Evaluating the Effect of Human Resource Management on the Relationship Between Human Capital and Social Capital Toward Organizational Success in the Saudi Arabian Banking Sector
- Weam Tunsi , College of Business Administration, University of Business and Technology, Jeddah, Saudi Arabia
Organizational Success, Human Capital, Human Resource Management, Social Capital.
This research delves into the interconnections among human capital, human resource management (HRM), organizational success, and social capital within the banking sector of Saudi Arabia. An understanding of these dynamics is imperative due to the pivotal role played by the Saudi banking sector in the nation's economy. The study employed a dataset comprising 500 meticulously crafted questionnaires distributed to employees in Saudi Arabian banks. Utilizing advanced statistical methods through SmartPLS, the data underwent rigorous analysis. The findings of the study reveal that human capital exerts a significant influence on both HRM and organizational success, underscoring the pivotal role of a proficient workforce in shaping organizational outcomes. The strategic importance of HRM emerges prominently as a critical determinant of organizational success. While the impact of social capital on organizational success is noteworthy, it manifests indirectly, despite limited empirical evidence supporting a direct influence of social capital on HRM. The field of HRM is widely acknowledged as a vital intermediary in the relationship between human capital and organizational success, emphasizing its pivotal role in translating human potential into tangible and measurable results. Nevertheless, the precise role of HRM in mediating the correlation between social capital and organizational success remains uncertain. This study makes a scholarly contribution to the extant literature on organizational management within the Saudi banking sector. The monograph suggests prospective directions for additional research, encompassing the scrutiny of causal relationships, contextual elements, and alternative mechanisms. Moreover, this investigation provides pragmatic implications designed to assist Saudi banks in refining their HRM practices and strategic decision-making processes, with careful attention to the unique local context.