The impact of electronic human resources management practices on enhancing organizational performance: The mediating role of career satisfaction in international commercial banks

Abstract

This study aims to validate the relationship among E-HRM practices, organizational performance, and career satisfaction of international commercial banks. This study draws on three theoretical lenses namely, Social Exchange Theory (SET), the Resource-Based View (RBV), and the Technology Acceptance Model (TAM). Using data compiled from a purposive sample of 542 managers in international commercial banks, a conceptual model was formulated and tested via Partial Least Squares Structural Equation Modeling (PLS-SEM). This study aims to explore the effect of E-HRM E-Recruitment, E-Training, Virtual Teams, on organizational performance and the role of career satisfaction as a mediator in this relationship. SET argues that the nature of the relationship between employees and employers mediated by E-HRM-based practices enhances organizational performance through positive exchanges. According to the RBV, using E-HRM practices effectively serves as a basis for creating competitive advantage because it integrates human resource strategies with mainstream business goals, resulting in enhanced people-oriented outcomes and overall organizational performance. Moreover, TAM also posits that usage behavior towards E-HRM systems is determined by career satisfaction contributors such as perceived ease of use and perceived usefulness from the employees' perspective. High level E-HRM practices result in higher satisfaction of employees, thus having a direct impact on organizational performance as shown by the mediated relationship between E-HRM practices and organizational performance. The implications of these findings stress that E-HRM practices should be best managed keeping in view employees’ aspirations in order to yield high levels of career satisfaction imperative to the organizational performance and success. This study adds to literature HR professionals working in international commercial banks by offering useful implications regarding the implementation of E-HRM practices focusing on the necessity of employee-centric preferred E-HRM practices to overcome organizational performance.