Preprint Article Version 1 Preserved in Portico This version is not peer-reviewed

Harnessing the Power of Algorithmic HRM and HR Strategic Decision Making for Achieving the Organizational Success: An Empirical Analysis

Version 1 : Received: 15 April 2024 / Approved: 16 April 2024 / Online: 17 April 2024 (15:14:51 CEST)

How to cite: Alabdali, M.A.; Khan, S.A.; Alshahrani, M.A. Harnessing the Power of Algorithmic HRM and HR Strategic Decision Making for Achieving the Organizational Success: An Empirical Analysis. Preprints 2024, 2024041100. https://doi.org/10.20944/preprints202404.1100.v1 Alabdali, M.A.; Khan, S.A.; Alshahrani, M.A. Harnessing the Power of Algorithmic HRM and HR Strategic Decision Making for Achieving the Organizational Success: An Empirical Analysis. Preprints 2024, 2024041100. https://doi.org/10.20944/preprints202404.1100.v1

Abstract

This study examines the role of using algorithmic HRM to make strategic decisions pertaining to HR activities in organizations. The study develops a scale to measure algorithmic HRM usage in its first phase, and in the second phase, it finds that algorithmic HRM having significant impact on the strategic HR decision making that helps and enables organization in creating the competitive advantage. Utilizing the author’s LinkedIn profile, 234 final participants considered for this research. Collected data analyzed by applying PLS SEM. It evaluates the mediation role of the HR strategic decision making, and the HR digital maturity as a moderator in seeing the impact of algorithmic HRM on the competitive advantage of the firm. The study finds a strong relationship between the algorithmic HRM usage and competitive advantage, a significant relationship between algorithmic HRM usage and the strategic HR decision making, and lastly, a significant relationship between strategic HR decision making and the competitive advantage. The moderating role of HR digital maturity was found to be insignificant in this research which paves the way for further research. This research, the model, and its findings contribute to the theory and implicate the practicality of algorithmic HRM. It's one of few papers that address the algorithmic HRM usage in the transitioning economy like Saudi Arabia.

Keywords

Algorithmic HRM; algorithmic HRM usage; HR strategy; digital HRM; e-HRM; Competitive advantage; HR digital maturity; resource-based view; EFA; PLS-SEM

Subject

Social Sciences, Other

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