162 Int. J. Information Technology and Management, Vol. 19, Nos.

2/3, 2020

E-HRM implementation, adoption and its predictors:

a case of small and medium enterprises of Pakistan

Abdul Waheed*, Miao Xiaoming,

Salma Waheed, Naveed Ahmad and
Shang Tian-tian
School of Management,
Northwestern Polytechnical University,
Xi’an, 710000, China
Email: Waheed_2506@[Link]
Email: miaoxiaoming@[Link]
Email: salma@[Link]
Email: naveedahmad@[Link]
Email: 877543483@[Link]
*Corresponding author

Abstract: The purpose of this study is to investigate the predictors of E-HRM

implementation and adoption in the small medium enterprise (SMEs) in the
manufacturing sector. Three main predictors including conventional HRM
practices, availability of resources and employees attitude towards E-HRM
were analysed. Data was collected through a questionnaire survey and 500
employees participated in this survey. Results reveal that E-HRM heavily
depends on employee attitude towards E-HRM and availability of resources.
Conventional HRM practices including training and development,
compensation and benefits and performance appraisal also have an essential
role. The readiness of implementing and adopting E-HRM practices in small
and medium enterprises heavily dependent on expertise, financial and technical
resources. This study will help managers to develop a strategy for effective
implementation of E-HRM in small, medium enterprises (SMEs) in the
manufacturing sector.

Keywords: electronic human resource management; E-HRM; conventional

HRM; small medium enterprises; SMEs; Pakistan SME’s; implementation;
adoption.

Reference to this paper should be made as follows: Waheed, A., Xiaoming, M.,
Waheed, S., Ahmad, N. and Tian-tian, S. (2020) ‘E-HRM implementation,
adoption and its predictors: a case of small and medium enterprises of
Pakistan’, Int. J. Information Technology and Management, Vol. 19, Nos. 2/3,
pp.162–180.

Biographical notes: Abdul Waheed is currently pursuing his PhD in

Management Science and Engineering at the Northwestern Polytechnical
University, Xi’an, China. He holds an MBA in Human Resource Management
and Finance from the University of South Asia. His area of interest is human
resource management and his major research topics covered are HRM
practices, innovation performance, organisational performance and E-HRM.

Copyright © 2020 Inderscience Enterprises Ltd.

 E-HRM implementation, adoption and its predictors 163

Miao Xiaoming has been working as a Lecturer, an Associate Professor and

a Professor at the Northwestern Polytechnical University since July 1988 to
present date. From June 2008 to 2009, he was a Visiting Scholar at the Utah
State University and engaged in industrial economy research. From September
2003 to July 2007, he studied in School of Management of the Northwest
Polytechnic University and received his Doctorate in Management Science and
Engineering. His research focuses on technological innovation management,
disruptive innovation, marketing, innovation performance and economics and
trade.

Salma Waheed is currently a PhD student. She has received her Master in
Management Science and Engineering from the Northwestern Polytechnical
University of Xian, China and another Master in Applied Psychology form the
University of Punjab, Pakistan. Her areas of interest are human resource
management, organisation behaviour, safety management, implementation of
psychology theories like cognitive thinking and reasoning.

Naveed Ahmad is a PhD student in the School of Management, Northwestern

Polytechnical University, Xi’an, China. He received his Master of Marketing
from the Mohammad Ali Jinnah University. His areas of interest are marketing,
HRM and sustainable development. His research covers different topics
including internal marketing, organisational performance, marketing outcomes,
brownfield redevelopment projects.

Shang Tian-tian is a PhD student in the School of Management, Northwestern

Polytechnical University, Xi’an, China. Her areas of interest are marketing,
human resource management, disruptive innovation and innovation
management. Her research covers mainly focused on disruptive innovation and
innovation management projects.

This paper is a revised and expanded version of a paper entitled

‘Implementation and adoption of E-HRM in small and medium enterprises of
Pakistan’ presented at the 2nd International Conference on Information
Technology and Intelligent Transportation Systems (ITITS 2017), Xi’an,
China, 10 June 2017.

1 Introduction

Electronic human resource management (E-HRM) is a buzz in recent years due to its
continuous expansion, implementation and adoption. Many surveys have been conducted
on HR development and they advocated that plenty of organisations accepted E-HRM
and its applications in their business invariably (Crestone, 2005). Hence, an escalating
quantity of practitioner reports gives subjective proof that E-HRM is going to be familiar
and may guide to be extraordinary changes (Strohmeier, 2007). As the world is growing
to be complicated and organisations are overcoming these complications by using
information technology (IT) applications in recent years (Adeniran and Johnston, 2016;
Démeijer, 2017; Waheed et al., 2017). The addition of IT gradually become very famous
in the human resource management (henceforth called HRM) field, which has concluded
in an extensive development of the findings into electronic human resource management
(henceforward called E-HRM).
164 A. Waheed et al.

