REFRAMING STRATEGIC HUMAN RESOURCE MANAGEMENT: HUMAN CAPITAL AS A KEY MECHANISM OF ORGANIZATIONAL DYNAMIC CAPABILITIES
Published:
2026-02-15Downloads
Abstract
Changes in the global organizational environment, characterized by technological turbulence, market uncertainty, sustainability pressures, and institutional complexity, have raised fundamental theoretical issues in the strategic management literature, particularly regarding how organizations build sustainable and adaptive capacity. Recent literature suggests that organizational failure is more often rooted in weak internal capabilities to execute and update strategy than in strategy formulation errors, making Strategic Human Resource Management a central issue in contemporary discourse. However, a review of the past five years has revealed the main limitations of the SHRM literature, which is still dominated by tests of direct relationships with performance or competitive advantage, with inconsistent empirical results and a lack of mechanistic explanations integrated with the resource-based view and dynamic capability. The literature also shows the fragmented use of mediating variables such as human capital without a coherent, process-based causal framework. This literature review aims to develop a conceptual synthesis that integrates SHRM, human capital, and dynamic capabilities into a consistent, mechanism-based explanatory framework. The approach used is an integrative literature review with a systematic search of reputable international databases for the period 2020–2025, accompanied by citation-chaining and thematic and configurative synthesis. The main conceptual findings confirm that SHRM functions as a process-based strategic architecture that shapes the quality of human capital as a microfoundation for the formation of dynamic organizational capabilities. The theoretical contribution of this study lies in clarifying the causal mechanisms of SHRM through human capital and expanding the theory's boundaries to digital and algorithmic contexts. Further research should examine time-based designs, cross-level mechanisms, and technological boundary conditions in the development of contemporary SHRM theory.
Keywords:
Strategic Human Resource Management Human Capital Dynamic Capability Integrative Literature Review Mechanism-Based TheoryReferences
Agha, H. N. A., Eyupoglu, S., & Tashtoush, L. (2025). The relationship between human resource management practices and organizational innovation: The mediated role of human capital within the banking sector in North Iraq. Sustainability, 17(14), 6330. https://doi.org/10.3390/su17146330
Al Faouri, E. H., Abu Huson, Y., Aljawarneh, N. M., & Alqmool, T. J. (2024). The role of smart human resource management in the relationship between technology application and innovation performance. Sustainability, 16(11), 4747. https://doi.org/10.3390/su16114747
Al Marridi, AZ, et al. (2025). ReviewGenie: A novel automated system for systematic review screening. Systematic Reviews, 14, 58. https://doi.org/10.1186/s13643-025-02895-z
Alabdali, MA, Khan, SA, Yaqub, MZ, & Alshahrani, MA (2024). Harnessing the power of algorithmic human resource management and human resource strategic decision making for achieving organizational success: An empirical analysis. Sustainability, 16(11), 4854. https://doi.org/10.3390/su16114854
Alameddine, A. (2025). The mediating impact of knowledge based HRM practices on the relationship between transformational leadership and open innovation. VINE Journal of Information and Knowledge Management Systems. https://doi.org/10.1108/VJIKMS-02-2025-0058
Alpkan, L., & Gemici, E. (2023). The relationship between high-performance work systems and product innovativeness: The mediating role of technological capabilities and the moderating role of university-industry collaboration. Journal of Engineering and Technology Management, 67, 101735. https://doi.org/10.1016/j.jengtecman.2023.101735
