Emerging Science Journal
Vol. 9 No. 5 (2025): October

Mediating Role of Digital Service Adoption in Enhancing Human Resource Management Capacity of SMEs

Nga, Lu Phi (Unknown)
Tam, Phan Thanh (Unknown)



Article Info

Publish Date
01 Oct 2025

Abstract

In the context of rapid digital transformation, small and medium enterprises (SMEs) increasingly recognize the necessity of adopting digital services to enhance their human resource management (HRM) capabilities. This study aims to investigate the mediating role of digital service adoption in improving HRM capacity among Vietnamese SMEs. The Resource-Based View draws upon the Technology-Organization-Environment framework; the research examines how leadership support, organizational readiness, policy mechanisms, perceived benefits, and organizational culture influence digital service adoption and HRM development. A mixed-method was employed, combining qualitative interviews with 30 digital transformation experts across five major cities in Vietnam and a quantitative survey of 1,000 SME managers from July 2024 to February 2025. Structural equation modeling was utilized to test 11 proposed hypotheses. The results demonstrate that digital service adoption significantly enhances HRM capacity and mediates the relationships between organizational factors and HRM outcomes. Leadership support is the strongest predictor of digital adoption and HRM capacity, followed by perceived benefits and policy mechanisms. These findings emphasize the importance of strategic leadership, organizational preparedness, supportive policies, and a digital-friendly culture in fostering successful digital transformation in HRM. The novelty contributes a novel integrated model bridging digital transformation and HRM theories and offers practical insights for SME managers seeking to strengthen workforce capabilities in emerging economies.

Copyrights © 2025






Journal Info

Abbrev

ESJ

Publisher

Subject

Environmental Science

Description

Emerging Science Journal is not limited to a specific aspect of science and engineering but is instead devoted to a wide range of subfields in the engineering and sciences. While it encourages a broad spectrum of contribution in the engineering and sciences. Articles of interdisciplinary nature are ...