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This study examines the role of using algorithmic HRM to make strategic decisions pertaining to HR activities in organizations. The study develops a scale to measure algorithmic HRM usage in its first phase, and in the second phase, it finds that algorithmic HRM having significant impact on the strategic HR decision making that helps and enables organization in creating the competitive advantage. Utilizing the author’s LinkedIn profile, 234 final participants considered for this research. Collected data analyzed by applying PLS SEM. It evaluates the mediation role of the HR strategic decision making, and the HR digital maturity as a moderator in seeing the impact of algorithmic HRM on the competitive advantage of the firm. The study finds a strong relationship between the algorithmic HRM usage and competitive advantage, a significant relationship between algorithmic HRM usage and the strategic HR decision making, and lastly, a significant relationship between strategic HR decision making and the competitive advantage. The moderating role of HR digital maturity was found to be insignificant in this research which paves the way for further research. This research, the model, and its findings contribute to the theory and implicate the practicality of algorithmic HRM. Its one of few papers that address the algorithmic HRM usage in the transitioning economy like Saudi Arabia.
Alabdali et al. (Wed,) studied this question.