E-HRM as a Strategic Enabler of Service Excellence: Empirical Evidence from Ethiopian Private Banks

This study examines the role of Electronic Human Resource Management (E-HRM) in driving service differentiation in the Ethiopian banking sector.Drawing on the Dynamic Capability (DC) theory, the authors propose a mediation model linking E-HRM practices, employee performance, and service quality.Data were collected through a questionnaire survey of 448 employees and customers of 16 private banks in Ethiopia and analyzed using Structural Equation Modeling (SEM) with AMOS.The results indicate that E-HRM practices have a significant positive effect on employee performance and service quality and that employee performance partially mediates the relationship between E-HRM and service quality.The findings highlight the strategic importance of E-HRM in enhancing the human capital and organizational capabilities of banks to deliver superior service and gain a competitive advantage.The study contributes to the literature by providing empirical evidence for the E-HRM -service quality link and the mediating role of employee performance and offers practical implications for bank managers and HR professionals in leveraging E-HRM for service differentiation.