Investigating electronic human resource management systems, sustainable innovation, and organizational agility on sustainable competitive advantage in the manufacturing industries

Abstract

This research aimed to analyze the relationship between electronic human resources (e-HRM) and sustainable competitive advantage, organizational agility and sustainable competitive advantage, and sustainable innovation and sustainable competitive advantage in the manufacturing industry in Indonesia using a quantitative approach. The population of this research was managers of manufacturing companies in Indonesia. A total of 800 online questionnaires were sent using a simple random sampling method and 540 valid questionnaires were received. The questionnaire contains statement items using a Likert scale from 1 to 7. To measure the structural model and to test research hypotheses, the research used the PLS-SEM method with WarPLS 7.0 software. The stages of data analysis in this research were reliability and validity tests, significance tests and hypothesis testing. This research concludes that e-HRM had a positive and significant relationship with sustainable competitive advantage, Organizational Agility had a positive and significant relationship with sustainable competitive advantage and sustainable innovation has a positive and significant relationship with sustainable competitive advantage. The research emphasizes that e-HRM practices encourage sustainable innovation and organizational agility to achieve competitive advantage. The study also provides a more comprehensive understanding that e-HRM practices contribute to sustainable competitive advantage by driving continuous innovation and strengthening organizational agility. The research emphasizes the importance of utilizing digital technology for human resource management (HRM) processes, organizations must implement digital transformation by adopting e-HRM practices to increase manufacturing efficiency and effectiveness thereby increasing performance and competitiveness. This research encourages companies to increase continuous innovation to increase sustainable competitiveness.