Measuring impact of e-HRM, high-performance work system and workforce engagement on organizational performance: the moderated effect of e-recruitment

Purpose This study aims to develop and test a strategic model that enhances workforce engagement and organizational performance (OP) in SMEs facing contemporary uncertainties. It specifically investigates the combined influence of high-performance work systems (HPWS) and electronic human resource management (e-HRM), while also examining the mediating roles of employee performance (EP) and job satisfaction (JS), and the moderating effect of e-recruitment on the engagement–performance relationship. Design/methodology/approach The research hypotheses were examined using a quantitative methodology and employed purposive sampling technique for data collection, ultimately retaining 227 valid questionnaires for analysis. Empirical data were collected and analysed using structural equation modelling to test the proposed relationships within the integrated model of HPWS and e-HRM. The respondents comprised HR managers from service-sector SMEs. Findings The results confirm that HPWS and e-HRM competencies significantly drive workforce engagement. Furthermore, workforce engagement and e-recruitment positively impact OP. The study also establishes that EP and JS fully mediate the relationship between e-HRM usage and organizational outcomes, with motivational capacity identified as the most critical driver of engagement. Originality/value This research offers a unique integration of e-HRM and HPWS to explain workforce engagement. The findings extend social exchange theory and job demands–resources theory. It provides distinctive value by revealing the full mediation of EP and JS and examining the under-researched moderating role of e-recruitment in strengthening the link between an engaged workforce and superior OP.