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Advancing Sustainable Digital Transformations Through HRIS Effectiveness: Examining the Role of Information Quality, Executives’ Innovativeness, and Staff IT Capabilities via IS Ambidexterity

Author

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  • Muhammad Shahid Siddique

    (School of Business Management, College of Business, University Utara Malaysia-UUM, Changlun 06050, Malaysia)

  • Md. Lazim Bin Mohd Zin

    (School of Business Management, College of Business, University Utara Malaysia-UUM, Changlun 06050, Malaysia)

  • Saiful Azizi bin Ismail

    (School of Business Management, College of Business, University Utara Malaysia-UUM, Changlun 06050, Malaysia)

Abstract

In the face of accelerating digital transformation and AI-driven innovations in the post-COVID-19 era, the effectiveness of Human Resource Information Systems (HRIS) is critical to organizational resilience and sustainable digital transformation in highly regulated sectors. This study examines how information quality, executive innovativeness, and staff IT capabilities influence HRIS effectiveness and evaluates the mediating role of Information System (IS) Ambidexterity, defined as an organization’s ability to explore and exploit its IS resources concurrently. By confirming the impact of organizational enablers on HRIS effectiveness, the study provides theoretical grounding for digital transformation strategies rooted in Resource-Based View (RBV) and Dynamic Capabilities Theory (DCT). Partial Least Squares Structural Equation Modeling (PLS-SEM) using SmartPLS was employed for its strength in modeling complex relationships and validating latent constructs in organizational contexts. Empirical data were gathered from 157 HR leaders across financial institutions in Pakistan. The results confirm that the identified enablers significantly impact both IS Ambidexterity and HRIS effectiveness and also emerge as strategic levers for building resilient, data-driven HRIS frameworks. IS Ambidexterity, a relatively underexplored construct in information systems research, enhances the strategic contribution of HRIS by serving as a dynamic capability that enables organizations to adapt and create sustained value in evolving digital environments. HRIS effectiveness contributes to efficiency, agility, strategic responsiveness, and cost optimization in financial institutions. The findings contribute to theory by integrating IS enablers with dynamic capability mediation, enriching the RBV-DCT interplay. This study provides evidence-based insights for developing economies pursuing sustainable digital transformations.

Suggested Citation

  • Muhammad Shahid Siddique & Md. Lazim Bin Mohd Zin & Saiful Azizi bin Ismail, 2025. "Advancing Sustainable Digital Transformations Through HRIS Effectiveness: Examining the Role of Information Quality, Executives’ Innovativeness, and Staff IT Capabilities via IS Ambidexterity," Sustainability, MDPI, vol. 17(13), pages 1-29, June.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:13:p:5784-:d:1685793
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