Impact of Digital Transformation on Talent Development Effectiveness

Nashwa Samih Mohamed Nageeb¹ and Mohamed Saad^2,

¹Arab Academy for Science, Technology and Maritime Transport, Graduate School of Business (AASTTMT)

²The British University in Egypt, (BUE)

Cite this paper

Nashwa Samih Mohamed Nageeb and Mohamed Saad. Impact of Digital Transformation on Talent Development Effectiveness. Journal of Business and Management Sciences. 2022; 10(4):210-219. doi: 10.12691/JBMS-10-4-4

Abstract

Purpose: As digital transformation/ E-HRM has become a new trend and continues to affect corporate organizations, it has been crucial and advantageous for all organizations. Thus, the purpose of this research is to investigate the positive and negative consequences of digital transformation in HRM in Egypt that cause Talent Development Effectiveness (TDE). Also, to test if the top Management support and the Human Resources staff competencies impact the strength of the relation between the e-HRM and each of TDE. Aim and objective: The aim of this study is to assess the advantages and repercussions that digital transformation has had on HR practices as well as the strategic effects that e-HRM has had on the development of talent. Design/methodology/ approach: An inclusion criterion was developed to identify who qualifies to be included in the research sample; chosen individuals must work in an Egyptian organization that employs an E-HRM system and have an HR managerial position. Only 331 out of 400 respondents satisfied these requirements, which assisted the researcher in completing the questionnaire. The study used a descriptive and inferential quantitative research approach. Consequently, Statistical Packages for the Social Sciences SPSS was the appropriate software for data analysis. Main results: The study found a positive relationship between digital transformation/e-HRM and TDE. However, the study found that HR staff competencies have no significant impact on the strength of the effect of digital transformation/e-HRM on TDE. The top management support has no significant impact on the strength of digital transformation/e-HRM on TDE. Recommendation: The study recommends that organizations should consider using digital technologies to improve their HR practices and that they should invest in training and development for their HR staff to ensure they can effectively use new digital technologies. Also, organizations must ensure that their top management is on board with the digital transformation process and is committed to its success.

Keywords

digital transformation, E-HRM, talent development effectiveness, top management support, human resources staff competencies

Copyright

This work is licensed under a Creative Commons Attribution 4.0 International License. To view a copy of this license, visit http://creativecommons.org/licenses/by/4.0/

