The Role of Digital Transformation in Enhancing Human Resource Management Practices in Global Organizations
DOI:
https://doi.org/10.37034/jems.v8i1.279Keywords:
Digital Transformation, Human Resource Management, Global Organizations, Strategic Alignment, Digital LeadershipAbstract
This study explores the role of digital transformation (DT) in enhancing Human Resource Management Practices (HRMP) within multinational enterprises (MNEs). Employing a qualitative multi case study approach, data were collected through semi structured interviews, organizational documents, and digital implementation records across global companies. The research identifies four key areas of improvement due to digital tools: recruitment, training and development, performance management, and employee engagement. AI-based platforms, cloud based HRIS, and Learning Management Systems (LMS) have streamlined processes and enabled data driven decision making. However, the study also finds significant disparities in DT effectiveness across regions, influenced by infrastructure, digital literacy, and cultural factors. Critical organizational enablers such as digital leadership, employee digital competence, and strategic alignment were found to significantly mediate DT outcomes. The findings suggest that DT in HR should be approached holistically, integrating technology with strategic planning, change management, and ethical governance. This research contributes to the theoretical framework of digital HRM and provides practical insights for global HR leaders aiming to design adaptive and culturally responsive digital strategies. The study concludes that while digital tools offer significant potential, their success depends on organizational readiness and regional adaptability. Suggestions for future research include expanding the study to small and medium sized enterprises and analyzing sector specific dynamics.
References
Sakarina, S., Ena, Z., Jenita, Cakranegara, P. A., & Surahman, S. (2022). Digital Transformation in Human Resource Management in the Industrial Age 4.0. Quantitative Economics and Management Studies, 3(5), 750–756. https://doi.org/10.35877/454ri.qems1067
Strohmeier, S. (2020). Digital human resource management: A conceptual clarification. German Journal of Human Resource Management: Zeitschrift Für Personalforschung, 34(3), 345–365. https://doi.org/10.1177/2397002220921131
Meijerink, J., Boons, M., Keegan, A., & Marler, J. (2021). Algorithmic human resource management: Synthesizing developments and cross‑disciplinary insights on digital HRM. The International Journal of Human Resource Management, 32(12), 2545–2562. https://doi.org/10.1080/09585192.2021.1925326
Nicolás-Agustín, Á., Jiménez-Jiménez, D., & Maeso-Fernández, F. (2022). The role of human resource practices in the implementation of digital transformation. International Journal of Manpower, 43(2), 395–410. https://doi.org/10.1108/IJM-03-2021-0176
Alexandro, R. (2025). Strategic human resource management in the digital economy era: an empirical study of challenges and opportunities among MSMEs and startups in Indonesia. Cogent Business & Management, 12(1). https://doi.org/10.1080/23311975.2025.2528436
Asif, A., Muzammil, M., Shafi, K., & Rehman, F. (2025). The Impact of Digital Transformation on HR Practices: A Systematic Literature Review. SSRN. https://doi.org/10.2139/ssrn.5376835
Haryadi, D. S. (2025). Digital Transformation in Human Resource Management: Literature Review on Effectiveness and Implementation Challenges. Jurnal Publikasi Ekonomi dan Akuntansi (JUPEA), 5(2), 387–394. https://doi.org/10.51903/jupea.v5i2.4441
Raharjo, I. B. (2024). The Impact of Digital Transformation on Human Resource Development in the Online Business Paradigm. Malcom: Jurnal Manajemen & Komunikasi, 4(2). https://doi.org/10.57152/malcom.v4i2.1281
Shiferaw, R. M., & Birbirsa, Z. A. (2025). Digital technology and human resource practices: A systematic literature review. Heliyon, 11(2), e41946. https://doi.org/10.1016/j.heliyon.2025.e41946
Fiaz, S., & Qureshi, M. A. (2024). Unraveling the conceptual ambiguity of digital human resource management: A state-of-the-art review. Cogent Social Sciences, 10(1). https://doi.org/10.1080/23311886.2024.2395101
Thu, S. H. T., Pham, M., & Luc, H. N. (2025). Leveraging digital human resource management to optimize organizational performance in Vietnam. Humanities and Social Sciences Communications, 12(1), 5113. https://doi.org/10.1057/s41599-025-05113-2
Bindra, S., Akter, S., & Wamba, S. F. (2025). Traditional to digital: Human resource management transformation in the era of AI and analytics. Journal of Work Applied Management. Advance online publication. https://doi.org/10.1108/JWAM-02-2025-0019
Poulose, S., Bhattacharjee, B., & Chakravorty, A. (2025). Determinants and drivers of change for digital transformation and digitalization in human resource management: A systematic literature review and conceptual framework building. Management Review Quarterly, 75(3), 1911–1936. https://doi.org/10.1007/s11301-024-00423-2
Nazarova, G., & Rudenko, V. (2023). Digital maturity and digital transformation in human resources management: Stability vs. development. Development Management, 21(3), 57–65. https://doi.org/10.57111/devt/3.2023.57
Kam, H. J., Ormond, D. K., Menard, P., & Crossler, R. E. (2022). That's interesting: An examination of interest theory and self‐determination in organisational cybersecurity training. Information Systems Journal, 32(4), 888-926. https://doi.org/10.1111/isj.12374
Vardarlier, P., & Ozsahin, M. (2021). Digital Transformation of Human Resource Management: Social Media’s Performance Effect. International Journal of Innovation and Technology Management, 18(3). https://doi.org/10.1142/S021987702150005X
Paul, J., Ueno, A., Dennis, C., Alamanos, E., Curtis, L., Foroudi, P., ... & Wirtz, J. (2024). Digital transformation: A multidisciplinary perspective and future research agenda. International Journal of Consumer Studies, 48(2), 13015. https://doi.org/10.1111/ijcs.13015
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Haliza Nabila Putri, Agnes Dini Mardani, Farid Ardyansyah

This work is licensed under a Creative Commons Attribution 4.0 International License.





