Digital HRM Practices and Perceived Digital Competence: An Analysis of Organizational Culture’s Role

Abstract

This study explores the relationship between digital human resource management (HRM) practices, organizational culture, and employees’ perceived digital competence within Greek organizations. While digitalization has become a central priority in human resource management (HRM), there is still limited understanding of how cultural context shapes the effectiveness of digital HR interventions. Using a quantitative approach, data were collected via an online questionnaire from 257 employees across various sectors. The research employed the method of Partial Least Squares Structural Equation Modeling (PLSSEM) and Multi-Group Analysis (MGA) to examine the structural relationships between digital HRM practices—such as e-learning, onboarding, and performance management— and digital competence, taking into account different organizational culture profiles. The results show that digital HRM practices have a positive, but modest, impact on employees’ digital skills, with e-learning emerging as the most influential factor. Importantly, the effect of HRM practices varies significantly according to the cultural environment: supportive and innovative cultures foster stronger development of digital competence compared to hierarchical settings. The findings underline the necessity for organizations to adapt digital HR strategies to their specific cultural context and not to rely solely on technological solutions. This research contributes to the growing literature by demonstrating the interplay between technology and culture in shaping employees’ digital capabilities and suggests that a balanced focus on both is essential for successful digital transformation.