Although rapid growth of the research has indicated the worth construction of
E-HRM (Démeijer, 2017; Ruël et al., 2004; Ganzeboom et al., 2014; Ahmad et al., 2014).
The rapid changes and development in IT increase the availability of E-HRM and will be
predictable to exchange the conventional HRM gradually. Several activities performed
and designed by the conventional HRM to manage the human resources and achieved the
target goals to earn the maximum profit. Main functions which performed within the
organisation such as; recruitment and selection, training and development, performance
appraisal, a reward system that’s why it also called as personnel management (Elias and
Scarbrough, 2004; Schuler et al., 2001; Bryman and Bell, 2015). E-HRM introduces
more effective and efficient systems such as human resource management information
system (HRIS) rather than conventional HRM. It provides support and assistance to
control human resources and other resources either inside or outside of the organisation
which set up strategic HRM system to create the competitive advantage (Ruel et al.,
2007, Ruël et al., 2004).
Previous studies have shown that other variables such as length of service in the
company, level of job experience and employee attitude affect IT systems as well
E-HRM. HR rules which preferred to apply in the organisation and previous IT
experience influence on E-HRM systems as well with employee attitude. Through
affective commitment, we can measure the attitude towards organisation while employee
prospective facilitate as internal efficiency focused by perceived HR and competence
level which was measured the attitudes towards HR department. Thus, the readiness and
attitude of employees towards its adoption which seems the change how much affect the
implementation of E-HRM (Gardner et al., 2003; Igbaria and Chakrabarti, 1990;
Orlikowski, 2008; Yuen and Ma, 2002). There are three variables which used as the
availability of resources which are financial resources, expertise and technical
infrastructure. Many past studies have shown that rapid changes in technologies, the
adoption of E-HRM provide better opportunities to employees to achieved organisational
goals. For these common constraints faced by the small medium enterprises (SME’s)
employees do not achieve their objectives due to use of out-dated technology and lack of
resources. These obstacles must be overcome (Osman and Hashim, 2003; Hooi, 2006).
In this research paper needs to be known that whether applications and implications
of E-HRM are booming for Pakistan manufacturing business. As research investigated
and proofs that some organisations are flourishing in managing the implementation of the
E-HRM solution and permit it contribution in HRM and business performance, whereas
rest of other organisations are a smaller amount or not booming in running the
implementation to the advantage of the organisation. The motive for these deviations
often remains unclear. The use of IT for HRM department has progressively more grown
to get administrative- and strategic benefits over the past few years (Bondarouk and Ruël,
2009; Strohmeier, 2009; Bondarouk et al., 2017b; Mao et al., 2016). Need to know that as
transaction processing systems IT implementations started in the 1950s and 1960s and are
now extended to cloud-based enterprise-wide systems (Johnson et al., 2016). IT intended
to assist with human resources administrative functions. With E-HRM has been
recognised as a catalyst towards attaining business strategies, there is little significance
among local business vendors of Pakistan to admit it.
Some SMEs assert that in the HR department counted of employees will be reduced
day by day. In some SMEs analysis in Pakistan considered as E-HRM process might be
decreased costs and energised more creative approach to HRM, on the other hand, some
researches argued that the adaptation and maintained E-HRM would be engaged massive
 E-HRM implementation, adoption and its predictors 165

investment. Therefore, this research paper explained that to what extant is E-HRM
previously amplified in manufacturing business of SME in Pakistan? As discussed,
implementation of E-HRM has explored in SMEs business of Pakistan; it also is needed
to check that either conventional HRM involves or E-HRM in SMEs of Pakistan.
It is also needed to verify, “Which extant have SMEs in Pakistan employ E-HRM
tools in the administration of its HR functions?” The advantages of E-HRM have argued
and articulated, but there is no comprehensible proof to justify that either the outcome of
E-HRM are effective for HRM or not. Academic involvement related to E-HRM is now
in progress, but still at initial stage. Therefore, there is still much potential to anticipate
discussion about E-HRM and academic involvement and needs to be addressed
systematically.
The present research suggests a quantitative study on this question what are the
different predictors contributing adoption and implementation of E-HRM in small and
medium enterprises of Pakistan? The recent paper will contribute to check the importance
of conventional HRM in Pakistan and will create significant effects on the
competitiveness of the organisation such as recruitment, compensation and benefit,
performance appraisal, communication and training and development. Thus, the
implementation of E-HRM would be helpful for companies as well as for employees,
who would adjust the responsibilities of HR issues.

