Examining Factors Influencing the Adoption of e-HRM in the South African Public Sector: An Integrated Diffusion of Innovation (DOI) Theory and Trust Perspective

Abstract

The increase in the use of technology by organizations to transform the Human Resource Management (HRM) function to be more strategic has changed the way employees interrelate and perceive the HRM. For instance, the implementation of technological innovations in human resources has gradually replaced the old traditional face-to-face, manual, and paper-based interactions between employees and their respective HRM personnel. These technological innovations include the use of real-time web-based HRM portals or applications, also known as, the electronic human resource management (e-HRM) to facilitate the employer-employee HRM processes. Furthermore, successful implementation of e-HRM has potential benefits of elevating the value of human resource function (Grant & Newell, 2013) to be that of a strategic business partner (Bondarouk, Schilling & Ruël, 2016), thus reducing time the HR function spends on administrative tasks. However, the diffusion of these technological innovations (e-HRM) into HRM practices and the realization of its potential benefits will depend on whether the employees of a firm are willing to adopt and optimally utilize the technology. It is for this reason that this study was undertaken. The purpose of this study is to investigate the determinants of e-HRM adoption in the South African public sector. Additionally, this study draws on the Diffusion of Innovation Theory (DOI) and contemporary literature on user trust in technology to develop and test a theoretical model of the factors influencing the South African public sector employees’ adoption of e-HRM. Moreover, this study took a positivist approach and an online survey method was used to obtain the empirical data. The empirical data was collected from a sample of 173 employees of the Road Accident Fund (RAF), a state-owned entity. The results show that there is an overall adoption of e-HRM amongst the RAF employees. Correlation analysis showed that the RAF employees perceived relative advantage, compatibility, complexity, observability, voluntariness, and trust to have a significant direct effect on e-HRM adoption. Additionally, the results showed that trialability had a significant impact on e-HRM adoption on its own but not in the presence of the aforesaid independent variables. In closing, this study serves as a guide for examining factors contributing to e-HRM adoption. In addition, it affords the public sector decision makers with Examining Factors Influencing the Adoption of e-HRM in the South African Public Sector: An Integrated Diffusion of Innovation (DOI) Theory and Trust Perspective