1 s2.0 S0148296321002174 Main

Journal of Business Research 131 (2021) 311–326
Contents lists available at ScienceDirect
Journal of Business Research

journal homepage: www.elsevier.com/locate/jbusres
Examining the determinants of successful adoption of data analytics in

human resource management – A framework for implications
Sateesh.V. Shet a, *, Tanuj Poddar b, Fosso Wamba Samuel c, Yogesh K. Dwivedi d
a
School of Business Management, NMIMS University, Mumbai, India
b
Sr.Manager- HR Transformation, eClerx, Mumbai, India
c
Toulose Business School, France
d
Swansea University, UK
A R T I C L E I N F O A B S T R A C T
Keywords: Data analytics has gained importance in human resource management (HRM) for its ability to provide insights
Human resource analytics based on data-driven decision-making processes. However, integrating an analytics-based approach in HRM is a
HRM analytics complex process, and hence, many organizations are unable to adopt HR Analytics (HRA). Using a framework
People analytics
synthesis approach, we first identify the challenges that hinder the practice of HRA and then develop a frame
Adoption of HR analytics
Challenges
work to explain the different factors that impact the adoption of HRA within organizations. This study identifies
Implementation of HR analytics the key aspects related to the technological, organizational, environmental, data governance, and individual
Big data factors that influence the adoption of HRA. In addition, this paper determines 23 sub-dimensions of these five
Data analytics factors as the crucial aspects for successfully implementing and practicing HRA within organizations. We also
Framework synthesis discuss the implications of the framework for HR leaders, HR Managers, CEOs, IT Managers and consulting
practitioners for effective adoption of HRA in organization.
1. Introduction organizational challenges (Boudreau & Ramstad, 2007). The adoption of

a scientific approach in decision-making for HR has the potential to
Human resource analytics (HRA) is attracting increasing interest as improve decisions concerning people much on the lines of how a sci
an innovative practice in the domain of human resource management entific approach helps marketers to make informed decisions about the
(HRM) (Huselid, 2018; Mclver, Lengnick-Hall & Lengnick-Hall, 2018; spending strategy of their customers and finance departments for
Boudreau & Cascio, 2017; Levenson, 2017; Rasmussen & Ulrich, 2015). working capital predictions (Boudreau & Ramstad, 2005). However, to
The emergence of disruptive technologies such as artificial intelligence, reap the benefits of data-driven decision-making, HRA should be inte
computational intelligence techniques, data mining, machine learning, grated with relevant products, services, and business-level indicators
and the Internet of Things has speeded up data-driven decision-making (Levenson, 2011; Angrave et al., 2016; Levenson, 2005; Lawler et al.,
in HRM (Duan et al., 2019; Dwivedi et al., 2021; Tambe et al., 2019; 2004; Boudreau & Ramstad, 2007).
Davenport, 2018; Brynjolfsson et al., 2011) such as candidate selection, Despite the potential benefits of HRA, it has not received adequate
employee mood, and sentiment analysis, and attrition prediction (Gel attention from management researchers (Marler & Boudreau, 2016).
bard, Ramon-Gonen, Carmeli, Bittmann & Talyansky, 2018). Such This is because very little information is available about the process
technologies have also provided enormous opportunities for advancing through which HRA influences organizations and their performance
data-driven workforce management. Consequently, organizations are (Huselid, 2018; Schiemann, Seibert & Blankenship, 2017). In addition, it
investing in analytics infrastructure, including tools, capabilities, and is also not completely clear how organizations should use HRA to ach
other resources. However, the pace of adoption of HRA has not been as ieve important organizational outcomes (Mclver, Lengnick-Hall &
expected (Angrave et al., 2016). Lengnick-Hall, 2018). Therefore, more structured solutions to these is
HRA is considered as future value-driver in HRM because it enables sues are needed before analytics can be adopted in the HRM of an
systematic analysis of complex data that may help resolve various organization.
* Corresponding author.
E-mail addresses: svshet@hotmail.com (Sateesh.V. Shet), Tanuj.Poddar@eclerx.com (T. Poddar), s.fosso-wamba@tbs-education.fr (F. Wamba Samuel), y.k.
dwivedi@swansea.ac.uk (Y.K. Dwivedi).
https://doi.org/10.1016/j.jbusres.2021.03.054
Received 16 August 2020; Received in revised form 25 March 2021; Accepted 26 March 2021
Available online 25 April 2021
0148-2963/© 2021 Elsevier Inc. All rights reserved.
Sateesh.V. Shet et al. Journal of Business Research 131 (2021) 311–326
HRA adoption is defined as the process through which an organiza understanding of an organization’s ability to inculcate HRA into its daily
tion invests in, operationalizes, and assimilates HRA into the work operations and possibly direct their focus on the factors that impact their
force’s decision-making process. This includes envisioning the decisions ability to reap the benefits of HRA.
they want to be driven by data, assessing the resources required to
support the decision-making, building the case for HRA adoption and 2. Challenges in the adoption of data analytics in HRM
making relevant investments, prioritizing the design and delivery of
such supporting resources, enabling stakeholders in their decision- Organizations need to overcome several challenges before they can
making process, and driving the usage of HRA in the entire organiza adopt HRA in their processes. They need to review how analytics can be
tion. However, the adoption of HRA by an organization is marred by employed to capture, organize, and leverage the HR data to derive value.
several challenges. A major challenge that adversely influences the For this to happen, HRA needs to move from the existing descriptive
implementation of HRA is the varying levels of process maturity within models to the predictive ones to understand human capital’s strategic
the HR function across its subsidiary organizations and in different de impact (Boudreau & Lawler, 2015; Boudreau & Casico, 2017). The
partments, units, and locations. At times, even basic data metrics are current HR platforms and applications are mainly designed to support
unavailable to the subsidiaries, and if available, they are not consistent, data reporting; they rarely assist in understanding the contribution
reliable, or standardized (Fitz-enz & Mattox, 2014). As a result, HRM has made by the human capital in an organization’s success (Angrave et al.,
always been found to be lagging in integrating analytics into its pro 2016). Therefore, even in today’s technology-driven work environment,
cesses (Angrave et al., 2016; LaValle, Lesser, Shockley, Hopkins & HR practitioners continue to rely on spreadsheets for MIS rather than on
Kruschwitz, 2011). However, the multitude of processes is continuously HRMS or eHRM platforms, as the existing HRMS software is incapable of
creating more data at play in an organization, the HRM has to find ways providing analytical insights. Although business processes such as in
to leverage advanced capabilities that analytics has to offer (Cheng & ventory management, finished goods, and value chain management
Hackett, 2019). For instance, digital communications and sensor tech have been extensively analyzed, the analysis of workforce contribution
nologies have resulted in novel methods for understanding and is limited to its cost and output. In the absence of a strategic perspective
measuring employee behavior (Davenport, 2018; McAfee et al., 2012). on HRA, the HRM cannot provide the desired support to the top man
The HRA involves an interplay of knowledge from information sci agers and CEOs, even though they widely consider human capital as a
ence, information technology, computer science, mathematics, and valuable resource that offers competitive advantages. Thus, organiza
statistical science to process data on a real-time basis and arrive at a tions should focus on building a data-driven culture for a mature HRA
data-driven decision to predict the outcomes of complex challenges. practice.
Therefore, specialized skills are needed to manage the influx of data Other challenges that hinder HRA adoption include efficiency and
from multiple sources (text, voice, image, and video), analyze them to effectiveness in collecting and analyzing the data (Pape, 2016; Ras
extract meanings, establish causal relationships, and drive actions by mussen & Ulrich, 2015). HRA cannot be implemented without reliable
influencing key decisions. However, HRM practitioners are generally data; thus, the data need to be synchronized and made usable for the
not well-versed with the analytical capabilities required in HRA. In this HRA platform (Scullen et al., 2000). Lack of quality data and proper data
study, we systematically analyze the factors that impact the adoption of are major issues affecting the implementation of HRA (Andersen, 2017).
