The impact of digital HRM system and digital transformation on HR efficiency with organizational agility as a moderator

Abstract

The study focuses on understanding the moderation effect of organizational agility in the impact of digital HRM system and digital transformation on HR efficiency in organizations intending to excel in the digital era. This study examines the association between digital HRM systems, digital transformation, and HR efficiency, considering the moderating role of organizational agility. Based on the study model, the authors proposed five hypotheses to be tested in this study. They adapted the study instrument based on quantitative descriptive approach and distributed 500 questioners to collect 385 responses. The study’s findings reveal that both digital HRM systems and digital transformation impact HR efficiency. The significant findings were that digital HRM systems (β = 0.456, p < 0.001) and digital transformation (β = 0.194, p = 0.006) have a positive and significant impact on HR efficiency. In addition, organizational agility serves as a moderator in the relationship between digital HRM systems and HR efficiency (β = 0.154, p = 0.025) but has no effect on the relationship with digital transformation (β = − 0.075, p = 0.248). This study contributes to the literature by demonstrating the role of digital HRM systems and digital transformation as key organizational resources that enhance HR efficiency. It also highlights how organizational agility and digital capabilities serve as dynamic resources, contributing to an organization’s adaptability and sustained competitive advantage. The future research directions and limitations are presented at the end.

The authors' abstract, as published at the source. Discover Sustainability, 2025 · DOI ↗