Key Determinants of E-HRM Adoption Behavior :Banking Sector in Sri Lanka

Abstract

The employee's adoption rate of e-HRM among developing countries is relatively low and difficult due to human dynamics and external factors. Investigating what factors might be critically contributing to adoption is vital to enhance the smooth working experience of e-HRM users. Hence, the current study is aimed at examining the factors that might influence the e-HRM adoption behavior of banking employees in Sri Lanka. In order to achieve this aim, the determinants were derived and conceptualized to empirically test based on the Unified Theory of Acceptance and Use of Technology 2 (UTAUT2). The Performance Expectancy, Effort Expectancy, Facilitating Conditions, Social Influence, and Hedonic Motivation were the determinants, and it was hypothesized that all these determinants positively influence on e-HRM adoption behavior of banking employees. The data was collected from 196 banking employees in 6 private sector banks located in the Sabaragamuwa region in Sri Lanka based on simple random sampling using a self-administered questionnaire. Data analysis was performed using the SPSS version 25. The results revealed that Performance Expectancy, Facilitating Conditions, and Social Influence positively impact e-HRM adoption behavior. Effort Expectancy and Hedonic Motivation do not significantly impact e-HRM adoption in this study. It indicates that employees are not highly concerned about conform level and gratification obtained by using e-HRM for adopting e-HRM for their work. The conceptual model provides a greater interpretation of the variables that affect employees' e-HRM adoption and provide insights to organizations about where more effort could be paid to ensure the effectiveness of the e-HRM adoption process.