The Strategic Role of Innovation in Unleashing Human Capital for Competitive Advantage in Jordanian Banks

This research paper empirically investigated the mediating effect of the innovation on the relationship between human capital and sustainable competitive advantage in Jordan's rapidly developing banking industry.Survey data was collected from 370 bank employees and analyzed using PLS-SEM methodology.The statistical analysis confirms human capital, comprised of perceived capabilities, skills, and knowledge, positively influences competitive advantage.Additionally, innovation partially mediates this relationship, suggesting an underlying mechanism of how human capital drives competition.For practitioners, the findings signal that fostering cultures, capacities, and climates conducive to innovation allows banks to fully leverage human assets into market dominance.By illuminating innovation's role, the study addresses unexplored research gaps and makes both theoretical and practical contributions within an understudied context.