When Technology is Not Enough: Understanding Employee Trust Formation Through Digital HR Practices and Inclusion Climate
TL;DR
It is shown that the effectiveness of EHRM depends on the broader organizational context within which employees experience and interpret HR practices, highlighting the complementary roles of digital systems and inclusive workplace experiences in shaping trust.
Abstract
Background: Despite increasing organizational investment in electronic human resource management (EHRM), technological advancement does not necessarily translate into stronger employee trust. This challenge is particularly relevant in multicultural workplaces, where employees’ perceptions of fairness, support, and inclusion may shape how digital HR practices are experienced and interpreted. Objective: This study examines employee trust formation in digitally mediated multicultural organizations by positioning electronic human resource management (EHRM) as an enabling organizational condition. It investigates how perceived organizational support (POS), perceived organizational justice (POJ), EHRM, and inclusion climate (IC) jointly shape employee trust and examines the mediating roles of EHRM and inclusion climate. Methods: Cross-sectional survey data were collected from 477 academic and administrative employees across international schools in Indonesia and analyzed using partial least squares structural equation modelling (PLS-SEM). Results: POS and POJ were positively associated with EHRM and inclusion climate (p < 0.001). Both inclusion climate (β = 0.260, p < 0.001) and EHRM (β = 0.192, p < 0.001) were positively associated with employee trust, with inclusion climate demonstrating the stronger relationship. EHRM also positively predicted inclusion climate (β = 0.276, p < 0.001). All proposed indirect and serial mediation pathways were significant (p < 0.001), indicating that organizational support and justice are associated with employee trust through complementary digital and social pathways. Conclusion: This study contributes to the HRM literature by advancing an employee-centered understanding of trust formation in digital workplaces. It shows that the effectiveness of EHRM depends on the broader organizational context within which employees experience and interpret HR practices, highlighting the complementary roles of digital systems and inclusive workplace experiences in shaping trust.