Determinants of the impact of smart human resource management adoption on organizational performance: Challenges and opportunities in a developing economy
Md. Tariqul Islam, Afruza Haque, Syed Hasibul Islam, Mohammad Rakibul Islam Bhuiyan, Mohammad Badruddoza TalukderBackground
The integration of digital technologies into human resource management is driving the transformation toward Smart Human Resource Management (SHRM), which enhances efficiency and strategic alignment. In developing economies like Bangladesh, challenges such as limited infrastructure and organizational readiness shape SHRM adoption and performance.
Objectives
This study investigates the determinants of SHRM adoption and its effects on organizational performance (OP) in Bangladesh. Specifically, it examines technological, organizational, and environmental factors within the Technology–Organization–Environment (TOE) and Resource-Based View (RBV) theory, focusing on the mediating role of SHRM adoption.
Methodology
A cross-sectional survey was investigated among 220 HR professionals as well as managers from diverse Bangladeshi organizations. Data were analyzed by structural equation modeling (SEM) in R Studio in order to test the conceptual model and validate hypotheses.
Key Results
Technological and organizational factors significantly drive SHRM adoption, whereas environmental stimuli have weaker effects. SHRM adoption positively enhances organizational performance. Mediation analysis shows that organizational readiness significantly mediates the relationship between SHRM adoption and performance, while technological and environmental mediations remain insignificant.
Conclusions
SHRM adoption improves organizational performance and highlights organizational preparedness as the critical enabler of successful SHRM implementation in developing economies.