The Influence of Strategic Human Resource Practices and Ethical Leadership on Organizational Performance of Star Hotels: Mediated by Intellectual Capital and Sustainable Competitive Advantage

Authors

  • Lelly Christin Universitas Trisakti ,Jakarta, Indonesia
  • Yolanda Masnita Siagian Universitas Trisakti ,Jakarta, Indonesia
  • Husna Leila Yusran Universitas Trisakti ,Jakarta, Indonesia
  • Justine Tanuwijaya Universitas Trisakti ,Jakarta, Indonesia

DOI:

https://doi.org/10.38035/dijemss.v6i1.3060

Keywords:

Strategic Human Resource Practices, Ethical Leadership, Intellectual Capital, Sustainable Competitive Advantage

Abstract

The study aims to analyze the influence of strategic human resource practices and ethical leadership on organizational performance in star-rated hotels in Jakarta, mediated by intellectual capital and sustainable competitive advantage. It addresses gaps in previous studies by examining both factors simultaneously and introducing decision making based on HR metrics. A quantitative method was employed, collecting data from HR supervisor level in star-rated hotels in Jakarta, with 255 respondents. Hypotheses were tested using PLS-SEM analysis. Results indicate that strategic human resource practices and ethical leadership positively impact organizational performance. Intellectual capital and sustainable competitive advantage mediate this effect. These findings underscore the importance of investing in intellectual capital and sustainable competitive advantage to enhance hotel performance. The study provides a reference for hotel management to develop effective HR and leadership strategies, emphasizing the importance of intellectual capital and competitive advantage. Regular monitoring and evaluation of these strategies are recommended to ensure alignment and positive impacts on hotel performance. Future research should consider adding variables such as technological readiness and innovation capability, given the rapid technological advancements and intense competition in the hospitality industry, which affect hotel performance and competitive advantage.

References

Adusei, E., Mensah, H. K., and Demah, E. (2022). Examining the performance outcome of intellectual capital: a parallel mediation analysis. African Journal of Economic and Management Studies, 13(4), 568-581.

https://doi.org/10.1108/AJEMS-11-2021-0508

Ahmed, R. R., Pahi, M. H., Nadeem, S., Soomro, R. H., Parmar, V., Nasir, F., and Ahmed, F. (2023). How and When Ethics Lead to Organizational Performance: Evidence from South Asian Firms. Sustainability (Switzerland), 15(10), 1-30.

https://doi.org/10.3390/su15108147

Agostini, L., Nosella, A., & Filippini, R. (2017). Does intellectual capital allow improving innovation performance? A quantitative analysis in the SME context. Journal of Intellectual Capital, 18(2), 400-418.

https://doi.org/10.1108/JIC-05-2016-0056

Alkhadra, W. A., Khawaldeh, S., and Aldehayyat, J. (2022). Relationship of ethical leadership, organizational culture, corporate social responsibility and organizational performance: a test of two mediation models. International Journal of Ethics and Systems.

https://doi.org/10.1108/IJOES-05-2022-0092

Alrowwad, A., Abualoush, S. H., and Masa'deh, R. (2020). Innovation and intellectual capital as intermediary variables among transformational leadership, transactional leadership, and organizational performance. Journal of Management Development, 39(2), 196-222.

https://doi.org/10.1108/JMD-02-2019-0062

Anwar, M., Rehman, A. U., and Shah, S. Z. A. (2018). Networking and new venture's performance: mediating role of competitive advantage. International Journal of Emerging Markets, 13(5), 998-1025. https://doi.org/10.1108/IJoEM-07-2017-0263

Armstrong, M., and Brown, D. (2019). Strategic Human Resource Management: Back to the future? IES Report, February, 1-50.

https://www.employment- studies.co.uk/system/files/resources/files/517_Strategic-Human-Resource-Management- Back-to-the-future-IES-CIPD-2019.pdf

Astuti, P. D., Datrini, L. K., and Chariri, A. (2023). Understanding the Antecedents and Consequences of Sustainable Competitive Advantage: Testing Intellectual Capital and Organizational Performance. Economies, 11(4), 1-14. https://doi.org/https://doi.org/ 10.3390/economies11040120 Academic Editor: Tapas Mish

Barney, J. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, 17(1), 99-120.

