Achieving Competitive Advantage through Effective Human Resource Management and Sustainability in the Flexible Packaging Industry

Abstract

During the last three decades, the Indian flexible packaging industry has undergone tremendous changes in the areas of technological developments, market competition, emphasis on sustainability and changes in the needs and preferences of the customers. In this context, Human Resource Management (HRM) and Sustainability are considered to be the two most important strategic drivers for competitive advantage. The present study aimed at investigating the effect of HRM practices and Sustainability on the Competitive Advantage of the Indian flexible packaging firms. Survey method was used to collect data by administering the questionnaires to 267 lower, middle and senior level managers of 23 organizations. Out of 231 responses received, 209 were found valid and were subjected to the regression analysis. Results revealed that HRM practices have a positive and significant impact on competitive advantage, and the variables of Sustainability intensify the business strategies of an organization. The Resource-Based View (RBV) of the firm was validated as the study evidenced that human capital and sustainability resources possessed by the Indian flexible packaging sector are valuable, rare, inimitable and embedded resources that result in competitive advantage. Moreover, managerial and theoretical implications for integrating HRM strategies with business strategies to sustain competitive advantage in the long run were discussed.