OVERVIEW OF THE LINK BETWEEN STRATEGIC HUMAN RESOURCE MANAGEMENT AND PORTER'S GENERIC STRATEGIES (COST LEADERSHIP, DIFFERENTIATION, AND FOCUS)

Abstract

This study assesses the link between Strategic Human Resource Management (SHRM) and Porter's
generic strategies (cost leadership, differentiation, and focus). Organisations can improve their
market positions and achieve long-term success by integrating human resource practices with
competitive strategies. This study uses an integrative literature review approach to synthesize
existing literature and emphasise how SHRM practices facilitate the successful implementation of
Porter's strategies. A comprehensive search was done across major academic databases, including
Scopus and Google Scholar, using keywords relating to SHRM and competitive strategy. The initial
search turned up 64 scholarly sources, from which a final selection of 49 peer-reviewed publications
published between 2014 and 2024 was chosen based on relevance, methodological quality, and
subject focus. These publications were evaluated using thematic synthesis to discover essential
patterns and empirical data that show how SHRM practices are linked to Porter's methods. The
findings highlight SHRM's strategic role in effectively facilitating the adoption of Porter’s generic
strategies. SHRM improves operational efficiency for cost leadership by optimizing the workforce,
streamlining recruitment, and implementing performance-based incentives to save costs. SHRM’s
differentiation link promotes innovation and service excellence by attracting innovative employees,
encouraging continuous learning, and fostering an empowered, innovation-driven culture. SHRM
allows for deep market specialization through focused recruitment, customer-centric training, and
agile workforce management. By integrating HR practices with each strategic objective,
organisations can effectively implement their chosen competitive strategy and maintain a long-term
advantage in rapidly changing markets. The implications for practice and future research directions
are highlighted.