Linghu Yin 1*, Wang Xiaohui 1, Liang Mengmeng 2

1 Farabi International Business School, Al-Farabi Kazakh National University, Almaty,

Kazakhstan

2 Department of Art History, Vitebsk State University, Vitebsk, Belarus

* Corresponding author: linghuyin8@gmail.com

Abstract

In the context of the digital economy, digital transformation is fundamentally reshaping organizational management, particularly the role of human resource management (HRM). However, existing studies predominantly focus on technological applications or single-dimensional perspectives, lacking a systematic understanding of the structural dimensions of digital HRM and its underlying mechanisms. Drawing on strategic human resource management theory and the resource-based view, this study develops a three-dimensional digital human capital management framework, encompassing functional digitalization, operational digitalization, and capital-oriented digitalization. Using an embedded single-case study design, this research examines Haier Smart Home based on archival data and interview materials from 2020 to 2024. The findings indicate that: (1) HRM transformation exhibits strong vertical alignment with digital transformation strategy; (2) the three-dimensional digital evolution serves as a critical mediating mechanism between strategy and organizational performance; and (3) capital-oriented digitalization functions as a strategic lever through mechanisms such as user-based compensation and dynamic talent allocation. This study extends the resource-based view by shifting the focus from resource stock to capital operation and provides practical implications for manufacturing firms undergoing digital transformation.

Keywords: three-dimensional digitalization; human capital management; strategic mediation; human capital; Haier

1. Introduction

With the rapid development of artificial intelligence, big data, and cloud computing, digital transformation has become a central driver of organizational change. In this context, human resource management (HRM) is evolving from a traditional administrative support function into a strategic mechanism that connects organizational strategy and performance outcomes (Bharadwaj et al., 2013).

Despite increasing scholarly attention, three major gaps remain. First, digital transformation and HRM are often studied separately, with limited integration of the two domains. Second, research on digital HRM tends to focus on technological tools, lacking a clear structural framework (Bondarouk & Brewster, 2016). Third, the mediating role of HRM between strategy and organizational performance remains underexplored (Delery & Roumpi, 2017).

To address these gaps, this study investigates the following research question:
How does digital transformation influence organizational performance through structural changes in HRM?

2. Theoretical Framework: A Three-Dimensional Model of Digital Human Capital Management

This study proposes a three-dimensional framework of digital human capital management, which conceptualizes HRM digitalization as a progressive and hierarchical process rather than a set of isolated practices.

At the first level, functional digitalization focuses on the automation and standardization of HR processes, aiming to improve efficiency. This stage reflects a transaction-cost-oriented logic, emphasizing cost reduction and process optimization (Wright & McMahan, 1992).

At the second level, operational digitalization emphasizes data-driven decision-making and platform-based coordination, enabling organizational agility and collaboration. This dimension is closely related to the development of dynamic capabilities, which allow firms to adapt to changing environments (Teece et al., 1997).

At the third level, capital-oriented digitalization represents a fundamental transformation in HRM logic, treating human resources as strategic capital and embedding market mechanisms into internal management processes. This perspective aligns with the resource-based view, which highlights the strategic value of firm-specific resources (Barney, 1991).

This progression reflects a shift from efficiency-driven management to value-creation-oriented management.

Table 1. Three-Dimensional Digital Human Capital Management Framework

Dimension	Core Meaning	Management Logic	Value Orientation
Functional digitalization	Automation and systemization of HR processes	Instrumental logic	Efficiency enhancement
Operational digitalization	Data- and platform-enabled HR practices	Platform logic	Agility and coordination
Capital-oriented digitalization	Marketization of human capital	Market logic	Value creation

Building on this framework, the study proposes that HRM transformation aligns with digital strategy and mediates its impact on performance. Furthermore, capital-oriented digitalization is expected to function as a strategic lever by reshaping incentive structures and organizational processes.

3. Methodology

This study adopts an embedded single-case study design, which is particularly suitable for exploring complex organizational phenomena in depth (Eisenhardt & Martin, 2000). Haier Smart Home is selected as the focal case due to its leadership in digital transformation and HRM innovation.

Data were collected from multiple sources, including corporate reports, public speeches, and semi-structured interviews. Such triangulation enhances the robustness of qualitative findings.

The analysis follows a content analysis approach to identify key themes, combined with pattern matching to compare empirical observations with theoretical propositions (Zott, 2003).

4. Results and Discussion

The findings reveal a clear three-stage evolutionary path of HRM digitalization. In the functional digitalization stage, organizations achieve efficiency gains through process automation. In the operational digitalization stage, digital platforms enable employee empowerment and enhance organizational coordination. In the capital-oriented digitalization stage, market mechanisms are embedded into HRM practices, transforming human resources into value-generating capital.

This evolution reflects a shift from administrative efficiency to strategic value creation, consistent with prior research on HR architecture and differentiation (Lepak & Snell, 1999).

Further analysis demonstrates that HRM plays a mediating role between digital transformation and organizational performance. Functional digitalization primarily improves efficiency by reducing administrative costs, whereas operational digitalization enhances agility through improved coordination. Capital-oriented digitalization, in contrast, directly drives value creation through incentive alignment and market-based mechanisms, which is increasingly relevant in algorithm-driven management environments (Meijerink & Bondarouk, 2021).

Table 2. Mediating Mechanisms of Three-Dimensional Digitalization

Path	Mechanism	Performance Outcome
Functional digitalization  Performance	Cost reduction	Efficiency improvement
Operational digitalization  Performance	Coordination enhancement	Increased agility
Capital-oriented digitalization  Performance	Incentive alignment and market mechanisms	Value creation

Among the three dimensions, capital-oriented digitalization demonstrates the strongest explanatory power. The user-based compensation mechanism directly links employee income to customer value, thereby reducing agency problems and aligning individual incentives with organizational goals. At the same time, dynamic talent allocation enables flexible matching between talent and tasks, enhancing organizational responsiveness.

These findings are consistent with the broader understanding of digital transformation as a process of organizational restructuring rather than mere technological adoption (Vial, 2019).

5. Conclusion

This study develops and empirically examines a three-dimensional model of digital human capital management. The findings highlight that HRM serves as a critical mediating mechanism in digital transformation and that capital-oriented digitalization is the key driver of strategic value realization.

Theoretically, this study extends the resource-based view by shifting the analytical focus from resource stock to capital operation capability. It also contributes to the literature on strategic HRM by clarifying the structural dimensions of digital HRM. Practically, the study provides a structured pathway for firms seeking to advance HRM digital transformation.

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