Aligning Strategy and Leadership: Examining The Impact ofSHRM Practices on Employee Performance in Oman’s Banking Sector

  • Authors

    • Mohammed Murad Mohammed Al Bulushi Research scholar,‎ Department of Graduate Business School, Universiti Tenaga Nasional, Kajang, Selangor, Malaysia.Putrajaya Campus, Jalan Ikram UNITEN
    • Shafazawana Mohamed Tharikh UNITEN Business School (UBS) Sultan Haji Ahmad Shah Campus, Universiti Tenaga Nasional
    • Z. A. Al Busaidi Deputy Executive Department Present Designation: Deputy Chief Executive Officer, Trifoil Company, Field Supervisor, Universiti Tenaga Nasional. Malaysia
    https://doi.org/10.14419/7qya9w39

    Received date: October 22, 2025

    Accepted date: December 13, 2025

    Published date: December 27, 2025

  • Strategic Human Resource Management; Employee Performance; Oman; Banking Sector; Resource-Based View

  • Abstract

    Strategic human resource management is increasingly recognized as a foundation of organisational ‎competitiveness, yet limited evidence exists from the Arab Gulf region. This study examines the direct ‎influence of SHRM practices on employee performance in Oman’s banking sector. Grounded in the ‎resource-based view and the ability–motivation–opportunity framework, SHRM is conceptualized through ‎three dimensions: strategic recruitment, targeted training, and incentive systems. Data were collected from ‎‎346 non-managerial employees of the Central Bank of Oman and analyzed using structural equation ‎modeling with SmartPLS 4.0. The findings reveal that SHRM practices significantly improve employee ‎performance, underscoring the strategic value of human capital. The study contributes theoretically by extending the SHRM literature to a non-Western context and practically by offering insights for Omani banks to strengthen workforce effectiveness and competitiveness through strategically aligned HR practices.

