ROLE OF HUMAN RESOURCES DIGITAL READINESS IN MODERATING DIGITAL MANAGEMENT AND CULTURE ON PERFORMANCE EFFECTIVENESS

Digital transformation has become a strategic requirement for organizations; however, its failure rate remains high due to the gap between technology adoption and Human Resource (HR) readiness. This study aims to analyze the direct influence of digital-based management and organizational culture on performance effectiveness, as well as to examine the moderating role of HR digital readiness. A quantitative method was applied to companies and professional organizations in the fields of Human Resources and Human Capital (HC). The findings reveal that digital-based management does not affect performance effectiveness, which is largely attributed to low levels of digital literacy among employees. Conversely, organizational culture was found to have a positive effect on performance effectiveness. Moderation testing indicates that digital readiness is a prerequisite for successful digital transformation, however, HR digital readiness negatively moderates the influence of organizational culture on performance effectiveness. The implications emphasize the importance of organizational investment in enhancing HR digital readiness through targeted training programs to align competencies with digital systems. Theoretically, this study enriches the development of contingency theory in HR management. Limitations of this study include sample size and reliance on questionnaires which may present bias.