Enhancing Bank Performance through e-HRM Practices: The Moderating Role of Technology Adoption

Abstract

To enhance performance in the banking sector, financial institutions are increasingly adopting electronic human resource management (e-HRM) practices to manage the rapid digitalisation of HR functions. This study investigates the impact of e-recruitment and selection, e-training and development, and HR analytics on bank performance, while examining the moderating role of technology adoption. A quantitative research design was employed, with data collected from employees of commercial banks across Sindh, Pakistan. Structural equation modeling tested the hypothesised relationships among the variables. Findings reveal that e-HRM practices positively and significantly influence bank performance. Additionally, technology adoption significantly moderates this relationship, indicating that the effect of e-HRM on performance is stronger in banks with higher levels of technological readiness. This underscores the critical role of organisational and technological preparedness in maximising the benefits of digital HR initiatives. The study contributes to the e-HRM literature by highlighting how technology enhances the effectiveness of HR practices in achieving organisational outcomes. Practically, it suggests that investments in e-HRM systems must be accompanied by appropriate technological infrastructure. These insights are valuable for bank managers and policymakers aiming to improve sector performance through digital HR innovations.