This research employs Grounded Theory methodology to unravel a model aiming to achieve sustainable competitive advantage through human resource empowerment in Iraq's banking industry. Conducting in-depth interviews with 11 managers from various banking institutions provides rich insights into antecedents and consequences of this pursuit. Causal factors, including leadership styles, training programs, and organizational culture, emerge as foundational elements, shaping the core category of sustainable competitive advantage through human resource development. The study identifies crucial strategies, such as innovative training programs, leadership empowerment initiatives, and employee engagement strategies, as key drivers of success. Contextual factors, encompassing economic conditions, regulatory dynamics, cultural nuances, and technological landscapes, influence the effectiveness of HR strategies. Intervening factors, notably talent attrition challenges and resistance to change, underscore the need for adaptive approaches. Examining consequences reveals enhancements in reputation, brand image, employee and customer satisfaction, loyalty, and financial performance. This research provides a nuanced understanding of the dynamic interplay within Iraq's banking sector, offering practical insights for industry leaders and laying the groundwork for future exploration.