http://dx.doi.org/10.1016/j.jaci.2012.05.050

Bass, B.M. and Stogdill, R.M. (1990), Bass and Stogdill's Handbook of Leadership: Theory, Research, and Managerial Applications, Free Press, Simon and Schuster, New York, NY. Bayu, D. (2023). Data on Tourism Contribution to Indonesia's GDP until September 2023. DataIndonesia.id. https://dataindonesia.id/pariwisata/detail/data-kontribusi-pariwisata-

terhadap-pdb-indonesia-hingga-september-2023

Bontis, N. (1999). Managing organizational knowledge by diagnosing intellectual capital: Framing and advancing the state of the field. International Journal of Technology Management, 18(5), 433-462.

https://doi.org/10.1504/ijtm.1999.002780

BPS. (2023). Official Statistical News. Bps.Go.Id, 1-30. https://www.bps.go.id/website/materi_ind/materiBrsInd-20230901105706.pdf

BPS of DKI Jakarta Province. (2023). Jakarta Star Hotel TPK Tends to Stabilize in July 2023. Jakarta.BPS.Go.Id.

https://jakarta.bps.go.id/pressrelease/2023/09/01/1073/tpk-hotel- bintang-jakarta-cenderung-stabil-pada-juli-2023.html

BPS-Statistics Indonesia. (2022). Hotel and Other Accommodation Statistics in Indonesia 2022. Brown, M. E., Treviño, L. K., and Harrison, D. A. (2005). Ethical leadership: A social learning perspective for construct development and testing. Organizational Behavior and Human Decision Processes, 97(2), 117-134. https://doi.org/10.1016/j.obhdp.2005.03.002 Bruderl, J., Preisendorfer, P., & Ziegler, R. (1992). Survival Chances of Newly Founded

Business Organizations. American Sociological Review, 57(2), 227. https://doi.org/10.2307/2096207

Ça?l?yan, V., Attar, M., and Abdul-Kareem, A. (2022). Assessing the mediating effect of sustainable competitive advantage on the relationship between organizational innovativeness and firm performance. Competitiveness Review, 32(4), 618-639. https://doi.org/10.1108/CR-10-2020-0129

Cesar, J., Guimarães, F. De, and Imed, F. M. (2017). Sustainable Competitive Advantage: A Survey of Companies in Southern Brazil. Brazilian Business Review, 352-359. https://doi.org/http://dx.doi.org/10.15728/bbr.2017.14.3.6ABSTRACTA Sustainable Competitive Advantage emerges as an important factor in the perception of value of goods and services, which should be considered as elements of competitive differentiation. This study aims at identifying the relat

Chadwick, C. (2017). Toward a more comprehensive model of firms' human capital rents. Academy of Management Review, 42(3), 499-519. https://doi.org/10.5465/amr.2013.0385 Chen, M. Y. C., Lam, L. W., and Zhu, J. N. Y. (2021). Should companies invest in human resource development practices? The role of intellectual capital and organizational performance improvements. Personnel Review, 50(2), 460-477. https://doi.org/10.1108/PR-04-2019-0179

Chung, B. G., Dean, M. A., and Ehrhart, K. H. (2021). Inclusion values, practices and intellectual capital predicting organizational outcomes. Personnel Review, 50(2), 709-730. https://doi.org/10.1108/PR-07-2019-0352

Crupi, A., Cesaroni, F., and Di Minin, A. (2020). Understanding the impact of intellectual capital on entrepreneurship: a literature review. Journal of Intellectual Capital, 22(3), 528-559. https://doi.org/10.1108/JIC-02-2020-0054

Elgarhy, S. D., and Abou-Shouk, M. (2023). Effects of entrepreneurial orientation, marketing, and innovation capabilities, on market performance: the mediating effect of sustainable competitive advantage. International Journal of Contemporary Hospitality Management, 35(6), 1986-2004. https://doi.org/10.1108/IJCHM-04-2022-0508

Engström, T. E. j., Westnes, P., and Furdal Westnes, S. (2003). Evaluating intellectual capital in the hotel industry. Journal of Intellectual Capital, 4(3), 287-303. https://doi.org/10.1108/14691930310487761

Fu, Y. K. (2020). The impact and recovering strategies of the COVID-19 pandemic: Lessons from Taiwan's hospitality industry. Cogent Social Sciences, 6(1). https://doi.org/10.1080/23311886.2020.1829806

Ghlichlee, B. and Goodarzi, A. (2021). Strategic Human Resource Practices and Intellectual Capital: An Empirical Study of Knowledge-Based Firms. Journal of Knowledge-Based Innovation in China, 2021. DOI: 10.1108/JKBIC-02-2021-0021

