TOIE Framework
TOIE Framework
https://doi.org/10.1007/s42979-024-03269-3
ORIGINAL RESEARCH
Abstract
The organizations negotiate a more dynamic and competitive business environment, strategic utilization of Human Resource
Analytics (HRA) has emerged as a vital component impacting organizational agility and operational performance. This
research uses the Technological-Organizational-Individual-Environmental (TOIE) model to analyze the factors that influ-
ence HRA adoption and its subsequent effects on organizational dynamics. The study collected data from 678 HR manager’s
responses from different organizations in India. The data were analyzed utilizing smart pls 4.0 to perform Partial Least
Squares Structural Equation Modelling (PLS-SEM). The study found that cloud-based systems, job search engines, Internet
of Things (IoT) devices, information systems, team creation, actionable insights, sustainable talent acquisition, performance
evaluation, storytelling ability, and competitiveness have a significant impact on HRA adoption. Furthermore, the study
shows that HRA adoption has a positive impact on organizational agility and operational performance. Understanding the
TOIE model of the study holds implications for academia, practitioners, and organizational leaders seeking to leverage HR
analytics for strategic advantage in a quickly evolving business landscape.
Keywords Human resource analytics · Adoption · Organizational agility · Operational performance · Team creation ·
Sustainable talent acquisition
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turnover rate, and participation in professional develop- TOIE model provides automated systems to manage
ment programs. These metrics could be gauged via surveys, employee schedules, ensure proper coverage, and diminish
feedback forms, and performance data analysis. However, conflicts. These models facilitate HR professionals for moni-
the adoption of HRA represents a transformative approach toring employee availability, handling time-off requests,
to managing HR in the contemporary business landscape and averting understaffing or scheduling conflicts. Thus, to
[16]. HRA provides organizations with the ability to make enhance understanding, the study applied and extended the
data-driven decisions [17, 54]. By analyzing a wealth of TOIE (Technological-Organizational-Individual-Environ-
HR-related data, organizations can gain valuable insights mental) model to the context of HRA adoption. It exam-
into employee performance, engagement, and other criti- ined technological factors (cloud-based systems, job search
cal factors, enabling more informed and strategic DM [40, engines, IoT devices, information systems), organizational
55]. HRA facilitates a deeper understanding of talent trends, factors (top management support, team creation, actionable
allowing organizations to optimize their recruitment strate- understandings), individual factors (sustainable talent acqui-
gies by establishing trust and respect, educating the team, sition, performance evaluation, storytelling ability), and
and encouraging knowledge sharing. It helps in identifying environmental factors (competitiveness, external support).
the characteristics of successful employees, predicting turno- The study provided a comprehensive framework, highlight-
ver risks, and implementing targeted retention initiatives to ing the importance of a strategic, integrated approach for
keep high-performing individuals within the organization. HRA adoption by combining these dimensions. Through
HRA facilitates a deeper understanding of talent trends, the implementation of HRA, this expansion of the TOIE
allowing organizations to optimize their recruitment strate- model improves organizational agility and operational per-
gies. It helps in identifying the characteristics of successful formance, providing important conclusions for both concep-
employees, predicting turnover risks, and implementing tar- tual understanding and real-world application in HRM. This
geted retention initiatives to keep high-performing individu- study aims to investigate the effect of HRA adoption within
als within the organization [20]. The adoption of HR analyt- organizations. The study addresses the questions as follows:
ics is vital for firms seeking to optimize their HR strategies, RQ1: What are the technological, organizational, indi-
enhance organizational effectiveness, and stay competitive vidual, and environmental factors of HRA adoption among
in an ever-evolving business landscape [19]. The biggest organizations?
challenges faced by HRA today are Recruitment, Retention RQ2: How would HRA adoption affect organizational
& Motivation, Leadership Development, and Corporate agility and operational performance?
Culture. The insights derived from HR analytics empower The research aims to make a contribution to the growing
organizations to proactively manage their workforce, align body of knowledge surrounding HRA and render practical
HR practices with strategic goals, and navigate the modern insights for organizations seeking to navigate the complexi-
workplace’s complexities. The insights derived from HR ties of modern HRM. In essence, this work endeavors to
analytics empower organizations to proactively manage their shed light on the transformative potential of HRA in shaping
workforce, align HR practices with strategic goals, and navi- the future of organizational effectiveness and competitive-
gate the complexities of the modern workplace [29]. While ness in an era where data-driven DM is increasingly vital.
the adoption of HRA shows great promise, the implementa-
tion landscape is extremely complicated [10]. Successful
integration necessitates an in-depth understanding of the Literature Review
technological, organizational, individual, and environmen-
tal factors influencing its adoption [54]. Previous research The evolution of HR analytics can be traced back to the
on many aspects of HRA adoption is significantly limited digitization of HR processes. Traditional HR functions
[2, 11, 29]. concentrated on administrative tasks like payroll and com-
While numerous studies have explored aspects of HR pliance [15]. As organizations sought a competitive edge,
analytics, no study has a comprehensive investigation into they turned to data-driven DM, thereby paving the way
its impact on organizational agility and operational perfor- for HR analytics [53]. Initially, basic reporting tools were
mance [39], encompassing the technological, organizational, employed, but with the rise of big data and advanced ana-
individual, and environmental factors remains scarce [54]. lytics, HR evolved into a strategic business partner [4]. HR
Therefore, this research seeks to bridge this gap by employ- analytics includes a broad range of components, including
ing the TOIE model to scrutinize the multifaceted facets of talent acquisition analytics, employee engagement analyt-
HRA adoption and its consequential effects on organiza- ics, workforce planning, and predictive analytics [18]. Tal-
tional dynamics [40, 52]. This study examines the complex ent acquisition analytics aid in optimizing recruitment pro-
relationship between HRA adoption, organizational agility, cesses, while employee engagement analytics measure and
and operational performance using the TOIE framework. enhance the employee experience [2]. Workforce planning
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utilizes data to align HR with organizational goals, and Theoretical Background and Hypothesis
predictive analytics helps forecast future trends and iden- Development
tify potential challenges [58, 60]. Organizations embrac-
ing HR analytics gain a competitive advantage through Figure 1 signifies the proposed methodology of HRA
informed DM [23]. HR analytics enables better talent adoption among firms. This figure postulates 12 technolog-
acquisition strategies, identifies high-potential employees, ical, organizational, individual, and environmental factors
and enhances workforce productivity [16]. Moreover, it that determine HRA adoption within the organization. In
supports diversity and inclusion initiatives, facilitates suc- technological factors, we considered cloud-based systems,
cession planning, and contributes to the entire strategic job search engines, IoT devices, and information systems.
