Leveraging digital human resource management to optimize organizational performance in Vietnam

Abstract Although numerous studies have examined the effects of digital human resource management on organizational performance, the findings have been inconsistent due to the influence of contextual factors. It motivates continued exploration of whether businesses that utilize digital technology to manage people will boost their performance. Data were collected from 360 Vietnamese enterprises using digitalization in human resource management. The partial least squares structural equation modeling (PLS-SEM) was employed to test the path model. Based on research results, there exists a significant correlation between digital human resource management and organizational performance under a mechanism of mediating as well as moderating. Notably, the findings show that personnel strategy moderates the relationship between digital human resource management and employee performance (β = −0.081) at a significance level of 0.1. This result indicates that personnel strategy does not impact the relationship between digital human resource management and organizational performance. Additionally, the study proposes managerial implications regarding the role of digital human resource management in influencing employee engagement and performance as mediating, which emphasizes their participation toward efficiency. Furthermore, the research raises awareness of the importance of digital human resource management in the context of the greenization process and innovation to enhance performance and execution capabilities in an era based on the digitalization landscape.