  • References

    1. Aguinis, H., Jensen, S. H., & Kraus, S. (2022). Policy implications of organisational behavior and human resource management research. Academy of Management Perspectives, 36(3), 857-878. https://doi.org/10.5465/amp.2020.0093.
    2. Al Balushi, F. S. M., & Ateeq, R. (2024). HRM Evolution in Oman: Navigating the Future of Workforce Management in the Sultanate's Changing Business Landscape. International Journal of Intellectual Human Resource Management (IJIHRM), 5(01), 8-13.
    3. Alemu, B., & Burrell, D. N. (2025). Exploring Green Human Resources, Corporate Social Responsibility, and Internal Organization Sustainability Strategy. Scientia Moralitas, 30.
    4. Aliyev, M., & Aliyeva, S. (2024). Revisiting Digital Transformation of Azerbaijan Higher Education in the New Digital Era. Yildiz Social Science Re-view, 10(1), 72-83. https://doi.org/10.51803/yssr.1441943.
    5. Alkhalaf, T., & Badewi, A. (2024). HRM practices, organisational learning and organisational performance: evidence from the big four financial ser-vices in France. The Learning Organization, 31(6), 797-816. https://doi.org/10.1108/TLO-01-2023-0004.
    6. Amir M, Javed S, Hisam MW (2025), "From crisis to opportunity: exploring the adoption of distance learning platforms in higher education for stu-dents’ academic excellence". International Journal of Educational Management, Vol. 39 No. 5 pp. 1256–1273, doi: https://doi.org/10.1108/IJEM-06-2023-0306
    7. Amoabeng-Nimako, S., Ingenbleek, P. T., Dittoh, S., Gouzaye, A., & Bindraban, P. (2026). Designing an incentive system to promote the adoption of sustainable soil health management practices among smallholder farmers in northern Ghana. Land Use Policy, 161, 107847. https://doi.org/10.1016/j.landusepol.2025.107847.
    8. Apascaritei, P., & Elvira, M. M. (2022). Dynamizing human resources: An integrative review of SHRM and dynamic capabilities research. Human Resource Management Review, 32(4), 100878. https://doi.org/10.1016/j.hrmr.2021.100878.
    9. Apascaritei, P., & Elvira, M. M. (2022). Dynamizing human resources: An integrative review of SHRM and dynamic capabilities research. Human Resource Management Review, 32(4), 100878. https://doi.org/10.1016/j.hrmr.2021.100878.
    10. Argue, M. (2015). The importance of the strategic recruitment and selection process in meeting an organisations objectives (Doctoral dissertation, Dublin Business School).
    11. Ariffin, N. H. M., Yusoff, F. H., Mansor, N. N. A., Javed, S., & Nazir, S. N. (2024). Assessment of sustainable healthcare management policies and practices in Oman: A comprehensive analysis using an ai-based literature review. Multidisciplinary Reviews, 7(11), 2024257. https://doi.org/10.31893/multirev.2024257
    12. Awashreh, R., & Mohamed, Y. (2024). A Comparative Study of Leadership Perceptions in Government and Education Sectors: Insights from the UAE and Oman. International Journal of Organisational Diversity, 24(2). https://doi.org/10.18848/2328-6261/CGP/v24i02/109-123.
    13. Chourasia, A., & Bahuguna, P. C. (2025). Organisational performance as dependent variable in strategic human resource management literature–a journey so far. Benchmarking: An International Journal, 32(9), 3324-3357. https://doi.org/10.18848/2328-6261/CGP/v24i02/109-123.
    14. Eshete, S. K., & Birbirssa, Z. A. (2024). Strategic Human Resource Management (SHRM) in Creating Inclusive Workplace: Systematic Re-view. SAGE Open, 14(4), 21582440241287667. https://doi.org/10.1177/21582440241287667.
    15. Ge, Y., Tong, Q., Song, X., Liu, C., Yang, M., & Feng, Y. (2025). Reducing Caregiver Burden in Advanced Parkinson’s Disease through Targeted Training: A Longitudinal Study with Dose-Response Modeling. Parkinsonism & Related Disorders, 108137. https://doi.org/10.1016/j.parkreldis.2025.108137.
    16. Husain, U., Javed, S., & Ananda, S. (2021). Digital marketing as a game changer strategy to enhance brand performance. International Journal of Technology Marketing, 15(2-3), 107-125.
    17. Javed, S. (2023). Environmental management accounting and corporate performance: The mediating role of corporate environmental ethics: Evi-dence from the manufacturing sector. Journal of Environmental Accounting and Management, 11(01), 41-52.
    18. Javed, S., & Al-Mulali, U. (2025). Navigating the Innovation–Sustainability Paradox: The Strategic Role of Leadership and Industry 4.0 in Oman’s Manufacturing Sector. Sustainability, 17(6), 2595. https://doi.org/10.3390/su17062595
    19. Javed, S., & Husain, U. (2024). A VECM investigation on the nexus among government spending, oil revenues, and economic growth: empirical evidence from the sultanate of Oman. Innovation Economics Frontiers, 27(2), 1-12.
    20. Javed, S., & Husain, U. (2024). Influence of government expenditure on economic growth: an empirical retrospection based on ARDL approach. FIIB Business Review, 13(2), 208-219.
    21. Javed, S., Abro, Z., Azad, I., & Khan, M. S. (2023). Robust Financial Inclusion Framework by Examining Literacy Aspects in Oman. Business Per-spectives and Research, 0(0). https://doi.org/10.1177/22785337231208299
    22. Javed, S., Husain, U., Mohammed, S., Khan, M. S., Jaouadi, W., & Nazir, S. (2025). Is industy 4.0 the key to sustainable manufacturing? Unravel-ling the impact of innovation and continuous improvement in emerging economies. Multidisciplinary Reviews, 9(3), 2026108. https://doi.org/10.31893/multirev.2026108
    23. Javed, S., Nazir, S., Malik, G. M., Khan, A. A., & Jalil, S. (2024). Sustainable Practice of IFRS And Economic Growth: Evidence From A Case Study on A Developing Country. Innovation Economics Frontiers, 27(2), 57-70.
    24. Kadir, M. R. A., AlBalushi, A. rahim saleh I., & Javed, S. (2024). Institutional Pressure and Business Sustainable Performance: Does Environmen-tal Management Accounting Matter? IIM Kozhikode Society & Management Review, 14(2), 207-219. https://doi.org/10.1177/22779752241244878 (Original work published 2025)
    25. Khan, A. A., Bahrawe, S., & Javed, S. (2025). Impact of AI on Accounting Practices. Trends and Challenges of Electronic Finance: Perspectives from Emerging Markets, 429.
    26. Martin, M., Gneiting, S., Benfer, M., & Lanza, G. (2025). Incentive system to smooth out fluctuations in demand. Production Engineering, 19(1), 157-171. https://doi.org/10.1007/s11740-024-01300-3.
    27. Morrison, M. (2025). Strategic Recruitment Planning for Red Lobster: A Comprehensive Approach to Attracting Top Talent. Available at SSRN 5310267. https://doi.org/10.2139/ssrn.5310267.
    28. Otten, S., Kömpel, T., Oschwald, V., Reitz, M., Bloch, W., & Däggelmann, J. (2025). Balance training in children and adolescents with chronic disa-bilities—a systematic review on a targeted training modality. German journal of exercise and sport research, 1-11. https://doi.org/10.1007/s12662-025-01051-y.
    29. Rababah, A., Javed, S., & Malik, A. (2022). Is social capital a key factor to enhance firm’s performance via manager’s intangible capabilities?. IIM Kozhikode Society & Management Review, 11(2), 207-221.
    30. Rafique, R., Javed, S., Amir, M., Shaukat, H. S., & Alzoubi, E. K. (2025). Elevating firms' sustainability through the power of green intellectual capital: a study unveiling sustainable success. International Journal of Learning and Intellectual Capital, 22(2), 125-145.

  • Downloads

  • How to Cite

    Al Bulushi , M. M. M. ., Tharikh, S. M., & Busaidi, Z. A. A. . (2025). Aligning Strategy and Leadership: Examining The Impact ofSHRM Practices on Employee Performance in Oman’s Banking Sector. International Journal of Accounting and Economics Studies, 12(8), 871-877. https://doi.org/10.14419/7qya9w39