goals of the firms [8]. In organizational factors top management support, team
Despite the promising benefits, HRA adoption is not creation, and actional insights. In individual factors sus-
without challenges [51]. These challenges include data tainable talent acquisition, performance evaluation, and
quality and integration issues, privacy concerns, and the storytelling ability. In environmental factors competitive-
need for specialized skills [46]. Resistance to change ness and external support.
within organizations and a lack of understanding of the
potential benefits of HRA can also hinder adoption [19].
Successful HRA adoption requires a strategic approach. Technology Context
Best practices include aligning HR analytics with organi-
zational goals, ensuring data accuracy and security, fos- The adoption of HRA is significantly impacted by the
tering a data-driven culture, and investing in continuous integration of cloud-based systems [39]. Organizations
employee training [2]. Collaboration betwixt HR profes- leveraging cloud-based systems experience higher adop-
sionals, data scientists, and IT teams is crucial for success- tion rates due to the cost efficiencies associated with cloud
ful implementation. As technology continues to evolve, the computing [45]. Cloud-centric solutions often eliminate
future of HR analytics holds exciting possibilities [9, 39]. the necessity for considerable upfront investments in
Artificial intelligence and ML will play a more substantial hardware and infrastructure, thereby making HRA more
role in predicting workforce trends [15]. Real-time analyt- accessible to a broader range of organizations [13]. The
ics, augmented analytics, and the integration of external scalability as well as flexibility rendered by cloud-based
data sources are expected to further enhance the capabili- solutions is positively associated with higher adoption
ties of HRA [54]. rates. Cloud systems enable organizations to scale their
The literature on HRA adoption underscores its trans- analytics capabilities based on evolving needs, accommo-
formative potential in optimizing human capital man- dating growth or changes in data volume without major
agement [60]. Organizations that successfully integrate disruptions [12]. Cloud-centric HR systems revolutionize
HRA into their strategic initiatives can gain a competi- the way firms manage their HR. These systems augment
tive advantage in the ever-evolving business landscape [9, efficiency, accuracy, and employee satisfaction by central-
50]. As technology continues to advance, HR analytics izing employee data, automating processes, and render-
will likely become an indispensable tool for shaping the ing accessibility. Cloud-based platforms enhance acces-
future of work and unlocking the full potential of human sibility and collaboration, leading to increased adoption
capital within organizations [20]. The Resource-Based [49]. Cloud-based systems allow real-time access to HR
View (RBV), RBV posits that organizational resources, data from anywhere, fostering collaboration among geo-
including human capital, are critical to its competitive graphically dispersed teams and promoting a more agile
advantage [19]. An interdisciplinary framework that signi- DM process. Organizations may be more inclined to adopt
fies a substantial modification in thinking is termed RBV. analytics solutions that offer cutting-edge features and are
The resource-centric view is interdisciplinary and it was regularly updated to align with evolving HR practices and
developed within the disciplines of economics, ethics, law, industry trends. Cloud-centric HR systems operate by stor-
management, marketing, supply chain management, and ing and processing employee-associated data in a secure,
general business. The RBV framework assists in under- centralized database. It also revolutionizes the way by
standing the way how firms attain and sustain competitive which firms manage their HR. Hence, we hypothesized
advantage via resource building, thus leveraging prevail- that:
ing resources. HRA, by leveraging data to understand and H1: Cloud-based systems significantly affects HRA
optimize the workforce, aligns with the RBV by treating adoption.
HR as valuable strategic assets [29, 55]. Organizations Organizations that actively leverage and integrate data
adopting HRA aim to maximize the value derived from from job search engines are more likely to benefit from
their human capital to gain a competitive edge.
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HRA adoption [44]. Organizations that incorporate data Organizations that strategically integrate and utilize data
from job search engines into their HRA processes expe- from IoT devices in their HR processes experience enhanced
rience higher efficiency in talent acquisition. Access to workforce management and are more likely to embrace HRA
a diverse pool of candidates through job search engines adoption [39]. Organizations incorporating data from IoT
provides a rich source of data for analysis, enhancing the devices into HRA witness improved workforce productivity.
organization's potential to identify, attract, and recruit top IoT devices, such as wearables and sensors, can provide real-
talent. Integration of job search engine data contributes time data on employee activities, work patterns, and envi-
to data enrichment and accuracy in HRA processes [21] ronmental factors, enabling organizations to optimize work-
2022). Job search engines provide up-to-date information flows and enhance overall productivity [56]. IoT devices
on candidate skills, experiences, and preferences, which, can track aspects like workplace conditions and employee
when integrated into HRA, enhances the overall quality wellness, contributing valuable insights for creating poli-
and reliability of HRA adoption. Job search engine data cies and initiatives that foster a healthier and more engaging
can offer insights into prevailing job market conditions, work environment [25]. The integration of IoT device data in
salary expectations, and competitor hiring trends, enabling HRA positively correlates with better employee well-being
firms for making more informed decisions in their talent and engagement. The integration of IoT devices into HRA
strategies [1]. Job search engines aid recruiters as well processes positively impacts overall operational efficiency
as candidates to extend to endless potentials at one time, in HR functions [22]. IoT data can streamline HR processes,
being in one place. HRA adoption is positively correlated from attendance tracking to space utilization, contributing to
with a focus on candidate experience and engagement, a more efficient and data-driven approach to managing HR.
facilitated by insights gathered from job search engine Integrating IoT with HR practices enables firms to effec-
data. Analyzing data from job search engines allows tively maintain employee engagement, manage remote work-
organizations to understand candidate preferences and forces, and adapt to challenging circumstances. Combining
expectations, facilitating the creation of personalized and IoT with HR practices enhances DM and fosters innovation.
engaging experiences throughout the recruitment process. This, in turn, contributes to improved HR practices, ensur-
Hence, we hypothesized that: ing that organizations are equipped to address contemporary
H2: Job search engines significantly affects HRA challenges and complexities. Hence, we hypothesize that:
adoption.
