Data Driven HR, Empowered Employees: Unlocking Innovation through Digital Capability and Leadership

https://doi.org/10.5281/zenodo.17754679

Abstract

This paper examined the Digital HRM Practices and HR Analytics Capability increase Innovative work behavior (IWB) in the mediating factor of Employee Empowerment and the moderating factor of Transformational Leadership. Based on the data of 470 men and women in the service industry of Pakistan, the results indicate that the digital HRM and HR analytics play an important role in enhancing empowerment, which consequently leads to the innovative work behavior of the employees. Transformational leadership also enhances the empowerment-IWB relationship, which upholds the mediation process as moderated. The findings combine AMO Theory, RBV, and Transformational Leadership Theory, and empowerment is the main psychological avenue by which digital HR systems can be turned into innovation. The research contributes to the body of literature on HRM and innovation as it illustrates the extent to which digital capability, empowerment, and leadership are interconnected to influence the results of innovation in an emerging market. Visual practice and policy implications provide a guide to the design of digitally empowered and enabled workplaces.