The Human Side of Digital Transformation: How HRM Practices Influence Employee Adaptability and Performance
TL;DR
Results suggest that there are significant relationships between digital-oriented HRM practices and employee adaptability, and between employee adaptability and employee performance, with organizational agility enhancing these relationships.
Abstract
Digital transformation is transforming the way organisations work; however, it is not just about the technology, it's about how people react to it. The human side of digital transformation is explored in this paper as it looks into the impact of human resource management (HRM) practices on employees' adaptability, and subsequently on employee performance. Based on the Ability-Motivation-Opportunity (AMO) framework and technostress theory five hypotheses are formulated relating digital-oriented training and development, digital leadership, organizational support of technostress management, adaptability of employees, organizational agility and employee performance outcomes. The conceptual framework suggests that adaptability of employees as a mediating factor between HRM practices and performance, and organizational agility as a moderating factor between HRM practices and performance. To illustrate the analytical approach, the paper provides the results of a representative survey data (N = 350) that was analyzed using descriptive statistics, correlation, regression, and bootstrapping mediation and moderation analysis. Results suggest that there are significant relationships between digital-oriented HRM practices and employee adaptability, and between employee adaptability and employee performance, with organizational agility enhancing these relationships. The paper ends with theoretical and practical implications for HR professionals in digital change as well as the limitations and directions for future research.