HRA in an organization and propose a framework for value creation in Many organizations try to make up for their deficiency in HR capabilities
an enterprise business environment. The considerable opportunities that by outsourcing the HR functions to external vendors, which, however,
HRA offers motivated us to investigate the adoption of HRA from an may lead to data privacy issues. Thus, it is necessary for organizations to
organizational perspective. We used frameworks on the theory of develop in-house solutions to fill in this knowledge gap (Minbaeva,
planned behavior (TPB; Ajzen, 2012), diffusion of innovation (DOI) 2017). Another challenge is the lack of organization-wide buy-in for
model (Rogers, 2003), and technology organization environment (TOE; HRA and the difficulty in understanding how AI-powered tools should
Tornatzky & Fleischer, 1990) as a theoretical lens to understand and be employed (Strohmeier & Piazza, 2013). Given a large number of AI-
contextualize HRA as an innovation in HRM for the present study. powered tools available, HRA professionals need continuous experi
The aim of our study is to analyze why organizations have not been mentations to determine the most appropriate tools and techniques for
able to apply analytics in HRM or derive business values from HRA. We resolving their organization’s challenges.
identify the challenges that act as a deterrent in practicing HRA. We Some studies have also discussed whether the HRA domain should
systematically analyze and categorize these challenges and propose a even be a part of the HR function (Rasmussen & Ulrich, 2015). It has
framework based on the factors that impact the adoption of HRA. We been argued that it is better to have a centralized analytics cell within an
then discuss the implications of our proposed framework by assessing organization because HRA requires data from other departments too,
organizational readiness to create business value by practicing HRA. such as marketing, to address larger business challenges (Bersin, 2015).
Moreover, we introduce framework synthesis as a methodology for Note that data analyses alone will not serve any purpose unless they are
conducting integrative reviews in the business management domain. We used to extract insights, which are then used to weave a compelling story
frame our research question as follows: “What are the typical challenges to drive decision-making (Andersen, 2017; Green, 2017). Angrave et al.
encountered while implementing HRA?” If the challenges are evident, (2016) questioned whether HR professionals are even capable of effec
then we focus on how organizations can overcome those challenges, tively extracting various trends and insights from big data and analytics
aiming to address the question, “What are the essential factors that to generate organizational benefits. Even if HR professionals were
should be considered when adopting HRA?” Finally, we connect this capable of conducting the relevant analyses, data collection from all
aspect to the practice of HRA by focusing on, “How do organizations sources remains a difficult task (Fitz-enz & Mattox, 2014). The non-
adopt HRA?” by discussing the implications for practitioners and re central positioning of HR departments within organizational hierar
searchers. This study shows the emergence of the 23 dimensions of five chies and the lack of relevant skills partly explain their poor perfor
factors—technological, organizational, environmental, data gover mance in this aspect (Angrave et al., 2016). Another reason for the low
nance, and individual—as the challenges that need to be addressed for level of HRA adoption is that it requires the HR professionals to be able
effective implementation and practice of HRA. These factors can be to perform mathematical and statistical analyses (Vargas et al., 2018),
contextualized to other functions in organizations such as finance, which they may not be familiar with.
marketing, operations, and supply chain. A significant contribution of HR practitioners need to build a strong case for leveraging data in
this article is the comprehensive coverage of all the factors, which are sights to attract investments; however, there is a dearth of informative
contextualized to HRM, along with their implications. This study aims to literature on how to leverage such data. Resolving this issue is trickier in
assist both researchers and practitioners in gaining a better the case of HRA, because it is often difficult to understand the
312
fundamental behavior and decision-making processes (Fitz-End, Phil development of HRA as it can help build organizational competence and
lips, & Ray, 2012). Although several HR strategists foresee an encour establish relevant infrastructure (Simón & Ferreiro, 2017).
aging future for HRA, businesses worldwide are still struggling to take
correct steps in making this a reality (Angrave et al., 2016). Many 3. Research design: framework synthesis method
consulting organizations claim that analytics remains one of the biggest
capability gaps in HR practice, while acknowledging that HRA is “under We used the integrative review method to recognize the challenges in
active development” in their businesses (Deliotte, 2015). They also state HRA adoption and to identify mature and new emerging topics in the
that most organizations, including large multinational companies, lack field of HRA adoption. We used the “framework synthesis method” to
the requisite vision to successfully imbibe HRA tools within their pro uncover the challenges and propose a framework for the adoption of
cesses. Despite its low adoption rates, the fact that the concept of HRA is HRA (Fig. 1). However, because HRM deals with topics and issues that
gaining popularity in academic circles is evident from the various pro vary along an age continuum from old to new, all integrative literature
grams and courses being offered on the topic, which may speed up the reviews do not fit neatly into “old” or “new” categories (Torraco, 2005).
HRA adoption rate (Greasley & Thomas, 2020). Hence, more method The latter form of integrative literature review addresses new or
ological studies are required on the adoption of HRA (Marler & Bou emerging topics that would benefit from a holistic conceptualization and
dreau, 2016). However, existing organizational dynamics are not yet synthesis of the literature to date. Because these topics are relatively new
mature enough to provide space for HRA both within the HRM and the and have not yet been comprehensively reviewed, the integrative liter
organization. Thus, it is essential for organizations to implement HRA ature review is more likely to lead to an initial or preliminary concep
with a strategic intent for sustained value creation (Côrte-Real, Ruivo, tualization of the topic (i.e., a new model or framework) rather than a
Oliveira & Popovič, 2019). reconceptualization of previous models (Torraco, 2005).
Because of the increasing popularity of analytics, examining the Synthesis integrates existing ideas with new ideas to create a new
factors responsible for the adoption of HRA and its impact on business formulation of the topic or issue. Synthesizing the literature means that
performance has become a critical research topic (Aydiner et al., 2019). the review weaves the research streams together to focus on core issues
Although an increasing number of organizations are investing in the rather than merely reporting previous literature. Framework synthesis
HRA space, the overall proportion still seems to be insignificant. This can be employed for conducting systematic reviews to examine the
limited adoption of HRA makes it difficult for researchers to assess its complexity of the factors involved in HRA adoption (Brunton, Olilver &
importance in the success of an organization. That is why, no strong Thomas, 2020; Houghton et al., 2017; Gale et al., 2013; Carroll et al.,
academic framework has yet been developed to understand the HRA 2011). Framework synthesis originates from framework analysis, a
adoption process within organizations. Despite the widespread use of method of analyzing primary research data developed by Ritchie and
HRMS and eHRM in organizations, there has been a surprising dearth of Spencer (1993) to address policy concerns. As shown in Fig. 1, the stages
theory and research on these topics (Stone & Dulebohn, 2013). In of framework synthesis correspond to the systematic review process,
addition, existing literature on HRA provides little or no evidence on albeit with some overlap between the steps and processes. Framework
how HRA can be applied to operational business practices (Angrave analysis presents an opportunity to use a “scaffold against which find
et al., 2016). ings from the different components of an assessment may be brought
More research should be carried out on information systems to together and organised” (Carroll et al., 2011, p. 29), which is described
illustrate the acceptance, usage, and success of information systems as a “framework synthesis” (Thomas et al., 2017; Carroll et al., 2011).
technologies in different management fields, although these technolo We chose this method for its superior advantages over method of sys
gies are yet to be adopted in HRA (Venkatesh, Morris, Davis & Davis, tematic reviews, which are generally rigid. This gives us the flexibility to
2016). In addition, more scholarly research is needed on HRA, and its focus on the research questions with an iterative process until we
practice should be encouraged at the individual, process, and structural complete the review process.
levels within organizations (Marler & Boudreau, 2016; Huselid, 2018; Framework synthesis consists of five stages: Familiarization, frame
Minbaeva, 2017). It has been suggested that researchers from the work selection, indexing, charting, and mapping and interpretation. In
management domain could provide significant support to the the familiarization stage, reviewers first familiarize themselves with
Systematic review process (Gough et al.,2012)
Review
Search for Inclusion/
initiation/
potentially exclusion Data Interpretation
Research Synthesis
relevant screening extraction /Communication
question
research of articles
formation
1.Familarization Temporal progression of review
2.Framework selection
3.Indexing
4.Charting
5.Mapping & Interpretation
Stages of Framework synthesis method (Ritchie et al.,2014)

Fig. 1. Framework synthesis method.
313
current issues and ideas about the topic by drawing iteratively on 4. Analysis of the factors for driving HRA adoption in
various sources to select a framework, which involves choosing an initial organizations
framework, a conceptual or policy framework, a logic model, a causal
chain, or an established theory that might explain the challenges We used the framework synthesis method to identify the fac
involved. After gaining familiarization with HRA and its scope, the next tors—technological, organizational, environmental, data governance,
step involves understanding the challenges in the adoption of HRA. and individual—crucial for the effective adoption of HRA (see Table 1).