2 Literature review

2.1 E-HRM
E-HRM is defined as “the integration of IT and the HRM field of scholarly inquiry. It
focuses on all the HRM content that is shared through IT that aims to make HRM
processes distinctive and consistent, more efficient, high in quality and which create
long-term opportunities within and across organisations for targeted users” (Bondarouk
et al., 2017a). It provides information to employees through the Internet. So E- HRM is a
way of implementing the HR strategies, policies and practices with the help of
technology.
The E-HRM technology sustains the HR functions through web technology based
channels (Sabir et al., 2015; Haider et al., 2014). Researchers explained the term
‘E-HRM’ in different connoting of SMEs, its web-based process and elegant solution that
obtains improvement of the latest web applications technology to provide an online
real-time. HRM results, it is easy to use or easy to assess, systematic process, convenient
to formulate answers indeed and rich in features, in spite of all that central power of the
system, are individuals because they hold all the activities in business. All type of
business require men for work, but the main help of this IT to build business same as the
main E-HRM duty has to established sanitise selective instrument and function. Now the
conventional way of HRM has turned into E-HRM, it has increased the flow of
information through technology which can control multiple tasks, serves as an effective
tool of great decision technology. The integrated attitude of HR and its technology gives
aid to HR motions and automating business deals concern with job hiring, performance
tracing, career development and training. Thus, E-HR is performing the corresponding
role (Shilpa and Gopal, 2011).
166 A. Waheed et al.

2.2 E-HRM in Pakistan

In today’s business environment, E-HRM has become an essential part of organisations
around the world. Plenty of work related to E-HRM has been done in developed countries
like the USA. But this work is not appropriate for the developing countries in the same
form. It needs to be addressed in the developing countries. However, E-HRM is a
relatively newly introduced concept in Pakistan, but adoption toward E-HRM is
increasing in public and private sector of Pakistan (Marler and Fisher, 2013; Parry, 2011;
Strohmeier, 2009). Strohmeier (2007) and Marler and Fisher (2013) studies confirmed
the significance of E-HRM in current business environment. Although they left some
issues unsolved and the associations are often uncertain. Few studies have focused on the
concept of E-HRM of Pakistan which mostly belongs to the banking sector (Sabir et al.,
2015; Zafar, 2009; Iqbal and Ahmad, 2016). The SME’s of Pakistan are particularly
facing the problem of adaptation and implementation of E-HRM system. Limited studies
investigated different predictors of E-HRM in SME’s of Pakistan. E-HRM of Pakistan is
not being given that attention which it deserves (Sabir et al., 2015; Arokiasamy and
Ismail, 2009).

2.3 Developments in research on E-HRM

Findings narrate E-HRM has found to consider very late since 2005, to an extent, it is still
endeavouring to pull up with practice. HRM has begun to emerge with IT academically;
researchers outlined four of the nine articles argued on theoretical expansions orienting
towards explicit E-HRM subfields, three articles expressed empirical proofs concerning
with E-HRM subfield and rest of two article were introductory. The first book on E-HRM
was edited by Gueutal et al. (2005) in which only US researchers explained their point of
view on E-HRM and tried to merge IT with HRM. After that research on E-HRM
gradually increased but still yet E-HRM concerns as ‘youth-phase’. The researcher is still
working on new literature to transmit relevant and sufficient theory particularly that can
snatch the full idea of E-HRM practices. Often, current fragment empirical facts mainly
on E-HRM sub-fields (e-recruitment and e-learning) are supposed ‘early-bird’ region
where IT was first time approved. The term E-HRM empirically defines as an absolute
advancement of ‘doing HRM’ at some point in ‘implementation’ of different software
such as business resource planning software, people soft and SAP HR, are still in their
early lifeline and the term ‘implementation’ itself has the broad meaning of the
expression. Such as to manipulate, practice, formulate and making something properly.
Therefore, implementation of E-HRM is a concept of ‘doing HRM’ (Ruël et al.,
2004), it is a realisation of the fact that implementation and adoption of E-HRM can
change the conventional way of HRM strategies, policies and practices. Recently, the
term E-HRM has been defined; as a set of ‘configurations of computer hardware,
software and electronic networking resources’ that consider recent online HRM activities
(e.g., policies, practices and services) which are assisting individuals and their group data
information within and across many organisational boundaries’ (Marler and Parry, 2016).
Research evidence also suggests that, in many organisations, HR managers used to do
E-HRM as a radical redistribution of the job and previously HR professionals carried out
many porting-type activities which can now be accomplished web-based by managers
 E-HRM implementation, adoption and its predictors 167

and employees (Martin, 2005; Ruta, 2005). Line managers are used their desktops to
execute appraisals, to make HR reports, to estimate employees costs, to practice training
demands and oversee competency organisation. Employees have rights to use the whole
lot they require to modify and supervise their identifiable profiles, arrangement their
growth plan, practice financial certificates and concern for latest jobs (Roehling et al.,
2005). Thus, usages of E-HRM are beneficial for employees and organisations.

