Achieving Competitive Advantage (CA) Through the Role of Training and Compensations Practices on Innovative Work Behavior (IWB): A Study in Jordan Islamic Banks

Abstract

Effective training and compensation system are important for modern industries that aim to gain Competitive Advantage (CA) which is one of the key factors for companies’ survival. A skilled  workforce that reflec  innovative work behavior (IWB) are an important element for companies to remain competition. This study aims to determine the relationship between training, direct compensation, and IWB, and then analyze the effect of IWB on CA with the moderating effect of indirect compensation. This study had been analyzed using quantitative approach and SEM technique to test the hypothesis through a data collected  from 219 respondents working at 3 Islamic banks in Jordan using an adopted questionnaire. The results showed that training had a positive and significant impact on IWB, direct compensation had an insignificant impact on IWB, and IWB positively affected CA. In contrast, the moderating effect of  indirect compensation on the relationship between IWB and CA was also confirmed. However, this effect has negatively influenced the positive effect of IWB on CA. Further research may propsed another HRM practices, and may do a comparative study between Islamic and conventional banks.