Value Creation: From Administrative Burden to Strategic Asset: A Qualitative Study of HRIS Integration and Performance in UK SMEs

Against the backdrop of rapid digital acceleration and a tightening UK labor market, Small and Medium-sized Enterprises (SMEs) are pressured to move beyond manual administrative processes to bridge the national productivity gap. This study investigates how Human Resource Information Systems (HRIS) transform HR functions from administrative burdens into strategic assets within resource-constrained UK SMEs. Adopting an interpretivist, multiple case study qualitative approach, data were collected through semi-structured interviews with 12 HR managers across the hospitality, retail, and recruitment sectors and analyzed using thematic analysis via NVivo 14. The findings reveal a three-stage, non-linear pathway of value creation: administrative liberation through automation, strategic visibility via data-driven insights, and digital friction stemming from cultural and structural barriers. While HRIS enhances operational efficiency and evidence-based decision-making, its strategic value is mediated by organizational readiness, digital literacy, and change management capabilities. This research contributes to strategic human resource management literature by conceptualizing “digital friction” as a key mediating construct between technology implementation and value realization under resource poverty. For practitioners, it provides a deployment roadmap highlighting that managing the socio-technical “human element” is as critical as the core technological infrastructure for long-term competitiveness.