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H3: Internet of Things devices significantly affects HRA H5: Top management support significantly affects HRA
adoption. adoption.
Organizations with advanced information systems experi- Organizations that prioritize strategic team creation,
ence higher HRA adoption rates due to improved data inte- incorporating diverse skills and roles, are more likely to
gration and accessibility [59]. Advanced information sys- experience successful and widespread adoption of HRA
tems facilitate the seamless integration of diverse HR data [32]. Diverse teams bring varied perspectives and expertise,
sources, providing a unified and easily accessible dataset for fostering collaboration in understanding and utilizing HR
analytics purposes. Implementation of advanced information analytics across different functions within the organization
systems positively correlates with the ability to make real- [54]. A team with individuals possessing both HR domain
time HR decisions through HRA. Advanced information sys- expertise and data analytics skills is better equipped to inter-
tems enable the availability of real-time HR data, allowing pret and apply insights from HRA effectively. The team crea-
organizations to respond promptly to changing workforce tion’s significance lies in its potential to amplify individual
dynamics and make informed decisions [26]. Organizations strengths, leading to improved problem-solving, increased
with sophisticated information systems are more capable of innovation, and heightened productivity. In a team-oriented
leveraging predictive analytics in HRA. Advanced informa- environment, tasks are approached collectively, fostering a
tion systems provide the foundation for collecting historical sense of shared responsibility and accomplishment. Change
data and building predictive models, enabling organiza- management and communication specialists within the team
tions to anticipate future HR trends and challenges [6]. The can facilitate a smooth transition, ensuring effective com-
ease of use and effective training programs associated with munication and training during the adoption of HRA [31].
advanced information systems positively influence the suc- Innovative and problem-solving-oriented teams are more
cessful adoption of HRA by HR professionals. User-friendly likely to explore creative uses of HRA to solve HR-related
interfaces and comprehensive training programs for infor- issues and optimize workforce management [5]. Teams with
mation systems contribute to the proficiency of HR profes- a focus on user experience design positively impact HRA
sionals in utilizing HRA tools and techniques. Information adoption by creating user-friendly interfaces and tools. Hav-
system enhances DM with analytics, ensure regulatory com- ing individuals within the team who champion the benefits
pliance, and optimize HR functions, such as recruitment, of HRA and act as advocates can significantly influence
payroll, benefits administration, and performance manage- broader acceptance and implementation of analytics prac-
ment, thereby aligning human capital with organizational tices in HR processes [39]. Particularly in terms of skills
objectives. Hence, we hypothesized that: diversity and roles, and the adoption and effectiveness of
H4: Information systems significantly affects HRA HRA within organizations. Hence, we hypothesized that:
adoption. H6: Team creation significantly affects HRA adoption.
Organizations that prioritize the generation and imple-
mentation of actionable insights from HRA are more likely
Organizational context to experience higher levels of adoption and successful
integration into HR DM processes [57]. The availability
The efficacy of HRA in an organization is determined by of actionable insights through HRA positively influences
the extent to which top management understands and sup- DM in HR processes. When HRA provides insights that
ports HRA operations [67]. Top management support is are readily applicable and actionable, HR professionals
critical for fostering collaboration and allocating resources are more likely to integrate these findings into their DM
for the implementation of IT innovations, particularly in processes [30]. Organizations that effectively leverage
resource-intensive areas such as analytics [41]. The level actionable insights from HRA experience improvements in
of top management support and attitude towards change overall workforce performance. Actionable insights allow
have a significant impact on the adoption of technological HR teams to identify areas for improvement, implement
breakthroughs [28]. In many organizations, top manage- targeted interventions, and track the impact on employee
ment may be hesitant to invest in HRA due to ambiguity performance [14]. HRAdriven actionable insights contrib-
about the advantages, limiting successful adoption [37]. Top ute to better alignment between HR strategies and overall
management leadership support is key for overcoming these organizational objectives. When insights from HRA are
hurdles and ensuring successful HRA implementation. It actionable and aligned with broader organizational goals,
is crucial to ensure the success of management initiatives. HR functions become more integral to strategic planning
Leaders, communicating the necessity for modification, offer and execution. Organizations fostering a culture of continu-
resources as well as training and reward employees for their ous improvement through HRA-generated insights are more
efforts, which aids in mitigating the resistance and elevates likely to adopt and sustain analytics practices [57]. Action-
the probability of success. Hence, we hypothesized that: able insights are powerful in HRM. HR data insights mean
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gaining understanding as well as clarity concerning diverse continuous improvement supported by performance evalu-
features of one’s workforce. They could guide HR in gen- ation processes creates a receptive environment for adopt-
erating superior models for enhancing things like engage- ing analytics solutions that enhance workforce management
ment, retention, or productivity. Actionable insights that [38]. Performance evaluation practices that emphasize indi-
lead to iterative improvements create a positive feedback vidual and team development positively influence the adop-
loop, reinforcing the value of HRA and encouraging ongoing tion of HRA [7]. HRA can provide insights into individual
adoption. The generation and implementation of actionable and team performance trends, supporting targeted devel-
insights and the adoption and effectiveness of HRA within opment initiatives identified through performance evalua-
organizations. tions [25]. Organizations aligning performance evaluation
H7: Actionable insights significantly affect HRA with strategic talent management goals are more likely to
adoption. adopt HRA for comprehensive workforce planning. HRA
can assist in identifying high-performing individuals and
Individual Context critical talent gaps, informing strategic decisions associated
with talent acquisition, development, and retention [36].
