Data-Driven Management : Utilisation of Big Data in HR Decision Making in the Digital Age

Authors

  • Ivan Widjaja Universitas Negeri Malang
  • Budi Eko Soetjipto Universitas Negeri Malang

DOI:

https://doi.org/10.61132/digitalinnovation.v2i2.320

Keywords:

Data Governance, Decision Making, Digital Competencies, Organisational Culture

Abstract

The development of digital technology has encouraged organisations to adopt big data analytics in human resource management (HRM), but there are still challenges in leveraging it for effective decision-making. This study aims to investigate the effect of big data utilisation on the quality of HR decision-making and identify the supporting and inhibiting factors for its implementation. A quantitative method with purposive sampling survey was conducted on 100-150 respondents from companies that have implemented big data-based management information systems and HR analytics. Data were analysed using Structural Equation Modeling (SEM) with AMOS software. The results showed that big data analytics significantly improved the quality of HR decision-making, with HR digital competencies and organisational culture as important mediating factors. However, challenges related to cultural resistance and limited expertise were found to affect the effectiveness of implementation. The practical implications of this research emphasise the importance of HR digital capacity building and ethical data governance to support the transformation of HRM into an adaptive strategic function in the digital era. This research also contributes to the development of data-driven management theory with a holistic approach that integrates technical, human, and ethical aspects.

Downloads

Download data is not yet available.

References

S. Akter, S. F. Wamba, A. Gunasekaran, R. Dubey, and S. J. Childe, "How to improve firm performance using big data analytics capability and business strategy alignment?" International Journal of Production Economics, vol. 182, pp. 113–123, 2022. [Online]. Available: https://doi.org/10.1016/j.ijpe.2022.113123

D. Angrave, A. Charlwood, I. Kirkpatrick, M. Lawrence, and M. Stuart, "HR and analytics: Why HR is set to fail the big data challenge," Human Resource Management Journal, vol. 26, no. 1, pp. 1–11, 2016. [Online]. Available: https://doi.org/10.1111/1748-8583.12090

Bulletin of Business and Economics, "The role of big data analytics in HRM," vol. 13, no. 3, pp. 296–302, 2024. [Online]. Available: https://doi.org/10.61506/

B. M. Byrne, Structural Equation Modelling with AMOS: Basic Concepts, Applications, and Programming, 3rd ed. Routledge, 2016.

J. W. Creswell and J. D. Creswell, Research Design: Qualitative, Quantitative, and Mixed Methods Approaches, 5th ed. Sage Publications, 2018.

N. Dubey, "A review of literature on use of HR analytics in decision-making," International Journal for Research Trends and Innovation, p. 362, 2023.

J. F. Hair, W. C. Black, B. J. Babin, and R. E. Anderson, Multivariate Data Analysis, 8th ed. Cengage Learning, 2019.

Islamic Studies in the World, "Leveraging big data for enhanced human resources management," vol. 1, no. 3, pp. 103–120, 2024.

R. Jain and P. Singh, "Challenges and opportunities of big data analytics for human resource management in mining and metal industries," Journal of Mining and Metallurgical Finance, vol. 10, no. 4, pp. 215–230, 2023. [Online]. Available: https://doi.org/10.18311/jmmf/2023/35858

JRMSI - Indonesian Journal of Science Management Research, "Big data analysis in human resources decision making," vol. 15, no. 1, pp. 58–69, 2024. [Online]. Available: https://doi.org/10.21009/JRMSI.015.1.06

R. B. Kline, Principles and Practice of Structural Equation Modelling, 4th ed. Guilford Press, 2016.

J. Lee and S. Park, "Longitudinal study of big data analytics adoption in HRM," Journal of Human Resource Analytics, vol. 10, no. 2, pp. 101–115, 2022.

U. Mardiyah, N. A. Rohmatika, N. S. Fayruziyah, and Z. Syahrani, "Digital transformation of human resource management: Concepts, functions, challenges and solutions," Journal of Finance and Management Innovation, vol. 5, no. 4, pp. 169–180, 2024.

R. Mansoor, H. Khan, O. Odutola, O. Iwalehin, and E. Modupe, "The role of big data analytics in HRM," Bulletin of Business and Economics, vol. 13, no. 3, pp. 296–302, 2024. [Online]. Available: https://doi.org/10.61506/

J. H. Marler and J. W. Boudreau, "An evidence-based review of HR analytics," International Journal of Human Resource Management, vol. 28, no. 1, pp. 3–26, 2017. [Online]. Available: https://doi.org/10.1080/09585192.2016.1244699

I. Mitrofanova et al., "Challenges in adopting digital technologies in HR management," International Journal of Human Resource Studies, vol. 9, no. 2, pp. 101–115, 2019.

E. Molotkova et al., "Digital HRM: Redefining workforce development in the digital age," Human Resource Development Review, vol. 18, no. 1, pp. 54–72, 2019.

R. Putra and S. Wahyudi, "Optimising human resource management functions in the digital era," Journal of Academic Media, vol. 10, no. 1, pp. 23–38, 2024.

D. P. Sari et al., "The influence of big data analytics on HR decision making in manufacturing companies," Journal of Business and Management Research, vol. 41, no. 2, pp. 112–125, 2023.

S. Shah et al., "Embracing big data in HRM research: Challenges and opportunities," Human Resource Management Review, vol. 27, no. 3, pp. 345–357, 2017.

J. Smith et al., "Big data's impact on recruitment and retention: A comprehensive review," Journal of Human Resource Analytics, vol. 9, no. 2, pp. 45–60, 2021.

S. F. Wamba, S. Akter, A. Edwards, G. Chopin, and D. Gnanzou, "How 'big data' can make a big impact: Findings from a systematic review and a longitudinal case study," International Journal of Production Economics, vol. 165, pp. 234–246, 2023. [Online]. Available: https://doi.org/10.1016/j.ijpe.2023.234246

L. Zhang and Y. Chen, "Digital transformation in HRM: Integration of big data analytics," Journal of Management Science, vol. 15, no. 1, pp. 30–45, 2023.

Downloads

Published

2025-04-24

How to Cite

Ivan Widjaja, & Budi Eko Soetjipto. (2025). Data-Driven Management : Utilisation of Big Data in HR Decision Making in the Digital Age. Digital Innovation : International Journal of Management, 2(2), 193–197. https://doi.org/10.61132/digitalinnovation.v2i2.320