Unveiling the Value Creation Process of Electronic Human Resource Management

Abstract

Information and communication technologies (ICT) advancement, coupled with an ever-increasing demand for the human resource management (HRM) function to be more efficient, effective, and capable of supporting the strategic goals of every business function, has led to the adoption of electronic human resource management (e-HRM). This study aims to provide both insight and empirical evidence on the success enabler of e-HRM acceptance and e-HRM value creation in the public sector. The study confirms that perceived usefulness (PU) is found to be a strong predictor of e-HRM usage. From an organizational and managerial standpoint, HRM strength has a positive influence on e-HRM usage. In the creation of HRM values, we find e-HRM usage to be a strong predictor of perceived human resource (HR) service quality but not a predictor of the creation of a strategic role for the HRM function. Furthermore, the study indicates that HRM strength is an important direct predictor of the creation of HRM values. Hence, this relationship suggests the importance of policy clarity and consistency. To ensure that e-HRM is used in a more strategic way, the core business functions of an organization, HRM strategy and IT management, should be clearly aligned and integrated. A set of theoretical and practical implications as well as the limitations of this research are also discussed.