Electronic Human Resource Management systems can significantly boost organizational innovation, but only when employees have strong digital skills. This conclusion comes from a peer-reviewed study by Yohan Fitriadi and Wellia Novita of Universitas Putra Indonesia YPTK Padang, published in 2026 in the International Journal of Integrative Sciences (IJIS). Based on survey data from 210 employees in organizations using digital HR systems, the research shows that technology alone is not enough—human digital competency plays a decisive role in turning digital HR into real innovation.
The findings matter as organizations across Indonesia and other developing economies accelerate digital transformation. Many companies invest heavily in HR technology, expecting faster processes and better performance. This study provides clear evidence that without capable, digitally skilled employees, those investments may fail to deliver their full innovative potential.
Digital Transformation Meets Human Capability
Human resource management has changed rapidly in recent years. Recruitment, training, performance evaluation, and career development are now commonly handled through online platforms known as Electronic Human Resource Management (E-HRM) systems. These systems promise efficiency, transparency, and better data-driven decision-making.
However, global debates continue over whether E-HRM truly drives innovation or merely automates administrative work. Fitriadi and Novita position their research within this debate, focusing on one critical factor often overlooked: digital competency.
Digital competency refers to employees’ ability to understand, use, and creatively apply digital tools in their daily work. In a labor market increasingly shaped by automation, analytics, and artificial intelligence, digital skills have become a core form of human capital.
How the Study Was Conducted
The researchers used a quantitative survey approach to examine how E-HRM systems and digital competency interact inside organizations. Data were collected online from 210 employees working in organizations that had already implemented E-HRM platforms.
Participants responded to structured questionnaires measuring three main areas:
1. The extent of E-HRM system use in their organization
2. Their own level of digital competency
3. The organization’s level of innovation, including new processes and work practices
The data were analyzed using statistical methods to identify direct effects and interaction effects between variables. This approach allowed the researchers to see not only whether E-HRM influences innovation, but also whether digital competency strengthens that influence.
Key Findings at a Glance
The results present a clear and consistent pattern:
1. E-HRM systems positively influence organizational innovation. Organizations with more advanced digital HR practices tend to be more innovative.
2. Digital competency independently boosts innovation. Employees with stronger digital skills contribute more effectively to innovative activities.
2. Digital competency strengthens the impact of E-HRM. The positive effect of E-HRM on innovation becomes significantly stronger when employees have high digital competency.
Statistical analysis shows that digital competency explains a substantial portion of innovation outcomes. When digital skills are weak, the innovative benefits of E-HRM systems decline sharply.
In practical terms, this means that organizations cannot rely on software alone to become innovative. People and skills remain central.
Why Technology Alone Is Not Enough
The study reinforces a growing consensus in management research: digital transformation is a socio-technical process, not a purely technological one. E-HRM systems provide the infrastructure, but employees determine how effectively that infrastructure is used.
Fitriadi and Novita explain that digitally competent employees are more likely to explore advanced system features, share knowledge across departments, and use data to solve problems creatively. In contrast, employees with limited digital skills tend to use E-HRM only for basic administrative tasks, limiting its strategic value.
As the authors note, organizations often fail to realize the full benefits of digital HR because they underestimate the importance of employee readiness.
Implications for Business Leaders and Policymakers
The findings carry important implications for managers, HR professionals, and policymakers.
For business leaders, the message is straightforward: investing in E-HRM systems must go hand in hand with continuous digital skill development. Training programs, digital learning platforms, and supportive leadership are essential to unlock innovation.
For HR departments, the study highlights a strategic role beyond system administration. HR leaders are positioned to design competency-building initiatives that align technology with human capability.
For policymakers and educators, the research underscores the importance of digital skills development at a national level. As organizations digitalize, workforce readiness becomes a key driver of competitiveness and innovation.
According to the authors from Universitas Putra Indonesia YPTK Padang, aligning digital HR technologies with employee competencies is “a critical condition for achieving sustainable organizational innovation.”
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