Electronic human resource management (e-HRM) configuration for organizational success: inclusion of employee outcomes as contextual variables

PurposeThe purpose of this paper is to examine whether employee outcomes of employee performance and job satisfaction mediate and enhance the effect of e-HRM usage on organizational performance.Design/methodology/approachData were collected through a survey involving 35 organizations using e-HRM systems. A partially mixed sequential dominant status explanatory design was used for the study. A stratified convenience sampling technique was used for the quantitative phase of the study. A purposive sampling technique was employed for the qualitative phase. A structural equation modelling technique with the use of the process macro approach was used to analyse collected data.FindingsThere is a positive relationship between e-HRM usage and employee outcomes. Employee performance and job satisfaction mediate the effect of e-HRM usage on organizational performance. Employee performance and job satisfaction are contextual variables that characterize effective e-HRM configurations.Practical implicationsOrganizations should invest in employee outcomes in order to maximize the potential of e-HRM. The e-HRM configurations characterized by a multiplicity of dimensions are more likely to add to organizational value creation. The deployment of e-HRM systems should be preceded by high levels of employee performance and job satisfaction, for organizational success.Originality/valueThe study contributes to a growing body of knowledge on dimensions, which characterize effective e-HRM configurations, yielding organizational success. Employee performance and job satisfaction should be added to the characteristics of effective e-HRM configurations.