2.4 SMEs in Pakistan

Abbreviation of SMEs is small and medium-sized enterprises. SMEs universally are not
defined. In Pakistani point of views, SMEs lie on the number of employees up to 250
people, paid-up capital up to Rs.25 million and annual sales up to Rs.250 million (Pool
et al., 2006; Kureshi et al., 2009). This definition was on behalf of a review process of
spanning over two years go after by scrutiny and refining at different levels of
government before its conclusions and authorisation by the Federal Cabinet in 2007
(Saleem, 2008). Authors reviewed many types of research to explore that in any country
the role of SME’s show marvellous progress in social economy that because SME’s
provide many current jobs, inventiveness and advancement which trigger into economic
expansion. Pakistan economy is spreading out the small and medium-sized enterprises
day by day that helps to boost up its economy and reshaping its strategies because SMEs
are incredibly talented skilful to compete others large enterprises. Often, different
strategies like payout, motivation and maintain employees need to be more groom, polish
and skill retaking. However, competitiveness of HRM is being a higher now in with firms
operate and performing functions and firm’s future emerging success is based on its main
component of the human resource (Looi, 2005; Themistocleous and Chen, 2004;
Abraham et al., 2015).
In Pakistan different institute have a different definition of SMEs, such as State Bank
of Pakistan (SBP) refers SME can categorise into three classes, micro, small and medium
enterprises. It also characterises SME as, “any private economic establishment engaged
in manufacturing, trading or service providing business with net annual turnover or sales
up to Rs.300 million in the current fiscal year; or any manufacturing entity having total
assets up to Rs.100 million excluding land and buildings with maximum 250 employees
or any trading or service concerning total assets up to Rs.50 million excluding land,
buildings and with maximum 50 employees.” In the perspective of Pakistan, no
consistent and average definition of SMEs has been accessible that resulted in the
progress and success of the SMEs (Hashim and Osman, 2003).
Practitioners observed that HRM studies primarily focused on large firms or
organisations in the past. SMEs seldom obtained a point out in HRM literature regardless
of the fact that SMEs in the majority nations contribute towards employment (Deshpande
and Golhar, 1994). According to the economic survey of Pakistan (2008–2009), SMEs
are rising faster, contributed almost 99.06% in 2008–2010, dependable for the 30% of
GDP. SME considers in Pakistani companies when it has employees up to 250, paid-up
capital of Rs.25 million and annual sales of Rs.250 million (Bennett, 2008). Despite its
entire growth still, SMEs needs to be more improvement (Themistocleous and Chen,
2004; Naqvi, 2011).Moreover, the details about the composition of SMEs in other
countries are giving in Table 1.
168 A. Waheed et al.

Table 1 Definition of SMEs in various Asian countries

Country Definition of SMEs Measurement

People’s Republic Varies with industries, less than 100 Employment
of China employees
Indonesia Less than 100 employees Employment
Korea Manufacture: less than 300 employees Employment
service: less than 300 employees
Malaysia Varies, turnover: less than RM25 million Shareholders, funds and
and 150 employees. employment
Pakistan Less than 250 employees and less than 100 Employment and assets
million PKR assets for manufacturing. Less
than 50 employees and less than50 million
PKR for trade/services. Net sales less than
300 million PKR.
Thailand Less than 200 employees, less than 200 Assets and employment
million Baht assets

2.5 Conventional HRM and its role

HRM has been an essential part of the organisational strategy for a long time. HRM
works as a backbone to efficiently manage and utilisation of human resources.
Traditionally, HRM was a function performed by top management and not a separated
department. With the emergence of different organisational strategies, HRM also emerges
as an important part of an organisation and considered as a separate department.
Conventional HRM composed of traditional practices including recruitment and
selection, training and development, communication, rewards and compensation and
performance appraisal (Rhodes and Steers, 1981; Lievens et al., 2002; Paauwe, 2009).
Conventional HRM practices furnish firm performance and work as a fuel to properly
manage resources. Although, conventional HRM added value to the organisation and
increases the firm performance still it needs to be progressed. The emergence of
technology affected every dimension of organisation. But the integration of technology
and HRM is at the infancy stage and needs to be investigated by academia. Therefore,
this study enlightens the role of conventional HRM by integrating it with IT (Collings
and Mellahi, 2009; Stadelmeyer et al., 2011; Kaufman, 2015).

