E-HRM Usage and Value Creation. Does a Facilitating Context Matter?

Abstract

Electronic Human Resource Management (e-HRM) is assumed to be a driving force behind HRM value creation. However, the issue remains of whether empirical evidence supports this assumption. Moreover, is the relationship straightforward and direct or is it conditional, and do contextual factors intervene? This paper presents a study on this issue. Data was collected through a survey conducted in three international firms using e-HRM applications. The findings suggest that e-HRM usage in line with the system's intended purpose and the contextual factors facilitating e-HRM usage are positively related to HRM value creation. Facilitating contextual factors are positively related to HRM value creation as well, but they also moderate the relationship between e-HRM usage and HRM value creation. However, this moderation is the opposite to what was hypothesized: if the facilitating contextual factors are high, then the relationship between e-HRM usage and HRM value creation is weaker. This finding needs further investigation to clarify the intervening role of contextual factors.