Ghlichlee, B., and Goodarzi, A. (2023). Strategic human resource practices and new product development performance: the mediating role of intellectual capital. Journal of Intellectual Capital, 24(3), 730-756. https://doi.org/10.1108/JIC-11-2020-0360

Gross-Go?acka, E., Kusterka-Jefmanska, M., and Jefmanski, B. (2020). Can elements of intellectual capital improve business sustainability? The perspective of managers of smes in Poland. Sustainability (Switzerland), 12(4). https://doi.org/10.3390/su12041545

Hair, J. F., Page, M., and Brunsveld, N. (2019). Business Research for the Twenty-First Century. In Essentials of Business Research Methods. Routledge. https://doi.org/10.4324/9780429203374-1

Hair, J. F. Jr., Black, W. C., Babin, B. J., and Anderson, R. E., (2019). Multivariate Data Analysis, 9th Edition. Cengage Learning, Cheriton House, NW.

Huselid, M. A. (1995). The Impact of Human Resource Management Practices on Turnover Productivity, and Corporate Financial Performance. Academy of Management Journal, 38(3), 635-672. http://dx.doi.org/10.1016/j.jaci.2012.05.050

Huselid, M. A., Jackson, S. E., and Schuler, R. S. (1997). Technical and Strategic Human Resource Management Effectiveness as Determinants of Firm Performance. Academic of Management Journal, 40(1), 171-188.

https://search.proquest.com/docview/220297257?accountid=12834

Inkinen, H. (2015). Review of empirical research on intellectual capital and firm performance. Journal of Intellectual Capital, 16(3), 518-565. https://doi.org/10.1108/JIC-01-2015-0002 Kaufman, B.E. (2015). Evolution of strategic HRM as seen through two founding books: A 30th anniversary perspective on the development of the field. Human Resource

Management, 54(3), 389-407. https://doi.org/10.1002/hrm.21720

Kianto, A., Sáenz, J., and Aramburu, N. (2017). Knowledge-based human resource management practices, intellectual capital and innovation. Journal of Business Research, 81(July), 11-20. https://doi.org/10.1016/j.jbusres.2017.07.018

Madera, J. M., Dawson, M., Guchait, P., and Belarmino, A. M. (2017). Strategic human resources management research in hospitality and tourism: A review of current literature and suggestions for the future. International Journal of Contemporary Hospitality Management, 29(1), 48-67. https://doi.org/10.1108/IJCHM-02-2016-0051

Madhavkumar, V. (2023). Human Resource Management Practices as Determinants of Organizational Performance. Productivity, 63(4), 465-477.

https://doi.org/10.32381/prod.2023.63.04.9

Madhok, A. (1998). The nature of multinational firm boundaries. International Business Review, 7(3), 259-290. https://doi.org/10.1016/s0969-5931(98)00009-2

Malik, M. S., Awais, M., Timsal, A., & Qureshi, U. H. (2016). Impact of ethical leadership on employees' performance: Moderating role of organizational values. International Review of Management and Marketing, 6(3), 590-595.

Maulana, E. (2023a, November). Jakarta is still the favorite destination for foreign tourists. Jakarta News. https://m.beritajakarta.id/read/131095/jakarta-masih-jadi-destinasi-favorit- wisatawan-mancanegara

Maulana, E. (2023b, November). Jakarta Provincial Government Organizes Jakarta Travel Fair 2023 in Surabaya. Jakarta News. https://m.beritajakarta.id/read/131124/pemprov-dki- selenggarakan-jakarta-travel-fair-2023-di-surabaya

Mkheimer, I. M., Selem, K. M., Shehata, A. E., Hussain, K., and Perez Perez, M. (2022). Can hotel employees arise internal whistleblowing intentions? Leader ethics, workplace virtues and moral courage. European Journal of Management and Business Economics, 32(2), 203-222. https://doi.org/10.1108/EJMBE-10-2021-0275

Mubarik, M. S., and Bontis, N. (2021). Intellectual capital, leadership and competitive advantage: a study of the Malaysian electrical and electronics industry. International Journal of Learning and Intellectual Capital, 1(1), 1. https://doi.org/10.1504/ijlic.2021.10042966

Muftiasa, A., Wibowo, L. A., Hurriyati, R., & Rahayu, A. (2023). Intellectual capital and firm performance within telecommunications industry during the new normal era. Business Administration and Management, 26(1), 126-144. https://doi.org/10.15240/tul/001/2023-

-008

Nahapiet, J., & Ghoshal, S. (1998). Social Capital, Intellectual Capital and the Organizational Advantage. Academic or Managemen Review, 23(2), 242-266.

https://doi.org/10.2307/259373

Nicolaides, A. (2019). Ethical leadership in a morally driven hospitality organizational culture. African Journal of Hospitality, Tourism and Leisure, 8(5), 1-14.