2.6 Conventional HRM in Pakistan’s SMEs

Many studies show that the local or wide area networks and IT system unlocked the
doors for the HRM development. This assimilated system made HRM functions more
reliable and efficient for the business (Moomal and Masrom, 2015). HR efforts in SME
sector participates a fundamental role in economic development without any gap for their
personal growth (Khan, 2011). The research investigated that large business accepted
more refined and publicly receptive HR practices (Bawa and Ali, 1999). They are more
observable and are under more strain to gain authenticity (Bawa and Ali, 1999)
production, finance, marketing and accounting as personnel practices in SMEs were
judged by managers to be insignificant compared with other areas (McEvoy, 1984). Also,
SMEs in Pakistan have a great approach to more considerable economic and social
 E-HRM implementation, adoption and its predictors 169

development (Khan et al., 2013). But the lack of employee’s best practices, lack of
sophistication and lack of attention to the documented relationships that have been
revealed between HRM practices and organisational results in larger firms (Huselid,
1995) above literature helps to formulate the following hypothesis:
H1 There is a large number of SMEs in Pakistan are practice conventional HRM rather
than E-HRM.

2.7 Availability of resources

A well-supported and improved small business sector is likely to maintain the economic
development process in the same manner as a large business and SMEs give a variety of
benefits (Abor and Quartey, 2010; Ahmed et al., 2014). Many findings suggested that
smaller entrepreneurial firms usually have key tackles with HRM for the motive that the
small size of the firm often does not assure appoint professionals entirely dedicate to
HRM proceedings (Kuratko et al., 2001). According to Brand and Bax (2002), many
small firms meet severe HR problems, at the same time as; HRs is taking a critical part in
raising and maintaining their competitive benefits. They have also concluded that the
existing knowledge on HRM in small firms is particularly explanatory and fragmented
institutionalism (Hall and Soskice, 2001). Dispute that national factor such as economics,
governance, financial and legal systems and trade unions, which together form the
national business system.
SMEs have traditionally taken as an important part in contributing to the economic
progress of many countries around the world (Kongolo, 2010). SMEs, practically agile
development and resource shortages are also more dedicated to E-HRM schemes. Same
like in this position, manual procedures would reason a backlog in HR functions and
would impede further improvement and growth. The rapidity and effortlessness at which
E-HRM could handle HR functions validate its introduction. In a base of the quick
technological changes, the implementation and adoption of E-HRM plans offer enormous
opportunities to recover on HRM practices. In 2005 research showed that the primary
important factor faced by the SMEs in Pakistan is a shortage of professional
acquaintance, financial restraints, specific market, fasten companies’ linkages and
incapability to enter the export market (Ismail, 2009). Accordingly, it is reasonable to
create the hypothesis that:
H2 There is a strong relationship between the availability of resources and the
feasibility of implementing and adopting E-HRM.

2.8 Employee attitude towards E-HRM

Researcher argued on positive work attitude consider as an ancestor among task and
appropriate work performance (Konovsky and Pugh, 1994). Its implementation refers to
maintain organisational performance (Blader and Tyler, 2003), an organisation’s asset in
the employment relationship creates positive effects on employee work attitudes (such as
organisational commitment, job satisfaction and trust) definitely (Van Scotter, 2000).
Thus E-HRM presents a new method of cooperating employees with organisations
(Imperatori, 2006). Employee organisation theory (EOR) explained the relationship
between employee and an organisation which involves series of interactions that generate
170 A. Waheed et al.

reciprocate action. Empirical studies support the concept that employment relationship
orients the actions of involved parties towards rules of reciprocity (Cropanzano and
Mitchell, 2005; Coyle-Shapiro and Shore, 2007). Thus, E-HRM practices strengthened
the relationship between employees and organisation and promoted the transparency in
the work environment. E-HRM reshaped the conventional HRM with the integration of
IT. HR department acts as an organisational agent in the implementation of the E-HRM
and makes a strong connection between employees and HR department. This study
considered attitude towards the organisation regarding affective commitment and
measured organisational competency and efficiency from an employee’s perspective
(Coyle-Shapiro and Shore, 2007; Bissola and Imperatori, 2013).
Such as it is a non-commanded arbiter communicational tool, can help employees
quickly as perceiving the HR department as much faster easily accessible and as a third
mediator in the employment relationship that assurances practical internal justice
(Konovsky, 2000). E-HRM practices assist employee’s perception of HR policies,
strengthening the customer direction of HRM and particularly useful in SMEs where
HRM is often coped by the industrialist. E-HRM practices more powerfully make the
relationship between employees-organisation through maintain transparency in the
workplace, reminding employees to respond (Bowen and Ostroff, 2004). E-HRM
practices can maintain the current proficient picture of the HR department and alarm the
current aptitude of HR employees that guarantee practical integrity in an organisation.
Transformation process from HRM practices to E-HRM was not easy for organisations to
merely jump-in; initially, it involves different factors such as cost, availability of
resources and selection of technologies which affect the strategy of HR department too.

