The mediating role of digital transformation in HR practices and financial inclusion: an empirical study in the Algerian banking sector

This study examines the mediating role of digital transformation in the relationship between strategic human resource (HR) practices and financial inclusion outcomes within Algeria's banking sector. Utilizing a cross-sectional survey of 312 bank employees and advanced statistical analysis via JASP software, the research provides robust empirical evidence. The findings confirm that digital transformation acts as a full mediator between strategic HR practices and financial inclusion (β = 0.49, p < 0.001), with the measurement model demonstrating excellent fit (CFI = 0.94, RMSEA = 0.06, SRMR = 0.05). These results offer managers in emerging economies evidence-based guidance, demonstrating that investing in strategic HR practices is most effective for achieving financial inclusion objectives when it is channeled through fostering digital transformation. The study's originality lies in its application of rigorous analytical techniques to unpack this critical mediating mechanism in the under-explored Algerian context, thereby making a significant contribution to the literature.