Achieving Competitive Advantage (CA) Through The Role Of Training, Compensation Practices, And Innovative Work Behavior (IWB)

This study focuses on training and compensation as some of HRM's essential variables. The research aims to achieve CA through the role of training, compensation and IWB. The research task is to determine the relationship between training, direct compensation and IWB, then to analyze the mediation effect of IWB on CA, moderated by the indirect compensation. There are various methodologies developed on how to achieve CA. The collection of quantitative data uses the deductive approach through a questionnaire. Conducting several parts and items or questions for such a method is essential to combine the overall hypotheses through statistical analysis, confirmatory factor analysis and structural equation modeling. The research selected the three local Islamic banks in Jordan, including 3203 employees. Based on the convenience technique, the sample number that should be collected from Jordanian Islamic banks is 219 employees. Reliability and validity are proved along with model fit. The findings of this study indicate that training positively influences innovative work behavior; direct compensation has no significant influence on innovative work behavior. Apart from this, results revealed that innovative work behavior has a positive mediation effect on competitive advantage. In contrast, indirect compensation's moderating effect on the relationship between innovative work behavior and competitive advantage was also confirmed. However, this effect has converted the positive impact of innovative work behavior on competitive advantage to a negative impact. Some implications, limitations and further directions are discussed and suggested.