International Journal of Entrepreneurship (Print ISSN: 1099-9264; Online ISSN: 1939-4675)

Research Article: 2021 Vol: 25 Issue: 6

The Impact of E-HRM on Corporates Sustainability: A Study on the SMEs in Jordan

Dina Alkhodary, Middle East University

Abstract

Purpose of the study: This study aims to investigate the impact of Electronic Human Resources management (E-HRM) on corporates’ sustainability (CS). Methodology: A structured online questionnaire has been distributed to a random sample of 500 respondents from Small medium enterprises SMEs in Jordan. 385 valid questionnaires have been analyzed and SPSS has been used to analyze the Data of the study. Main Findings: The main study finding of the study complies with the main hypothesis which indicates that there is an impact of E- HRM on Corporates’ Sustainability on the SMEs in Jordan; as well as the research findings show a positive impact of E-Recruitment, E-Performance management, and E-Learning on CS in the SMEs in Jordan. Applications of this study: The study finding is helpful for many business sectors which are concerns about the new practices in HRM and the business practices which support corporate sustainability. The researcher recommends conducting more studies on E-HRM and CS as well as implementing this study on other sectors in Jordan. Novelty/Originality of this study: This study is significant in SMEs in Jordan since it investigates the impact of EHRM on Corporate Sustainability which is still a new topic in Jordan.

INTRODUCTION

This paper helps academics and professionals to recommend ways in which organizations can adopt E-HRM to enhance corporates` sustainability. The main scopes of the study are: Location Scope, the current study was conducted at SMEs in Jordan. The other scope is the Respondents' Scope, The study targeted a random sample of employees in different departments at SMEs in Jordan. As well as, Timeline Scope, This study was conducted through the year (2021). as well as The importance of the study focus on the Corporates` sustainability is a new term in Jordanian corporates and it's a worldwide trend, is and it's still new in the rejoin and still not applicable for many corporates in Jordan. This study has been applied to SMEs in Jordan; which is another significance of this study since it examines the impact of EHRM on CS on corporates of developing countries (Jordan).

Recently, researchers have increasingly focused on CS issues in their researches, since the Global Reporting Initiatives have agreed on new standards for voluntary (Katprapakorn, 2020), the growth of sustainability and related reporting has been shifted, after the millennium, the corporates moved to the analysis sustainability reporting, thus this study aimed to find the impact of E-HRM on CS since it is a new area in business and many researchers indicate the importance of E-HRM and CS in the new business era. (L Xia, et al, 2020), Upon to the dramatic changes in a working environment and the innovation in technology and the modern methods of conducting business as well as the moving towered sustainable environment not only in the natural resources but also in the time, effort and cost in the organization such as recycling and non-printing emails as a way to sustain environmental resources as well as to minimize the cost of HR practices were the inspiration to start this research. Technology has entered many business functions such as E-Marketing and E-Business as well as technology has entered Human Resources Management (HRM), since some of the HR functions have been switched to be E Functions. In the early 1990s, the E-HRM concept has been formally used referring to using the internet in HRM (Martin Abraham, 2019). The research scope is the managers and employees in the Jordanian corporates from different fields. The main research hypothesis states that there is a positive impact of the E-HRM on the CS. The main goal of this research is to encourage the managers to move towered fully E-HRM as its impact is positive on the Department performance in terms of efficiency and effectiveness as well as on the Corporates' sustainability. HRM stated to the overall management of the human resource functions and to the HR professionals (Lazazzara, A.2020)

