Factors affecting artificial intelligence (AI) adoption in the talent acquisition process: the case of Vietnam’s medium-sized firms

Abstract

Purpose This study aims to assess the factors that impact the adoption of artificial intelligence (AI) in the human resource (HR) recruitment procedure in Vietnam’s medium-sized firms. Design/methodology/approach Through a quantitative approach, this paper collected data of 297 hiring managers, HR directors and top-level executives from Vietnam’s medium-sized firms with a structured questionnaire. The partial least squares structural equation model was used to analyze the data and evaluate the hypothesis model (on platform Smart PLS 3.0). Findings The results show that in Vietnam’s medium-sized companies, both perceived benefits and perceived sacrifices directly impact on perceived value, which leads to organizations’ adoption of AI. HR readiness also has a moderating effect between perceived value and AI adoption. Research limitations/implications Future research can compare AI adoption between large and medium companies, as well as other criteria in Asian countries. Other organizational constructs can be considered moderators between perceived value and AI adoption. Practical implications This study offers a context-specific understanding of the practice of using AI to acquire talent in Vietnam. Both of AI technology’s perceived benefits and perceived sacrifices directly impact its perceived value, therefore indirectly impacting its adoption. In this study, HR readiness serves as an inhibitor to adoption. Some essential managerial implications are suggested. Originality/value This study provides valuable insights into applying AI to Vietnam’s medium-sized companies, especially in the recruitment process. It adds to a substantial body of work on applying AI to HR management.