Ammirato, S., Felicetti, A.M., Linzalone, R., Corvello, V., & Kumar, S. (2023). Still our most important asset: A systematic review on human resource management in the midst of the fourth industrial revolution. Journal of Innovation and Knowledge, 8(3), 100403. https://doi.org/10.1016/j.jik.2023.100403
Baishya, S., Karna, A., Mahapatra, D., Kumar, S., & Mukherjee, D. (2025). Dynamic managerial capabilities: A critical synthesis and future directions. Journal of Business Research, 186, 115015. https://doi.org/10.1016/j.jbusres.2024.115015
Baishya, S., Karna, A., Mahapatra, D., Kumar, S., & Mukherjee, D. (2025). Dynamic managerial capabilities: A critical synthesis and future directions. Journal of Business Research . https://doi.org/10.1016/j.jbusres.2024.115015
Banazılı, A. (2024). Strategic Human Resources Management: Concept, Theory and Applications. Bitlis Eren Üniversitesi Sosyal Bilimler Dergisi . https://doi.org/10.47130/bitlissos.1580471
Bari, N., Chimhundu, R., & Chan, K. (2022). Dynamic Capabilities to Achieve Corporate Sustainability: A Roadmap to Sustained Competitive Advantage. Sustainability . https://doi.org/10.3390/su14031531
Bhandari, K. R., Zámborský, P., Ranta, M., & Salo, J. (2023). Digitalization, internationalization, and firm performance: A resource orchestration perspective on new OLI advantages. International Business Review, 32(4), 102135. https://doi.org/10.1016/j.ibusrev.2023.102135
Boon, C. T., Jiang, K., & Eckardt, R. (2025). The role of time in strategic human resource management research: A review and research agenda. Journal of Management, 51(1), 172–211. https://doi.org/10.1177/01492063241264250
Campbell, F., Tricco, A.C., Munn, Z., Pollock, D., Saran, A., & Sutton, A. (2023). Mapping reviews, scoping reviews, and evidence and gap maps: The Big Picture review family. Systematic Reviews, 12, 45. https://doi.org/10.1186/s13643-023-02178-5
Chong, S. W. (2025). Synthesis Methods and Reporting Tool SMART for research synthesis. Research Synthesis Methods. https://doi.org/10.1002/jrsm.1732
De Fano, D., Schena, R., & Russo, A. (2025). Harnessing AI ambidexterity for competitive advantage: The role of dynamic capabilities in digital innovation ecosystems. European Journal of Innovation Management. https://doi.org/10.1108/EJIM-11-2024-1404
Dubey, R., Bryde, D.J., Blome, C., Dwivedi, Y.K., Childe, S.J., & Foropon, C. (2024). Alliances and digital transformation are crucial for benefiting from dynamic supply chain capabilities during times of crisis: A multi method study. International Journal of Production Economics, 269, 109166. https://doi.org/10.1016/j.ijpe.2024.109166
Dukhaykh, S., & Alangri, N. (2026). Dynamic capabilities and sustainable competitive advantage. Sustainability, 18(3), 1320. https://doi.org/10.3390/su18031320
Ekuma, K. (2024). Artificial intelligence and automation in human resource development: A systematic review. Human Resource Development Review, 23(2), 199–229. https://doi.org/10.1177/15344843231224009
Elhajjar, S., Yacoub, L., & Yaacoub, H. (2023). Automation in business research: Systematic literature review. Information Systems and E Business Management, 21(3), 675–698. https://doi.org/10.1007/s10257-023-00645-z
Elsman, EBM, Mokkink, LB, Terwee, CB, Beaton, DE, Gagnier, JJ, & Tricco, AC (2024). PRISMA COSMIN for systematic reviews of outcome measurement instruments. Journal of Clinical Epidemiology, 173, 111422. https://doi.org/10.1016/j.jclinepi.2024.111422
Georgescu, I., Bocean, CG, Vărzaru, AA, Rotea, CC, Mangra, MG, & Mangra, GI (2024). Enhancing organizational resilience: The transformative influence of strategic human resource management practices and organizational culture. Sustainability, 16(10), 4315. https://doi.org/10.3390/su16104315
Gong, Q., Fan, D., & Bartram, T. (2024). Algorithmic human resource management: Toward a functional affordance perspective. Personnel Review, 53(5), 1150–1177. https://doi.org/10.1108/PR-01-2024-0099