Corporates are attained to E-HRM because of the benefits of them on both levels efficiency and effectiveness of HRM function. E-HRM can achieve efficiency by decreasing the time of process for handling paperwork, increasing data correctness, and decreasing the number of employees in the HR department. E-HRM can also achieve Effectiveness by improving the competencies of managers and employees to the faster decision making, Moreover E-HRM contributes to the HR function through some practices as knowledge management, the formation of intelligent and public wealth (Poba-Nzaou, 2020) E-HRM has three main types which are the Operational, Relational, and Transformational E-HRM (M Martini,2020) Operational E-HRM it's called also Transactional human resource management it, it is the first simplest form of E-HRM, consisting of all the HR functions related to HR operative practices like payroll, benefits administration, policy and procedures, and personnel data and Relational E-HRM it`s called also Traditional human resource management, it is the second complex form of E-HRM, It is consisting all the HR functions which are supported functions to the HR key role of HR like staff development and orientation, job analysis, recruitment, performance appraisals, and Transformational E-HRM it's called also Transformational human resource management, it is the most complex form of E HRM. It consists of all the functions which are strategic HR functions like HR Strategic Redirection and Renewal, culture structuring, and Strategic Knowledge management. Corporates’ sustainability is the term of sustainability was related to environmental practice, which cornered with the preservation of natural resources. Now, it has become a major term for the whole business practice CS literature is not too much since it is still a new term in management (Abbas,2020), The beginning of the CS term founded on the Brundtland Report issued in 1987 (Thakral,2021) The report highlighted the insistence of making development in economic that could be sustained without reducing natural resources or causes harm to the environment (Glonti, 2020).Environmental protection, economic development, and social equity were the three vital scopes to sustainable development (Kantabutra, et al., 2020), In 1994 John Elkington a British management consultant develop the concept of "Triple Bottom Line" a way of measuring the performance of American firms, the main objective of TBL is to measure the firms' performance from other perspectives than money, it focuses on how the firm could engage in improving of environment and people`s lives. Triple Bottom Line (TBL) has consideration of economic viability, social responsibility, and environmental responsibility (Okorie, et al.2021), Since the CS has been developed, the authors have divided it into five stages (González-Masip, J., 2021) the First stage of CS is when the firms begin involving in window dressing activities in which the firm starts to shift its language to reflect CSR language. The second stage is called cost containment, in which firms start to employ the business process reengineering in order to reduce intakes of water and energy that decrease costs and increase financial performance. The third stage is called stakeholder engagement, in which the firm's customers and employee satisfaction have been improved. The fourth is about developing CSR reports and interactive about these initiatives, the fifth stage is called the sustainability stage, in which firms would imply fundamental modifications to the business process.

TECHNICAL LITERATURE REVIEW

E-HRM

E-HRM is significant for decision-makers of the different firms to decreases cost and embrace environmental sociability to gain competitive advantages over the rivals Hosain, S. (2017). As well as Waheed (2020) shows that the importance of E-HRM comes from many aspects such as it provides a method that lets managers, employees, and HR professionals to interpretation, manage or updating information, which is needed for managing the HR of the organization. As well as F L'Écuyer (2020) shows that E-HRM application affects HRM technical and strategic effectiveness and efficiency, as well as improves the HR service level and give the HR staff a chance to become a strategic partner, as well as Oswal (2015) displays that E HRM has a strategic role in enhancing corporate sustainability in term competition and efficiency since it provides benefits of cost savings, flexible services, and employee's participation. Oswal said" To stand with dynamic economic, social and environmental forces and keeping in mind both internal and external stakeholders, organizations are trying to achieve a sustainable environment for business long term growth.”, also, Hosain, et al.(2020) considered the E-Recruitment to be beyond technology with benefits to organizations such as low cost, less time, and quick it is about the recruitment system to attract the right candidate, the selection process is based on sound and credible criteria, and the tracking process being able to assimilate with standing systems. As well as Baykal, E. (2020) Said that E-recruitment has created a great jump in recruitment since the 1980s. Online recruitment has many benefits to corporates like low cost, less time, and quick. E-Recruitment is about cultural and behavioral change, within the HR level and management levels. E-Recruitment is a significant part of the recruitment strategy. It can be used to keep track of and maintain candidate applications. Also, Pulakos, E. D (2020) considered that E-performance managements have a positive impact on the employees' productivity since the employees became more productive based on how the monitoring is done in the organization. Likewise, Sardi (2020) indicates that E-Performance management is significant if the technology enhances their productivity as well as H Ibrahim, (2021) considered the importance of E-performance management and its relation with minimizing cost and time for the organization as well as enhancing the employees' performance. Moreover, Saratun, M. (2016) shows that the E performance management processes, employee development facilitation and support, employee involvement, trust, and justice all are significant to corporate sustainability Saratun finds out the broad context and culture of organizations may have to change to be sustainability-oriented. Also, Eccles (2014) shows that high sustainability companies having a Performance management system that is more long-term oriented than the traditional performance management, and it is significantly outperforming the companies counterparts over the long term, regards to the stock market and accounting performance. Mehta (2020) considered that behavioral intentions regarding the use of web-based E learning are directed by the level of motivation to use and Internet self-efficacy. Likewise, Wolor (2020) indicated that there is a positive relationship between e-application tracking, E-selection, E-learning, E-performance management, E-compensation & benefit, HRIS & E-communication, E-personal profile, and E-leave with financial performance. Moreover, Cofino (2021) considered E-learning as a way to reduces costs as well as to enhance corporate sustainability since the Using LMS facility tasks can assist the company to reduce the number of materials being used (such as paper) and preserve resources, the cost of binding and delivery since all the tasks are made automatically.

