The Role of AI-Augmented HRM in Advancing Sustainable Performance: Investigating the Determinants of Organizational Strategy and Digital Culture

Abstract

here are many organizations globally are reconsidering how digital culture can be in align with organizational strategic goals to facilitate the effective use of artificial intelligence (AI), as they are trying to adapt the rapid digital transition. Taking into account the socioeconomic conditions of developing countries, this study investigates the influential role of AI- augmented human resource management (HRM) on advancing the sustainable organizational performance (SOP). The study uses Structural Equation Modeling (SEM) to conduct the data analysis. In the data analysis segment we use SPSS to test statistically the proposed relationships of the model, and we also use Amos software for data analysis. The investigation was based on the responses from 219 HR professionals worked in different organizations in different management levels in Bangladesh. The findings show that organizational strategy (OS) has a stronger influence on digitally transformed HRM practices, but digital culture (DC) doesn’t have a significant influence on HR functions run through AI. Additionally, the results also show that AI-enhanced HRM plays a role as a mediator. It helps to understand the mediating relationship between strategic decisions of organization and organizational long term success. That means AI-driven HRM functions enhances the sustainable performance outcomes. This study establishes a conceptual framework for understanding how implementing AI systems within HR operations during this rapid changing environment result in organizational sustainability. The study is mainly based on resource-based view (RBV) and is supplemented with Dynamic Capabilities View (DCV). The results suggest that the developing countries should take necessary initiative to effectively implement digital culture with the help of AI in the field of HRM. Strategic decision aligned with technology can help organizations to achieve sustainable performance.