Digital Human Resource Management and Its Role in Achieving Competitive Advantage: An Exploratory Study of the Opinions of a Sample of Leaders in Private Banks.

Background The banking sector is undergoing rapid digital transformation, requiring the development of business processes and employee skills. making digital human resource management a key factor in enhancing competitiveness. This research aims to identify the relationship between digital human resource management and competitive advantage in private banks by studying the level of adoption of digital practices and their impact on the development of competitive performance. Methodology A descriptive analytical approach was used, and data were collected through a questionnaire administered to a sample of 150 administrative leaders in private banks. The data were analyzed using SPSS V.27 and AMOS V.24, with tests of stability and internal consistency, in addition to testing for procedural bias. Results The results showed a high level of stability (α = 0.94) and the absence of measurement bias (CMB = 32.08%). It also showed that the level of competitive advantage was higher than the level of digital human resource management adoption. The results of the analysis showed a strong and significant correlation between digital human resource management and competitive advantage (r = 0.96, P = 0.002). All digital dimensions had a direct and significant impact on competitive advantage, with the digital learning dimension having the most significant impact. Conclusions Developing digital human resource management practices is an important path to enhancing the competitiveness of private banks. Investing in digital infrastructure and expanding the use of digital applications contributes to supporting operational efficiency, increasing responsiveness to technological changes, and enhancing banks’ readiness for market requirements.