Organizations with a focus on sustainable talent acquisi- HRA can complement managerial DM by providing data-
tion practices through HRA are better positioned for stra- driven insights derived from performance evaluations, aid-
tegic workforce planning [47]. HRA can provide insights ing in talent optimization and resource allocation. Hence,
into long-term talent needs and help organizations align we hypothesized that:
their acquisition strategies with sustainable business goals. H9: Performance evaluation significantly affects HRA
Sustainable talent acquisition practices, informed by HRA, adoption.
positively influence diversity and inclusion initiatives [64]. Analytics is a difficult process aiming to express real-
HRA can identify patterns and biases in talent acquisition world phenomena mathematically. In the realm of HR
processes, guiding organizations to adopt more inclusive and big data analytics, the approach involves storytelling
practices and ensuring a diverse workforce [43]. For iden- to facilitate a comprehensive understanding of major find-
tifying, recruiting, and retaining HR, a company needs sus- ings within specific contexts [54]. In HR, storytelling goes
tainable talent acquisition to deal with the strategies, tactics, beyond mere communication, which is a catalyst that ignites
and processes. It encompasses emerging, implementing, and employee engagement. HR professionals could substantially
assessing programs for sourcing, recruiting, and orienting strengthen employees’ connection with their work and the
talent. Organizations employing sustainable talent acquisi- organization as a whole by sharing compelling narratives.
tion strategies supported by HRA experience higher rates of To ensure comprehension among business users, the process
employee retention. HRA can help identify factors influenc- should be explained in an easily digestible manner, breaking
ing employee turnover, allowing organizations to implement down complex problems into quantifiable subsets [35]. Busi-
targeted initiatives for talent retention and satisfaction. HRA ness analysts play a crucial role in suggesting real-life solu-
can identify current and future skill requirements, enabling tions by translating technicalities into a simplified format for
organizations to bridge skill gaps through strategic recruit- senior stakeholders. Given the technical nature of analytics,
ment and development initiatives [33]. HRA insights can not all business users may grasp the related terminology and
guide organizations in showcasing their commitment to jargon [34]. Analysts with the ability to make complicated
sustainable and ethical talent acquisition, enhancing their data easily understandable wield significant influence in the
attractiveness as employers. Hence, we hypothesized that: DM process. This technical aptitude often aligns with the
H8: Sustainable talent acquisition significantly affects skill of creating visualizations that guide the audience to
HRA adoption. concentrate on and comprehend critical aspects of the analy-
Organizations with robust performance evaluation pro- sis. Hence, we hypothesized that:
cesses provide higher-quality data for HRA adoption [39]; H10: Storytelling ability significantly affects HRA
[66]. Effective performance evaluation ensures accurate and adoption.
relevant data, forming a solid foundation for meaningful ana-
lytics insights in HR processes [63]. Performance assess- Environmental Context
ment deems the observable tasks, behaviors, and attitudes
that comprise “the right way to do the job.” The employee Business partners and competitors play a pivotal role in
and manager work together after the performance evaluation influencing a firm’s technology adoption decisions, espe-
for creating a plan for the individual to develop the lacking cially in the realm of IT [67]. For instance, the use of app-
skills. Organizations emphasizing continuous improvement based interviews in the HRA setups of certain Fast-Moving
and feedback in performance evaluation practices are more Consumer Goods (FMCG) companies provides a competi-
inclined to adopt and leverage HRA effectively. A culture of tive advantage in mass hiring and selection [54]. Unlike
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other resources that competitors might replicate, uniqueness using HRA for talent management experience optimized
is created by strategic HRM via the firm’s culture, leadership resource allocation, fostering organizational agility. HRA
style, employee skills, along with efficiency. This uniqueness enables organizations to identify and deploy talent strategi-
turns out to be a strong competitive asset, thus driving the cally, aligning skills with business needs for a more agile
company's distinctive abilities as well as business perfor- response to challenges and opportunities [15]. HRA equips
mance. Effectively managing personnel is crucial for busi- organizations with insights to quickly assess the impact of
ness success, and organizations excelling in this aspect tend changes on the workforce, facilitating prompt adjustments
to yield superior outcomes [41]. Consequently, competitors to structure, roles, and strategies. Organizations incorporat-
improving their people management through enhanced hir- ing HRA in learning and development practices demonstrate
ing, development, reward systems, and talent retention using enhanced agility in adapting to new skills and knowledge
analytics can compel HR teams to adopt similar practices. [62]. HRA identifies skill gaps and learning needs, allow-
To stay competitive, HR managers must stay updated on ing organizations to tailor training programs to meet evolv-
technological advancements and adhere to prevailing trends. ing requirements and stay agile in a dynamic market. HRA
Hence, we hypothesize that: adoption and its impact on organizational agility, shedding
H11: Competitiveness significantly affects HRA adoption. light on how data-driven HR practices contribute to organi-
External support, provided by vendors or third parties, zational flexibility and responsiveness [39]. Hence, we
plays a pivotal role in fostering innovation within organi- hypothesized that:
zations [67]. This crucial factor significantly influences H13: HRA adoption has a positive and significant influ-
the success of innovation adoption [41]. It supports HR ence on organizational agility.
