Unlocking Potential: How Cloud-Based HR Systems Transform Performance Management and Drive Productivity in Asian Enterprises
Abstract
This research examines the effectiveness of cloud-based Human Resource Information Systems (HRIS) in enhancing performance management processes and employee productivity in Asian organizations. Using a mixed-method approach, the study involved 1,500 respondents from 50 organizations across five Asian countries, combining quantitative surveys, in-depth interviews, and document analysis. Results indicate that specific cloud-based HRIS features, particularly Performance Analytics Dashboards and Real-time Goal Management, strongly correlate with performance management effectiveness dimensions (R² = 0.58) and significantly contribute to improved employee productivity. Contextual factors such as hierarchical orientation (β = -0.31) and top management support (β = 0.58) have significant moderating effects, confirming the importance of fit between technology, organization, and cultural context. Significant perception differences were identified between HR managers and employees, particularly regarding data privacy concerns. Based on these findings, the study developed a 5-component implementation model comprising contextual readiness assessment, phased feature implementation, process integration, user adoption strategy, and continuous evaluation framework. The research contribution includes comprehensive empirical understanding of specific relationships between cloud-based HRIS features and organizational outcomes in the Asian context, and a practical framework for organizations to optimize HR technology investments.
References
[2] P. Kumar and V. Palanisamy, “Impact of digital transformation on human resource management: A case study of a telecom company,” Int. J. Strateg. Decis. Sci., vol. 11, no. 3, pp. 1–20, 2020, doi: 10.4018/IJSDS.2020070101.
[3] C. Qi, X. Zhang, and A. T. L. Chan, “Exploring the impact of cloud-based HRM systems on employee performance: The mediating role of knowledge management capabilities,” Int. J. Manpow., vol. 43, no. 7, pp. 1468–1489, 2022, doi: 10.1108/IJM-08-2020-0389.
[4] C. Lin, Y. Huang, and M. Cheng, “How do IT capabilities impact firm performance through technology investment and business process effectiveness? An empirical investigation of manufacturing firms in Taiwan,” Inf. Syst. Front., vol. 22, no. 2, pp. 489–504, 2020, doi: 10.1007/s10796-018-9864-5.
[5] R. Al-Dmour, E. Al Haj Dawood, H. Al-Dmour, and R. Masa’deh, “The effect of knowledge management processes and business intelligence systems on organizational performance in the context of Industry 4.0,” VINE J. Inf. Knowl. Manag. Syst., vol. 51, no. 4, pp. 533–556, 2021, doi: 10.1108/VJIKMS-03-2020-0054.
[6] X. Wang, J. Guo, Y. Wu, and N. Liu, “Exploring the determinants of cloud computing adoption for enterprises in developing countries: Evidence from China,” Inf. Dev., vol. 36, no. 3, pp. 425–441, 2020, doi: 10.1177/0266666919868885.
[7] A. Khanna and S. A. Narula, “Determinants of cloud-based HRIS adoption: A perspective from developing economies,” Int. J. Hum. Cap. Inf. Technol. Prof., vol. 14, no. 1, pp. 1–19, 2023, doi: 10.4018/IJHCITP.315288.
[8] A. A. Hakeem, “Cloud-based human resource information systems: Exploring implementation challenges in Southeast Asian context,” Int. J. Hum. Resour. Stud., vol. 12, no. 2, pp. 78–96, 2022, doi: 10.5296/ijhrs.v12i2.19342.
[9] S. C. Park and J. W. Kim, “Cloud ERP adoption by organizations: Testing the technology-organization-environment framework,” Inf. Dev., vol. 37, no. 2, pp. 325–342, 2021, doi: 10.1177/0266666920928376.
[10] J. Y. Jiang, L. Y. Sun, and K. S. Law, “Value of human resource analytics: A multi-level framework and integration of employee and organizational outcomes,” Hum. Resour. Manag. Rev., vol. 29, no. 3, p. 100719, 2019, doi: 10.1016/j.hrmr.2019.100719.
[11] Y. Chang, X. Wang, and D. B. Arnett, “Enhancing firm performance: The role of digital capability and digital business models,” Ind. Mark. Manag., vol. 102, pp. 226–238, 2022, [Online]. Available: https://doi.org/10.1016/j.indmarman.2022.01.017
[12] S. Yunus, N. Zakuan, and N. Hisyamudin, “Factors influencing cloud computing adoption in Malaysian public sector,” J. Theor. Appl. Inf. Technol., vol. 97, no. 8, pp. 2157–2177, 2019.
[13] A. R. Chakraborty and D. Al Shaik, “Factors influencing cloud-based enterprise resource planning implementation in the higher education sector,” Enterp. Inf. Syst., vol. 12, no. 7, pp. 798–831, 2018, [Online]. Available: https://doi.org/10.1080/17517575.2018.1456497
[14] R. D. Johnson and K. Diman, “An investigation of the factors driving the adoption of cloud-based human resource information systems by small and medium enterprises,” Int. J. Hum. Resour. Stud., vol. 10, no. 4, pp. 120–140, 2020, doi: 10.5296/ijhrs.v10i4.17935.
[15] J. H. Marler and J. W. Boudreau, “An evidence-based review of HR Analytics,” Int. J. Hum. Resour. Manag., vol. 28, no. 1, pp. 3–26, 2017, doi: 10.1080/09585192.2016.1244699.