Gong, Q., Fan, D., & Bartram, T. (2024). Integrating artificial intelligence and human resource management: A review and future research agenda. The International Journal of Human Resource Management. https://doi.org/10.1080/09585192.2024.2440065
Gong, Q., Gu, J., Kong, Z., Shen, S., Dong, X., Li, Y., & Li, C. (2025). The Impact of ESG Ratings on Corporate Sustainability: Evidence from Chinese Listed Firms. Sustainability . https://doi.org/10.3390/su17135942
Heubeck, T. (2023). Looking back to looking forward: A systematic review of and research agenda for dynamic managerial capabilities. Management Review Quarterly, 74, 2243–2287. https://doi.org/10.1007/s11301-023-00359-z
Hina, H., Siraj, R., & Yasmeen, G. (2025). Strategic human resource management and employee outcomes: A systematic literature review. Journal of Organizational Effectiveness: People and Performance. https://doi.org/10.1108/JOEPP-05-2024-0129
Hossain, M., Arefin, T., & Urme, U. (2025). The Financial Impact of Strategic HRM Practices: Linking Employee Investments to Organizational Performance. European Journal of Management, Economics and Business . https://doi.org/10.59324/ejmeb.2025.2(2).02
Javed, H.A., Khan, N.A., Michalk, S., Khan, N.U., & Kamran, M. (2023). High performance work system and innovation capabilities: The mediating role of intellectual capital. Administrative Sciences, 13(1), 23. https://doi.org/10.3390/admsci13010023
Keegan, A. E., & Meijerink, J. (2025). Algorithmic management in organizations: From edge case to center stage. Annual Review of Organizational Psychology and Organizational Behavior, 12(1), 395–422. https://doi.org/10.1146/annurev-orgpsych-110622-070928
Kim, S., Jung, J., & Cho, S. (2024). The Influence of Ownership Concentration on Sustainable Merger and Acquisition Performance: Navigating Principal Conflicts in the Korean Market. Sustainability . https://doi.org/10.3390/su16124985
Knies, E., Boselie, P., Gould-Williams, J., & Vandenabeele, W. (2024). Strategic human resource management and public sector performance: context matters. The International Journal of Human Resource Management , 35, 2432 - 2444. https://doi.org/10.1080/09585192.2017.1407088
Kryscynski, D., Coff, R., & Moliterno, T. (2024). Empirical opportunities for advancing theory and research on strategic human capital. Journal of Management. https://doi.org/10.1177/27550311241249947
Lau, A., Haist, J., & Hewett, R. (2025). Impact driven scholar, reflective practitioner, or pracademic? Conceptualizing hybrid roles to bridge the research practice gap in HRM. Human Resource Management Review, 35(2), 101077. https://doi.org/10.1016/j.hrmr.2025.101077
Liang, X., & Li, J. (2024). Sustainable human resource management and employee performance: A conceptual framework and research agenda. Human Resource Management Review, 35(2), 101060. https://doi.org/10.1016/j.hrmr.2024.101060
Mahmood, Q. A., & Ahmed, R. (2025). Greening sustainability: Unraveling the nexus of green human resource management practices, green dynamic capabilities, and employee engagement in the presence of innovative climate. International Studies of Management and Organization, 55(4), 415–441. https://doi.org/10.1080/00208825.2024.2443333
Mebratie, E. (2025). Knowledge based human resource management practices and organizational performance: The moderating effect of intellectual capital. Cogent Business and Management. https://doi.org/10.1080/23311975.2025.2491688
Mehrabi, S., Mahdad, M., Bijman, J., Cholez, C., Mesa, J. C. P., & Giagnocavo, C. (2025). Microfoundations of dynamic capabilities enabling scaling pathways of sustainability-oriented innovation business models. Business Strategy and the Environment, 34(1), 849–871. https://doi.org/10.1002/bse.4004