The benefits of E-HRM

E- HRM has many benefits which encourage the corporates to employ it within its functions, the innovation of HR Function has been acceptable by many organizations for its benefits in terms of accuracy and time-saving. E-HRM Supports Decision making process through the generation of human resource metrics as well as costs saving while maintaining the quality of data as well as E-HRM Automats HR process, replacing the routine task with a flexible system, and E-HRM Improves talent management function through E-Performance Management, self-evaluation, finally E-HRM Develops the role of HR from traditional paper handlers to strategic partners (Rahman et al, 2019)

Types of E-HRM

E-HRM has three main types which are the Operational, Relational, and the Transformational E-HRM: Operational E-HRM: it`s called also Transactional human resource management it, it is the first simplest form of E-HRM, is consisting all the HR functions related to HR operative practices like payroll, benefits administration, policy and procedures, and personnel data second type is Relational E-HRM: it`s called also Traditional human resource management, it is the second complex form of E-HRM, It is consisting all the HR functions which are supported functions to the HR key role of HR like staff development and orientation, job analysis, recruitment, performance appraisals. The third type is Transformational E-HRM: it`s called also Transformational human resource management, it is the most complex form of E HRM, It is consisting all the functions which are strategically HR functions like HR Strategic Redirection and Renewal, culture structuring, and Strategic Knowledge management (Galanaki, et al., 2019)

Corporates Sustainability

The term sustainability was related to environmental practice, which focused on the preservation of natural resources. Now, it has become a major term for the whole business practice CS literature is not too much since it is still a new term in management (Montiel et al., 2020), The beginning of the CS term founded on the Brundtland Report issued in 1987 (Indrianingsih, et al., 2020), The report highlighted the insistence of making development in economic that could be sustained without reducing natural resources or causes harm to the environment( Schaltegger et al., 2020). Environmental protection, economic development, and social equity were the three vital scopes to sustainable development (Swarnapali, 2017). In 1994 John Elkington a British management consultant develop the concept of "Triple Bottom Line" a way of measuring the performance of American firms, the main objective of TBL is to measure the firms' performance from other perspectives than money, its focus on how the firm could engage in improving of environment and people`s lives. Triple Bottom Line (TBL) has consideration of economic viability, social responsibility, and environmental responsibility (Elkington, 2018)

CS Stages

Since the CS has been developed the authors has been divided it into five stages: The First stage of CS is when the firms began to involve in window dressing activities in which the firm starts to shift its language to reflect CSR language, The second stage called cost containment, in which firm’s starts to employ the business process reengineering in order to reduce intakes of water and energy that decrease costs and increase financial performance, The third stage is called the stakeholder engagement, in which firms` customers and employee satisfaction has been improved, The fourth is about developing CSR reports and interactive about these initiatives, The fifth stage is called the sustainability stage, in which firms would imply fundamental modifications to the business process. (Landrum, 2018).