Given that such challenges are multifold, it may not be possible to obtain In addition, we identified 23 subfactors associated with each of these
all answers from the HRM domain only. Analytics is a multidisciplinary factors, some of which have been investigated previously such as the
approach involving mathematics, statistics, computer science, infor importance of analytical capabilities, data quality, strategic ability to act
mation science and technology (IS/IT), and management. We therefore (Minbaeva, 2017), technology, people, and organization (Bondarouk
extended the familiarization stage not only to the HRM, but also to the et al., 2017), infrastructure capability (Yasmin et al., 2020), followed by
IS/IT domain as the evidence for the significance of addressing the the management and HR capabilities. We discuss how each of these
challenges related to big data analytics in organizations. However, the variables influences the adoption of HRA in an organization.
adoption of HRA and the related challenges have not been discussed
enough in the literature. 4.1. Technological factors
For framework selection, we performed background scoping of
literature to identify a relevant conceptual framework for including the It is important to assess whether a new technology will favorably or
studies that can be covered in our research. A purposive search strategy unfavorably affect the decision-making process during its adoption
was used to identify studies that would address our research question (Maduku et al., 2016; Tornatzky & Fleischer, 1990). The decision for
and scope. Key papers were identified from the databases of various adopting HRA technologies depends on “what” is available and “how”
publishers, including Elsevier, Wiley, Emerald, Sage, Springer, and these technologies will work with the existing technologies in the
Taylor&Francis. To be consistent and transparent in assessing all the business (DePietro et al., 1990; Jeyaraj et al., 2006). By using the TOE
retrieved references, each paper was screened using eligibility criteria framework, the current study analyzes the application of the DOI model
(inclusion and exclusion) based on the research questions. First, reports to review various technological factors that impact the adoption of HRA.
screened based on the title and abstract had to specifically indicate the The decision to adopt an HRA technology generally depends on the
use of “analytics” and be relevant to HRM for inclusion in the synthesis. complexity (learning an IT innovation or ease of use) and compatibility
Full-text reports of references meeting both these criteria were retrieved (both organizational and technical) of the technological innovation
and screened again. This discussion was evidenced in bits and pieces in (Kapoor et al., 2014a; 2014b; Rogers, 2003). The technological infra
the identified papers. We selected such papers as the base to discuss our structure required for HRA adoption is usually part of the overall
research further. We contextualized the theories applicable to HRA by analytical strategy of an organization (which includes IT and HRM). The
systematically identifying relevant previous research on the adoption of technology influences the HRM, particularly the way organizations
analytics in information system, e-commerce, information technology, gather, store, utilize, and disperse information about their employees
and HRM technologies. To identify the relevant articles through the and applicants (Stone, Deadrick, Lukaszewski & Johnson, 2015). It has
publishers’ database, we used the following keywords as the search been suggested that the adoption of various systemic, complex tech
criteria: “HR analytics,” “adoption of analytics,” “analytics challenges,” nologies such as HRA can increase the return on their adoption, that is,
and “technology adoption challenges.” As no HRA-related paper could the initial increase in the adoption leads to a better technological
be found, we chose papers on similar topics such as the application of experience. As a result, the rate of technological improvements and
analytics in the information management domain. We identified only usage also increases, leading to further adoption of new technologies
those papers that have discussed the challenges of adopting analytics in (Mäkinen, Kannianen & Dedehayir, 2013). In this study, we show that
their respective domains. More specifically, because our objective was to technological factors are critical for the adoption of HRA in an organi
develop a framework for HRA adoption, we checked only those papers zation. The factors that influence the technological perspective for the
whose theoretical contributions and development could meet our adoption of HRA include the perceived usefulness of HRA in an orga
standards. nization, the complexity of the HRA, the quality of the HRA data, the
At the indexing stage, we screened the selected papers and extracted compatibility of data-driven decision-making in the form of HRA, and
the data using the initial conceptual framework to determine their access to and availability of the relevant data for HRA.
relevance with respect to the review questions and to identify their main
characteristics. We listed all the challenges that hinder HRA adoption 4.1.1. Complexity
from the identified papers and then moved to the next stage of charting Complexity is the extent to which an innovation is viewed as difficult
to derive meaning from the collected data. to understand and use (Rogers, 2003, p. 257). Technological complexity
In the charting stage, we analyzed and classified the challenges increases the implementation’s uncertainty; it also increases the prob
identified in the previous stage into five categories: technological, ability of a technology not being adopted (Premkumar & Roberts, 1999).
organizational, environmental, data governance, and individual. The User-friendly technologies are generally more likely to be adopted. The
entire process was manually coded as the significance of each challenge complexity may also refer to the extent to which a business user un
was discussed before it could be included in the present study. These derstands how to use analytics before gaining some confidence and
analytical categories were then used to synthesize the findings. For the incorporating it in their decision-making processes. HR as a function is
quality assurance of the review, we adhered to the ENTRAQ standards subjective, and the decisions made in different contexts are dynamic,
suggested by Tong et al. (2012). while HRA is objective. Therefore, different variables that are perceived
Finally, at the mapping and interpretation stages, the derived as important by HR are challenging to quantify. Even though complexity
themes were contextualized in light of the original research questions. may delay or even prevent the adoption of IT in organizations, it is a
Findings from the review are presented in a tabular format *(Table 1) for significant determinant for such adoptions (Grover, 1993; Thong,
ease of interpretation. At the synthesis stage, themes were determined 1999).” The HRA is highly technical as it involves the application of both
based on the characteristics of the included studies. The emerging IT and computer science. As a result, HR leaders find it challenging to
themes were then identified for the “adoption of HR analytics.” The assess its outcomes and implement it as an HR-driven initiative.
reliability of the process was established as two researchers were
involved in all the phases of this process. 4.1.2. Perceived usefulness
Perceived usefulness is considered a significant factor in the context
314
Table 1
Human Resource Analytics Challenges Matrix.
HR Analytics Challenges Matrix
Author Challenges Technological Organizational Environmental Data Individual

Governance
Andersen, 2017 Lack of the implementation of good software √

solutions,
Andersen, 2017 Bad data/lack of proper data √
Andersen, 2017 Too few resources √
Andersen, 2017 Lack of organization-wide buy-in. √
Strohmeier, 2018 Lack of understanding of tools for specific people √
challenges
Marler & Boudreau, 2016 Lack of understanding of tools for specific people √
challenges
Huselid, 2018 Lack of talent information infrastructure √ √
Angrave et al., 2016 Lack of strategic understanding of contribution of √
human capital analytics to business
Marler & Boudreau, 2016 Integration of Data spread across the enterprise √ √
Dahlbom et al., 2019 Data access √
Dahlbom et al., 2019 Data piracy √
Dahlbom et al., 2019 Data security √
Dahlbom et al., 2019 Ethical issues in data √ √
Bondarouk et al. 2017 Include top management support √
Bondarouk et al. 2017 User acceptance √
Bondarouk et al. 2017 Communication and collaboration between units √
Bondarouk et al. 2017 HR skills and expertise √ √
Bondarouk et al. 2017 Leadership √ √
Bondarouk et al. 2017 Supportive culture √
Kossek et al., 1994 Lack of top management support √
Olivas-Lujan et al., 2007 Employees’ mindsets √
Olivas-Lujan et al., 2007 Stakeholder commitment √
Cronin et al., 2006 Internal marketing √
Panayotopoulou et al., 2007 Communication and collaboration between IT & HR √
Tansley & Newell, 2007 Communication and collaboration between IT & HR √
Martin & Reddington, 2010 Training √
Panayotopoulou et al., 2007 Training √
Marler & Boudreau, 2016 Lack of theoretical development √
Marler & Boudreau, 2016 Lack of methodical development √
Andersen, 2017 Lack of storytelling ability √
Boudreau & Casico, 2017 Lack of presentation and selling skills on HR analytics √
Boudreau & Casico, 2017 Struggling to move from operational reporting to √ √ √
analytics.
