The role of human resource management practices on the results of digitalisation. From Industry 4.0 to Industry 5.0

Abstract

PurposeThis article aims to analyse the impact of data analytics and robots on firms' performance across Europe.Design/methodology/approachThis paper aims to examine the impact of data analytics and robots on companies' performance, multilevel models are estimated. Empirical research is based on the fourth round of the European Company Survey 2019.FindingsThe main findings show that human resource management practices (HRMP) are relevant to explain firms' profits. Therefore, human resource practices and technology are complementary resources to achieve higher results. A positive and significant relation between profits and the use of data analytics to monitor employee performance was found. In addition, positive and significant relations between human resource practices and profitability were obtained.Practical implicationsFrom a practical perspective, this article helps to understand the role of technological and human factors in profitability, and it emphasises the relevance of human resource strategies and technology to accomplish business outcomes.Originality/valueThis study’s findings reinforce the concept of Industry 5.0 which highlights the role of humans in the digitalisation process.