Strategic Human Resource Management and Organizational Performance Through Employee Engagement and Organizational Commitment

Abstract

The strategic human resource management (SHRM) approach is increasingly considered an instrument that can improve organizational performance via capabilities provided by employees; nevertheless, there is not much empirical evidence regarding SHRM effect from conflict-affected and emerging countries like Libya. This research examined the influence of SHRM practices on organizational performance and the mediating roles of employee engagement and organizational commitment within Libyan organizations. A cross-sectional survey quantitative research methodology was used, gathering data from 287 employees from libyan organizations in such industries as oil and gas, telecommunications, construction, and the public sector. The proposed model was empirically tested with the use of partial least squares structural equation modeling (PLS-SEM). It was found that SHRM practices have a significant effect on organizational performance, employee engagement, and organizational commitment. Moreover, employee engagement and organizational commitment affect organizational performance positively and partially mediate the SHRM-performance relationship.