instruction from end to end, covering aspects, such as tal-
ent acquisition, payroll administration, benefits manage- HRA Adoption and Operational Performance
ment, performance evaluation, training and development,
and compliance. In the context of HRA, receiving support HRA enables organizations to analyze employee produc-
from vendors becomes a substantial driver for adoption, ena- tivity, identify underutilized skills, and align workforce
bling organizations to enhance their innovation capabilities capabilities with operational needs, leading to improved
through learning from vendors and leveraging open-source efficiency [61]. Operational performance is the key func-
platforms [37]. Outsourcing from external parties proves tion that forms a significant part of the operating activity
particularly effective for sustainable organizations lacking of the firm. Planning, organizing, coordinating, and con-
the necessary technical skills to adopt innovations like HRA. trolling are the managerial steps performed by manage-
Utilizing available platforms and training programs becomes ment for enabling the firm’s operational functions. HRA
imperative to boost their capabilities for successful adoption. provides insights into future workforce needs, allowing
Hence, we hypothesized that: organizations to proactively align staffing levels and skill
H12: External support significantly affects HRA sets with operational requirements. Operational performance
adoption. encompasses employment, development, compensation,
integration, and maintenance of the organization’s person-
HRA Adoption and Organizational Agility nel. It drives employee development by implementing and
managing numerous talent development and performance
Organizations that adopt HRA leverage data-driven DM, management programs. Organizations leveraging HRA for
contributing to increased agility [39]. HRA provides real- cost reduction and efficient resource allocation experience
time insights into workforce dynamics, enabling organiza- improved operational performance [39]. HRA identifies
tions to make informed and agile decisions in response to areas of excess costs, enabling organizations to optimize
changing business conditions [2]. HRA adoption is associ- resource allocation, leading to enhanced operational effi-
ated with adaptive workforce planning, enhancing organiza- ciency. HRA adoption correlates with improved employee
tional agility. Organizational agile is an approach that aligns productivity and performance, positively impacting opera-
HR practices with the principles of agility and continuous tional outcomes [23]. HRA helps in assessing individual
improvement. It involves reshaping traditional HR func- and team performance, allowing organizations to imple-
tions to enhance responsiveness, flexibility, and collabora- ment targeted interventions to enhance overall productiv-
tion within an organization. Organizational agile recognizes ity [65]. HRA streamlines recruitment processes, provid-
that traditional, rigid HR practices are often ill-suited to ing quicker access to qualified candidates and minimizing
address the rapidly changing needs of today’s workforce. operational disruptions due to unfilled positions. HRA pro-
HRA facilitates dynamic workforce planning by analyzing vides actionable insights, enabling organizations to make
trends, skills, and performance metrics, allowing organiza- informed decisions that augment operational processes and
tions to swiftly adjust to market shifts [40]. Organizations overall efficiency. Research sheds light on how leveraging
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HR analytics contributes to achieving operational excellence outcomes, the confidence interval within the data, and the
within organizations [39]. Hence, we hypothesized that: costs associated with the project, choosing the appropriate
H14: HRA adoption has a positive and significant influ- sample size is crucial. As the degree of variability in the
ence on operational performance. population increases, the size of the sample also should
increase. Thus, in this research, a total of 678 respondents
were considered. The survey was distributed along with a
Research Methodology response sheet, and participants were requested to submit
their responses within two months from the date of receiving
Measurements the communication. It is important to note that the survey
specifically targeted HR managerial positions across differ-
In this study, all variables were measured as latent reflec- ent hierarchical levels within organizations (Table 1).
tive constructs, and the measurement items were developed
through a comprehensive literature review. The procedure Data analysis and Common Method Variance
of selecting and modifying measurement items for each
variable includes setting of interest, comprehensiveness, Structural equation models have been widely employed in
relevance to the population being studied, resources and management research, and in this study, the SmartPLS 4.0
expertise required, flexibility and adaptability, searching program was utilized for conducting the Structural Equa-
and filtering results, and navigating the information tabs tions Modeling (SEM) analysis [27]. SEMis a diverse set
within each publication. The measurement items utilized in of methodologies utilized by scientists for performing both
the questionnaire, along with their respective sources. The observational as well as experimental research. SEMis uti-
items for cloud-based systems [45]. consist of four items. lized not only in the social as well as behavioral sciences
Job search engines incorporate five items from [44], while but also in epidemiology, business, and other fields. The
IoT devices include five items adopted from [56]. Informa- choice of Smart PLS 4.0 underscores its appropriateness for
tion systems comprise four items sourced from [59], and
top management support involves three items from [41] and
[54]. Team creation encompasses four items adopted from Table 1 Respondents profile
[31], actionable insights include three items from Hester Category Frequency (N = 678) Percentage
et al. (2018), and sustainable talent acquisition comprises
Gender
four items adopted from [33]. Performance evaluation
Male 309 45.60%
involves five items adopted from [7], while storytelling abil-
Female 369 54.40%
ity contains three items from [54]. Competitiveness includes
Age
three items from [67], and external support comprises five
18–25 65 9.60%
items from [41] and [67]. HRA adoption involves five items
26–32 276 40.70%
adopted from [11]. The variables of organizational agil-
32–40 261 38.50%
ity and operational performance each consist of five items
Above 40 76 11.20%
adopted from [39]. A 7-point Likert scale (1 strongly disa-
Managerial position
gree and 7 strongly agree) was utilized for measuring all
Junior level 189 27.90%
constructs and their corresponding measures in this study.
