Integration of Business Strategy and Human Resources: Implications for Knowledge Capability and Organizational Performance
Keywords:
Business Strategy, Innovation, Knowledge Capability, Knowledge Management, Strategic Human Resource ManagementAbstract
ABSTARCT This study conducts a Systematic Literature Review (SLR) to examine how the integration of business strategy and strategic human resource management (SHRM) shapes knowledge capability and organizational performance in the contemporary VUCA environment. Using PRISMA guidelines, twenty empirical articles published between 2009 and 2024 were systematically selected from reputable academic databases such as Scopus, Web of Science, ScienceDirect, PubMed, and SINTA. The review reveals that vertical fit between business strategy and HRM architecture forms the structural foundation for building strong knowledge capability. Strategic HR practices particularly value-based recruitment, future-oriented training, and innovation-enhancing compensation—serve as key mechanisms enabling knowledge acquisition, sharing, and application. The findings highlight that knowledge capability acts as a central mediator linking strategic inputs to performance outcomes, including innovation, process efficiency, resilience, and financial results. Contextual moderators such as environmental dynamism, learning-oriented organizational culture, and resource commitment further strengthen or weaken these causal relationships. This review contributes theoretically by integrating the Resource-Based View, Knowledge-Based View, and Dynamic Capabilities perspectives, and provides practical implications for leaders seeking to design knowledge-driven organizational ecosystems Keywords: Business Strategy, Innovation, Knowledge Capability, Knowledge Management, Strategic Human Resource ManagementReferences
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