Harnessing Hr Analytics For Competitive Advantage: Innovation and Effectiveness As Pathways

Research on human resource (HR) analytics has grown but remains fragmented, focusing mainly on operational benefits with little clarity on how it creates a competitive advantage. This study addresses that gap by examining the role of HR analytics in enhancing competitive advantage through the sequential mediating effects of HR innovation and HR effectiveness. Drawing on Human Capital Theory (HCT), we frame HR analytics as a strategic investment in human capital intelligence that fosters innovative HR practices and strengthens HR effectiveness. Survey data from 225 Chinese HR managers were used to test a structural model linking HR analytics, HR innovation, HR effectiveness, and competitive advantage. The results provide strong support for the framework, demonstrating that HR analytics positively influence both HR innovation and HR effectiveness. Mediation analyses confirm their sequential role in connecting HR analytics to competitive advantage. These findings enrich strategic HRM research, extend HCT, and offer managers practical guidance on leveraging HR analytics for sustained organizational performance.