Submitted:
22 May 2026
Posted:
25 May 2026
You are already at the latest version
Abstract
Against the backdrop of rapid digital acceleration and a tightening UK labor market, Small and Medium-sized Enterprises (SMEs) are increasingly pressured to move beyond manual administrative processes to bridge the national "productivity gap." While digital transformation is often framed within a large corporate context, this research investigates the specific role of Human Resource Information Systems (HRIS) in driving operational efficiency and strategic performance within resource-constrained SME environments. This study aims to evaluate how HRIS integration transforms HR functions from an administrative burden into a strategic asset, while identifying the unique implementation hurdles and performance outcomes experienced by resource-constrained UK firms.This study adopts an interpretivist, qualitative approach to examine how HRIS integration transforms HR functions from administrative burdens into strategic assets. Data were collected through semi-structured interviews with 12 HR managers across the hospitality, retail, and recruitment sectors, and analyzed using thematic analysis.The findings reveal a three-stage, non-linear process of value creation: (1) administrative liberation through automation, (2) strategic visibility via data-driven insights, and (3) digital friction arising from cultural and technical barriers. While HRIS enhances operational efficiency and decision-making capability, its strategic impact is contingent upon organizational readiness, particularly digital literacy and change management practices. This study contributes to the HRIS and SME digital transformation literature by conceptualizing "digital friction" as a critical mediating construct, demonstrating that value creation in SMEs is an iterative and context-dependent process rather than a linear implementation. For practitioners, the study provides a roadmap for navigating digital transitions, emphasizing that the "human element" of change management is as vital as the technological infrastructure. While limited by its qualitative scope, the research sets a foundation for future longitudinal studies to measure the long-term ROI of integrated HR platforms in diversifying SME sectors.