Nyathi, M., and Kekwaletswe, R. (2023). Realizing employee and organizational performance gains through electronic human resource management use in developing countries. African Journal of Economic and Management Studies, 14(1), 121-134.

https://doi.org/10.1108/AJEMS-11-2021-0489

Otoo, F. N. K. (2019). Human resource management (HRM) practices and organizational performance: The mediating role of employee competencies. Employee Relations, 41(5), 949-970. https://doi.org/10.1108/ER-02-2018-0053

Otoo, F., Kuar, M., & Otoo, E. (2022). Does human capital mediate the nexus of human resource management (HRM) practices and organizational performance? International Journal of Research in Business and Social Science (2147- 4478), 11(5), 199-209. https://doi.org/10.20525/ijrbs.v11i5.1829

Ouakouak, M. L., Zaitouni, M. G., and Arya, B. (2020). Ethical leadership, emotional leadership, and quitting intentions in public organizations: Does employee motivation play a role? Leadership and Organization Development Journal, 41(2), 257-279.

https://doi.org/10.1108/LODJ-05-2019-0206

Papademetriou, C., Anastasiadou, S., and Papalexandris, S. (2023). The Effect of Sustainable Human Resource Management Practices on Customer Satisfaction, Service Quality, and Institutional Performance in Hotel Businesses. Sustainability (Switzerland), 15(10). https://doi.org/10.3390/su15108251

Peñalba-Aguirrezabalaga, C., Sáenz, J., and Ritala, P. (2020). Marketing-specific intellectual capital: conceptualization, scale development and empirical illustration. Journal of Intellectual Capital, 21(6), 947-984. https://doi.org/10.1108/JIC-05-2019-0095

PHRI. (2023). Luxury Hotels Continue to Grow. PHRI Online. https://phri.or.id/media/detail/573

Pillai, R., and Sivathanu, B. (2022). Measure what matters: descriptive and predictive metrics of HRM-pathway toward organizational performance. International Journal of Productivity and Performance Management, 71(7), 3009-3029.

https://doi.org/10.1108/IJPPM-10-2020-0509

Popper, M., and Lipshitz, R. (1993). Putting Leadership Theory to Work: A Conceptual Framework for Theory-Based Leadership Development. Leadership and Organization Development Journal, 14(7), 23-27. http://dx.doi.org/10.1016/j.jaci.2012.05.050

Porter, M. 1998. Competitive Advantage: Creating and Sustaining Superior Performance. New York: Free Press.

Prahalad, C. K., & Hamel, G. (1990). The core competence of the corporation. Harvard Business Review, 68(3), 79-91. https://doi.org/10.1093/oso/9780198781806.003.0017

Rabiul, M. K., Mohamed, A. E., Patwary, A. K., Yean, T. F., and Osman, S. Z. (2021). Linking human resources practices to employee engagement in the hospitality industry: the mediating influences of psychological safety, availability and meaningfulness. European Journal of Management and Business Economics, 32(2), 223-240. https://doi.org/10.1108/EJMBE-12-2020-0347

Rehman, S. U., Bresciani, S., Ashfaq, K., and Alam, G. M. (2022). Intellectual capital, knowledge management and competitive advantage: a resource orchestration perspective. Journal of Knowledge Management, 26(7), 1705-1731. https://doi.org/10.1108/JKM-06- 2021-0453

Ren, S., Tang, G., and Jackson, S. E. (2020). Effects of Green HRM and CEO ethical leadership on organizations' environmental performance. International Journal of Manpower, 42(6), 961-983. https://doi.org/10.1108/IJM-09-2019-0414

Robert M. Grant. (1996). Toward a knowledge-based theory of the firm. Strategic Management Journal, 17(Special Issue), 109–122. http://proquest.umi.com/pqdweb?RQT=562&MRR=R&TS=1297501326&clientId=27625%5Cnhttp://proquest.umi.com/pqdweb?did=11194159&Fmt=7&clientId=27625&RQT=309&VName=PQD

Sandi, F. (2023). New Hotels are Popping Up in Jakarta, Here are the Locations. CNBC Indonesia. https://www.cnbcindonesia.com/news/20230731104723-4-458656/hotel- hotel-baru-bermunculan-di-jakarta-ini-lokasinya

Schuler, R. S. (1992). Linking the People with the Strategic Needs of the Business.Organizational Dynamics, 21(1), 18-32.

