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Operational Strategy as a Strategic Bridge: How E- Hr Practices Shape Risk Management Effectiveness

Year: 2025

Type: article

Abstract: This paper investigated how electronic human resource (E-HR) practices influences risk management performance mediated by operations strategy in the Saudi Stock Exchange (known as Tadawul). The researcher adopted a quantitative research design based on the Partial Least Squares Structural Equation Modeling (PLS-SEM). Data was collected from 370 human resource (HR) managers working in the financial and investment institutions listed under Tadawul. This study examined how E-HR systems, digital recruitment, performance analytics, and electronic training programs are integrated to lower institutional risk responsiveness, improve efficiency in operations, and enhance strategic performance. Structural equation modeling was adopted to test the hypothesized relationships and to verify the mediating variable of operations strategy. The findings indicate that E-HR practices enhance the level of risk management by fostering operational agility, data-driven decision-making, and enabling proactive financial and operational risks identification. Moreover, operations strategy serves as a mediating factor by transforming digital HR initiatives into well-organized operational improvements that strengthen organizational resiliency and reinforce control mechanisms. The findings also indicate that E-HR practices serve as effective enabler of effective risk management practice in digital age, supporting the correspondence of technological change, human potential and operational effectiveness. To improve resilience of the institutions within the Tadawul, the study recommended that the listed institutions invest more in E-HR infrastructure, digital workforce development, and operational optimization systems to maintain sustainable financial performance.

Source: Zenodo (CERN European Organization for Nuclear Research)

DOI: 10.5281/zenodo.17709883

Authors: MAHMOUD ALLAHHAM, WASEF ALMAJALI, ABDEL-AZIZ AHMAD SHARABTI, NAWWAF HAMID SALMAN ALFAWERH

Institutions: Amman Arab University, Middle East University, Imam Mohammad ibn Saud Islamic University

Language: English

Topic: Employer Branding and e-HRM

Subfield: Organizational Behavior and Human Resource Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: green

OpenAlex ID: W7106701182

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