Digital human resource strategy: Conceptualization, theoretical development, and an empirical examination of its impact on firm performance

Abstract

Companies increasingly rely on individuals' skills, enthusiasm, and creativity, all the while striving to fully embrace digitalization as an integral aspect of the business. Technological mediation has altered the design and functionality of work, although the Information Systems (IS) literature about human resource management (HRM) provides little empirical evidence of the synergy between the two fields. To shed light on how these interlinked systems generate performance gains, we draw on the sociotechnical perspective to propose the concept of digital HR strategy as an explicit recognition of the fusion and integration of HR processes and digital technologies. This paper also theorizes and empirically demonstrates that a digital HR strategy improves organizational performance. The model is empirically tested using archival data from a sample of 351 firms.