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E-HRM Systems and Organizational Innovation: the Role of Digital Competency

Year: 2026
Type: article
Study design: Observational Study
Abstract: The rapid advancement of digital technology has transformed human resource management practices, leading organizations to adopt Electronic Human Resource Management (E-HRM) systems to enhance efficiency and strategic outcomes. This study aims to examine the effect of E-HRM systems on organizational innovation and to analyze the role of digital competency in strengthening this relationship. Using a quantitative explanatory design, data were collected through an online survey of 210 employees working in organizations that have implemented E-HRM systems. The data were analyzed using descriptive statistics and multiple regression analysis, including moderation testing. The results indicate that E-HRM systems have a positive and significant effect on organizational innovation. Digital competency also shows a significant positive influence on organizational innovation and acts as a moderating variable that strengthens the impact of E-HRM systems on innovation outcomes. These findings suggest that digital HR technologies contribute to organizational innovation more effectively when supported by adequate employee digital competencies. The study highlights the importance of aligning technological systems with human capabilities in achieving sustainable innovation. Practically, the results imply that organizations should complement E-HRM implementation with continuous digital competency development to maximize innovation potential
Language: English
Open Access status: diamond
OpenAlex ID: W7127043010
FWCI:
Cites: 10
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Related to: 10