Open Access Journal of Economic Research
ISSN: 3065-9035 | DOI: 10.64030/3065-9035
Tsvi Reiss
As we approach 2026, organizations are navigating an environment marked by significant changes that are fundamentally transforming traditional practices and management paradigms. This research suggests that organizations that actively create a climate supportive of employee engagement, professional growth, and overall well-being are more likely to improve performance, foster innovation aligned with market demands, and ultimately gain a sustainable competitive advantage. The primary objective of this study is to investigate the relationship between two crucial organizational variables: organizational climate and employee performance, to understand how they contribute to achieving competitive advantage for firms. To address the research questions and test the relevant hypotheses, a quantitative approach will be utilized, implementing various statistical techniques. A thorough review of the literature reveals a clear gap in understanding the relationships among organizational climate, employee performance, and competitive advantage, with scholars offering differing views on these connections. The expected outcomes of this study will help deepen understanding of these dynamics and their influence on organizational effectiveness in today’s business environment. This study makes a significant contribution to understanding the relationships between research variables at both the applied and theoretical levels. The model developed in the study enables organizations to identify the optimal point at which enhancing the organizational climate yields a competitive advantage, underscoring the importance of human capital. This contribution serves as a foundation for future research and practical recommendations for managers in the organizational field.