Achieving competitive advantage through empowering employees: An empirical study

Abstract

While discussion of employee empowerment has been prevalent in the popular literature for many years, theoretical research on psychological empowerment has been appearing only recently in scholarly journals. Empowerment is a concept that links individual strengths and competencies, natural helping systems and proactive behaviour to social policy and social change. This paper aims to illustrate the role of empowering employees on the gaining competitive advantage. For this purpose, a novel and innovative conceptual framework are used and presented. Data are gathered from academicians and experts associated with the financial services in Iran. In this paper, three main dimensions of competitive advantage that are Efficiency, Innovation and Responsiveness are investigated and examined. Results showed that the dimensions of employee’s empowerment are positively affected on gaining sustainable competitive advantage for organizations.

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