Strategic integration of artificial intelligence and institutional performance: The mediating effect of HR planning in Saudi Stock Exchange (Tadawul)

Abstract

The objective of this paper is to determine how electronic human resource (E-HR) practices affect risk management performance mediated by operations strategy in the Saudi Stock Exchange (Tadawul). Under the quantitative research design, 370 managerial and human resource (HR) employees in the financial and investment institutions listed under Tadawul will be used to collect data. The research paper examines how E-HR systems, digital recruitment, performance analytics, and electronic training programs are integrated to lower institutional risk responsiveness, efficiency in operations, and strategic performance. To test the hypothesized relationships and to verify the mediating variable of operations strategy, Structural Equation Modeling (SEM) is used. The results have indicated that E-HR practices are effective in increasing the level of risk management by fostering operational agility, data-driven decision-making, and proactive financial and operational risks identification. Moreover, the relationship between operations strategy plays the mediating role by converting digital HR initiatives into operational improvements which are well-organized and provide organizational resiliency and control mechanisms. The research finds that E-HR practices are an effective enabler of proper risk management practices in the digital age that support the correspondence of technological change, human potential and operational effectiveness. This aligns with the strategic pillars of Saudi Vision 2030, which emphasize digital transformation, institutional governance, and human capital development as pathways to enhance operational resilience and risk management efficiency across the Kingdom’s financial and investment sectors. In order to improve the resilience of the institutions within the Tadawul, it is advised that the listed institutions invest more in E-HR infrastructure, digital workforce development, and operational optimization systems that will maintain the sustainability of financial performance.