The Moderating Effect of Human Resource Information Systems on the Relationship between Organizational Performance and Human Resource Management in Commercial Banks in Saudi Arabia

Abstract

This research endeavour was undertaken to assess the influence of Human Resource Management (HRM) practices on the Organizational Performance (OP) within the banking sector of Saudi Arabia. A secondary objective was to scrutinize the moderating effect of Human Resource Information Systems (HRIS) on the structural interplay between HRM practices and OP. Employing a quantitative methodology, data were gathered from 12 distinct banks operating in Saudi Arabia, with a sample comprising 297 assistant managers. The response rate obtained was deemed satisfactory, and Partial Least Square – Structural Equation Modelling (PLS-SEM) served as the analytical tool for data examination. The outcomes demonstrated a statistically significant and positive acceptance of the structural association between HRM practices and OP. Furthermore, the investigation discerned that HRIS significantly and positively moderates the linkage between HRM practices and OP. These noteworthy findings contribute to the enrichment of existing knowledge within this domain. The impetus behind this study was to furnish valuable insights for both scholarly advancement and practical applications, particularly in fostering optimal Organizational Performance, a pivotal determinant within the banking sector.