Human resource analytics, creative problem-solving capabilities and firm performance: mediator moderator analysis using PLS-SEM

Abstract

Purpose

Based on resource-based and dynamic capabilities theorizing, this study explores how human resource analytics (HRA) can improve human resource management (HRM) performance and organizational performance, with creative problem-solving capability (CPSC) as an underlying mediator for creating value from HRA. It also explores how data quality and HRA personnel expertise act as moderators in this relationship.

Design/methodology/approach

Hypotheses are tested in an empirical study including 191 firms using partial least square structural equation modeling technique.

Findings

The findings confirm the direct and indirect effect of HRA use and maturity on HRM and organizational performance, as well as the mediating role of CPSC. HRA personnel expertise was found to moderate the relationship between HRA and CPSC, data quality being an important factor.

Originality/value

The findings contribute to the sparse evidence of value creation from HRA use/maturity on HRM and organizational outcomes, providing a theoretical logic of resource-based view and dynamic capabilities view based on the underlying causal mechanism through which HRA creates value. The study identified complementary capabilities which when combined with HRA use/maturity and CPSC result in value creation.

Citation

Thakur, S.J., Bhatnagar, J., Farndale, E. and Aeron, P. (2024), "Human resource analytics, creative problem-solving capabilities and firm performance: mediator moderator analysis using PLS-SEM", Personnel Review, Vol. 53 No. 7, pp. 1687-1709. https://doi.org/10.1108/PR-11-2021-0809