Impact of Digital Transformation on Human Resource‎Management: Linking Competency Development to Employee Performance

  • Authors

    • Hardi Mulyono Universitas Muslim Nusantara Al-Washliyah, Sumatera Utara, Indonesia
    • Mohammad Irfan Al Qohirie Universitas Muslim Nusantara Al-Washliyah, Sumatera Utara, Indonesia
    • Dedy Juliandri Panjaitan Universitas Muslim Nusantara Al-Washliyah, Sumatera Utara, Indonesia
    • Muhammad Fitri Rahmadana Universitas Negeri Medan, Sumatera Utara Indonesia
    https://doi.org/10.14419/09n66n41

    Received date: January 25, 2026

    Accepted date: February 22, 2026

    Published date: March 6, 2026

  • Digital Transformation; Human Resource Competencies; Employee Performance; Public Companies; Indonesia; Digital Work Culture

  • Abstract

    This study examines the impact of digital transformation on employee performance, with digital-based human resource ‎‎(HR) competencies serving as a mediating factor in public companies in Indonesia. A quantitative approach was em-‎ployed, using an online survey administered to 100 permanent employees who had been actively involved in digitalized ‎HR management systems for at least one year. The study adopted an explanatory research design, and data were ana-‎lyzed using descriptive statistics, correlation analysis, and multiple linear regression. Findings indicate that digital trans-‎formation significantly enhances employee performance both directly and indirectly through the development of digital ‎HR competencies. Specifically, the adoption of technology-based work systems, digitalization of HR processes, and the ‎establishment of a digital work culture improve employees’ digital technical, analytical, adaptive, and collaborative abil-‎ities, which in turn positively influence productivity, efficiency, and work innovation. The results confirm that digital-‎based HR competencies partially mediate the relationship between digital transformation and performance, highlighting ‎the importance of employee readiness and skill development in realizing the benefits of technological adoption. The ‎study contributes to the Resource-Based View (RBV) perspective by demonstrating that human capital with advanced ‎digital competencies represents a unique, inimitable resource that creates sustainable competitive advantage. Practically, ‎the findings suggest that organizations should invest in continuous digital competency development, integrate digital ‎technologies into HR strategy, and cultivate a supportive digital work culture to optimize performance outcomes‎.

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  • How to Cite

    Mulyono, H. ., Al Qohirie, M. I., Panjaitan, D. J. ., & Rahmadana, M. F. (2026). Impact of Digital Transformation on Human Resource‎Management: Linking Competency Development to Employee Performance. International Journal of Accounting and Economics Studies, 13(2), 425-432. https://doi.org/10.14419/09n66n41