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Candrasa, Limega
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Journal : Fundamental and Applied Management Journal

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Digital Transformation of Human Resources and Employee Performance: The The Role of HR Analytics and Digital Leadership Siregar, Aisyah; Cahyadi, Willy; Cen, Cia Cai; Candrasa, Limega
Fundamental and Applied Management Journal Vol. 4 No. 1 (2026): Fundamental and Applied Management Journal
Publisher : Global Research Collaboration

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.66314/famj.v4i1.242

Abstract

This study aims to examine the effect of Digital Human Resource Transformation on Employee Performance by incorporating HR Analytics as a mediating variable and Digital Leadership as a moderating variable within an integrated framework. A quantitative explanatory design was employed using a cross-sectional survey of 236 employees from organizations in North Sumatra, Indonesia. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) to assess direct, indirect, and interaction effects. The results reveal that Digital HR Transformation significantly enhances HR Analytics, which in turn improves Employee Performance. Digital Leadership has a direct positive effect on performance and strengthens the relationship between HR Analytics and Employee Performance. Furthermore, HR Analytics partially mediates the relationship between Digital HR Transformation and Employee Performance, and this indirect effect becomes stronger under high levels of Digital Leadership. The findings highlight the importance of aligning digital HR systems, analytical capability, and leadership support to achieve sustainable employee performance. Organizations should complement digital HR investments with HR analytics development and digital leadership capability. This study is limited by its cross-sectional design and reliance on self-reported data from a single regional context, which may affect causal inference and generalizability.
Digital HR Practices and HR Innovation Driving Human Resource Management Transformation Siahaan, Rumiris; Cahyadi, Willy; Candrasa, Limega; Cen, Cia Cai
Fundamental and Applied Management Journal Vol. 4 No. 1 (2026): Fundamental and Applied Management Journal
Publisher : Global Research Collaboration

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.66314/famj.v4i1.243

Abstract

Human Resource Management (HRM) transformation has become a strategic priority in regions facing digital disruption and economic restructuring. In North Sumatra, organizations encounter uneven digital readiness and workforce capability challenges, necessitating integrated HR approaches to enhance both organizational and regional performance. This study aims to examine the effects of digital HR practices and talent development on HRM transformation, to test the mediating role of HR innovation, and to assess the impact of HRM transformation on regional economic performance. A quantitative explanatory design was employed using a cross-sectional survey of 187 organizations across public, private, and MSME sectors in North Sumatra. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with bootstrapping (5,000 resamples).  The results indicate that digital HR practices (β = 0.312, p < 0.001) and talent development (β = 0.284, p < 0.001) significantly influence HRM transformation. HR innovation emerged as the strongest predictor (β = 0.337, p < 0.001) and partially mediated these relationships. Furthermore, HRM transformation has a strong positive effect on regional economic performance (β = 0.686, p < 0.001), with the model explaining substantial variance (R² = 0.61 for HRM transformation; R² = 0.47 for regional performance). The study concludes that HRM transformation in developing regions is driven by the integration of digital HR practices, talent development, and HR innovation. It extends digital HRM literature by demonstrating that HR transformation contributes not only to organizational effectiveness but also to regional economic competitiveness.
Co-Authors Abednego Ketaren Aisyah Siregar Ayu Zurlaini Damanik Cahyadi, Lukieto Cahyadi, Willy Cai Cen, Cia Chairina Chairina, Chairina Elazhari, Elazhari Fitrianingsih, Fitrianingsih Hutagaol, Jarungjung Ida Zulfida, Ida Kumala Vera Dewi Nurwijayanti Permana, Fikri Agam Rakhmawati Purba Rapat Piter Sony Hutauruk Reza Hanafi Lubis Rika Zaluku Rizki wahyudi Rumiris Siahaan Rusmewahni Rusmewahni Siahaan, Rumiris Siregar, Aisyah Sri Winda Hardiyanti Damanik Suci Etri Jayanti S Suryani Suryani Suwadi Suwadi Syafrizal, Rodi Zery Febriano