The role of digital transformation and HR flexibility in shaping strategic human resource management outcomes

Abstract

This research aims to build a model to analyze the role of digital transformation (DT) and HR Flexibility in the strategic human resource management outcomes (SHRM outcomes) in the Iraqi Banking Sector. To be more precise, it explores whether HR Flexibility is a mediating factor between digital transformation and bank performance, employee dedication, and talent preservation. The research adopted a quantitative cross-sectional study design. A structured questionnaire will be used to collect data from at least 420 respondents. The method of analysis will be through surveys collected from 420 employees in the private and government banks in Iraq. IBM SPSS will be used to conduct preliminary analysis, and IBM SPSS AMOS will be used for Confirmatory Factor Analysis to test the proposed model through Structural Equation Modeling (SEM). The contribution of this research adds empirical data to an under-researched situation in the HR Flexibility and digital HRM literature in Iraq. It also creates and provides a test of a conceptual SEM model to connect DT, HRF, and SHRM outcomes. Preliminary results indicate a significant positive impact of digital transformation on the adoption of HR flexibility. It is also expected that this HR flexibility will play a crucial mediating role in transforming big data into strategic insights, which will positively impact the efficiency and outcomes of strategic human resource management (SHRM). Applied Significance: The study contributes to bridging the research gap regarding the application of digital transformation on the outcomes of strategic human resource management (SHRM). In addition, HR flexibility will have a mediating role between digital transformation and the SHRM outcomes, which means that digital transformation brings strategic value to the banks when their HR data are turned into evidence-based decisions.