Middle level 348 51.30%
Senior level 141 20.80%
Sampling and Data Collection
Experience (in years)
Below 3 185 27.30%
The population under consideration for this research com-
3 to 10 284 41.90%
prises HR professionals employed in India. The sampling
Above 10 209 30.80%
procedure consists of choosing a sampling frame, specify-
Industry
ing the sampling technique, determining the sample size,
Finance and banking 132 19.50%
and performing the sampling plan. A survey questionnaire,
Healthcare 114 16.80%
incorporating items from established scales related to the
IT Services 93 13.70%
study constructs, underwent a review by professors. These
Retail 88 13%
professors made slight modifications to the items to better
Manufacturing 79 11.70%
align them with the context of HR analytics. We approached
Telecommunications 75 11.10%
1012 HR managers. Ultimately, 678 responses were received
Construction 47 6.90%
from HR professionals employed in organizations based
Others 50 7.40%
in India. As the sample size impacts the accuracy of the
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handling the specific requirements of the study, providing a study's data analysis and hypothesis testing. Considerations
user-friendly interface for executing the partial least squares included for PLS are preliminary summarization, including
PLS-SEM analysis effectively. The choice of SmartPLS 4.0 reasons for choosing PLS-SEM, recommended sample size
underscores its appropriateness for handling the specific in selected contexts, distributional assumptions, use of sec-
requirements of the study, providing a user-friendly interface ondary data, statistical power, and the need for goodness-of-
for executing the partial least squares PLS-SEM analysis fit testing. The study employed several methods to identify
effectively [27]. SmartPLS 4.0 is specifically appropriate the influential factors and components related to HRA adop-
for this research owing to its robustness in handling both tion, including technological, organizational, and individual
formative and reflective measurement models, its potential factors. A comprehensive literature review was conducted to
to assess complicated relationships within the methodology, develop measurement items for various constructs, providing
and its potential to render reliable outcomes. Therefore, in their relevance and comprehensiveness. Data was collected
this study, SmartPLS 4.0 has been utilized. The hypotheses through a survey questionnaire that targeted HR managers
were examined through SEMusing the PLS technique. PLS across different hierarchical levels within organizations in
is particularly advantageous for conducting a one-step analy- India, yielding 678 responses. The survey incorporated items
sis of a model that links a latent variable with its observable from established scales with slight modifications to fit the
variables and the structural model that interrelates latent context of HR analytics. SEM utilizing SmartPLS 4.0 was
variables. Notably, PLS does not require uniformity in meas- then performed for analyzing the data, with the measurement
urement scales, making it flexible for diverse data types. model assessed for outer loadings, convergent validity, and
The PLS-SEM technique is especially well-suited for studies discriminant validity. Discriminant validity was confirmed
characterized by relatively small sample sizes and explora- utilizing the Heterotrait-Monotrait Criterion (HTMT). Har-
tory research methodologies. The advantages of PLS-SEM man’s single-factor test was performed for addressing the
include providing rapid results, so it is trouble-free to get the common methodology variance, and no significant issues
ethical committee approval. The benefits of using PLS-SEM were observed. Hypotheses were tested using non-paramet-
include its ability to analyze complex causal relationships in ric bootstrapping with 5000 replications, evaluating path
data with a high degree of collinearity and limited sample coefficients, t-values, and p-values to determine the signifi-
size. Moreover, it can be executed in one center without the cance of each factor. The Technological-Organizational-
hassles of multicenter studies. However, the disadvantage of Individual-Environmental (TOIE) model was utilized as a
PLS-SEM is that it suffers from increased standard deviation theoretical approach for analyzing the factors influencing
and a decrease in statistical power. Therefore, the accuracy HRA adoption and its effects on organizational dynamics.
is reduced. This approach is chosen for its ability to handle These methods collectively provided a reliable identification
non-normal data and accommodate complex relationships. of the influential factors related to HRA adoption. To miti-
For several reasons, smart PLS 4.0 was selected for analyz- gate the potential threat of common methodology variance,
ing the data and conducting Partial Least Squares Structural the study executed Harman's single-factor test. The out-
Equation Modeling (PLS-SEM) in the study: comes of the exploratory factor analysis (unrotated) revealed
that no single construct accounted for over 38.14% of the
1. Smart PLS 4.0 is well-suited for handling complex observed variance. This recommends that common method
models with multiple constructs and indicators, which variance was not a significant issue in this research, as it
is ideal for this study’s comprehensive nature. remained below the conventional threshold of 50–60% [48].
2. Its robustness in managing relatively small sample sizes,
as evidenced by its effective handling of our study’s
sample of 678 HR professionals, makes it a strong Results
choice. PLS-SEM is particularly advantageous for
exploratory research and theory development, allowing Assessment of Measurement Model
for the simultaneous analysis of the measurement and
structural models. To test the measurement model, three tests, namely outer
3. Smart PLS 4.0 does not require the data to meet strict loadings, convergent validity, and discriminant validity
normality assumptions, providing flexibility in dealing were considered. Regarding outer loadings, more than 0.70
with non-normal data distributions. is considered. The outer loading value must be greater than
0.70. If the removal of the indicator with outer loadings is
The practicality of Smart PLS 4.0’s user-friendly inter- betwixt 0.40 and 0.70, it should be deemed for deletion.
face makes the execution of PLS-SEM analysis efficient Outer loading values ranged between 0.799 and 0. 957. Con-
and accessible for researchers. These features collectively vergent validity was assessed through an examination of the
make Smart PLS 4.0 an optimal choice for conducting this indicators' composite reliability (CR) and average variance
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Table 2 (continued)
Construct Item code Outer loadings Cronbach's alpha Composite reliabil- Average variance
ity (CR) extracted (AVE)
extracted (AVE). Table 2 presents CR values ranging from each construct were compared with the correlations between
0.922 to 0.968, surpassing the recommended threshold of the construct and other latent variables, as presented in
0.7. AVE values, falling between 0.702 and 0.909, exceeded Table 3. The results revealed that the square root values of
the suggested threshold of 0.5. Additionally, Cronbach's the AVE for each construct were consistently higher than the
alpha values, ranging from 0.894 to 0.950, met the estab- correlations with other constructs, confirming satisfactory
lished threshold criteria. discriminant validity.