CORPORATES SUSTAINABILITY

González-Masip (2021) shows that there is an impact of organizations on their social and environmental environment as well as on the CS in general. As well as Sooksan Kantabutra, et al (2020), displays that the sustainability organizational culture comprising sustainability vision and values leads to emotional commitment among organizational members to attain the vision. The study shows five corporates` sustainability practices of Perseverance, Resilience Development, Moderation, Geosocial Development, and Sharing to enhance corporates` sustainability prospects. As well as Jia (2020), find out three sources of uncertainty: economic policy uncertainty, political instability, and the effect of climate change, it revealed that the three sources of uncertainty were negatively related to corporates' sustainability performance. Likewise, Li Xia, et al (2020), display that the strategy of sustainable resource management empowers the development of corporates` sustainability performance, as well as study, shows Encouraging environmental innovation is a critical practice in corporates sustainability. And, Da Cunha Bezerra, (2020) displays that corporates` sustainability is intensely associated with business strategy and the ability of corporates to develop specific capabilities. Moreover, Israr, (2020) shows that there is a relationship between business and society, by improving the distinctiveness between responsibility and sustainability, the authors encourage other researchers for additional research to deepen the areas of research unique and explore their complementarities and intersections. As well as Lartey et al (2020) specifies that SCS incompletely mediate the link between sustainability strategy and performance and Sustainability strategy positively influences sustainability performance the study also found that SCS is positively associated with sustainability performance and recommends an appropriate use of SCS to enable effective implementation of sustainability strategy. Berne-Manero et al. (2020) describe the three types of capital relevant within the concept of corporates` sustainability: economic, natural, and social capital. From this basis, the study develops six criteria managers aiming for corporates` sustainability will have to satisfy: eco?efficiency, socio?efficiency, eco? effectiveness, socio?effectiveness, sufficiency, and ecological equity. Glonti et al. (2020) The satisfaction of the worker’s needs and involvement in the modern process can be achieved by transformation and the new methods of human resources management, as well as sustainable development can be improved by corresponding social, economic, and environmental priorities

Research Framework

The conceptual framework which has shown in Figure 1 the Independent variable that contains the E-HRM (E-Recruitment, E-Performance Management, E-Learning) based on Waheed (2020) to measure E-HRM. And the Dependent variable, CS-based on Berne-Manero et al. (2020) in measuring corporates sustainability.

Operational Definitions of the Study

Human Resource Management (HRM): A variety of practices in all areas of the organization that supports managers to recruit, select, train, and develop employees for an organization. Electronic Human Resources Management (E-HRM): An electronic information system in the Human Resources department to collect and manage the HR practices, such as HR planning (recruitment, selecting, hiring, training, promotion, and layoff) performance management, employee relations. This system has to be reachable to all employees inside and across the organization, it is helpful for all employees and managers not only for HR staff since it facilitates the HR functions to the HR staff as well as it facilitates the HR activates for all employees and managers in an efficient and effective way. E-Recruitment: is the function of hiring employees by using the online system, in which system recruit a pole of candidates who match the job requirements, in this function, HR could recruit a large number of candidates with minimum cost, time, and effort since the HR doesn't need to scan all the applications as it happened in the traditional requirement, here the system will scan the applications and choose the best suitable applicants for the next step (E-Selection). E-Performance Management: the function of online evaluating of the employee's performance like computer monitoring system, in which the HR could do an evaluation for all employees in an efficient way in terms of cost, time, and effort. E-Learning: the function of online training and development in which the HR employed the online systems to provide the employees with the training needed, like the online training, in which the HR could train a large number of employees from many different locations with less cost, time and effort. Corporates` sustainability (CS): is a method of implementing business practices that focuses on stakeholder's satisfaction inside and outside the company, this method concerns with doing business from an ethical perspective and its focus on doing the right things and take the right actions not only for internal stakeholders but also it consider with external stakeholders CS could be attained by considering three major dimensions Economic viability, Social responsibility, and environmental responsibility.

