Impact of Digital Human Resource Management Practices and Digital Transformation on Human Resource Management System Strength: Evidence from Insurance Industry

The Iranian insurance sector is progressively integrating digital transformation and digital human resource management strategies to enhance customer satisfaction and address market needs. This study seeks to investigate the influence of digital human resource management practices and digital transformation on the strength of the human resource management system, considering the mediating effects of perceived usefulness and perceived ease of use. The research follows an applied methodology, utilizing five questionnaires as the primary data collection tool. The study focuses on employees of leading insurance firms located in Iran’s Fars Province. A random sample of 266 employees from these organizations underwent statistical analysis to evaluate the proposed hypotheses. The outcomes reveal that digital transformation and digital human resource management practices have a significant positive effect on the strength of the human resources system. Furthermore, the results confirm the mediating influence of perceived usefulness and perceived ease of use.