FORMATION AND DEVELOPMENT OF THE CONCEPT OF STRATEGIC DIGITAL HUMAN RESOURCE MANAGEMENT: THEORY AND PRACTICE

Keywords: human resource management, strategic management, digital management, human capital, history of management

Abstract

The article addresses the growing relevance of strategic digital human resource management in the context of rapid technological change, global competition, and organizational transformation. The purpose of the study is to substantiate the theoretical foundations and methodological principles of transforming traditional personnel management into a strategically aligned and digitally integrated HRM system capable of ensuring sustainable competitiveness and long-term organizational development. The relevance of the topic is determined by the need to adapt HR practices to digitalization processes, data-driven decision-making, and increasing requirements for efficiency and transparency in managing human capital. The methodological framework of the research is based on a combination of general scientific and specialized methods, including historical and logical analysis to trace the evolution of HRM concepts; comparative analysis to examine international models of human resource management; system-structural analysis to determine the components of strategic alignment between HR and corporate strategy; and synthesis to develop an integrated model of strategic digital HRM. Elements of functional analysis were applied to identify the roles of HR professionals within Ulrich’s four-role model, while analytical generalization was used to structure digital HR tools and KPI-based performance indicators. The results demonstrate that the transformation from personnel administration to strategic digital HRM represents a shift in managerial paradigm, where human capital is recognized as a key strategic asset. It is determined that effective strategic alignment is achieved through the integration of HRIS, ATS, ERP systems with HR modules, LMS platforms, and KPI-based performance management into a unified digital ecosystem. Such integration ensures transparency, analytical support for decision-making, optimization of labor costs, improved productivity, and enhanced organizational flexibility. The study substantiates that digital HR technologies convert HR processes into predictive and value-oriented systems directly linked to business outcomes. The practical value of the article lies in the development of an applied framework for implementing strategic digital HRM at domestic enterprises. The proposed approach can be used to improve HR policy design, integrate digital tools into corporate governance systems, enhance performance management mechanisms, and support strategic workforce planning. The findings may serve as methodological guidance for managers and HR professionals seeking to strengthen organizational resilience and competitiveness through the effective management of human capital in a digital environment.

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Published
2026-05-29
How to Cite
Voronchak, I., Kvasnii, L., & Soltysik, O. (2026). FORMATION AND DEVELOPMENT OF THE CONCEPT OF STRATEGIC DIGITAL HUMAN RESOURCE MANAGEMENT: THEORY AND PRACTICE. Entrepreneurship and Innovation, (40), 176-182. https://doi.org/10.32782/2415-3583/40.27