HRM digitalization in emerging economies : A qualitative study on the factors influencing the implementation of digital HR tools in Russian SMEs

Abstract: Background: Digital technologies have been revolutionizing the corporate world during the last few decades. Companies that want to keep their competitive positions are forced to adapt. The digitalization of the corporate Human Resource function is of special importance in this regard due to the increasing role of digitalized HRM for business success. The existing research on the digital HRM implementation environment and the factors that shape it is limited to bigger companies operating in developed economies, with nascent research available for small and medium-sized firms operating in emerging economies. Purpose: The purpose of this study is to explore how individual-, firm-level and environmental context-specific factors shape HRM digitalization in SMEs in emerging economies context with Russia as an example. Method: To achieve an in-depth understanding of the research phenomenon, a qualitative study with an exploratory design was conducted. Empirical data was gathered through semi-structured interviews with ten professionals with extensive experience in HRM digitalization in SMEs, chosen by purposive sampling method. An abductive research approach enabled establishing the connection between obtained empirical insights and existing knowledge from the literature on HRM digitalization. Conclusion: As a result, the following factors were identified as the most influential for the implementation of digital HR tools in Russian SMEs. At the individual level, it is top executives digital awareness and innovativeness that facilitate implementation. At the firm level, it is SME’s resource munificence, innovation-friendly corporate culture, low hierarchical structure and developed IT infrastructure that enables implementation. Finally, among context-specific factors, the following appeared to shape the implementation: declining national economy, unpredictable business environment, highly competitive business environment, IT vendors' market specificity, governmental policy in terms of digitalization, labour market specificity. Most of the contextual factors contributed to the disabling environment for HRM digitalization, with a few exceptions.