Decoding the impact of digital paradigms on human capital efficacies: An empirical exploration of digital transformation as a moderator in work engagement frameworks

Njanjobea Isah Leontes; Jeremy Mitonga-Monga

doi:10.36096/ijbes.v6i6.622

Authors

Njanjobea Isah Leontes University of Johannesburg https://orcid.org/0000-0003-0702-7129
Jeremy Mitonga-Monga University of Johannesburg https://orcid.org/0000-0002-4287-7498

DOI:

https://doi.org/10.36096/ijbes.v6i6.622

Keywords:

Digital transformation, human capital management practices (HCMP), work engagement, fourth industrial revolution (4IR), moderator

Abstract

This study investigates the impact of digital transformation on human capital management practices (HCMPs) and their influence on work engagement. The research aims to evaluate the effects of recruitment and selection, training, career opportunities, and reward on employee engagement, and to examine whether digital transformation moderates these relationships. Using a sample of 607 employees, data were collected through online questionnaires from the banking and hospitality sectors in South Africa and analyzed using partial least squares structural equation modeling (PLS-SEM). The study finds that HCMPs such as recruitment and selection, training, career opportunities, and reward positively affect work engagement. However, contrary to expectations, digital transformation did not significantly moderate the effect of HCMPs on Work engagement. This suggests that the impact of digitalization may be more complex and context dependent. The significance of this study lies in highlighting the stability of HCMP impacts amidst technological change, providing insights for organizations to manage work engagement effectively without over-relying on digital transformation as a moderating factor.

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