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Research on the Impact of Digital Human Resource Management Practices on Employee Performance in Small and Medium-sized Enterprises

Author(s)

Meng Xing

Affiliation(s)

Hubei Business College, Wuhan, Hubei, China

Abstract

Amidst the wave of digital transformation, the innovation of human resource management practices has become a key factor for small and medium-sized enterprises (SMEs) to enhance their competitiveness. This study delves into the impact mechanism of digital human resource management on employee performance within SMEs. By integrating empirical data from SMEs across various industries and scales, it reveals how the application of digital tools in core functions such as talent recruitment, training and development, performance evaluation, and employee communication significantly improves work efficiency, work quality, and employee engagement. The research finds that successful digital HRM practices not only optimize operational processes but, more importantly, foster a more adaptive and innovative organizational environment by empowering employees and promoting collaboration. However, resource constraints and resistance to change remain major challenges for SMEs. Based on these findings, this paper constructs a strategic framework for a sustainable digital HRM system tailored for SMEs. This framework emphasizes scalable and adaptable system design, aiming to assist resource-limited enterprises in achieving effective integration in a phased and low-cost manner. The conclusions provide actionable practical pathways for SME managers and offer direction for policymakers to promote broader inclusive digital innovation.

Keywords

Digital Human Resource Management; Small and Medium-Sized Enterprises (SMEs); Employee Performance; Strategic Framework; Organizational Innovation

References

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