Pape, 2016 Efficiency and effectiveness √
Scullen et al. 2000 Unsynchronized data √
Rasmussen & Ulrich, 2015 Integration of HRMS with management data √ √ √
Cappelli, 2017 Lack of high quality data √
Cappelli, 2017 Lack of analytical capabilities √
Cappelli, 2017 Techniques for small data √
Minbaeva, 2017 Lack of credible team for HCA √ √
Minbaeva, 2017 Demonstrating value of HCA √
Deliotte, 2015 Lack of organizational readiness √
Deliotte, 2015 Lack of capability gaps √
Deliotte, 2015 Poor data quality √
Deliotte, 2015 Lack of business case √
Lee, 2017 Lack of understanding data architecture √
Watson, 2014 Lack of understanding data architecture √
Hamilton & Sodeman, 2020 Lack of understanding data architecture √
Hamilton & Sodeman, 2020 Data responsibility √ √
Hamilton & Sodeman, 2020 Data transmission √
Hamilton & Sodeman, 2020 Data archiving √
Hamilton & Sodeman, 2020 Locating data √
Rasmussen & Ulrich, 2015 Should HRA be part of HR or of the central analytics √
team
Angrave et al., 2016 Lack of capability to gain insights from data for √ √
organizational benefits
Angrave et al., 2016 Incompetence of HR Department √ √
Angrave et al., 2016 Non credibility of HR department in business vertical √
Sivathanu & Pillai, 2018 Integration of Industry 4.0 √
Sivathanu & Pillai, 2018 Integration of IoT √
DiClaudio, 2019 Capability of contractor/outsource manpower √
DiClaudio, 2019 Integration at the enterprise level √
DiClaudio, 2019 Appropriately manipulate data to provide critical √ √
evidence and insights for the business
DiClaudio, 2019 Lack of skilled professionals for data analytics
DiClaudio, 2019 Know how to identify problems and address those √
with business solutions
DiClaudio, 2019 Assess potential solutions based on the literature √
(continued on next page)
315
Table 1 (continued )
HR Analytics Challenges Matrix
Author Challenges Technological Organizational Environmental Data Individual

Governance
DiClaudio, 2019 Rigorously testing solutions √

Fernandez, 2019 Understanding the bias decision made by AI products √ √
Fernandez, 2019 Setting up HR Technologies for Data √ √
Green, 2017 Lack of storytelling ability √
Marler & Bordreau, 2016 Integration with e-HRM and HRIS √ √
Martinsons. 1994 Budgetary constraints √
Martinsons, 1994 Lack of technically qualified professional √
Bondarouk et al., 2017 Supportive leaders, √
Bondarouk et al., 2017 Technology adoptive culture, √
Bondarouk et al., 2017 Organizational level trust √
Boudreau and Lawler, 2015 Unable to move from descriptive to predictive √ √ √
Fitz-enz & Mattox, 2014 Identification of problem associated with HRA √ √
Dahlbom et al., 2019 Lack of linking metrics from HR to business level √ √
Minbaeva, 2017 In-house development of HR analytics professionals √ √
Vargas et al., 2018 Slow rate of adoption of HR Analytics √
Rasmussen & Ulrich, 2015 Framing the practical business challenges √
Angrave et al., 2016 Lack of understanding of algorithms in HR analytics √ √
Minbaeva, 2017 Lack of understanding of algorithms in HR analytics √ √
Janssen, van der Voort, & Lack of research skills for research methodology, √
Wahyudi, 2017 reliability and construct validity
McAfee et al., 2017 Lack of research skills for research methodology, √
including reliability and construct validity
Marler & Boudreau, 2016 Conflict on data and belief √ √
Tursunbayeva et al., 2018 Ethical issues in data √
Fitz-End, Phillips, & Ray, Misunderstanding of HR Analytics √
2012
of technology adoption (Wamba et al., 2017). This variable plays an an employee is so varied that substantial efforts are required to stan
important role in the adoption of technology in different contexts and dardize the input–output values in different processes. Because all pro
settings (Ngai et al., 2008). The employees’ (including its senior man cesses in HR are not managed through technology, considerable efforts
agement) perception of the importance and effectiveness of HRA in an are required to collate and govern the data captured from these pro
organization may help in its adoption. HRA provides insights that are cesses. A large number of successful organizations not only recognize the
used by HR practitioners to develop more objective and data-driven existence of data, but also prioritize their accessibility (Barrett et al.,
initiatives for HRM applications in organizations. The perceived use 2015). Although there are multiple stakeholders of data insights, some
fulness also helps HR teams to quantify different benefits or returns on data are considered sensitive and thus need to be properly classified to
their efforts. Therefore, HRA should be able to tackle management and define who within the organization can view it. In addition, information
leadership constraints while bringing in more value. If HRA predicts that such as compensation and performance ratings are highly sensitive and
an employee is going to exit and if attrition is not a major concern in that even the analysts have to work under the constraints imposed by data
organization, then the management will not see much value in HRA. confidentiality. It may also be possible that some of these data are
This means that the analytics function can help HR teams to keep track outside of the scope of the HR function, making it difficult to access
of the priority areas for the HR function. Perception regarding the information. As the ownership of data can be controversial, clearly
benefits generally depends on the failure or success in analytics adoption stating the ownership will help organizations with the accessibility of
in an organization (Davenport, 2012). data (Ramaswamy, 2013; Agarwal & Dhar, 2014).
4.1.3. Data quality 4.1.5. Compatibility

Data quality refers to the availability and consistency of the data Compatibility is defined as “the degree to which an innovation is
required for the adoption of HRA (Levenson, 2011; Rasmussen & Ulrich, perceived as consistent with the existing values, past experiences, and
2015; Angrave et al., 2016). The HR data are diverse because they needs of potential adopters” (Rogers, 2003, p. 240). The solutions and
contain information from a multitude of processes under the HRM. HR metrics designed by the HRA teams help change the way processes are
decisions can be based on data metrics only if there is confidence in the managed, and hence, they should be in line with the values and vision of
accuracy of that data. There are several challenges associated with data an organization. An innovation should be able to meet the technological
such as wrong entries, data duplication, and issues with the absence of needs and organizational values of an organization before it can be
formal and centralized coordination of data-gathering activities (Min adopted (Lee, 2004). Hence, while designing solutions based on ana
baeva, 2017). As a result, it becomes impossible to integrate diverse lytics, it is also necessary to define how the end-user will use it. Unlike
datasets, resulting in data discrepancies because of the propagation of many other best practices in HR such as recruitment, talent manage
different metrics and time frames of longitudinal nature (Minbaeva, ment, and learning, the practices in HRA are highly customized. Every
2017). In addition, many information sources such as performance ap organization has a different way of calculating a standard metric such as
praisals, feedback, and surveys are subjective, making it difficult to attrition or even headcount, which, in its unique way, helps in decision-
ascertain their accuracy (Shet, 2019a). Since HR is considered a soft making. Hence, HRA must be compatible with the stakeholders of an
function, numbers presented by the HR personnel are often questioned. organization so that it is positioned as the employee data-driven deci
Thus, data quality is an important aspect for helping build the credibility sion-making process.
of the metrics shown by HR.
4.2. Organizational factors
4.1.4. Access to relevant data
Access to data is a major challenge for HR because the data related to
Factors such as innovativeness, top management (TM) support,
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technical expertise of employees, organizational structure, and organi time to deliver substantial results, especially in a domain like HR, where
zational readiness influence the adoption of information technology (IT) assessing the impact of implementing its recommendations is particu
by organizations. Chwelos et al. (2001) termed the construct “IT so larly time-consuming. Therefore, a financial sponsor is required who
phistication” consisting of TM support, expertise, and infrastructure in trusts the function and is dedicated to it over an extended period of time.
their empirical test of the adoption model. The organizational capabil
ities influence the adoption of analytics (Wamba et al., 2017). For the 4.2.4. Training and development of employees
present paper, we selected constructs such as financial readiness, IT Continuous training of the employees on new tools and technology is
infrastructure and capabilities, and TM support. Training and develop a major challenge for any organization, which becomes even more
ment orientation and access to a skilled workforce were taken as specific important when it comes to the adoption of HRA (Wamba et al., 2017).
dimensions of organizational factors. The organizational context refers Analytics is a technical function and requires expertise on various
to the internal factors of an organization that affect the adoption and technologies. However, in a support function such as HR, organizations
implementation of an innovation (Tornatzky & Fleischer, 1990). The generally do not invest much, which implies a need for capabilities
investigation culture, habit of making evidence-based decisions, and use across multiple technologies as well as adequate support. It may be
of action-oriented tools by the TM for discussions on the HRA strategy easier to learn the analytics techniques; however, understanding its
are also part of organizational factors (Minbaeva, 2017). implementation is challenging. Hence, an effective and contextual
training is critical for HRA adoption. Analytics training may also involve
4.2.1. Top management support aspects such as consulting, data management, data transformation,
The TM support is the degree to which the TM of an organization visualization, interface designing, statistical analysis, application
understands the importance of HRA and the extent to which it is development, documentation, and communication. The diffusion pro
involved in HRA activities (Rasmussen & Ulrich, 2015; Hamilton & cess would be easy if on-the-job training along with hands-on experience
Sodeman, 2020). The higher the support from the TM, the greater the is provided not only to the HR personnel but also to other decision-
overall HRA effectiveness (Thong et al., 1996). Analytics is a highly makers (Barton & Court, 2012).
