Taxonomy of business value underlying motivations for e-HRM adoption

Abstract

PurposeThe purpose of this paper was to develop a taxonomy of organizations based on business value (BV) underlying electronic human resource management (e-HRM) adoption motivations.Design/methodology/approachA taxonomy was developed using cluster analysis of the online case stories of 146 firms. Results were validated using discriminant analysis. Differences in organization and environmental characteristics across clusters were examined.FindingsSeven meaningful and distinct clusters were uncovered showing asymmetry in the consideration of strategic BV underlying the motivations of e-HRM adoption. Statistical tests revealed that the seven clusters have high internal validity. Statistically significant differences in organizational conditions were found among clusters.Research limitations/implicationsThis research offers an empirically and conceptually grounded taxonomy of organizations that reveals strategic and nonstrategic BV that organizations actually put forward and the way they combine together to form different profiles. This research is based on secondary data, that is, data initially gathered for a distinct goal different from this research.Practical implicationsThe developed taxonomy provides human resource (HR) managers, executives, researchers and consultants a useful way to describe and understand motivations underlying e-HRM adoption. The taxonomy may also facilitate valid and systematic assessment of e-HRM effectiveness.Originality/valueThis research moves the debate beyond normative arguments to a more analytic assessment of the actual practice of organizations regarding e-HRM adoption and expected BV.