Figure 1 Conceptual framework

This shift in HR strategy towards E-HRM and adaptation of new technology can be
initially difficult for employees as well organisation (Fletcher, 2005; Ruël et al., 2004).
Thus, the keenness of HR practitioners to squeeze technology and apply it to HR
functions is one of the important factors at the beginning of E-HRM initiatives. It is due
to the emergence of global trade and multinational corporations. E-HRM helps to
disseminate information about effective management and utilisation of human resources
(Bissola and Imperatori, 2013; Hooi, 2006). Given the augmented highlighting in the
 E-HRM implementation, adoption and its predictors 171

exploit of information and communication technology (ICT) in the working situation, it is

rational to formulate the hypothesis that:
H3 Employees are ready and receptive to the implementation of E-HRM.
Figure 1 shows the proposed relationships among different variables. There are three
independent variables including HRM practices, conventional HRM practices,
availability of resources and employee attitude towards E-HRM. The dependent variable
of the study is adoption and implementation of e-HRM. Three hypotheses were
developed based on literature, H1, H2 and H3, as mentioned above.

3 Research methodology

Primary and secondary data were collected to achieve the objective of the study.
Although, the main focus of data was a primary resource. At the beginning of research
paper, books, newspaper articles, handbooks and main articles from international journals
were used for literature reviews. Company records and magazines were also used as
secondary data. Different HRM community pages from LinkedIn (a professionals
network) were also viewed on issues of HRM-related work, although that created depth
in my paper’s literature review. But the main target was primary data which was
collected through e-survey. As observed that E-HRM implantation and adoption would
be helpful when accessibility of resources, technologies and employees’ availability use
to apply. When Pakistan’s manufacturing companies would be used E-HRM
implementation, they would be observed that it creates a positive effect on companies,
but so far it all about depending on the availability of resources and employee’s view.
Consequently, the implementation and adoption of E-HRM is the dependent variable
and the availability of resources and employees’ attitude the independent variables. The
moderating variable in this relationship is conventional HRM. Quantitative and
qualitative data were collected from observations, administered questionnaires and from
employees who provide information when interviewed. Questionnaires were taken
through e-survey that means internet was used to collect primary data. 500 questionnaires
which were written in English sent the e-mail and electronically administered. A
five-point Likert scale applied to ask questions from responded neither they agreed or
not. Before analysing the survey questionnaires, a pilot survey was conducted with a few
selected constructing organisations and individuals. As collected raw data from the
respondents were transformed into reliable data and its relation to the research hypotheses
was analysed using SEM methodology (Shaheen et al., 2017). The survey’s result only
explained the characteristics of Pakistan employees in the manufacturing companies at a
septic time’s point.

3.1 Results of hypothesis

H1 hypothesis observes either a significant amount of SMEs in Pakistan are applying
conventional HRM rather than E-HRM. Five variables were taken to analysis that was
recruitment and selection, training and development, communication, compensation and
performance appraisal. Questionnaires responses are as follows.
172 A. Waheed et al.

Table 2 Mean and reliability analysis

Serial Variables Mean Cronbach’s alpha

HRM practices 0.78
1 Recruitment and selection 2.7
2 Training and development 2.7
3 Communication 3.8
4 Compensation 2.9
5 Performance appraisal 2.2

According to Table 2 observes that the mean of variables, recruitment and selection and
Training and development were 2.7, variable communication was 3.8, variable
compensation was 2.9 and variable performance appraisal was 2.2. Thus the table shows
that utilisation of electronic methods in companies’ HR practices is most well-liked in
communication, followed by recruitment and selection, training and development and
compensation. The frequent result was to reject the hypothesis that a significant amount
of SMEs in Pakistan are applying more than 3. As the average mean (2.91) for all the five
variables is less than 3, the hypothesis that a significant amount of SMEs in Pakistan are
applying conventional HRM rather than E-HRM is substantiated. As the average mean
for all the five variables is close to 3, it can result that SMEs in Pakistan is moving
towards electronic their HRM practices.
Table 3 Mean and reliability analysis

Serial Variables Mean Cronbach’s alpha

Lack of resources 0.84
1 Financial resources 3.2
2 Expertise 3.1
3 Technical infrastructure 3.8

H2 hypothesis shows that there is a strong relationship between the availability of

resources and the feasibility of E-HRM implementation and adoption. Three variables
were used in this hypothesis which is financial resources, expertise and technical
infrastructure. To check the feasibility in E-HRM implementation and adoption four
items were formulated. Two items were related to examining financial constraints which
were hindered by E-HRM implementations. One item was related to the expertise of
respondent companies which have E-HRM implementations. An additional two items
were applied to perceive if the respondent companies require appropriate technical
infrastructure to implement and adopt E-HRM.
As concluded in above table that mostly responded were agreed on the responses in
which there was the availability of financial resources, expertise and technical
infrastructure. To check the relationship among availability of resources and the
feasibility of applying E-HRM three variables were analysed. Summary of that analysed
as in table 6 below. So that if the necessary resources were available than it is feasible to
apply E-HRM. Thus, the average mean of the three variables (3.47) to the right side of
the five-point scale supports this. And the results show that there was lack of financial
resources and expertise to apply E-HRM. But the result also shows that technical
infrastructure is available so it can be considered that there is no obstruction in the
 E-HRM implementation, adoption and its predictors 173