Discriminant validity was evaluated using the heterotrait- The SRMR index was evaluated and yielded a satisfactory
monotrait criterion (HTMT), as outlined in Table 3. The value of 0.051, below the recommended threshold of 0.08
findings demonstrated robust discriminant validity, as all for goodness of fit. Additionally, both dULS (Un-weighted
HTMT values remained below the prescribed threshold of Least Squares Discrepancy) and dG (Geodesic Discrepancy)
0.90. Discriminant validity was assessed using the square indices were found to be below the bootstrap-based thresh-
root of the AVE [24]. The square root values of the AVE for old of 95% confidence interval with 5000 replacements. This
AI 0.917
CBS 0.621 0.916
CP 0.451 0.356 0.920
ES 0.474 0.331 0.351 0.894
HRAA 0.413 0.329 0.403 0.679 0.901
IS 0.488 0.335 0.401 0.620 0.516 0.921
IOT 0.322 0.331 0.451 0.502 0.431 0.398 0.866
JSE 0.446 0.388 0.688 0.405 0.410 0.457 0.353 0.838
OP 0.471 0.422 0.389 0.418 0.389 0.447 0.431 0.348 0.882
OA 0.676 0.482 0.501 0.403 0.406 0.403 0.36 0.529 0.431 0.891
PE 0.533 0.507 0.408 0.636 0.603 0.566 0.513 0.379 0.487 0.473 0.911
SA 0.281 0.280 0.237 0.480 0.529 0.577 0.329 0.300 0.362 0.333 0.498 0.939
STA 0.523 0.530 0.324 0.495 0.524 0.579 0.366 0.341 0.468 0.369 0.622 0.537 0.907
TC 0.391 0.273 0.372 0.646 0.520 0.783 0.375 0.355 0.412 0.411 0.545 0.622 0.499 0.913
TMS 0.436 0.384 0.58 0.455 0.430 0.414 0.725 0.385 0.464 0.476 0.504 0.327 0.384 0.395 0.953
Hetrotrait-monotrait Ratio (HTMT.85). The AVE’s square roots are represented by the diagonal terms in bold
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suggests that the discrepancy between the empirical matrix assess multicollinearity, the study employed the value infla-
and the model correlation matrix is not statistically signifi- tion factor (VIF). The obtained VIF values were consist-
cant, indicating a strong goodness of fit. In essence, the data ently below the recommended threshold of 5.0, indicating
does not contain more information than the model. Discrep- the absence of multicollinearity concerns [27].
ancies between the empirical and model correlation matrix
in SEM can arise for several reasons. These include model Assessment of Structural Model
misspecification, where the model must accurately repre-
sent the underlying data structure, omission of relevant vari- The researchers assessed the predictive accuracy of the the-
ables, incorrect assumptions about the relationships between oretical model using the proportion of variance explained
variables, and measurement errors. Additionally, sample (R2) [27]. The R2 values for HRA adoption, organizational
size limitations can lead to discrepancies as small samples agility, and operational performance were 0.521, 0.145, and
may not adequately capture the population characteristics. 0.136, respectively. Additionally, the Stone-Geisser Q 2, a
Lastly, data anomalies, such as outliers or non-normal data measure of predictive relevance, indicated positive values
distributions can also contribute to differences. Addressing for HRA adoption, organizational agility, and operational
these issues involves a model, including all relevant vari- performance. This suggests that the model demonstrated a
ables, ensuring accurate measurement, and using appropri- satisfactory fit, as the Q2 values were above zero.
ate statistical techniques. When evaluating the discrepancy Non-parametric bootstrapping with 5,000 replications
between empirical and model correlation matrices, statistical [27] was employed to assess the structural model, yield-
significance helps determine whether the observed differ- ing results presented in Table 4. Top management support
ences are meaningful or due to random chance. Fit indices (β = − 0.040; p > 0.050) and external support (β = − 0.038;
like the Chi-square test and Standardized Root Mean Square p > 0.050) were found to negatively impact HRA adoption.
Residual (SRMR) are commonly used. A Chi-square test Conversely, cloud-based systems (β = 0.371; p < 0.01),
p-value less than 0.05 indicates a significant discrepancy, job search engines (β = 0.166; p < 0.01), IoT devices
suggesting the model does not fit the data well and requires (β = 0.183; p < 0.001), information systems (β = 0.112;
adjustments. Similarly, an SRMR value above 0.08 suggests p < 0.05), team creation (β = 0.307; p < 0.001), actionable
a poor fit. These significance levels show whether discrep- insights (β = 0.256; p < 0.01), sustainable talent acquisition
ancies must be addressed to improve the model's accuracy. (β = 0.229; p < 0.01), performance evaluation (β = 0.173;
This suggests that each construct explains more variance p < 0.05), story-telling ability (β = 0.344; p < 0.01), and
in its associated indicators than it shares with other con- competitiveness (β = 0.116; p < 0.01) positively influenced
structs in the model, supporting the distinctiveness of the HRA adoption. Additionally, HRA adoption positively
latent variables under consideration. The presence of mul- impacted organizational agility (β = 0.381; p < 0.001) and
ticollinearity can lead to unstable and unreliable coefficient operational performance (β = 0.369; p < 0.001). Thus, all
estimates, making it challenging to interpret the results and hypotheses were supported except H5 and H12. The non-
draw meaningful conclusions from the model. To further support of hypotheses H5 and H12, which postulated the
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negative impacts of top management support and external performance. Organizations embracing HR analytics were
support on HRA adoption, respectively, can be attributed shown to achieve better operational efficiency and effective-
to their p-values greater than the typical threshold of 0.05. ness. Organizations adjust their HRM approaches to sup-
For a hypothesis to be considered statistically significant, port a diverse, multi-generational staff by presenting flexible
the p-value must be less than 0.05. Here, the p-values for work schedules, custom benefits, and continuous learning
hypotheses H5 and H12 were 0.458 and 0.325, respectively, chances. They promote an inclusive culture, utilize technol-
indicating that the deviations from the null hypothesis were ogy for improved communication, and implement mentor-
not statistically significant. As a result, these hypotheses ship programs. Customized communication and support for
were not rejected. This suggests that top management and employee resource groups (ERGs) also play a key role in
external support did not negatively impact HRA adoption as addressing diverse needs and expectations, ensuring a moti-
initially hypothesized. vated and efficient workforce.
