as Nigeria.