Correlation between Entrepreneurship Orientation and Implementation of AI in Human Resources Management

• Main Authors: Rico Baldegger, Maurizio Caon, Kreshnik Sadiku
• Format: Article
• Language: English
• Published: Carleton University 2020-04-01
• Series: Technology Innovation Management Review
• Subjects: artificial intelligence; entrepreneurial orientation; human resource management
• Online Access: https://timreview.ca/timreview.ca/article/1348

This paper develops the concept of adopting artificial intelligence (AI) in human resources management (HRM) through a research questionnaire and reports the results of a study designed to investigate the perception of adopting and introducing AI in HRM processes. In addition, it investigates the correlation between entrepreneurship orientation (EO) and AI in HRM processes. A survey was conducted with a sample of 310 firm members in the HR Section Romande, as well as a literature review on the adoption of new technologies. The results indicate a perceived positive value of introducing AI in HRM and a correlation between the level of a company's EO and the introduction of AI in HRM. This means that the more a company is entrepreneurially oriented, the more it tends to implement or include already implemented AI projects and tools in HRM processes. The perceived value of AI in HRM was evaluated by comparing answers to research questions involving the introduction of AI in HRM tools, and expectations of widely implementing AI in the next five years. The main barrier of adopting AI in HRM appeared to be a lack of skills and training. In addition, potential features of implementing AI in HRM were identified as potential steps toward introducing AI as a new technology. Questions regarding the evaluation of EO were based on a research Colvin Slevin (1989). It is important for SMEs to invest in information technology to set the basis for further development. Owing to intensified competitive pressures and the necessity of entering global markets, SMEs are incrementally employing Information Technology (IT) to create substantial benefits. Most prior research has focused more on IT adoption in large organizations, yet when regarding the limited resources of SMEs, the IT adoption process is considerably different. (Ghobakhloo, Sabouri, Hong and Zulkifli, 2011).