Economic viability: a dimension of corporates` sustainability which concerns with evaluating the business practices from the economic scope in which the firms do cost-benefits analysis to make a decision regarding certain practices or project, in E- HRM the corporates can achieve Economic viability in their HR function since it depends on electronic practices which minimize the cost of the labor as well as time doing the functions. Social responsibility: a dimension of corporates` sustainability which concerns embracing business practices that stimulate the well-being of society and the environment while decreasing negative impacts on them. Such as volunteering practices, charitable giving, in E-HRM the corporates could achieve Social responsibility by provide training, orientation session, and entrance to people from the community and give them the chance to develop their skills and builds their experience through giving the chance to work remotely or attend E-learning session.

Environmental responsibility: a dimension of corporates` sustainability which concerns with ethical management of business practices and the saving of natural resources like using Email instead of paper communication, recycling, in E- HRM the corporates could achieve Environmental responsibility for example by employed E-Recruitment instead of the traditional recruitment process in which the HR use so many papers which reflect the environment in a negative manner. The problem of the study, this research is analyzed and considered in terms of corporates` sustainability and the impact of E-HRM on it. Corporates` sustainability is evaluated in terms of Environmental responsibility, Social responsibility, and economic viability.

METHODOLOGY OF RESEARCH

Data Collection

The research population includes the HR employees in the SMEs in Jordan. The sample size taken for the study is 500 who is the user of electronic human resource management (E HRM) system. The questionnaire consists of the first part demonstrate the demographic data of research respondents which are (Gender, Position, Year of experience, and Educational level). While the second part investigated the Independent Variable that consists of E-HRM. On the other hand, three dimensions were measured which are (E-Recruitment, E-Performance Management, E-Learning, twenty statements have been tested.

ANALYSIS AND RESULTS

In order to answer the research questions and test the hypotheses, the researcher utilized a first-generation statistical package; which is a Statistical Package for Social Sciences (SPSS).The Cronbach’s Alpha test was also utilized to test the reliability and consistency of the data collection tool, as well as multiple and simple regression analysis to test the research hypotheses. This section presents the results of the data collection from the respondents of the questionnaire. These results are based on the respondents that were accessible for the research.

RELIABILITY AND VALIDITY

Table 1 shows the displays of the reliability analysis. Reliability means the degree to which a variable is persistent in what is proposed to be measured (C Keyworth, 2020) The Cronbach’s Alpha value has been employed to test the reliability of the items evaluating each variable: E-HRM (E-Recruitment, E-Performance Management, and E-Learning) and corporate sustainability. A Cronbach’s alpha value of 0.70 or above indicates strong scale reliability (Ventura-León, 2020) according to the test results, all values exceeded the required minimum value of 0.70.

The reliability test was done by doing Cronbach’s alpha test, which supplies the result of the internal consistency of the questionnaire, which means how much the questions and the variables are related to each other. As stated in the results of this study, the used measurement is reliable, because the results of alpha equal (0.70) or more so it is accepted C Keyworth, 2020).

In Table 2 the expressive statistics show the values of mean and standard deviation for each variable, and it provides the results of the correlations between these variables. In accordance with Ratner (2009), values between (0.30 and − 0.70) indicate a moderately positive (negative) correlation. Table 2 shows that correlations between independent and dependent variables are likable.

In accordance with the results of regression analysis (table3), the link between EHRM and Corporate Sustainability is statistically significant because (sig. >0.05). Hence, hypothesis H1 is backed (there is a constructive correlation between E-Requirement and Corporate Sustainability). In another word, E-Requirement has positive and significant effects on Corporate Sustainability. Furthermore, (R2= .363) it means strategic flexibility explains 36.3% of the change in Corporate Sustainability, because (sig. >0.05), the connection between E-Performance Management and Corporate Sustainability is statically important because (sig. > 0.05). So, hypothesis H2 (there is a beneficial correlation between both Corporate Sustainability and E Performance Management) is assisted too. E-Performance Management and Corporate Sustainability are positively and importantly connected with each other (R2= 0.554). Accordingly, E-Performance Management explains 55.4% of the change in Corporate Sustainability. As stated by the results of regression analysis, the link between E-learning and Corporate Sustainability is statistically important (sig. > 0.05). Plus E-learning and Corporate Sustainability are positively connected with each other (R2 = .806). Thus, E-learning explains 80.6% of the differences in Corporate Sustainability. Consequently, hypothesis H3 (there is a beneficial correlation between E-learning and Corporate Sustainability is assisted. In another word, E-learning has positive and important effects on Corporate Sustainability.