Sekaran, U., and Bougie, R. (2017). Research Methods for Business: A Skill-Building Approach (7th ed.). John Wiley and Sons, Inc.

Sharma, A., Agrawal, R., and Khandelwal, U. (2019). Developing ethical leadership for business organizations: A conceptual model of its antecedents and consequences. Leadership and Organization Development Journal, 40(6), 712-734. https://doi.org/10.1108/LODJ-10-2018-0367

Sokolov, D., and Zavyalova, E. (2020). Human resource management systems and intellectual capital: is the relationship universal in knowledge-intensive firms? International Journal of Manpower, 42(4), 683-701. https://doi.org/10.1108/IJM-11-2018-0372

Stewart, T. (1998). Intellectual Capital: The New Wealth of Organizations (pp. 56-59). https://doi.org/10.1002/pfi.4140370713

Stratone, M.-E. (2023). Mapping the Impact of the Intellectual Capital on the Agility and Performance of an Organization: a Bibliometric Study. Ekonomicko-Manazerske Spektrum, 17(1), 39-53. https://doi.org/10.26552/ems.2023.1.39-53

Suryantini, N. P. S., Moeljadi, Aisjah, S., and Ratnawati, K. (2023). the Sustainable Competitive Advantage of Smes Towards Intellectual Capital: the Role of Technology Adoption and Strategic Flexibility. Intellectual Economics, 17(1), 30-56. https://doi.org/10.13165/IE-23-17-1-02

Teece, D. J., Pisano, G., and Shuen, A. (1997). Dynamic Capabilities and Strategic Management. Strategic Management Journal, 18(7), 507-533.

Torres, A. I., Ferraz, S. S., and Santos-Rodrigues, H. (2018). The impact of knowledge management factors in organizational sustainable competitive advantage. Journal of Intellectual Capital, 19(2), 453-472. https://doi.org/10.1108/JIC-12-2016-0143

Ullah, I., Mirza, B., and Hameed, R. M. (2022). Understanding the dynamic nexus between ethical leadership and employees' innovative performance: the intermediating mechanism of social capital. Asian Journal of Business Ethics, 11(1), 45-65. https://doi.org/10.1007/s13520-022-00141-6

Ullah, I., Hameed, R. M., Kayani, N. Z., & Fazal, Y. (2022). CEO ethical leadership and corporate social responsibility: Examining the mediating role of organizational ethical culture and intellectual capital. Journal of Management and Organization, 28(1), 99-119. https://doi.org/10.1017/jmo.2019.48

Ullah, I., Mirza, B., and Jamil, A. (2021). The influence of ethical leadership on innovative performance: modeling the mediating role of intellectual capital. Journal of Management Development, 40(4), 273-292. https://doi.org/10.1108/JMD-08-2020-0277

Ullah, I., Rehman, K. U., Hameed, R. M., and Kayani, N. Z. (2017). Development of CSR through Ethical Leadership: Constructive Role of Ethical Culture and Intellectual Capital. Pakistan Journal of Commerce and Social Sciences, 11(3), 977-1004.

Ulrich, Dave, R. (1998). Intellectual Capital = Competence x Commitment. In Sloan Management Review (Vol. 39, pp. 15-26).

Walker, John R (2021). Supervision in the Hospitality Industry. New Jersey: John Wiley. Chicago Style.

Wang, D., Feng, T., & Lawton, A. (2017). Linking Ethical Leadership with Firm Performance: A Multi-dimensional Perspective. Journal of Business Ethics, 145(1), 95-109. https://doi.org/10.1007/s10551-015-2905-9

White, S., and Rezania, D. (2019). The impact of coaches' ethical leadership behavior on athletes' voice and performance: The role of accountability. Sport, Business and Management: An International Journal, 9(5), 460-476. https://doi.org/10.1108/SBM-11- 2017-0079

Youndt, M., & Snell, S. (2020). Human Resource Configurations, Intellectual Capital, and Organizational Performance. Journal of Managerial Issues, XXXII(1), 60-84.

Downloads

Published

2024-10-07

How to Cite

Christin, L., Masnita Siagian, Y., Leila Yusran, H., & Tanuwijaya, J. (2024). The Influence of Strategic Human Resource Practices and Ethical Leadership on Organizational Performance of Star Hotels: Mediated by Intellectual Capital and Sustainable Competitive Advantage. Dinasti International Journal of Education Management And Social Science, 6(1), 77–81. https://doi.org/10.38035/dijemss.v6i1.3060