Smart HRM 4.0 practices for organizational performance: the role of dynamic capabilities

Abstract

PurposeThe study explores the factors affecting the use of smart human resource management 4.0 (SHRM 4.0) practices and its effect on dynamic capabilities and, consequently, on organizational performance.Design/methodology/approachThe authors used socio-technical and dynamic capabilities theory to propose the notable research model. The authors explored the factors driving the use of SHRM 4.0 practices and their contribution to organizational performance through the development of dynamic capabilities. The authors collected data from 383 senior HR managers using a structured questionnaire, and PLS-SEM was used to analyze the data.FindingsThe results show that socio-technical factors such as top management support, HR readiness, competitive pressure, technology readiness and perceived usefulness influence the use of SHRM 4.0 practices, whereas security and privacy concerns negatively influence them. Furthermore, the authors also found the use of SHRM 4.0 practices influencing the dynamic capacities (build (learning), integration and reconfiguration) and, subsequently, its impact on organizational performance.Originality/valueIts novelty lies in developing a model using dynamic capabilities and socio-technical theory to explore how SHRM 4.0 practices influence organizational performance through dynamic capabilities. This study extends the literature on SHRM 4.0 practices, HR technology use, HR and dynamic capabilities by contributing to socio-technical theory and dynamic capabilities and expanding the scope of these theories in the area of HRM. It provides crucial insights into HR and top managers to benchmark SHRM 4.0 practices for improved organizational performance.

The Role of Smart Human Resource Management in the Relationship between Technology Application and Innovation Performance

“…Research underscores the positive nexus between technology application and smart HRM practices. For instance, studies by Pillai and Srivastava (2023) [46] and Kambur and Yildirim (2023) [19] demonstrate that organizations leveraging HR technologies exhibit higher levels of employee satisfaction, productivity, and retention compared to those relying on traditional HR methods. These technologies enable organizations to automate routine administrative tasks, such as payroll processing and performance evaluations, liberating HR professionals to concentrate on strategic endeavors like talent development and succession planning [47,48].…”