| Summary: | In the modern era, in order to gain an extra advantage over other firms, they need to
plan and execute appropriate strategic policies. The business environment in which
banks operate in Jordan is characterized by a long and remarkable competition and
growing challenges. Jordanian banks still struggle in understanding the importance of
the human resources management information system in achieving competitive
advantage to ensure the survival and continuity, which requires these banks to adopt a
modem management system that ensures availability of incentives system and
availability of training programs for employees. Therefore, the current study looked
into the impact of human resource management information system (HRMIS),
training, incentives and compensation on competitive advantage (CA) of Jordanian
banks. This study adopted a quantitative method. A self-administered questionnaire
was used to collect data after the questionnaire was validated through a pre-test and
pilot test. The target population for this study was 342 employees working in the HR
department in the Jordanian banks and the sampling frame was the entire 24 banks in
Jordan. The stratified random sampling technique was used to eliminate response bias
and to ensure an equal chance of being selected. 250 questionnaires were
administered, and 223 questionnaires were found suitable for further analysis, giving a
response rate of 89.2%. MUltiple regression analyses were used to answer the
hypotheses developed for the study using Statistical Package for the Social Sciences
(SPSS). The results showed that HRMIS, training, incentives and compensation are
positively and significantly related to CA where HRMIS is the strong predictor at P of
0.429, followed by training at P of 0.276 and the weak predictor at p 0.239 is observed
for incentives and compensation. The findings of this study contributed to theoretical
and practical implication. The study has provided empirical insights in supporting
social exchange theory and resource-based theory towards CA in Jordanian banks.
This study can benefit HR management in recognizing that HRMIS, training,
incentives and compensation are essential factors that can impact Jordanian banks'
competitive advantage. Conducting similar studies in other banking sectors such as
microfinance banks is recommended, which could further enhance the understanding
of CA.
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