The findings highlight the complex interplay between
technological, organizational, and environmental factors in
Discussion determining the success of HRA adoption. Organizations
looking to enhance agility and operational performance
The study delved into the impact of HRA adoption on organ- should prioritize top management support, embrace rele-
izational agility and operational performance, employing vant technologies, and strategically leverage HR analytics
the TOIE model as a framework. Several technology com- for team dynamics and talent management. The study con-
ponents positively influenced HRA adoption. Cloud-based tributes to the evolving discourse on HR analytics adoption,
systems, job search engines, IoT devices, and information providing actionable insights for practitioners and scholars
systems emerged as influential factors. These findings under- alike. In a way of Self-Efficacy, Social Influence, Tool Avail-
score the importance of embracing contemporary technolo- ability, Data Availability, Fear Appeals, Effort Expectancy,
gies to enhance HR analytics capabilities. Organizational and Performance Expectancy, the TOIE model enhanced the
factors related to team creation, and actionable insights relationships between technology, organizational factors, and
positively influenced HRA adoption. To increase the adop- individual dynamics in the context of HR analytics adoption.
tion of HRA, organizations should assemble diverse teams Additionally, the utilization of the TOIE model enriches the
with expertise in HR, data science, and IT. They should also understanding of the intricate relationships between tech-
secure support from top management and ensure that HRAs nology, organizational factors,individual, and environmental
are practical. Continuous improvement through iterative use dynamics in the context of HR analytics Fig. 2.
of understanding, effective communication, and training for
HR professionals is crucial. Aligning HRA initiatives with
organizational goals ensures relevance and strategic impact, Theoretical Contributions
leading to more efficient and effective HR practices. The
study revealed that top management support negatively The theoretical contributions of the study lie in its applica-
influenced HRA adoption. This suggests that without suf- tion and extension of the TOIE model to the specific context
ficient backing from top-level executives organizations may of HRA adoption, the identification of influential factors,
encounter barriers to integrating HRA into their HR prac- the establishment of links between technology adoption and
tices. These results emphasize that organizations leverag- organizational outcomes, and the practical guidance it offers
ing analytics for team dynamics, actionable insights, and to practitioners. These contributions collectively advance the
sustainable talent strategies are more likely to adopt HRA theoretical understanding of HR analytics adoption within
successfully. Individual factors sustainable talent acquisi- organizations. The study's findings offer practical insights
tion, performance evaluation, and storytelling ability were for practitioners and organizational leaders seeking to lever-
positively associated with HRA adoption. Surprisingly, the age HR analytics strategically. The identification of specific
study found that components related to competitiveness technology components and operational aspects provides
HRA adoption. This suggests that these aspects might be actionable guidance for organizations aiming to enhance
more influential in driving the adoption of HR analytics their HR analytics practices. The study contributes to the
within organizations. field by applying the TOIE model to the domain of HRA
HRA adoption was found to positively impact organi- adoption. By incorporating technological, organizational,
zational agility. This implies that organizations utilizing individual, and environmental dimensions, the study pro-
HR analytics are better equipped to adapt to changing envi- vides a more comprehensive and nuanced understanding of
ronments, respond swiftly to challenges, and capitalize on the factors influencing HRA adoption. This holistic approach
emerging opportunities. The study also demonstrated a contributes to the advancement of knowledge in the domain
positive association between HRA adoption and operational of technology adoption within organizational settings.
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Implications for Practice insights to assess and enhance employee performance, con-
tributing to overall operational efficiency. Organizations
Organizations should strategically integrate HR analytics can drive HRA adoption by investing in continuous train-
into their practices, recognizing its potential to enhance DM, ing for HR professionals, fostering a data-driven culture,
improve processes, and contribute to overall organizational and promoting collaboration between HR, data science,
success. Recognizing the significant impact of technology and IT teams. Enhancing storytelling skills, using HRA for
components such as cloud-based systems, IoT devices, and performance evaluation, and sustainable talent acquisition
information systems on HRA adoption, organizations should are also the major keys. Competitive benchmarking against
consider investing in these technologies to optimize their HR rivals, adopting best practices, showcasing HRA benefits,
analytics capabilities. HR practitioners should pay attention securing top management support, investing in advanced
to operational aspects, including team creation, actionable technologies, and promoting continuous improvement are
insights, and storytelling ability. These factors play a cru- crucial strategies. These actions collectively enhance HRA
cial role in the successful adoption and implementation of adoption and organizational performance.
HR analytics within the firm. Aligning HR with the strat- As HRA adoption positively influences organizational
egy is vital for unlocking productivity, sustaining growth, agility and operational performance, HR professionals
attaining corporate objectives, and remaining competitive. should prioritize continuous learning and training programs
This framework augments overall performance, employee to keep their workforce updated on the latest HR analyt-
engagement, and motivation; in addition, it assists in talent ics tools and methodologies. For organizations operating in
acquisition, retention, and effective change management. diverse markets, understanding the contextual relevance of
Firms could foster a culture that assists in achieving strate- HR analytics adoption, as highlighted in the study's focus on
gic objectives and assures sustainable growth and success by data from different organizations in India, is crucial. Tailor-
aligning HR practices with organizational goals. Sustainable ing strategies to the specific needs and challenges of differ-
talent acquisition emerged as a significant factor influencing ent markets is essential. HR practitioners should emphasize
HRA adoption. HR professionals should align their talent effective communication and collaboration, as highlighted
acquisition strategies with sustainable practices, leveraging by factors such as storytelling ability and team creation.
HR analytics for effective talent management. Organizations These elements contribute to creating a conducive environ-
should focus on leveraging HR analytics for performance ment for successful HRA adoption. This study underscores
evaluation purposes. This can involve the use of data-driven the importance of a strategic and holistic approach to HR
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analytics adoption. By aligning technology investments, Author Contributions Rakesh NaikVadithe, is responsible for design-
focusing on operational aspects, securing top management ing the framework, analyzing the performance, validating the results,
and writing the article. Bikrant Kesari, is responsible for collecting the
support, and adapting to the competitive environment, information required for the framework, provision of software, critical
organizations can leverage HR analytics for enhanced agility review, and administering the process.
and operational performance, ultimately gaining a competi-
tive advantage in the dynamic business landscape. Funding Authors did not receive any funding.
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