Superior Organizational Performance through SHRM Implications, Mediating Effect of Management Capability: An Implementation on Islamic Banking

The role of strategic human resource management (SHRM) is significant to control the workforce in an organization. To make it consistent with the strategic aims of an organization, management capability has a great importance. This study is designed to investigate the mediator effect of management capability on the relationship between SHRM implications and organizational performance. In this context, we made an implementation on four Islamic Banks in Turkey. By analyzing the results from 345 managers, our findings have important implications for both the SHRM literature and management practices. As a result of this study, we found that management capability has a mediator effect on the relationship between SHRM implications and organizational performance which includes financial and employee indicators. This shows the importance of managers' role in an organization to direct SHRM implications in a way that will lead in higher performance.