Strategic Human Resource Management in the Digital Economy Era: An Empirical Study of Challenges and Opportunities among MSMEs and Startups in Indonesia

Strategic digital human resource management plays a critical role in shaping workforce productivity and organizational performance among MSMEs and startups in Indonesia amid rapid digital transformation. Grounded in the Resource-Based View and Dynamic Capabilities perspectives, analysis of survey data indicates that not all digital HR initiatives generate immediate performance gains. Digital technology adoption, digital training, and work flexibility show no significant direct effects, whereas innovation in recruitment and retention practices, along with the use of HR analytics and artificial intelligence, exerts a strong and positive impact on both productivity and organizational outcomes. These insights suggest that sustainable competitive advantage in the digital economy depends less on broad digital adoption and more on data-driven HR systems and innovative talent strategies that strengthen adaptive human capital capabilities under resource constraints.

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