resource-intensive function and depends on collaboration among
different departments. Therefore, TM support is necessary to help 4.2.5. Access to skilled workforce
establish a friendly environment and offer sufficient resources to expe The HRA adoption process is closely related to the accessibility of the
dite the adoption of IT innovations (Low et al., 2011). The influence of relevant human resources in the business, in third-party organizations,
the TM support and attitudes toward change are the key factors that or even to the outsourced expertise (Provost & Fawcett, 2013). Indeed,
determine the adoption of technology innovations (Daylami et al., as a support function, HR cannot invest a large amount of resources in
2005). However, in many organizations, the TM is not interested in the analytics team. Therefore, the HR department should use the limited
investing large amounts of money in HRA, often because they are unsure resources available more responsibly and develop cross-functional
of the likely benefits (Minbaeva, 2017). As a result, the adoption of HRA abilities to work on new technologies and apply them to solve a var
becomes difficult in such organizations. Thus, for such change to be ied set of problems. Organizations need to ensure the availability of
effective, a leadership support drive from the TM is required (Shet, resources having capabilities such as data mining, aggregation, visual
2020c). ization, and data processing, all of which are necessary for the adoption
of HRA (Wang & Hajli, 2017). In addition, they need to understand
4.2.2. IT infrastructure and capability various statistical techniques ranging from classical statistics to machine
Analytics is a highly resource-intensive function, including the use of learning to its applications such as NLP and sentiment analysis. As a
technology infrastructure. HR analysts need data infrastructure to result, there is a sudden boom in analytics-related educational courses
perform data analysis using different analytical techniques and (Gandomi & Haider, 2015). However, tailor-made programs for teach
computational intelligence. To implement the HRA, both intangible ing HRA have still not been developed. The challenge of the absence of
(human resources, experience, and skills) and tangible (physical assets) structured HRA teams is evident in most organizations, especially those
resources are required (Aral et al., 2012; Angrave et al., 2016). Well- lacking in-house organizational systems/capabilities on HRA (Min
established IT infrastructure and an efficient analytics team are baeva, 2017).
needed to capture, transform, and analyze the data to automate repet
itive processes and to create better products and solutions. However, 4.3. Environmental factors
very few organizations make efforts to bridge such gaps while initially
configuring their IT platforms. As a result, they may fall behind in this Successful adoption of HRA also depends on the external environ
aspect and may have to make significant efforts later to develop IT ment, which includes competitors and business partners of an organi
infrastructure and capabilities, depending on the availability of funds, zation. An interplay of these factors decides the adoption of HRA. Some
among other requirements. A positive connection between the IT of these factors include the ability of an organization to withstand
infrastructure and capabilities and the adoption of IT innovation has competition, the industry type to which it belongs, and data-related
been proved empirically (Hsu & Lin, 2016; Maduku et al., 2016). factors such as data governance.
4.2.3. Financial readiness 4.3.1. Competitiveness/external pressure (EP)

Financial readiness is the availability of financial resources to learn Both business partners and competitors may influence an organiza
and incorporate a new system (Chwelos et al., 2001). Without sufficient tion’s decision to adopt a particular technology. For example, pressure
financial resources, it will be quite difficult for firms to afford the from competitors and/or business partners is a significant factor in IT
required talent and IT resources for analytics (Maduku et al., 2016). adoption (Musawa & Wahab, 2012). The HRA setups of some FMCG
HRA is a fast-evolving field that needs collaboration between multiple companies with app-based interviews definitely do have an edge over
technologies, which, however, cannot happen without adequate finan others when it comes to mass hiring and selection. Managing people is a
cial support. The adoption of HRA involves various costs such as key aspect of any business, and an organization that is better at it will
adoption-related setup costs, training costs, and operating costs, certainly be able to deliver better results. Thus, if a competitor can
including the costs for implementation and related potential adminis improve their ability to manage people by being better at hiring,
trative functions (Chau & Hui, 2001). There are also costs related to the developing, rewarding, and retaining talent using analytics, it becomes
implementation and maintenance of analytics and regulatory policies imperative for the HR team to leverage analytics to manage their people
for data security and privacy (Esteves & Curto, 2013). Analytics takes like their competitors do. Thus, to remain competitive, HR managers
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might be forced to keep abreast of technological developments and 4.4.2. Data security
follow the dominant trends. Data security is a major issue. If the data cannot be secured, then data
analytics would not gain much acceptance from the stakeholders. HRA
4.3.2. Industry type (InT) teams manage the critical and confidential data of processes such as
InT becomes a moderating variable that determines the adoption performance management, compensation, and succession planning.
intention of technology by an organization (Yeung et al., 2003). For Thus, they have to be very careful about who the data is being shown to
example, several studies have proved that the industry under which an and whether they have the permission to view this data. The distributed
organization works influences IT adoption (Levenburg & Klein, 2006). nature of large data is one of the biggest security issues (Yi et al., 2014).
As analytics is a technical function and requires a favorable environment Other key security issues include cyberattacks, malicious or malware
to be impactful, specific industries are better equipped to provide such applications and viruses, poor security controls (Abawajy, 2012),
an environment than others. For example, IT companies provide a better network threats, system events, forensics loss and intrusion (Wieringa
technical infrastructure to ensure credible data availability, financial et al., 2019), and poor data-security infrastructure (to ensure confi
firms are more data-driven and thus have more demand for analytics dentiality, accountability, integrity and availability). Most of the HR
that they can take action upon, and services organizations have more data is sensitive and can be personally identifiable, which renders or
operational data to measure productivity to design more meaningful ganizations legally compliant if it is misused or accessed by unautho
analysis objectively. Therefore, the industry to which an organization rized personnel. In addition, HR’s talent-related information is also very
belongs affects its information processing needs, which may influence valuable and can act as a competitive advantage if accessed by com
the adoption of innovations (Goode & Stevens, 2000). The industry type petitors (Shet, 2020b).
also determines the type of data available for analysis, the kind of
questions that the organization wants to answer using analytics, and the 4.4.3. Data privacy
benefits it perceives from making data-driven decisions. HRA also en Use of analytics has led to privacy challenges. At the same time, it
ables specific organizations that operate under stringent employment also suggests methods to maintain privacy in the digital era. With new
laws to ensure they are compliant. Therefore, such organizations see laws such as General Data Protection Regulation (GDPR), it is high time
more merit in HRA adoption. organizations show proof of transparency while using information about
their employees with their consent and by following ethical HR prac
tices. Ethical issues are always given primacy while applying analytics to
4.4. Data governance the HR data (Tursunbayeva, Lauroc & Pagliaria, 2018). As data is now
being considered the latest currency, its use is often constrained by
The main focus of analytics is on modeling, mapping, and catego privacy issues, leading to a common perception that data analytics and
rizing of the data by resolving the unstructured and complicated nature privacy are conflicting issues. Often managers and leaders feel that they
of datasets. Hence, effective data governance is necessary for guaran should have access to all the information provided by the employees
teeing the quality of the data extracted and examined from huge datasets working under them, as the employees are accountable to them and the
(Hashem et al., 2015). Setting up systems and establishing workflows employees have provided that information. However, HR has to play a
are critical not only for process-level growth, but also for enhanced data policing role here to decide which information can be accessed by whom
quality, linking the results of analytics projects to existing processes and in what form. Nevertheless, businesses can adopt different ap
within an organization and supporting the experimentation and follow- proaches that meet various degrees of privacy and yet allow them to use
up actions through HR business partners. Using poor data for smart diverse aspects of data analytics (Wieringa et al., 2019). For this to
analysis would generate little value; similarly, a higher level of dataset happen, it is necessary to appropriately classify the various data ele
will not be useful if the analyses are not properly carried out (Minbaeva, ments used by HRA teams and design policies to decide who can access
2017). Similarly, any data or data analysis would not be useful without what data in compliance with regulatory requirements.
an appropriate and well-designed research question (Deliotte, 2015). In
addition, the final goal of HRA is not just to provide innovative insights; 4.4.4. Data analysis and modeling
the main objective is to continuously provide “support in decision- The process of data analysis and data modeling comes into play after
making in the management of the workforce of an organization” the collection of data followed by storing, cleaning, integrating, and
(Deliotte, 2015). organizing the data. To demonstrate the influence of the HR processes
on business performance, we need experimental approaches, analytical
4.4.1. Data ownership models, and data-validity measures of both output and input variables
Data ownership means that the process owners are accountable to and dimensions (Camps & Luna-Arocas, 2010; Lin et al., 2016). The data
maintain the specific quality standards of the data. Data ownership can modeling capabilities required depend on two factors: (i) the type of
become highly complicated, depending on the size and complexity of the problem and (ii) the type of data that need to be analyzed to obtain the
data (Kostkova et al., 2016). Data preparation for analysis is a time- output. To resolve employee-related data problems, different types of
consuming process; in addition, the delivery time increases manifold if information (such as texts, numbers, audios, and videos) and datasets in
the data quality was poor. The data that HR personnel has to work with various formats need to be analyzed to explore potential complex re
is typically dispersed across multiple HR systems and therefore not lationships between the variables. The techniques that can be used to
easily accessible (Dahlbom, Siikanen, Sajasalo, & Jarvenpää, 2019). The resolve a problem vary from forecasting and estimations to regression
continuous mobility of HR members also poses question as to who owns and classification. Hence, the data to be used can also vary from quan
the data. Generally, expectations with the process owners can only be set titative and qualitative based on employee profiles to aggregated and
when the data quality issues within that process are resolved. Ownership transactional based on the activities that an employee performs. It has
guarantees the accuracy and monitoring of the data (Sivarajah et al., also been suggested that the HRM develops its own decision science, just
2017). However, many times, issues arise when processes are out like marketing and accounting, in order to direct, assess, and improve
sourced, dispersed across different departments in-house, or shared the decision-making process (Boudreau and Ramstad, 2007). Hence,
between corporate and subsidiaries. While HRA teams work on data data analysis and data modeling can help predict the future course of
analysis, the ownership of the data lies with the process owners. action (Chen et al., 2013).