Mehralian, G., Sheikhi, S., Zatzick, C., & Babapour, J. (2023). The dynamic capability view in exploring the relationship between high performance work systems and innovation performance. The International Journal of Human Resource Management, 34(18), 3555–3584. https://doi.org/10.1080/09585192.2022.2138494
Meijerink, J., & Bondarouk, T. (2023). The duality of algorithmic management: Toward a research agenda on HRM algorithms, autonomy and value creation. Human Resource Management Review, 33(1), 100876. https://doi.org/10.1016/j.hrmr.2021.100876
Moens, M., Nagels, G., Wake, N., & Goudman, L. (2025). Artificial intelligence versus manual screening in systematic reviews. iScience, 28(2), 113559. https://doi.org/10.1016/j.isci.2025.113559
Moi, L., Pusceddu, G., & Cabiddu, F. (2026). Phygital dynamic capabilities: Microfoundations and their reversed interplay. Technological Forecasting and Social Change, 223, 124423. https://doi.org/10.1016/j.techfore.2025.124423
Mustikasari, A., et al. (2025). The microfoundations of managing adaptive tension as a distinctive characteristic of dynamic innovation capabilities. Journal of Organization Design. https://doi.org/10.1007/s40171-025-00449-9
Nastase, C., Adomnitei, A., & Apetri, A. (2025). Strategic human resource management in the digital era: Technology, transformation, and sustainable advantage. Merits, 5(4), 23. https://doi.org/10.3390/merits5040023
Ng, J.Y., Liu, H., Masood, M., Syed, N., & Stephen, D. (2025). Guidance for the reporting of bibliometric analyses: A scoping review. Quantitative Science Studies, 6(1), 1–21. https://doi.org/10.1162/qss.a.00120
Öztürk, O., & Bağış, M. (2025). Bridging resource dependence theory and resource based view: A theoretical synthesis. Management Decisions. https://doi.org/10.1108/MD-05-2024-1071
Paauwe, J., & van de Voorde, K. (2025). Bridging the research practice gap in modern human resource management. Human Resource Management Review, 35(2), 101076. https://doi.org/10.1016/j.hrmr.2025.101076
Pandey, H. P., Maraseni, T. N., & Apan, A. A. (2024). Enhancing systematic literature reviews using the double diamond approach. Heliyon, 10(4), e40581. https://doi.org/10.1016/j.heliyon.2024.e40581
Pauwels, N.S., Koobasi, M., Fry, A., Vandendriessche, T., & Ødegaard, M. (2024). Guidance for systematic reviews in journal author instructions. Cochrane Evidence Synthesis and Methods, 2, e12050. https://doi.org/10.1002/cesm.12050
Peng, X., Chen, Y., & Lin, H. (2024). Human capital development and dynamic capabilities: Evidence from emerging economies. Management Decision, 62(4), 1092–1110. https://doi.org/10.1108/MD-10-2023-1417
Pitelis, C., Teece, D., & Yang, H. (2023). Dynamic Capabilities and MNE Global Strategy: A Systematic Literature Review‐Based Novel Conceptual Framework. Journal of Management Studies . https://doi.org/10.1111/joms.13021
Ranalan, R. (2025). The Effect of Strategic Human Resource Management on Organizational Performance: A Correlational Meta-Analysis. International Journal of Research and Innovation in Social Science . https://doi.org/10.47772/ijriss.2025.906000329
Ranalan, RLV (2025). Strategic human resource management and organizational performance: A meta analytic review. Human Resource Management Review. https://doi.org/10.1016/j.hrmr.2024.100996
Robleto, E., et al. (2025). Accelerating systematic reviews using AI assisted screening. American Journal of Physiology: Heart and Circulatory Physiology. https://doi.org/10.1152/ajpheart.00374.2025
Sahni, V. (2023). Protocol registration for systematic reviews. Journal of Evidence-Based Integrative Medicine, 28, 2515690X231193544. https://doi.org/10.1177/2515690X231193544
Sauer, P. C., & Seuring, S. (2023). How to conduct systematic literature reviews in management research. Review of Managerial Science, 17, 1923–1957. https://doi.org/10.1007/s11846-023-00668-3
Schulze, A., et al. (2024). Building strategic human capital resources: The effects of strategic human capital on outcomes. Journal of Travel Research. https://doi.org/10.1080/00472778.2024.2322985
