Key Determinants of Attitudes towards Electronic Human Resource Management Adoption: Reference to Multinational Subsidiaries in Sri Lanka

Abstract

Because of the value of Electronic Human Resource Management (E-HRM) implementation, it is important to learn the factors that will contribute to the organizational adoption of E-HRM. When it comes to the multinational context, the most of the parent companies have networked their overall system and technology to the subsidiaries. Sri Lanka as a developing country, the employees’ educational levels is different from one to another on the technological side. As a result, there is little understanding of the factors that influence E-HRM adoption, especially in the developing context. The aim of this study is to determine the factors that influence attitudes towards E-HRM adoption in Sri Lanka. Based on the technology acceptance model, the theory of planned behaviour, diffusion of innovation theories and empirical findings of E-HRM, the variables were identified. A questionnaire was distributed among randomly selected 180 non-executive employees in the reputed multinational manufacturing subsidiary located in Sri Lanka and 150 responses were collected. The four hypotheses formed in this study were tested using multiple regression analysis. According to the results, formulated four hypotheses were supported and accepted. Perceived ease of use, perceived utility, user support, and promoting conditions have a major effect on attitudes toward E-HRM adoption, and the above variables are positively related to E-HRM adoption proved by correlation analysis. Based on the correlation values the highest correlation is yielded by promoting conditions. The most critical factors that influence attitudes toward E-HRM adoption are promoting conditions and perceived ease of use with statistically acceptable significant level. The findings of this study assist to managers in preparing and implementing E-HRM where thorough consideration needs to be paid to E-HRM applications, which need to concentrate on the aspects needed to help the decision-making process, rather than being restricted to certain administrative applications. Moreover, the results will help all staff, decisions makers, and parent companies as well as multinationals subsidiaries located in developing countries to increase their level of E-HRM adoption.