When Algorithmic Management Works: The Role of Perceived Algorithmic Fairness

Digital transformation has accelerated the adoption of algorithm-driven work environments, creating significant challenges for workforce management. Therefore, this study examines how algorithmic management affects employees competitive productivity through the mediator of career resilience, while perceived algorithmic fairness acts as the moderator. Using survey data from 475 employees of Malaysian small and medium-sized enterprises (SMEs), this study employs a mixed-method approach, incorporating partial least squares structural equation Modeling for hypothesis testing and fuzzy-set qualitative comparative analysis (fsQCA) for additional insights. Our findings confirm that algorithmic management enhances employees competitive productivity through career resilience, with perceived algorithmic fairness strengthening this effect, supported by fsQCA. Practically, SMEs should prioritize transparent algorithmic management and resilience-building initiatives to enhance employee competitive productivity. Theoretically, this study advances sociotechnical systems literature by integrating algorithmic management, resilience, and perceived algorithmic fairness, extending Information Systems research on digital workplaces.