Starke, S., & Ludviga, I. (2025). Sustained learning as a dynamic capability for digital transformation: A multilevel quantitative study on workforce readiness and digital services in healthcare. Sustainability, 17(20), 9184. https://doi.org/10.3390/su17209184
Teece, D.J. (2025). Dynamic capabilities and related paradigms. Cambridge Elements in Business Strategy. https://doi.org/10.1017/9781009232890
Trapé, C.A., et al. (2025). Scoping review of evidence synthesis: Concepts, types, and methods. PLOS ONE, 20(1), e0298743. https://doi.org/10.1371/journal.pone.0298743
Ulrich, D. (2024). The future of human resource management: From functional excellence to strategic value creation. Human Resource Management Review, 34(1), 100932. https://doi.org/10.1016/j.hrmr.2023.100932
van der Braak, K., et al. (2023). Perspectives on systematic review of registration protocols. Systematic Reviews, 12, 240. https://doi.org/10.1186/s13643-023-02405-z
Wang, Y., et al. (2024). The effect of a high performance work system on innovation performance. Systems, 12(7), 230. https://doi.org/10.3390/systems12070230
Wright, P. M., Nyberg, A. J., & Ployhart, R. E. (2024). A microfoundations view of strategic human capital. Academy of Management Perspectives, 38(1), 1–15. https://doi.org/10.5465/amp.2022.0123
Wu, B. (2025). Title: Strategic Human Resource Management and Organizational Behavior: A Collaborative Framework for Long-Term Organizational Growth. Finance & Economics . https://doi.org/10.61173/6qa0jh33
Wu, S., Li, X., Du, X., & Li, Z. (2022). The Impact of ESG Performance on Firm Value: The Moderating Role of Ownership Structure. Sustainability . https://doi.org/10.3390/su142114507
Wu, S., Li, X., Du, X., & Li, Z. (2022). The Impact of ESG Performance on Firm Value: The Moderating Role of Ownership Structure. Sustainability . https://doi.org/10.3390/su142114507
Yamin, MA, Almuteri, SD, Bogari, KJ, & Ashi, AK (2024). The influence of strategic human resource management and artificial intelligence in determining supply chain agility and supply chain resilience. Sustainability, 16(7), 2688. https://doi.org/10.3390/su16072688
Zahoor, A., Sahaf, M., & Shah, M. (2025). Strategic Human Resource Management: A Framework-Based Review and Research Agenda. South Asian Journal of Human Resources Management . https://doi.org/10.1177/23220937251383262
Zahoor, N., Donbesuur, F., Christofi, M., & Vrontis, D. (2025). Strategic human resource management and firm performance: A dynamic capabilities perspective. The International Journal of Human Resource Management. https://doi.org/10.1080/09585192.2024.2311458
Zatonatska, T., Soboliev, O., Artyukhov, A., Zatonatskiy, D., Balan, V., Wołowiec, T., & Woźniak, D. (2025). Sustainable Energy Investments: ESG-Centric Evaluation and Planning of Energy Projects. Energies . https://doi.org/10.3390/en18081942
Zhang, J. (2025). The dual impact of ownership concentration and financial performance on ESG activities: evidence from Chinese listed companies. Electronic Commerce Research . https://doi.org/10.1007/s10660-025-09982-2
Zhang, Q., Gong, H., Ouyang, C., Han, J., & Saks, A. M. (2025). Building micro foundations for positive workplace relationships: Validation of a strategic relational human resource management measure. Human Resource Management, 64(3), 793–810. https://doi.org/10.1002/hrm.22282
Zhang, W., Wei, Z., Ge, L., Zhang, Y., & Xu, G. (2025). How Does ESG Performance Matter for Corporate Sustainability Performance? Evidence from China. Sustainability . https://doi.org/10.3390/su17041684
Zupic, I., & Čater, T. (2024). Bibliometric methods in management and organization research. Organizational Research Methods, 27(1), 3–35. https://doi.org/10.1177/10944281231201234
License
Copyright (c) 2026 Hema Herman, Tetra Hidayati

This work is licensed under a Creative Commons Attribution 4.0 International License.




