Synthesis of Success: Crafting Sustainable Performance through E-HRM Innovation, Organizational Agility, and Cultural Harmony in SMEs

Abstract

In the context of manufacturing small and medium-sized enterprises (SMEs) in Pakistan, this study explores the intricate interplay between organizational agility (OA), organizational culture (OC), and sustainable performance (SP) and their combined influence. The goal is to shed light on the aggregate impact of these variables, allowing companies to improve their long-term outcomes. Using a quantitative study design, data was collected through an online survey disseminated to HR and executive personnel of manufacturing SMEs. The sample consisted of 287 respondents. For data analysis, the study used Partial Least Squares Structural Equation Modeling (PLS-SEM), which allowed for a detailed examination of the correlations between the variables. The results show a strong positive correlation between E-HRM practices, organizational adaptability, organizational culture, and long-term performance. E-HRM activities like compensation and benefits, training, performance management, and recruiting and selection all have favorable effects on long-term performance. Additionally, it was discovered that organizational culture acted as a moderator and organizational agility as a mediator in these relationships. These findings contribute to a more complete understanding of the elements impacting long-term results in manufacturing SMEs. By combining organizational agility, sustainable performance, organizational culture, and E-HRM practices into a comprehensive framework, this research adds to the body of literature. The inclusion of organizational agility as a mediator and organizational culture as a moderator enriches our understanding of the mechanisms driving sustainable outcomes. Moreover, this study addresses a research gap by investigating these relationships within the specific context of manufacturing SMEs in Pakistan, offering insights for practitioners seeking to enhance their organizational sustainability strategies. Future studies can use other mediating and moderating variables in the relationship between EHRM practices and sustainable performance.