References

[1]	Ziebell, R. C., Albors-Garrigos, J., Schoeneberg, K. P., & Marin, M. R. P. (2019). Adoption and success of e-HRM in a cloud computing environment: A field study. International Journal of Cloud Applications and Computing (IJCAC), 9(2), 1-27.
[2]	Saini, S. (2018). Digital HRM and its Effective Implementation: An Empirical Study. International Journal of Management Studies, 2(7), 62-66.
[3]	Attaran, M., Attaran, S., & Kirkland, D. (2019). The need for digital workplace: increasing workforce productivity in the information age. International Journal of Enterprise Information Systems (IJEIS), 15(1), 1-23.
[4]	Hitlin, P. (2018). Use of internet, social media, digital devices plateau in US. Pew Research Center.
[5]	Andrus, G., Kejriwal, S., & Wadhwani, R. (2016). Digital transformation in financial services: The need to rewire organizational DNA. Dostupno na poveznici: https://www2.deloitte.com/insights/us/en/industry/financial-services/digital-transformation-in-financialservices.html (18.12. 2017.
[6]	Stewart, G. L., & Brown, K. G. (2019). Human resource management. John Wiley & Sons.
[7]	Borgmann, L., Rowold, J., & Bormann, K. (2016). Integrating leadership research: a meta analytical test of Yukl’s meta-categories of leadership. Personnel Review, 45(6), 1340-1366.
[8]	Oskam, J. (2016). “Airbnb: the future of networked hospitality businesses”. Journal of Tourism Futures. 2, 22-42.
[9]	Osmundsen, K., Iden, J., & Bygstad, B. (2018). Digital transformation: Drivers, success factors, and implications. MCIS 2018 Proceedings. 37. https://aisel.aisnet.org/mcis2018/37
[10]	Terra, L. A., & Passador, J. L. (2016). Symbiotic dynamic: The strategic problem from the perspective of complexity. Systems Research and Behavioral Science, 33(2), 235-248.
[11]	Bondarouk, T., & Brewster, C. (2016). Conceptualizing the future of HRM and technology research. The International Journal of Human Resource Management, 27(21), 2652-2671.
[12]	Purohit, M. (2018). A study on relational E-HRM and its outcomes in I.T. sector (with special reference to Pune Region). IOSR Journal of Business and Management (IOSR-JBM), 20(7), 1-3.
[13]	Oswal, N., & Narayanappa, G. L. (2014). Evolution of HRM to e-HRM towards organizational effectiveness and sustainability. International Journal of Recent Development in Engineering and Technology, 2(4), 7-14.
[14]	Sousa, M. J., & Rocha, Á. (2019). Digital learning: Developing skills for digital transformation of organizations. Future Generation Computer Systems, 91, 327-334.
[15]	Ziyadin, S., Suieubayeva, S., & Utegenova, A. (2019, April). Digital transformation in business. In International Scientific Conference “Digital Transformation of the Economy: Challenges, Trends, New Opportunitie.
[16]	Gebayew, C., Hardini, I. R., Panjaitan, G. H. A., & Kurniawan, N. B. (2018, October). A systematic literature review on digital transformation. In 2018 International Conference on Information Technology Systems and Innovation (ICITSI) (pp. 260-265). IEEE.
[17]	Magalhães, D., Martins, J., Branco, F., Au‐Yong‐Oliveira, M., Gonçalves, R., & Moreira, F. (2020). A proposal for a 360° information system model for private health care organizations. Expert Systems, 37(5), e12420.
[18]	Strohmeier, S. (2017). Research in e-HRM: Review and implications. Human Resource Management Review, 17(1), 19-37.
[19]	Ellmer, M., & Reichel, A. (2018). Unpacking the "e" of e-HRM. The Brave New World of E-HRM, 2(0), 247.
[20]	Sivathanu, B., & Pillai, R. (2018). Smart HR 4.0–how industry 4.0 is disrupting H.R. Human Resource Management International Digest, 26(4), 7-11.
[21]	Wege, L. G., Ngige, C. D., & Dieli, O. J. (2019). Electronic human resource management (E-HRM) and organizational performance in Nigeria. International Journal of Management and Entrepreneurship, 1(1), 53-69.
[22]	Boštjančič, E., & Slana, Z. (2018). The role of talent management in comparing medium-sized and large companies is major challenge in attracting and retaining talented employees. Frontiers in Psychology, 9, 1750.
[23]	Di Fabio, A., & Peiró, J. M. (2018). Human capital sustainability leadership to promote sustainable development and healthy organizations: A new scale. Sustainability, 10(7), 2413.
[24]	Geng, Z., Li, C., Bi, K., Zheng, H., & Yang, X. (2018). Motivating service employee creativity: regulatory focus and emotional labor. Journal of Service Theory and Practice, 28(2), 228-249.
[25]	Rezaei, F., & Beyerlein, M. (2018). Talent development: A systematic literature review of empirical studies. European Journal of Training and Development, 2(1), 21-34.
[26]	Vardarlier, P. (2020). Digital transformation of human resource management: digital applications and strategic tools in HRM. In Hacioglu, U. (Ed.), Digital business strategies in blockchain ecosystems (pp. 239-264). Springer, Cham.