Therefore, process owners’ commitment to maintain the expected data
standards enables analytics teams to work on more value-added 4.4.5. Data aggregation and integration
activities. This step involves the process of aggregating and integrating data
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extracted from huge unstructured datasets. Unstructured datasets in a complexity and evaluate the models through statistics (Erevelles,
raw format do not provide any relevant information. However, when Fukawa & Swayne, 2016).
accessed and integrated with other enterprise platforms, such huge
unstructured datasets can provide new knowledge and data-driven in 4.5.1. Culture
sights for decision-making (Karacapilidis, Tzagarakis & Christodoulou, Culture is a major issue that affects the adoption and usage of ana
2013). HR departments usually manage a huge expanse of processes; lytics. UPS, a service-oriented organization, is a good example of pro
sometimes, the same process might be executed in a different manner actively developing data-driven HRA culture for addressing their
using different terminologies. Collating data from different processes, business challenges using people as an enabling factor (Davenport,
managed on different systems (online or offline), is an important aspect 2018). There are at least five generations working together in today’s
of designing and delivering analytics products. In addition, integrating organization (Haeger & Lingham, 2014). Hence, culture plays a crucial
and using a common taxonomy for the collated data also plays a key role role in the adoption of analytics. A data-driven culture tends to chal
in providing a comprehensive view of the analytics products to the se lenge status quo and existing work practices. An open-minded culture is
nior management. Indecision and the inability to prove the origin of data generally characterized by a change in decision-makers’ beliefs based on
are major barriers that adversely affect data aggregation and integra data analysis. Data initiatives include benefits such as hiring people with
tion. In addition to HR, data from other functions are also required for a comprehensive technological and managerial understanding of big
creating actionable analytics, and often, this data needs to be mapped in data and analytics, promoting a culture of corporate learning and
a manner such that the HR data can be shown using aggregation tax incorporating big data decision-making into an organization’s culture
onomy utilized by other functions and vice versa. Sharing information (Mikalef, Boura, Lekakos & Krogstie, 2019). Development of a new
and data between diverse organizations and/or departments is another culture in HRM based on a data-driven approach requires the same effort
major challenge (Al Nuaimi et al., 2015). as in any other change in management initiatives. Business leaders need
to support the HRA demand and render it less optional for implementing
4.4.6. Data mining and cleansing data-driven decision-making.
Data mining and cleansing involve extraction and cleaning of data
from a pool of large-scale asynchronous data. An effective method of 4.5.2. Attitude toward analytics
extracting and cleaning data for analytics will greatly impact the overall The role of attitude is well examined for explaining the adoption of
value of the data (Chen et al., 2013). Understanding data-generating various technologies (Dwivedi et al., 2007; 2017; 2019). Drawing on the
processes is critical to make correct assumptions while cleaning the established literature, it can be argued that employees’ attitude toward
data. If such assumptions can be standardized, the resulting data can be analytics is also an important factor influencing the adoption of HRA.
incorporated into a data warehousing process, which will make the The transition toward HRA depends on the eagerness and promptness of
compiled and stored data readily usable. Data mining, data cleansing, the employees of an organization to learn and adopt this new technique
and data assessment are major challenges of data analytics because of (Angrave et al., 2016). However, HR professionals who consider them
the diverse, interrelated, and nonstable nature of data (Chen et al., selves experts on the “soft skills” of managing employees often feel
2013). Therefore, an extraction technique to draw useful information uncomfortable dealing with cold database of analytics, especially when
from asynchronous datasets will always be important; however, it re it is concerned with people’s issues. Therefore, it is necessary to train HR
mains a continuous challenge as an organization needs to continuously professionals to understand the analytics, identify data sources and their
adapt to be able to use the emerging new data variables (Labrinidis & significance, and know how to make adjustments with the wider stra
Jagadish, 2012). To facilitate more effective analysis, common measures tegic plan of the organization (Minbaeva, 2017). Having only analytical
and dimensions that are utilized during analysis need to be incorporated skills is not helpful; similarly, individuals with excellent HR and business
into the data marts so that they are readily available for analysis. knowledge but without analytics skills also fail to make the desired
impact. Along with the HR function, the analytics team must also have
4.5. Individual factors deep knowledge of business (Minbaeva, 2017). Hence, HR managers
should work together with their analytics teams to better conceptualize
To improve the data analytics capability, a coordinated effort is and understand the organizational problems and use this knowledge to
required to develop technical knowledge, relational knowledge, busi make the analysis more actionable.
ness knowledge, and knowledge about technology management
(Wamba et al., 2017). Employees are crucial stakeholders in the data 4.5.3. Quantitative Self-efficacy
collation process (Minbaeva, 2017). Employee buy-in to data analytics- Quantitative self-efficacy is a characteristic that motivates an indi
based decision-making is crucial for any organization. Not all employees vidual to attain the highest knowledge required to succeed in a given
trained in data science have knowledge about the HRM (Waters, Streets, field (Ajzen & Fishbein, 2000). Self-efficacy is a belief that every indi
McFarlane & Johnson-Murray, 2018), which means that only HR exec vidual possesses enough skills to be successful and improve their work
utives who are trained in actual data processing should be involved in all performance (Bandura, 1972). HRA professionals need the ability to
operations of HRA. HRA professionals are expected to understand how extract and transform data to design analysis. Further, the ability to
different variables should interact in the algorithms and how to avoid understand a problem statement and design the analysis and to apply
false conclusions (Angrave et al., 2016; Minbaeva, 2017). HR managers different data analysis techniques based on the data attributes and
should have a basic understanding of research methodology, which in problem statements is an important skill. Quantitative self-efficacy is
cludes data and method validity and reliability (McAfee et al., 2012). influenced by mathematical literacy (Ozgen, 2013). Therefore, HR
However, it has also been argued that a manager’s intuition usually wins professionals’ acceptance and use of HRA depend on their perception
when there is a conflict in data analysis (Marler & Boudreau, 2016). In about their own individual capabilities to show acceptable levels of
other words, HR managers need to be prepared to describe why the performance. Quantitative self-efficacy also determines the acceptance
findings of big data are more reliable than traditional wisdom, assuming and application of HRA at the individual level. Mathematical knowledge
that the analytics processes have been conducted systematically. Given and thinking, considered as unique skills within HR, are the character
the prominence of algorithms in the analysis and prediction of the istics of quantitative self-efficacy (Dahlbom et al., 2019).
human behavior, many new HRM-related products will emerge, which
requires different analytical skill sets for HRM (Cheng & Hackett, 2019). 4.5.4. Technology self-efficacy
Hence, HR professionals should develop analytical skills that can help Analytics has greatly evolved over the last decade. Today, multiple
them devise an accurate causal model with a sufficient degree of technological platforms are used together to deliver analytics. Thus,
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HRA managers need to have an excellent understanding of what capa these data connections, it is necessary to ensure that the systems used to
bilities each platform brings to coordinate better with the experts who manage them are compatible with HRA function’s technology.
support the development of these analytics products. Technology self- HR leaders may not have the required technical expertise to assess
efficacy is essential for better HR services. It is also essential for HRA the resources they want to have in their team. It may also be difficult for
because competing on analytics means competing on technology them to design a development plan for leveraging newer technologies.
