The Impact of Ability, Motivation and Opportunity-Enhancing SHRM on Employee Performance: Moderating Role of Digital Transformation

Abstract

Objective: The aim of current study is to find out the impact of strategic Human resource management (SHRM) activities on employee performance, to inspect the role of digital transformation as moderator between SHRM activities and employee performance, to examine the authenticity of AMO (Ability, motivation, opportunity) theory in the context of aviation sector of Saudi Arabia. Methodology/Data collection: Current research is cross-section study and quantitative in nature. For the data collection a well-established questionnaire is developed on the base of previous literatures. Sample of 330 participants is selected from Saudi aviation sector from May to August 2023. After the data collection, partial least squares structural equation modelling (PLS-SEM) method is adopted by using SmartPLS application. Findings: The study found that among the activities of strategic human resource management, ability has positive and significant relationship with employee performance. Furthermore, motivation also has a positive and significant relationship with employee performance. However, work engagement and opportunity do not have direct relationship with employee performance. The digital transformation plays a moderating role to make positive link between motivation and opportunity with employee performance of aviation workers in Saudi Arabia. Limitation/Implementation: This study has practical, theoretical as well as empirical importance. The results of current research are not limited to Saudi Aviation sector but this framework can be used in different sector for enhancing the employee performance. In spite of, the importance of current study in the field of management, this study is limited to Saudi Arabia. This study used small sample size and data is collection on point of time. Originality/ Value: with the best of author’s knowledge, current study is first attempt to explain the SHRM activities to explain the employee performance in aviation sector of Saudi Arabia especially in the context of Saudi as well as Flynas airline. The finding of study will have great contributions for making the strategies regarding to enhance the performance of employee. Therefore, current research is beneficial for policy makers, aviation administration, society and researchers.