implementation of E-HRM. However, the results of the average mean of the variables are
to some extent at above 3 at 3.01, explaining that the lack of available resources for the
apply E-HRM is not at the peak point. In future researcher can overcome these results.
According to the H3, seven items were considered in the e-survey that employees are
ready and receptive to the implementation and adoption of E-HRM. Somehow, the
purpose of H3 was to measure employee’s attitude towards the implementation of
E-HRM and their readiness to acclimatise to the new system. In Table 4 there was
summarised all responses. In response to the first statement that whether E-HRM is
crucial to their organisations, 38.3% of the respondent companies agreed that E-HRM is
not crucial as opposed to 33.3% that disagreed. In statements two and three, the average
mean was 2.9, in four 2.8, in five 3.6, in six 2.4 and seven was 3.5.
Table 4 Mean and reliability analysis

Serial Variables Mean Cronbach’s alpha

Employee attitude towards E-HRM 0.93
1 E-HRM is not crucial to my 3.2
organization
2 The advantages of E-HRM are 2.9
outweighed by the cost implication
3 Our staff does not have relevant skills 2.9
for E-HRM
4 My organization lacks the technology 2.8
needed for E-HRM
5 I have concerns related to the lack of 3.6
security of E-HRM
6 E-HRM is too complex to 2.4
comprehend/understand
7 It is important that my organization 3.5
introduce E-HRM in the next 12 months

Table 5 Mean, standard deviation and correlation

HRM Availability of Employees attitude

Variables
practices resources towards E-HRM
HRM practices 1
Availability of resources 0.34 1
Employees attitude towards E-HRM 0.19 0.27 1

Hypothesis 1 proposed a relationship between HRM practices and E-HRM

implementation in SMEs. The results indicated the significant positive relationship
between HRM practices and E-HRM implementation (H1: β = 0.1479, t = 4.678,
p < 0.001). Hypothesis 2 predicted a relationship between the availability of resources
and E-HRM implementation and adoption. Results revealed a significant positive
relationship between availability of resources and E-HRM implementation and adoption
(H1: β = 0.3487, t = 8.674, p < 0.001). Hypothesis 3 proposed a relationship between
employee’s attitude towards E-HRM and E-HRM implementation. The results showed
the significant positive relationship between employees’ attitude towards E-HRM and
E-HRM implementation (H1: β = 0.1479, t = 4.678, p < 0.001).
174 A. Waheed et al.

Table 6 Results of hypothesis

Hypothesis Variables β SE t p
H1 HRM practices 0.1470 0.0358 4.678 0.000***
H2 Availability of 0.3478 0.0346 8.674 0.000***
resources
H3 Employee Attitude 0.2709 0.0679 6.467 0.000***
towards E-HRM
Note: ***p < 0.001.

4 Discussion

This study found availability of resources and employees attitude towards E-HRM as the
main predictors of E-HRM implementation and adoption. SMEs in Pakistan are laggards
in the implementation of E-HRM. Traditional HRM practices are still the backbone of
HR departments in many industries. However, implementation of E-HRM in SMEs can
give a competitive edge to get some excellent office staff. The results are contradictory
with the previous result in other countries like Malaysia. Due to acceptance of
Hypothesis 1, it can be concluded that SMEs in Pakistan is moving towards digitising
their HRM practices. It will furnish E-HRM in SMEs of manufacturing industries in
Pakistan. Companies lack the proper technical infrastructure to implement E-HRM.
Moreover, due to results of Hypothesis 2, it can be concluded that most respondent
companies agreed that it is feasible to implement and adopt E-HRM if the necessary
resources such as financial resources, expertise and technical infrastructure are available.
The results of Hypothesis 3 are consistent with the previous research. Employee’s
attitude towards implementation of E-HRM is positive. However, manufacturing
companies would be less receptive as they seem content with the current HRM practices.
It strengthens the roots of E-HRM in SMEs in Pakistan.

