Determinants of E-HRM and Strategic Performance: Mediating Role of E-HRM Usage

Abstract

This research aims to study the impact of the use of electronic HRM (E-HRM) onto the strategic performance of HR by studying the various factors that influence the intention to use and actual usage of E-HRM. The study combines Unified Theory of Acceptance and Use of Technology (UTAUT) model with the strategic performance of HR in order to meet the aforementioned objective. Gupta and Saxena (2013) have highlighted the services industry’s emerging trend of digitization owing to the ever-growing competition, and the consequent transformation of its HR services; E-HRM has recently been introduced as web-based provision of HR services. Besides elaborating on the factors that shall influence the usage of E-HRM, this study will also clarify the link between the latter and an outcome of the usage, strategic performance of HR. In order to meet the aforementioned objective, a survey has been conducted in five major companies constituting the telecom sector of Pakistan. A sample of 497 respondents has been used to verify the proposed model whereby structural equation modeling has been used. Behavioral intention has been verified as the mediator between determinants of E-HRM (performance expectancy, effort expectancy and social influence) and actual usage of E-HRM. Performance expectancy has been observed to negatively influence the actual use of E-HRM while the other determinants (effort expectancy, social influence and facilitating conditions) have shown a positive relation. Lastly, the use of E-HRM has shown positive association with the strategic performance of HR. Researchers can build upon this study by increasing its depth and scope. They may extend the study of performance by investigating aspects other than strategic performance. Practitioners can draw valuable lessons from the results obtained in this study so as to improve the strategic performance of HR employees.