Digital resilience requires more than tech: People and strategy lead the way

In an era marked by post-pandemic digital acceleration, the Human Resource Information System (HRIS) has become a linchpin for achieving organizational agility, especially in highly regulated sectors. The new study titled "Advancing Sustainable Digital Transformations Through HRIS Effectiveness: Examining the Role of Information Quality, Executives’ Innovativeness, and Staff IT Capabilities via IS Ambidexterity" provides a crucial examination of how three enablers, information quality, executive innovativeness, and staff IT capabilities, directly impact HRIS effectiveness in Pakistan’s financial institutions.

Published in Sustainability, the study was conducted across 157 organizations using advanced Partial Least Squares Structural Equation Modeling (PLS-SEM) and asserts that these organizational resources serve as core pillars of successful digital transformation.

Information quality, encompassing relevance, clarity, accuracy, and timeliness, emerged as a foundational determinant. The study highlights that systems with high-quality information outputs foster greater trust and usability among HR professionals, leading to enhanced HRIS performance. Similarly, the innovativeness of senior executives, defined as their willingness to adopt and champion digital change, plays a pivotal role in fostering an environment that supports ongoing HRIS development. The third factor, staff IT capabilities, refers to the technical skills and adaptive competencies of employees who manage and use HRIS. This group demonstrated the highest individual effect on HRIS effectiveness, showcasing the criticality of human capital in leveraging technological investments.

The study also identifies persistent underperformance of HRIS across Pakistan’s financial sector, with previous systems used more as compliance tools rather than for strategic gains. Despite significant financial outlays and early adoption of digital systems, many HRIS implementations failed to deliver the expected results, a situation attributed to these key internal factors. By statistically validating each factor’s impact, the research substantiates the strategic need for institutions to not only invest in technology but also to enhance executive vision and workforce competence to realize tangible benefits.

What role does IS ambidexterity play in linking organizational resources to digital transformation?

The concept of IS Ambidexterity, defined as the ability of organizations to simultaneously explore new digital solutions while exploiting existing technologies, has been advanced as a crucial mediating force in the transformation process. The study positions IS Ambidexterity as a dynamic capability under the theoretical framework of Dynamic Capabilities Theory (DCT), complementing the foundational Resource-Based View (RBV). It finds that information quality, executive innovativeness, and staff IT capabilities significantly contribute to the development of IS Ambidexterity.

Through quantitative analysis, the study confirms that IS Ambidexterity positively mediates the relationship between the three key resources and HRIS effectiveness. Organizations that exhibit high IS Ambidexterity are more agile in adapting to disruptions, more capable of optimizing HRIS utility, and more resilient in integrating innovative digital practices. This dual capability becomes especially relevant in financial institutions that face both operational constraints and innovation pressures.

The evidence shows that while each resource independently enhances HRIS effectiveness, their strategic value is significantly amplified when IS Ambidexterity acts as a bridge. Notably, the mediating effect was strongest for information quality, emphasizing the importance of well-structured and timely data in sustaining long-term IS performance. The integration of these findings into the RBV-DCT theoretical nexus solidifies IS Ambidexterity’s status as not just an enabler but a critical conduit for digital success in post-pandemic institutional settings.

What are the broader implications for ESG goals, AI integration and resilience in developing economies?

Beyond its sector-specific focus, the study offers broad implications for resilience and sustainability in digital ecosystems. As organizations globally pivot toward AI-enhanced decision-making, the quality of underlying data becomes a determinant of successful integration. HRIS, often overlooked as an administrative utility, is repositioned in this research as a strategic enabler for Environmental, Social, and Governance (ESG) objectives, particularly in emerging markets where regulatory complexity and technological ambition coexist.

The research underscores that a failure to address foundational organizational enablers risks undermining costly IT deployments. The Pakistani financial sector, which represents a large portion of national GDP and is seen as a leader in digital investment, still struggles with fully realizing the value of HRIS. This disconnect is reflective of broader structural gaps in developing countries, where IT adoption often outpaces organizational readiness. The study addresses these gaps by supplying empirical evidence for actionable insights.

For policymaking, the findings advocate for more than just technology infusion. They call for holistic reforms including executive leadership training, upskilling of IT staff, and implementation of robust data governance frameworks. For HR leaders, the study recommends a shift in strategic mindset, treating HRIS not as a compliance function but as a core asset aligned with institutional agility and sustainability targets.