5 Reasons for E-HRM adoption

The reasons behind E-HRM adoption are worthwhile. The majority of the respondents
are concerned with hiring and internal communication issues; the main reason for
E-HRM adoption is ease of enrolment procedure and communication. Cost reduction has
not been evaluated as a reason for E-HRM adoption unexpectedly. It could be endorsed
to the early stage of E-HRM in Pakistan, together with the lack of technical knowledge
and IT adaptation. These have not yet allowed substantial cost reductions to take place.
Thus we can say, the implementation of low adoption of E-HRM simply means that
adopting the E-HRM technique is still expensive in Pakistan.
On the other hand, this could mean that E-HRM adoption is mostly determined by
other considerations, such as quality in enrolment and communication, rather than cost
efficacy. Never the less time and cost savings are most valued advantages of E-HRM
usage along with the reduction of the errors. It should be noted that E-HRM adoption
differs by area wise. Previously researchers have shown that a reason for the earlier
implementation of E-HRM in technology is intensive in the image (Galanaki, 2002).
 E-HRM implementation, adoption and its predictors 175

Companies in IT showed a great interest in the early adoption of IT tools to be along with
the world, as this would result in their better reputation. Also, it would introduce
technology for a consumer that positively affects employer’s approach toward
technology.

6 E-HRM and the role of HRM

In this study, the researchers observed that E-HRM adoption could be extended or
upgrade the role of HRM function. This observation can be confirmed by the fact relating
to HR professionals. Positive impacts of E-HRM are also be perceived in organisational
strategic goals (such as company image, goal configuration and cost diminution). E-HRM
strategic goals are increased day by day specifically the role of HR managers are going to
be more doubtful and sceptical in organisations through E-HR, therefore there is no
substitute for personal contact, but the majority of researcher believe that E-HRM will
upgrade the level of HRM role. Thus, they deem that HRM can be completely
transformed under all aspects of E-HRM practices. E-HRM would be the foundation of
new HRM achievement, quality and speeds.

7 Practical implications

The current study is provided evidential proof about the contribution of technology as a
managerial tool towards maintains the crucial performance of entrepreneurial literature.
Diverse kinds of E-HRM practices are amplified in SMEs that presented a remarkable
contribution to the literature which interrelates to ICT and SMEs together. SMEs have a
prodigious focus on diverse kinds of web-based solutions, where essential factors deem
to be cost reduction and its usability, discussed in the availability of resources. HR
department requires acting strategically and make sure that whether the organisation is
performing activity according to firms choose strategies. Typically Pakistani enterprise
context, it is a fact that the entrepreneur often combines individual strategy and practices
and partly sanctified. However, if Pakistan’s companies HR department provides E-HRM
practices that can become too close to employees, will support in the case of doubtful
situations while explaining and strengthening their attachments with the enterprise. So,
E-HRM practices are a useful technological advancement for expressing old HRM
practices, creating positive role between employees-organisations of SMEs.
Implementation of E-HRM in the SMEs of manufacturing industry is the necessity.
Companies need to transform from traditional HRM to E-HRM practices. The
government has an important role in transforming and can act as a moderator by
including the implementation of E-HRM in the prospect plans. Different linkage
programs of SMEs with technical institutes can also help to secure implementation of
E-HRM. Moreover, the government can give incentives and subsidies to SMEs for
implementation of E-HRM. Training programs can be organised to promote the E-HRM
effectiveness in organisations. The government should host the conference and invite
international HR professionals to transfer the HR skills and provision of training for
effective implementation of E-HRM. E-HRM should be included as a subject in the
university curriculum for effectively preparing the fresh graduates.
176 A. Waheed et al.

8 Limitation and future research direction

This study is based on a case study of SMEs in the manufacturing sector in Pakistan and
sample was selected from major SMEs of Pakistan. Future research can be expanded to
other industries and types of firms. Therefore, application of this model needs to be tested
in different types of firms. Data obtained in this study is cross-sectional. Time series
study can be potential research in the future. This study checked the effect of
conventional HRM practices, availability of resources and employees attitude towards
E-HRM. E-HRM has become a valuable tool that expedites the process of change from
administrative to a strategic role for HRM; it will provide support to improve its services
which will be treated as E-HRM role eventual to the future of HRM. The organisational
culture and employee attitude towards E-HRM will facilitate and cultivate the process of
adoption and promotes the collaboration between different departments such as HR and
IT, order to institutionalise this change.
Further, E-HRM would also be interesting for the operating company if the effect
studies sector wise. However, other emerging variables like workplace democracy,
organisational politics, Government support, an adaptation of digital HRM techniques
and employee relation climate can be potential predictors of E-HRM implementation.

9 Conclusions

The purpose of this study is to check the predictors of E-HRM implementation and
adoption in SMEs of manufacturing industries. This review is a pioneer attempt in
implementing and adoption E-HRM practices in SMEs of Pakistan. Empirical results
found that employees attitude towards E-HRM strongly influences the implementation of
E-HRM. These results indicate that by integrating new technologies and knowledge,
firms can increase of capability of improving existing HRM practices. Also, utilising
E-HRM capability and knowledge consistently, contribute to the enhancement of HR
performance. This research can also involve into the different domain in which E-HRM
term will consider the best support to perform HR department activities and tasks that
build a relationship between the HR experts and employees in small-medium enterprises
correspondent with a new perspective. In short, future is all about E-HRM.

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