AI-Integrated Human Resource Management And Organizational Performance: The Intervening Roles Of Knowledge Management And Employee Engagement

Abstract

Artificial intelligence (AI) is increasingly embedded in human resource management (HRM), changing how organizations acquire talent, develop employees, evaluate performance, support decisions, and deliver employee services. Yet the organizational value of AI does not arise from technological adoption alone. This conceptual paper develops an integrative framework explaining how AI-integrated HRM can contribute to organizational performance through two interconnected organizational mechanisms: knowledge management and employee engagement. Drawing on the resource-based view, knowledge-based view, and social exchange theory, the paper argues that AI-integrated HRM strengthens the creation, capture, sharing, accessibility, and application of workforce knowledge. Effective knowledge management, in turn, can improve employees’ access to relevant information, learning opportunities, role clarity, and collaborative resources, thereby supporting employee engagement. Engaged employees are more likely to invest cognitive, emotional, and behavioral energy in their work, which can contribute to productivity, service quality, innovation, adaptability, and broader organizational performance. The framework therefore proposes a process pathway of AI-Integrated HRM → Knowledge Management → Employee Engagement → Organizational Performance, while also recognizing direct and complementary relationships among the constructs. The paper contributes by shifting attention from a technologycentric explanation of AI-HRM toward a socio-technical and knowledgebased account of value creation. It also identifies boundary conditions involving data quality, transparency, employee trust, digital capability, responsible AI governance, and managerial support. The framework offers testable propositions and a future empirical research agenda for scholars and practical guidance for organizations seeking to convert AI-enabled HR investments into sustainable organizational outcomes.