Porcelain Publishing / JCHRM / Volume 17 / Issue 2 / DOI: 10.47297/wspchrmWSP2040-800507.20261702
ARTICLE

Unlocking Competitive Advantage: Functional Domains in Strategic Human Resource Management Amid Global Organisational Transformations

Pavla Vrabcová1* Hana Urbancová2
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1 Department of Economics and Management, Jan Evangelista Purkyně University in Ústí nad Labem, Ústí and Labem 400 96, Czech Republic
2 Human Resources Department, University of Economics and Management, Prague 158 00, Czech Republic
Published: 1 June 2026
© 2026 by the Author(s). This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (https://creativecommons.org/licenses/by/4.0/)
Abstract

This study examines functional domains within strategic human resource management (HRM) that drive organisational competitiveness and sustainability amid global transformations. While strategic HRM plays a crucial role in adapting to these changes, a knowledge gap remains in identifying which specific functional areas contribute most effectively to this adaptation. This study aims to bridge the knowledge gap by systematically identifying and analysing the functional domains within strategic HRM critical for competitiveness and organisational sustainability. The research employs qualitative data from a focus group (n = 5) and quantitative data from a survey (n = 183). Factor analysis (principal components method with Varimax rotation) was conducted to pinpoint these areas and provide new insights into the evolving strategic role of HRM. Five HRM factors were identified that contribute to competitive advantage, with statistically significant differences based on ownership, company size, and annual turnover. The study confirms that HRM practices have a significant impact on competitive advantages, underscoring their strategic importance in a dynamic business environment. The findings are subject to limitations related to the national context and the cross-sectional research design, which may affect their generalisability beyond Czech organisations. 

Keywords
Competitiveness
Digitisation
Organisational sustainability
Proactive HR strategies
Strategic management
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Journal of Chinese Human Resources Management, Electronic ISSN: 2040-8013 Print ISSN: 2040-8005, Published by Porcelain Publishing