Relationship of IT, HRM, and Firm Performance: Case Study Analysis

This case study explores the intricate relationship between Information Technology (IT) capability, Human Resource Management (HRM) capability, and firm performance. The study utilizes structural equation modeling and survey data to analyze the impact of IT and HRM on business outcomes. The analysis reveals that IT capability significantly influences firm performance, and it also has a direct impact on HRM. The study also suggests that HRM plays a crucial role in predicting a company's competitive advantage and overall performance. Moreover, the study stresses the importance of efficient resource allocation to support both IT and HRM, emphasizing that while IT provides an indirect influence, HRM has a more direct impact on business success. The case study concludes that both IT and HRM are essential for firm performance, and that investments should be allocated to support all enterprise processes.

Running Head: Case Study On Relations Among Information Technology, HRM Capacity And
Firm’s Performance
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Case Study On Relations Among Information Technology, HRM Capacity And Firm’s
Performance 2
Information technology capability, HRM capability and company performance results
This case study introduced relationship among companies productivity in relation with IT
capacity and human resource management. Two approaches, structural equation modeling, and
survey data are used in the study to mirror out the relations (Pride, 2017). The analysis shows
that IT capacity is the main determinant on how the firm will perform as well as influencing
HRM. However, research shows equality should be enhanced when it comes allocating resources
for suitable business performances (Gulzar, 2017).
Human resources management has an impact on the performance of the business. HRM predicts
on companies competitive advantage, hence determinant on how the business will perform
(Pride, 2017). The relation between HRM and performance of the firm lies in the assumption of
resources utilization by the enterprise. As a result, outstanding firm performance will be
achieved. Therefore, human resource management has a positive impact on businesses (Gulzar,
2017).
Regardless of belief about IT importance to the firm, there is still struggle for more evidence
about the assumption. Companies know their competitiveness differences through information
technology. There is a need for businesses to know about IT since its complex concept rather
than investing (Van Vliet, 2017). The role of information technology in the business is indirect.

Case Study On Relations Among Information Technology, HRM Capacity And Firm’s
Performance 3
Therefore, just as in the case of HRM, IT capability also have a positive impact on business
(Pride, 2017).
In conclusion, both human resources and information technologies are essential for firm’s
performance. Despite assumption, HRM has more direct influence than IT; both are independent
(Gulzar, 2017). This is because IT strengthens HRM and this boosts business indirectly.
Therefore, the allocation of investments should support all processes of the enterprise (Pride,
2017).

Case Study On Relations Among Information Technology, HRM Capacity And Firm’s
Performance 4
References
Gulzar, R. (2017). Understanding The Relationship between HRM Practices and Organization
Performance in HDFC Bank. Archives Of Business Research, 5(3).
http://dx.doi.org/10.14738/abr.53.2832
Pride, W. (2017). Foundations of business. New York: Cengage learning.
Van Vliet, B. (2017). Capability satisficing in high frequency trading. Research in International
Business And Finance. http://dx.doi.org/10.1016/j.ribaf.2017.03.002