Agility Toward the HRIS Advancement at the Organization and Its Impact on Performance in SMEs

Abstract

The purpose of this study is to find the relationship between Human Resource Information System (HRIS) implementation and its impact on organizational performance in Small Medium Enterprises (SME). The focus is on collecting information based on employee perceptions of change management after the implementation of HRIS, especially in SMEs. This study sought to explore the relationship between HRIS implementation and employee acceptance of the change that happened after HRIS implementation by utilizing quantitative methodology grounded in the Technology-Organization-Environment (TOE) framework. Hypotheses are tested by means of an empirical study conducted with the data collected from 400 employees in an IT company under the SME category. The results from this study indicated that, in SME sector, the performance of an organization will improve after the implementation of HRIS once the employees accept the change management. The results show the crucial role of change management in SME sector where resource availability and adaptability play a bigger role. The results can help top-level managers to channel their efforts to the factors which affects the employee’s acceptance, which will improve the likelihood of participation of the employees. This employee participation will result in the successful achievement of the technology implementation.