Sustainable electronic human resource management systems and firm performance: an empirical study

Purpose: The authors aim to investigate whether ability electronic human resource management (e-HRM) practices, opportunity enhancing e-HRM practices and motivation enhancing e-HRM can possibly lead to development of sustainable e-HRM systems. Finally, the authors also examined if sustainable e-HRM systems can enhance firm performance. Design/methodology/approach: The model was developed using dynamic capability view perspective. The study tests theoretical model and presents findings by analysing data (partial least squares structural equation modelling method) gathered from 151 South African firms. Findings: The findings indicate that ability enhancing e-HRM practices and motivation enhancing e-HRM practices can result in development of sustainable e-HRM systems, and findings also indicate that sustainable e-HRM systems can improve firm performance. Practical implications: Emphasis is required on ability enhancing e-HRM practices and motivation enhancing e-HRM practices to develop sustainable e-HRM systems. Once workforce understand the complete benefits of e-HRM, they will start using this system on a regular basis for activities including goal setting, and performance measurement. The development of sustainable e-HRM systems will improve firm performance especially from cost control and customer satisfaction perspective. Originality/value: This study advances the conceptual debate in the e-HRM domain through the development and testing of theoretical model.