The role of human resource practices in the implementation of digital transformation

Abstract

PurposeProfessionals and academics need to know what human resource practices are necessary in this Industry 4.0 environment and digital revolution. This research studies some human resource practices in the digital age that favor the implementation of digital transformation. The authors’ arguments suggest that for personnel to be a key asset in digital transformation processes, a strategic alignment is necessary to drive the company toward these objectives.Design/methodology/approachThe hypotheses were tested in a representative sample of 184 manufacturing companies with ten or more employees located in the southeast of Spain, using partial least squares.FindingsThe authors’ findings show that human resource practices partially mediate the relationship between strategic alignment and digital transformation. Based on the contingent approach, the authors also maintain that the company must implement human resource practices that encourage employee behaviors that are consistent with the organization's strategy. This strategic alignment and these human resource practices enable companies to achieve digital transformation in search of superior performance.Research limitations/implicationsLongitudinal and multilevel studies could increase the strength of the research, which could also include companies from other sectors. Although the technology component is fundamental in digital transformation processes, human capital management is even more important. This research highlights the mediating role of human resource management, where practices such as teleworking, teamwork and employee engagement are essential to foster innovative behavior and implement the digital transformation process.Practical implicationsIn the new digital environment, companies must adopt a set of human resource practices that favor innovative employee behavior that helps digitally transform their businesses.Originality/valueTo the best of authors’ knowledge, this empirical study has not been previously carried out. The theoretical model and hypothesis testing provide strategic value for understanding some of the determinants of digital transformation in relation to human resource management.

Identifying significant elements of the digital transformation of organizatios in Kuwait

“…Funding strategic alignment funding strategic digital initiatives with uncertain returns through necessary financial commitments, supports [5], [6], [15]- [17], [20] 6 Resistance Changing the behavior of employees and altering the required processes to enable flexibility in the face of change.…”

“…The tracking system is a highly complex process with all of the paperwork swapped between the numerous parties and with the customs authorities. The system was a success and improved the efficiency of commercial shipping [5], [6].…”

“…Some of the software initiatives including (FastPass ride reservations, resturants reservations, onsite photography services, and resort access) through enabled radio-frequency identification (RFID) wristband. These initiatives have brought a better understanding of the business, better customer experience, greater efficiency of its operations, an increase in the number of daily visitors at the parks, and an increase in revenues [4], [5]. The shipping giant MAERSK launched a block-chain platform by International Business Machines (IBM) corporation for the tracking shipped goods all over the world.…”

A study of artificial intelligence on employee performance and work engagement: the moderating role of change leadership

“…, 2018). This implies the use of digital resources, which vary depending on the moment: big data, artificial intelligence (AI), 3D printing, quantum computing or virtual reality (Nicolás-Agustín et al. , 2021).…”

“…Industrial and digital (information) revolutions have undoubtedly had a financial impact on virtually every aspect of our society, life, business and employment (Blanchet, 2016;Yoav Shoham et al, 2018). This implies the use of digital resources, which vary depending on the moment: big data, artificial intelligence (AI), 3D printing, quantum computing or virtual reality (Nicol as-Agust ın et al, 2021). Today, AI remains the most spectacular IT application, a technology that has gone through an unequaled development over the last decades (Blanchet, 2016;Lee et al, 2018;Wiljer and Hakim, 2019).…”