(Davenport, 2006). Hence, technology has been identified as a key Moreover, they need to design teams with fewer resources but with
challenge that determines the adoption of HRA. While technology can better capabilities to leverage different technology stacks that can
deliver analytics, the interpretation and understanding of output from deliver products varying from dashboards to prescriptive analytics. New
the analysis require analytical capability. However, the possibility to use technologies developed over the last decade have enabled HR teams to
pre-existing analytical tools and available information systems is design and execute better strategies to provide the organizations with a
sometimes impeded by the gap in employee skills (Dahlbom et al., competitive edge. Some industries have been at the forefront when it
2019). Data transformation, distribution, storage, computation, busi comes to investing in this field. Through their shared experience, com
ness intelligence, statistical packages, and data mining tools are some of panies in these industries tend to have definitive demands from the HRA
the technologies used for data analysis. It is difficult for a single person teams and use the outcomes to drive their strategic talent initiatives.
or platform to deliver the results using all these technologies. Hence, it is These industries have made a good progress in this field owing to factors
necessary for the HRA manager to know what is needed and who has the such as the presence of a supporting environment, a favorable setting
required expertise to deliver the product. whereby there are resources with expertise in managing data infra
structure, investments in robust technology to manage the HR processes,
4.5.5. Storytelling ability and a data-driven culture. Thus, HRA teams can leverage both the key
Analytics is a complex process that tries to explain an actual phe management knowledge for an analytics function from other teams and
nomenon in mathematical terms. Big data analytics as applied to HR their experience in functions such as designing a data dictionary, SOP
involves storytelling, which can help everyone understand the major documentation, and productivity tracking.
findings better in their own context (Lipkin, 2015). Thus, for business Data-related hurdles are the most apparent constraints affecting the
users to understand the underlying assumptions and the basis of the HRA adoption. These hurdles can be overcome by large-scale stan
outcomes, the process needs to be explained in an easy-to-grasp manner. dardization of existing talent practices, creating a data governance
A business analyst should be able to break down real-life problems into framework, redefining the data ownership (including HR data), miti
quantifiable subsets and then use the output from these subsets to sug gating the privacy and security concerns, properly integrating HR data
gest a real-life solution for the complete problem. While this might with other datasets within the organization, and adequate data analysis,
involve multiple technicalities and techniques, the senior stakeholders management, storage, and visualization. Organizations have invested in
should be presented with the different aspects in a manner that is setting up teams within their HR function and equipped them with
simpler for them to understand. Analytics is considered a highly tech quantitative capabilities, especially with data science skills.
nical domain, and hence, all business users may not understand the Our paper makes some key recommendations to improve the HRA
related terminology and jargon. Analysts who can make complex data capability and reviews individual factors that enable HR professionals to
easily understandable can influence the final decision-making. Often, leverage the benefits of analytics. We also derived an integrated
this technical ability is also aligned with the ability to create visualiza framework for HRA adoption using the theoretical findings (Fig. 2).
tions that help the audience to focus on and understand the important Methodologically, our work introduces the framework synthesis method
aspects of the analysis. for a systematic review of literature in the business management
domain. This framework shows that multiple factors determine the
5. Discussion extent to which an organization invests in this function, designs effective
products, and implements them to improve decision-making. Use of this
We herein discuss the challenges to HRA practice using the frame framework may also help assess how these factors impact their in
work synthesis method and propose a “framework for HRA adoption.” vestments, how to be rational with their expectations, and where they
We conducted a systematic review of literature using the framework can influence to ensure that the team they invest in receives the neces
synthesis method and identified 23 variables that can be clustered under sary support to succeed.
five categories as technological, organizational, environmental, data
governance, and individual-level factors. We showed that successful 5.1. Practical implications
adoption of HRA depends on many factors such as the firm’s capabilities
(people, existing processes and technology, organization’s orientation), Multiple stakeholders are involved in the effective adoption of data
data availability, quality of data, the attitude toward data-driven deci analytics in an organization. This study has several implications for key
sion-making, and IT infrastructure and capabilities. stakeholders such as HR managers, IT managers, HR leaders, and
Analytics is particularly useful for data-driven decision-making in consulting practitioners, and the CEOs, academia, and policymakers. As
HRM. Therefore, organizations that use new technologies employ their shown in Fig. 2, this study discusses the managerial characteristics
data in a better way to gain insights for decision-making. Hence, the use necessary for the adoption of HRA. Technological, organizational,
of various technologies, particularly HRA, should be encouraged. environmental, data governance, and individual factors need to be
However, the use of HRA in itself requires the application of different considered by both HRM practitioners and HRA managers. Each variable
technologies varying from business intelligence tools for dash boarding has been discussed in length to sensitize and identify gaps from the
to specialized products to conduct studies based on network analysis. concerned organization’s perspective. Organizations that are struggling
Because some technologies are highly complex to compute and under to set up and reap the benefits of HRA should assess their position on
stand, HR teams tend to shy away from investing in them. One of the these factors and identify the focus areas that will enable them to build a
advantages of an analytics function is that it often helps break down silos stronger practice. HRA is not an IT project-driven function; instead, it
within an organization, especially when different departments use needs to be embedded within the HRM function, which defines the scope
different technology products and tools. However, this is possible only if and different processes and responsibilities that come with HRA
the HRA function has access to the dataset of other functions. For adoption.
example, for more objective employee recognition, a company could If HRA is to be used to grow business, then it should receive adequate
start using customer feedback data from operations to identify the financial support from the TM. However, other core functions of an
population creating an impact but not recognized for the same. To make organization such as marketing, operations, and finance receive more
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Fig. 2. Framework for Adoption of data analytics in HRM.
support and investments than the HRA. We believe our study may tussle between the HR and technology support departments about taking
contribute to a better understanding of some of the key theories appli accountability for this investment’s success. With their bird’s-eye view,
cable to the adoption of analytics, not just HRA. The above mentioned CEOs often find it difficult to demarcate the responsibility clearly. We
factors should be assessed by an organization interested in adopting believe that our framework would enable them to define who they need
analytics (or HRA) and for removing any impediment to their efforts to to engage with and track to ensure the approved investment gives them
reap the maximum benefits from their investments and IT systems. Or the desired results.
ganizations may decide to build some infrastructural capabilities as
needed by the introduction of required software applications; however, 5.1.3. Implications for HR managers
a focus on internal factors is also necessary for a successful adoption. For HR has been striving to get a driving seat at the table and become
example, an organization might lease a vendor application to control more strategic. Analytics has become a buzzword in the HR community,
internal attrition using machine learning. By considering the other fac considering its opportunities to position HR as a strategic business
tors (technological, environmental, data, and individual support for this partner. Over the past few years, HR managers have been called upon to
implementation), leaders and managers should restore a culture of become more analytical; however, consultants’ promotional literature
evidence-based decision-making relying on tools and approaches that has not helped them enough to reach this target. Even after being pro
are acceptable by peers and the staff. vided with training to hone their quantitative abilities, including the
ability to work with different tools used by data analysts, there is a lack
5.1.1. Implications for HR leaders of clarity around how to use this knowledge as part of their role within
The advent and scaling up of HRA have put pressure on HR leaders to the organization.
invest in this technology. The adoption of analytics is trickier than the The proposed framework examines the multiple factors that influ
previous efforts to adopt HR technologies geared toward increased HR ence the adoption journey of HRA in an organization. This framework
functions’ efficiency and delivery. Analytics has a longer gestation may help HR managers better focus on factors that infleunce the HRA
period. In addition, instead of relying upon IT teams and external con adoption and see how the HRA can help them become more strategic
sultants, organizations have to build ownership and accountability to and align better with their respective organizations’ business plans.
obtain returns from this investment. Unlike other HR initiatives that are Moreover, our framework can help them better understand not only
time-bound and defined by a project cluster, HRA needs constant their role in making the analytical products more actionable, but also the
involvement and a better alignment of specialist teams. However, HRA’s importance of building a strong partnership with the dedicated analytics
technicalities make it difficult for HR leaders to establish who is teams than just treating them as service providers.
accountable for what. In fact, HR leaders themselves are often unsure of
their role, apart from driving the cost and resource investment. Our 5.1.4. Implications for IT managers
framework might help them assess HRA’s different aspects and facilitate Since analytical processes are highly technical, IT teams are often
a more supportive environment for its adoption. responsible for materializing HRA projects because of their technical
know-how. They possess the required resources to accomplish tasks such
5.1.2. Implications for CEOs as managing data and security, creating processes for extraction, and
HRA helps a CEO in assessing their organization’s progress based on transforming and loading data. However, the IT team can only provide
metrics and data-driven insights. Many CEOs assert that their people are limited support to this journey. IT experts are expected to follow various
their biggest assets, making it imperative for the HR leaders to share the rules and deliver output through a technology-driven interface while
key metrics on how their organization manages their employees. In developing systems for certain specific tasks. Yet, the definition of such
addition, HR leaders are also expected to show the values they anticipate rules rather devolves upon HR partners. Besides, when they raise
from their investments clearly. As a result, HR leaders often pitch the use questions about the design of a metric or the actions to be conducted
of analytics as a way to enable them to meet these expectations. How through the technology, they often do not answer because the HR
ever, because analytics is a highly technical function, it may result in a partners, who are more interested in setting up the infrastructure for
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delivery, may consider such questions trivial. We believe our framework 5.3. Limitations
will show all the stakeholders concerned that the IT team can play a
significant role in making the HRA function a success. The study has some limitations as well. There is a need to better
explain, through systematic reviews, all the existing and available
5.1.5. Implications for consulting practitioners research studies (both conceptual and empirical) on HRA. Although we
HR consultants are sometimes blamed for creating an unnecessary conducted a thorough and intensive literature review using the pub
hype around HRA. It has been claimed that they apparently promote lisher database to identify all possible relevant articles, it is highly likely
HRA as a solution for all the issues faced by an HR leader. This is partly that we missed to include some research articles in this review, espe
owing to the lack of patience on the part of HR leaders rather than their cially those from some other databases. Additionally, the analysis and
ability to understand the complete process of HRA adoption. It has been synthesis of the collated data were based on the research team’s inter
observed that HR leaders often invest in HRA under peer pressure or pretation of the selected articles. We attempted to avoid these issues by
when they are looking for partners for quick implementation. HRA may independently cross-checking papers to avoid the embedded bias;
sometimes be likened to HR technology in terms of implementation, however, errors may still have crept in despite the robustness of our
even though HR personnel fail to grasp the complete implications and research and every effort made to mitigate the errors.
