The impact of modern strategic human resource management approaches on crisis management effectiveness: The mediating role of leadership competencies

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Abstract

This study explores how modern human resource strategies empower crisis management through the leadership ability as the effective mediating link. Following recent research on human resource management’s (HRM’s) evolving role in organizational resilience (Sanders et al., 2024), we surveyed 320 senior and middle managers from Jordanian banks using stratified random sampling. From the partial least squares structural equation modeling (PLS-SEM) analysis, three key findings were derived. Following, commitment-based human resources (HR) practices and strategic fit significantly strengthened leadership competencies and crisis management, adding to existing research on HR-crisis relationships (Al-Khrabsheh et al., 2022). Surprisingly, performance-based HR approaches strengthened leadership competencies but undermined crisis preparedness, suggesting potential trade-offs in pressure-intensive contexts. Most importantly, leadership competencies, particularly communication, emotional intelligence, and emergency preparedness — acted as the “missing link” that translated HR policies into successful crisis management. The findings of the study provide pragmatic implications for financial institutions operating in Jordan’s turbulent economic environment: promoting leadership development reinforces the efficacy of human resource systems amidst periods of turbulence. The study ultimately proves that if human resource initiatives are aligned with leadership development, organizations do not just endure crises but come out more robust.

Keywords: Human Resource Management, Crisis Management, Leadership Competencies, Banking, Jordan

Authors’ individual contribution: Conceptualization — M.M.A.-H., M.T.A.-D., and Y.A.A.-K.; Methodology — M.M.A.-H.; Validation — M.T.A.-D.; Formal analysis — M.T.A.-D. and Y.A.A.-K.; Investigation — M.M.A.-H. and O.L.; Data curation — Y.A.A.-K.; Writing — Original Draft — M.M.A.-H.; Writing — Review & Editing — M.M.A.-H., M.T.A.-D., Y.A.A.-K., and O.L.; Supervision — Y.A.A.-K.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: M12, M54, D81

Received: 16.02.2025
Revised: 04.04.2025; 05.09.2025
Accepted: 30.09.2025
Published online: 02.10.2025

How to cite this paper: Al-Hmesat, M. M., Al-Dalaeen, M. T., Al-Khatalin, Y. A., Dabdad, M. A. D., & Lasassmeh, O. (2025). The impact of modern strategic human resource management approaches on crisis management effectiveness: The mediating role of leadership competencies. Corporate & Business Strategy Review, 6(4), 8–17. https://doi.org/10.22495/cbsrv6i4art1