[27]	Macke, J., & Genari, D. (2019). Systematic literature review on sustainable human resource management. Journal of cleaner production, 208, 806-815.
[28]	Schwertner, K. (2017). Digital transformation of business. Trakia Journal of Sciences, 15(1), 388-393.
[29]	Machalek, R., & Martin, M. W. (2015). Socio-biology and Sociology: A new synthesis. Research Gate. https://www.researchgate.net/publication/304193830_Sociobiology_and_Sociology_A_New_Synthesis.
[30]	Bosse, D. A., & Phillips, R. A. (2016). Agency theory and bounded self-interest. Academy of Management Review, 41(2), 276-297.
[31]	Garavan, T. N., Carbery, R., & Rock, A. (2012). Mapping talent development: Definition, scope and architecture. European Journal of Training and Development, 36(1), 5-24.
[32]	Latukha, M. O. (2018). Talent development and a firm's performance: Evidence from Russian companies. Journal of General Management, 43(2), 51-62.
[33]	Tlaiss, H. A., Martin, P., & Hofaidhllaoui, M. (2017). Talent retention: Evidence from a multinational firm in France. ESSCA. https://www.essca.fr/talent-retention-evidence-from-a-multinational-firm-in-france-by-pascal-martin-and-mahrane-hofaidhllaoui.
[34]	Akunda, D., Chen, Z., & Gikiri, S. N. (2018). Role of HRM in talent retention with evidence. Journal of Management and Strategy, 9(2), 8-19.
[35]	Pandita, D., & Ray, S. (2018). Talent management and employee engagement–a meta-analysis of their impact on talent retention. Industrial and Commercial Training, 50(1).
[36]	Young, R., & Jordan, E. (2018). Top management support: Mantra or necessity? International Journal of Project Management, 26(7), 713-725.
[37]	Veth, K. N., Korzilius, H. P., Van der Heijden, B. I., Emans, B. J., & De Lange, A. H. (2019). Which HRM practices enhance employee outcomes at work across the life-span? The International Journal of Human Resource Management, 30(19), 2777-2808.
[38]	Vukšić, V. B., Ivančić, L., & Vugec, D. S. (2018). A preliminary literature review of digital transformation case studies. International Journal of Computer and Information Engineering, 12(9), 737-742.
[39]	Manfreda, A., & Štemberger, M. I. (2019). Establishing a partnership between top and IT managers: A necessity in an era of digital transformation. Semantic Scholar. https://www.semanticscholar.org/paper/Establishing-a-partnership-between-top-and-IT-Manfreda-Stemberger/d8cd690cfb7b5bada4251f02610ad5e6b270ef7a.
[40]	Gunawan, J., Aungsuroch, Y., & Fisher, M. L. (2019, January). Competence-based human resource management in nursing: A literature review. Nursing Forum, 54(1), 91-101.
[41]	Fuller, M., Heijne-Penninga, M., Kamans, E., van Vuuren, M., de Jong, M., & Wolfensberger, M. (2018). Identifying competence characteristics for excellent communication professionals: A work field perspective. Journal of Communication Management, 22(2), 233-252.
[42]	Smirnova, A., Zaychenko, I., & Bagaeva, I. (2019, September). Formation of requirements for human resources in the conditions of digital transformation of business. Atlantis Press. https://www.atlantis-press.com/proceedings/icdtli-19/125918521.
[43]	Etikan, I., & Babtope, O. (2019). A basic approach in sampling methodology and sample size calculation. Med Life Clin, 1(2), 1006.
[44]	Saunders, M., Thornhill, A., & Lewis, P. (2016). Research Methods for Business Students (7th ed). England: Pearson Education.
[45]	Park, Yoon Soo; Konge, Lars; Artino, Anthony R. (2019). The Positivism Paradigm of Research. Academic Medicine, 1-.
[46]	Cote, C. (2021). 7 Data Collection Methods in Business Analytics. Business Insights Blog. Retrieved 2 July 2022, from https://online.hbs.edu/blog/post/data-collection-methods.
[47]	Bos-Nehles, A. C., & Meijerink, J. G. (2018). HRM implementation by multiple HRM actors: A social exchange perspective. International Journal of Human Resource Management, 29(22), 3068-3092.
[48]	Michael, A. (2019). A handbook of human resource management practice. Kogan Page Publishers.
[49]	Osborne, S., & Hammoud, M. S. (2017). Effective employee engagement in the workplace. International Journal of Applied Management and Technology, 16(1), 4.
[50]	Islam, T., & Tariq, J. (2018). Learning organizational environment and extra-role behaviors: the mediating role of employee engagement. Journal of Management Development, 37(14).
[51]	Antony, M. R. (2018). Paradigm shift in employee engagement–A critical analysis on the drivers of employee engagement. International Journal of Information, Business and Management, 10(2), 32-46.
[52]	Sergio, R. P., & Rylova, M. (2018). Employee engagement and empowerment as gateway towards retention: The case of Volkswagen group. Journal of Eastern European and Central Asian Research, 5(2).
[53]	Nwankpa, J. K., & Roumani, Y. (2016). IT capability and digital transformation: A firm performance perspective. CORE. https://core.ac.uk/download/pdf/301370499.pdf.