Authors: Buddhika YPAS
Abstract: This conceptual paper discusses the role of HR digitalization in the performance of SMEs in the context of agility, efficiency, and innovation. Combining the Resource-Based View, Dynamic Capabilities Theory and Technology Acceptance Model, the framework defines the HR digitalization as a strategic resource that converts human capital into competitive advantage. The research hypothesizes eight research propositions which connect HR digitalization with performance results via mediating variables of employee engagement and organizational agility and are modulated by digital leadership, resource limitation, and institutional contexts. The results provide a theoretical understanding and practical recommendations to SME leaders and policymakers to use digital HR systems to benefit their sustainable growth and competitiveness in the digital economy.
