E-HRM Systems and Organizational Innovation: the Role of Digital Competency

Yohan Fitriadi; Wellia Novita

doi:10.55927/ijis.v5i1.812

Authors

Yohan Fitriadi Universitas Putra Indonesia YPTK, Padang
Wellia Novita Universitas Putra Indonesia YPTK, Padang

DOI:

https://doi.org/10.55927/ijis.v5i1.812

Keywords:

Digital Competency, E-HRM Systems, Organizational Innovation, Human Resource Management

Abstract

The rapid advancement of digital technology has transformed human resource management practices, leading organizations to adopt Electronic Human Resource Management (E-HRM) systems to enhance efficiency and strategic outcomes. This study aims to examine the effect of E-HRM systems on organizational innovation and to analyze the role of digital competency in strengthening this relationship. Using a quantitative explanatory design, data were collected through an online survey of 210 employees working in organizations that have implemented E-HRM systems. The data were analyzed using descriptive statistics and multiple regression analysis, including moderation testing. The results indicate that E-HRM systems have a positive and significant effect on organizational innovation. Digital competency also shows a significant positive influence on organizational innovation and acts as a moderating variable that strengthens the impact of E-HRM systems on innovation outcomes. These findings suggest that digital HR technologies contribute to organizational innovation more effectively when supported by adequate employee digital competencies. The study highlights the importance of aligning technological systems with human capabilities in achieving sustainable innovation. Practically, the results imply that organizations should complement E-HRM implementation with continuous digital competency development to maximize innovation potential

References

-Barney, J. B., Ketchen, D. J., & Wright, M. (2021). The future of resource-based theory: Revitalization or decline? Journal of Management, 47(7), 1793–1815. https://doi.org/10.1177/01492063211025983

Benbya, H., Leidner, D. E., & Rai, A. (2020). Digital transformation and organizational change: A sensemaking perspective. MIS Quarterly, 44(2), 735–756. https://doi.org/10.25300/MISQ/2020/15543

Bondarouk, T., & Brewster, C. (2022). Conceptualizing the future of HRM and technology research. Human Resource Management Journal, 32(3), 587–602. https://doi.org/10.1111/1748-8583.12406

Bondarouk, T., Parry, E., & Furtmueller, E. (2021). Electronic HRM: Four decades of research on adoption and consequences. The International Journal of Human Resource Management, 32(1), 1–30. https://doi.org/10.1080/09585192.2020.1810742

Calvani, A., Fini, A., Ranieri, M., & Picci, P. (2020). Are young generations competent in digital skills? A study on digital competence and technology use. Computers & Education, 160, 104032. https://doi.org/10.1016/j.compedu.2020.104032

Chatterjee, S., Chaudhuri, R., & Vrontis, D. (2023). Digital transformation of human resource management: A systematic review and future research agenda. Management Decision, 61(8), 2147–2177. https://doi.org/10.1108/MD-05-2022-0662

Felin, T., Foss, N. J., & Ployhart, R. E. (2021). The microfoundations movement in strategy and organization theory. Academy of Management Annals, 15(2), 575–632. https://doi.org/10.5465/annals.2019.0133

Ilomäki, L., Paavola, S., Lakkala, M., & Kantosalo, A. (2021). Digital competence: An emergent boundary concept for policy and educational research. Education and Information Technologies, 26(6), 6559–6580. https://doi.org/10.1007/s10639-021-10509-1

Kane, G. C., Phillips, A. N., Copulsky, J., & Andrus, G. (2021). The transformation myth: Leading your organization through uncertain times. MIT Press.

Kraus, S., Durst, S., Ferreira, J. J., Veiga, P., Kailer, N., & Weinmann, A. (2022). Digital transformation in business and management research: An overview of the current status quo. International Journal of Information Management, 63, 102466. https://doi.org/10.1016/j.ijinfomgt.2021.102466

Lepak, D. P., Jiang, K., & Kim, S. (2021). Strategic human resource management and organizational performance. Academy of Management Annals, 15(1), 156–190. https://doi.org/10.5465/annals.2019.0126

Li, F., Papagiannidis, S., & Mariani, M. (2023). Digital transformation and dynamic capabilities: Evidence from innovative firms. Technological Forecasting and Social Change, 186, 122123. https://doi.org/10.1016/j.techfore.2022.122123

Maier, C., Laumer, S., & Eckhardt, A. (2022). Digital HRM and employee outcomes: A socio-technical perspective. Journal of Strategic Information Systems, 31(2), 101717. https://doi.org/10.1016/j.jsis.2022.101717

Malik, A., Budhwar, P., & Srikanth, K. (2023). Digital capability and human resource management: The role of HR in digital transformation. Human Resource Management Review, 33(2), 100860. https://doi.org/10.1016/j.hrmr.2021.100860

Marler, J. H., & Boudreau, J. W. (2021). An evidence-based review of HR Analytics. The International Journal of Human Resource Management, 32(1), 98–125. https://doi.org/10.1080/09585192.2020.1746362

Nyberg, A. J., Moliterno, T. P., Hale, D., & Lepak, D. P. (2021). Resource-based perspectives on unit-level human capital. Journal of Management, 47(1), 316–345. https://doi.org/10.1177/0149206320949730

Pereira, V., Temouri, Y., Patel, C., & Tarba, S. Y. (2021). Investigating human capital, digital capability and innovation performance. Journal of Business Research, 131, 471–483. https://doi.org/10.1016/j.jbusres.2020.10.036

Raisch, S., & Krakowski, S. (2021). Artificial intelligence and management: The automation–augmentation paradox. Academy of Management Review, 46(1), 192–210. https://doi.org/10.5465/amr.2018.0072

Sarker, S., Chatterjee, S., Xiao, X., & Elbanna, A. (2021). The sociotechnical axis of digital transformation. Journal of the Association for Information Systems, 22(2), 273–301. https://doi.org/10.17705/1jais.00660

Sousa, M. J., & Rocha, Á. (2022). Digital learning and digital skills in organizations: A talent development perspective. Information Systems Frontiers, 24(2), 401–415. https://doi.org/10.1007/s10796-020-10097-2

Strohmeier, S. (2020). Digital human resource management: A conceptual clarification. German Journal of Human Resource Management, 34(3), 345–365. https://doi.org/10.1177/2397002220921131

Teece, D. J. (2020). Fundamental issues in strategy: Time to reassess? Strategic Management Review, 1(1), 103–144. https://doi.org/10.1561/111.00000001

Van den Heuvel, S., & Bondarouk, T. (2021). The rise (and fall?) of HR analytics: A study into the future application, value, structure, and system support. Human Resource Management Review, 31(2), 100761. https://doi.org/10.1016/j.hrmr.2020.100761

Van Laar, E., van Deursen, A. J. A. M., van Dijk, J. A. G. M., & de Haan, J. (2020). Determinants of 21st-century digital skills and their impact on labor outcomes. Telecommunications Policy, 44(2), 101885. https://doi.org/10.1016/j.telpol.2019.101885.

Verhoef, P. C., Broekhuizen, T., Bart, Y., Bhattacharya, A., Dong, J. Q., Fabian, N., & Haenlein, M. (2021). Digital transformation: A multidisciplinary reflection and research agenda. Journal of Business Research, 122, 889–901. https://doi.org/10.1016/j.jbusres.2019.09.022

Vrontis, D., Christofi, M., Pereira, V., Tarba, S., Makrides, A., & Trichina, E. (2022). Artificial intelligence, robotics, advanced technologies and human resource management: A systematic review. The International Journal of Human Resource Management, 33(6), 1237–1266. https://doi.org/10.1080/09585192.2020.1871398