DISCUSSION

The literature does not discourse the EHRM effect on corporate sustainability. This research discourses this impact by providing evidence of the connections between EHRM and CS, and how E-Recruitment E performance management and E-learning can drive CS in the SMEs in Jordan. Based upon statistical analysis, all the hypotheses are confirmed, and the results of our study showed that EHRM positively impact the CS in the SMEs sector in Jordan, and in line with the results provided by Oswal (2015) displays that E-HRM has a strategic role in enhancing corporate sustainability in since it provides benefits of cost savings, flexible services, and employee's participation to achieve competitive advantage. Hence that summarize the above results supported by the previous research: EHRM practices have a positive impact on CS in the SMEs in Jordan which constant with the findings of Hosain, S. (2017) that concentrated on the importance of E-HRM in making a significant change to embrace environment sociability to gain competitive advantages over the rivals. While E-Recruitment has a positive impact on CS in the SMEs in Jordan, which matches with the finding of Baykal, E. (2020) that concerned about the benefits of E-Recruitment in making cultural and behavioral change, within HR level and management level. Also, E- Performance management has a positive impact on the CS in the SMEs in Jordan, which comply with Eccles (2014) which shows that high sustainability companies should have an advanced Performance management system that is more long-term oriented than the traditional performance management. As well E-learning has a positive impact on the CS in the SMEs in Jordan, which is in line with Israr (2013) which considered E-learning to enhance corporate sustainability since the Using E-learning facility can assist the company to reduce the number of materials being used (such as paper) and preserve resources, the cost of binding and delivery since all the tasks are made automatically.

Limitation and Further Research

In spite of its contributions, the present study like all the research papers has some limitations. First, in evaluating and analyzing the effects of E-recruitment, E- performance management, E-learning, and corporate sustainability, the main study limitation is the environmental limitation: this study has been conducted through Covid-19 and the literature limitation since there no previous study focused on the impact of E-HRM on the corporates’ sustainability at SMEs in Jordan. In this respect. Worries have been raised regarding the generalization and findings. To increase the strength of generalizability, the author advises that for further studies researchers have to pay attention to the wide sample range for other sectors and adopted a comparative study with other counties. Moreover, considering the normal situations far of a pandemic would affect the result of the study.

CONCLUSION

This study was carried out in the human resource department. E-HRM provides the corporate a new way of conducting their process in an effective and efficient way. In order to meet the demands of today's sustainability objectives, it is necessary for corporates to employ the E-HRM to achieve corporates` sustainability. This research explains to organizations to understand how the E-HRM is essential towards CS. A high and significant correlation between the E-HRM variables and corporates sustainability was observed. Such a correlation most likely reflects a perception that employees have about the impact of E-HRM on Corporates' sustainability. It is highly likely that most HR Staffs are encouraging their corporates and management to utilize the facilities of the E-HRM to attain the corporates` sustainability. The study found out a significant correlation between E-HRM and CS at SMEs in Jordan, which in turn accepts the main study hypothesis. The study found out a significant correlation between E Recruitment and CS at SMEs in Jordan, which in turn accepts the second study Hypothesis. In addition, the study finds out a significant correlation between E- performance management and CS at SMEs in Jordan, which in turn accepts the third study hypothesis. Finally, the study finds out a significant correlation between E-learning and CS at SMEs in Jordan, which in turn accepts the fourth study hypothesis. For further studies, the recommendation would be drawn that orientation programs need to be designed more effectively for all corporate's employees' level not only for higher managerial level focusing on the importance of E-HRM and CS since the operational managerial level should be involved more in E-HRM and should be more aware of the role of E-HRM on CS. Other E-HRM functions could be investigated to CS such as E- compensation, and benefits. Extra factors could be valid for further studies in different sectors. Finally, online training could be developed and have more implications for the companies.

ACKNOWLEDGEMENT

The authors recognize the funding from Middle East University, Faculty of Business, Amman - Jordan.

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