Does human capital moderate the relationship between strategic thinking and strategic human resource management?

Abstract

The literature suggests that strategic thinking is a single learning loop based on a number of strategic theories. Therefore, this study examines the relationship between strategic thinking and strategic human resource management (HRM) in banking industry of Jordan. We also look at whether human capital can be used to boost the relationship between strategic thinking and strategic HRM. In order to achieve these objectives, the researcher conducts an explanatory, applied, and cross-sectional investigation where the instrument of this study is a questionnaire. The proposed study of this paper uses structural equation modeling to examine the hypotheses of the survey. The result shows that strategic thinking had a positive and significant effect on strategic HRM. Moreover, human capital has a positive and significant effect on strategic HRM. The implications of the results are discussed for human capital and the author concludes with the research agenda and recommendations on how future banks can effectively benefit from strategic thinking and human capital to enhance strategic HRM.