The Mediating Role of Digital Transformation in the Relationship between Recruitment Practices and Competitive Advantage in the Palestinian Telecommunications Sector

Abstract

This study aimed to investigate the mediating role of digital transformation in the relationship between human resource practices and competitive advantage in the Palestinian telecommunications sector. Specifically, it analyzed the effect of HR practices on enhancing competitive advantage and examined the extent to which digital transformation mediates this relationship within a context characterized by rapid technological change. The study’s significance lies in the growing role of digital transformation as a strategic necessity that contributes to improving organizational performance and achieving higher levels of competitive excellence, particularly in the telecommunications sector, which is highly influenced by contemporary digital shifts. A descriptive-correlational research design was employed, and a rigorously developed questionnaire was used to measure the three variables: HR practices, digital transformation, and competitive advantage. The instrument was distributed to a sample of 262 administrative employees from Jawwal, Batel, and Ooredoo companies, yielding 183 valid responses, representing a 70% response rate. Data were analyzed using SPSS and Smart PLS 4. The findings indicated a statistically significant positive impact of HR practices on achieving competitive advantage. Moreover, digital transformation showed positive associations with both HR practices and competitive advantage, with partial mediation observed between the two. The results also revealed persistent challenges facing Palestinian telecommunications organizations in implementing digital transformation, highlighting the critical importance of integrating digital transformation and HR practices within a unified strategic framework to strengthen competitive advantage.