[16] S. Strohmeier and E. Parry, “Digitalization and artificial intelligence in HR: International evidence on adoption and effectiveness,” Int. J. Hum. Resour. Manag., vol. 33, no. 16, pp. 3211–3243, 2022, doi: 10.1080/09585192.2022.2022815.
[17] X. Lin, R. Wu, Y. T. Lim, J. Han, and S. C. Chen, “Understanding the implementation status of cloud-based human resource information systems in Asian SMEs,” Inf. Syst. Front., vol. 23, no. 5, pp. 1137–1153, 2021, doi: 10.1007/s10796-020-10027-2.
[18] H. Zhang and S. Kumar, “Cloud-based performance management systems: A longitudinal study of technology adoption and impact,” Int. J. Hum. Resour. Manag., vol. 30, no. 8, pp. 1250–1281, 2019, doi: 10.1080/09585192.2018.1539864.
[19] T. Wang, L. Long, Y. Zhang, and W. He, “Employee perceptions of performance management systems in Chinese manufacturing firms: The role of cloud HRM implementation,” Manag. Organ. Rev., vol. 17, no. 1, pp. 142–173, 2021, doi: 10.1017/mor.2020.56.
[20] C. Qi and B. S. Reiche, “Cloud-based HRM impacts on performance management: A meta-analysis and research agenda,” J. Int. Bus. Stud., vol. 53, no. 7, pp. 1355–1386, 2022, doi: 10.1057/s41267-022-00534-6.
[21] S. Kulkarni and A. Varma, “Cloud HRM and performance management: The mediating role of employee engagement in Indian organizations,” South Asian J. Hum. Resour. Manag., vol. 10, no. 1, pp. 46–70, 2023, doi: 10.1177/22311742221147506.
[22] F. Mahmood, A. Z. Khan, and M. B. Khan, “Digital human resource management: A case study of Asian financial institutions,” Glob. Manag. J. Acad. Corp. Stud., vol. 10, no. 1, pp. 84–99, 2020, doi: 10.31703/gmjacs.2020(X-I).07.
[23] Y. Chen and H. Huang, “Cloud-based HRM and productivity: An integrated theoretical framework for the digital workplace,” Int. J. Hum. Resour. Manag., vol. 34, no. 5, pp. 1047–1079, 2023, [Online]. Available: https://doi.org/10.1080/09585192.2022.2051484
[24] J. Rajapakse, M. Singh, and H. Smuts, “Determinants of cloud HRIS implementation success in emerging economies: Evidence from Sri Lanka,” Inf. Technol. Dev., vol. 27, no. 3, pp. 536–561, 2021, doi: 10.1080/02681102.2020.1830315.
[25] R. Joshi and S. Tyagi, “Beyond traditional metrics: Measuring the impact of cloud HRIS on employee productivity in knowledge work environments,” Hum. Resour. Manag. Rev., vol. 32, no. 2, p. 100845, 2022, doi: 10.1016/j.hrmr.2021.100845.
[26] H. K. Kim and J. Park, “The impact of cloud-based HR technologies on knowledge sharing and employee performance: A case study of Korean service firms,” J. Knowl. Manag., vol. 24, no. 5, pp. 1169–1193, 2020, doi: 10.1108/JKM-10-2019-0534.
[27] J. Lee, Y. Shiue, and C. Chen, “Cultural differences in adoption of cloud-based HR technology: Evidence from East Asian firms,” Technol. Forecast. Soc. Change, vol. 146, pp. 356–367, 2019, doi: 10.1016/j.techfore.2019.06.003.
[28] S. Rahman and Z. Ahmed, “Hierarchical structures and cloud HRM adoption: Navigating implementation challenges in Southeast Asian organizations,” Int. J. Organ. Anal., vol. 29, no. 2, pp. 509–527, 2021, doi: 10.1108/IJOA-06-2020-2253.
[29] K. Upadhyay and A. K. Singh, “Contextual determinants of cloud HRM effectiveness: A cross-cultural analysis of Asian markets,” J. Bus. Res., vol. 156, p. 113352, 2023, doi: 10.1016/j.jbusres.2022.113352.
[30] A. Gupta, V. Joshi, and S. Bhattacharya, “Cloud HRM implementation challenges in Asian markets: A comparative analysis of regulatory environments,” Int. J. Hum. Cap. Inf. Technol. Prof., vol. 13, no. 1, pp. 1–22, 2022, [Online]. Available: https://doi.org/10.4018/IJHCITP.299060
[31] J. Baker, “The technology–organization–environment framework BT - Information systems theory,” Y. Dwivedi, M. Wade, and S. Schneberger, Eds., Springer, 2012, pp. 231–245. doi: 10.1007/978-1-4419-6108-2_12.
[32] J. F. Hair, J. J. Risher, M. Sarstedt, and C. M. Ringle, “When to use and how to report the results of PLS-SEM.,” Eur. Bus. Rev., vol. 31, 2019.
[33] V. Braun and V. Clarke, “Reflecting on reflexive thematic analysis,” Qual. Res. Sport. Exerc. Heal., vol. 11, no. 4, pp. 589–597, 2019, doi: 10.1080/2159676X.2019.1628806.
[34] J. Baker, “The technology–organization–environment framework,” in Information systems theory, Y. Dwivedi, M. Wade, and S. Schneberger, Eds., Springer, 2012, pp. 231–245. [Online]. Available: https://doi.org/10.1007/978-1-4419-6108-2_12