continuous nature of HRA. The adoption of HRA is not about automating
the work of reporting; it is rather a function that constantly changes the 5.4. Future research
way the decisions about employees are made. As external service pro
viders, HR consultants often find it difficult to assess the efforts that the This paper examines the challenges that need to be resolved before
organizations have to put in to make this investment a success. Again, HRA can be adopted by an organization. The analysis of the selected
there is only a limited extent to which the consultants can support the articles revealed that the opportunity clearly exists to extend this
process by bringing in their expertise. Our framework should give them research to multiple areas. Based on the results obtained, the future
a basis to clearly communicate the different factors that need to be research on the topic should be conducted on the following lines:
considered by any organization, together with a more transparent role in
HRA adoption. • The proposed framework can be tested empirically with quantitative
or qualitative studies either with all variables or a few variables to
5.2. Theoretical implications understand each of the independent variables’ effect on the depen
dent variables in the process. The proposed dependent variable for
Our research’s main contribution is that it provides a framework for the “adoption of HR analytics” can be operationalized with the scale
the adoption of analytics for HRM. We identified five factors that in development process or some proxy variables.
fluence the adoption of analytics in any organization: technological, • The antecedents, moderators, and outcomes of HRA can be studied in
organizational, environmental, data governance, and individual. Each of detail. The HRA outcomes can be analyzed in relation to its adoption
these factors contains certain subfactors that are critical for a successful rate to establish proximal and distal outcomes of HRA in HRM and
practice of analytics. The existing literature has discussed some of these RoI value for HRA. Various moderators and mediators of the
factors that affect the adoption of HRA, such as the need for analytical framework have been identified, including the industry type and
competencies, data quality, and strategic ability to act (Minbaeva, data governance. Their in-depth analysis can help in identifying the
2017), technology, people, and organization (Bondarouk et al., 2017). critical factors for HRA adoption.
Our study supports the findings of Yasmin et al. (2020), who reported • Methodological studies using multicriteria decision-making tech
that the data analytics capabilities are interdependent and that the niques such as analytical hierarchy process (AHP) or analytical
infrastructure capability is the most important factor, followed by network process (ANP) can be used to identify which factors influ
management and HR capabilities. Our study makes a unique contribu ence the adoption of analytics in organizations. Practitioners can
tion in understanding the adoption of HRA (Fig. 2) in an organization by better grasp such events by making a detailed case study of the
performing a detailed analysis of all the challenges and by connecting adoption of HRA that closely examines the identified variables. The
them to broader themes defined as factors. The variables within each qualitative review studies can integrate the outcome variables for
factor are discussed in detail to emphasize their impact on the adoption organizational performance or effectiveness.
journey. Theoretically, our work’s contribution in the emerging domain • This will help HRM practitioners if they knew how each of these
of HRA as applied to the HRM is made by contextualizing the theory of variables can be leveraged to redefine the process of HRA in an or
technology adoption, the TPB, and diffusion theory. As the technology ganization, including the interdynamics between the organization
increases efficiency, we believe that HRA adoption will make HRM more and the HRM structure and the interplay between the IT, external
effective. The proposed framework will help further studies on the im vendors (e.g., HRMS or outsourced vendors), and the overall effec
plications of HRA on HRM effectiveness and business performance. tiveness of the analytics practice across the organization. Such di
Sub-factors such as complexity, perceived usefulness, data quality, mensions of the study are critical for reviewing the contextual factors
access to relevant data, and compatibility have emerged as the critical of HRM that influence the HRA adoption.
technology-based drivers of HRA adoption. The organizational sub- • The existing framework can be applied to other functional areas,
factors such as TM support, IT infrastructure and capabilities, financial including marketing, supply chain management, IT, and operations.
readiness, training and development of employees, and access to a Similar challenges associated with the above functions are likely to
skilled workforce have been identified as critical for adopting HRA in appear in these cases as well. Therefore, the proposed framework
organizations. The influence of environmental factors such as competi should be investigated in other settings as well.
tiveness/EP and InT, all of which are externally oriented, should also be
considered in HRA practice. The most crucial factor that affects the 5.5. Conclusions
adoption of HRA is data governance, which has subfactors such as data
ownership, data security, data privacy, data analysis, and modeling, This work reviews the various factors influencing the adoption of
data aggregation and integration, and data mining and cleansing. The HRA, proposes a framework to managers, IT experts, and HR specialists
individual factors have sub-factors such as culture, attitude towards for this adoption, and makes an inventory of the various challenges that
analytics, quantitative self-efficacy, technology self-efficacy, and story impact business-related decision-making. We used a framework syn
telling ability. By contextualizing the discussion on HRA adoption, this thesis method, systematically analyzed the challenges related to HRA
paper makes an important theoretical contribution to the literature. challenges, and proposed solutions to overcome the impediments in
322
HRA adoption. We showed the importance of addressing the constraints both theoretical and practical implications and determined some ave
related to the various determining factors (technological, data gover nues for future research. We believe that our work will help advance the
nance, organizational, environmental, and individual) to successfully emerging domain of HRA and its adoption across organizations to help
adopt analytics in HRM. We substantiate the results obtained by using in data-driven decision-making.
the HRA adoption framework with various subfactors. We examined
Appendix A. ENTREQ checklist enhancing transparency in reporting the synthesis of qualitative research: ENTREQ (Tong et al.,2013)
(only for review)
# Areas Guide and description Comments
1 Aim State the research question that will be addressed by the synthesis. Synthesing the information on challenges of adoption of HRA and
proposing framework for adoption of HRA to address those challenges
2 Synthesis Identify the synthesis methodology or theoretical framework which Since this research proposes for framework for adoption of HRA, the
methodology underpins the synthesis, and describe the rationale for choice of synthesis framework is more suitable as the process will enable the
methodology creation of an HRA adoption framework using a systematic approach.
3 Approach to Indicate whether the search was pre-planned (comprehensive search Search was an iterative process. Since the domain of HRA is
searching strategies to seek all available studies) or iterative (to seek all available multidisciplinary, the knowledge from other domains need to be
concepts until their theoretical saturation is achieved). contextualized. Hence, there is constant search for the emerging HRA
contexual knowledge, and this process moves back and forward during
the research phase.
4 Inclusion criteria Specify the inclusion/exclusion criteria (e.g. in terms of population, We used the search terms to test the inclusion criteria for the papers
language, year limits, type of publication, study type). selected for the study.
5 Data sources Describe the information sources used (e.g. electronic databases—psycINFO, Data were sourced from Scopus, WoS, Google Scholar. Besides, few
Econlit—grey literature databases—digital thesis, policy reports—relevant practitioner reports were considered.
organizational websites, experts, information specialists, generic web
searches (Google Scholar) hand searching, reference lists), and when the
searches are conducted; provide the rationale for using the data sources.
6 Electronic Search Describe the literature search (e.g. provide electronic search strategies with Since the process was an iterative search, this was continuous and was not
strategy population terms, terms related to experiential or social phenomena, filters a one-time data source generation. This is the advantage of the
for qualitative research, and search limits). framework synthesis approach
7 Study screening Describe the process of study screening and sifting (e.g. title, abstract and Two reviewers were involved in the coding process of challenges. All the
methods full text review, number of independent reviewers who screened studies). papers were screened with title, abstract and key words with draft
framework to check the extraction of knowledge from each paper.
8 Study Present the characteristics of the included studies (e.g. year of publication, Since the research question was focusing on the challenges and adoption
characteristics country, population, number of participants, data collection, methodology, factors, we neglected the demographics data and rather concentrated on
analysis, research questions). the challenges and adoption factors.
9 Study selection Identify the number of studies screened and provide reasons for study Since this study was an iterative search process, we continued with the
results exclusion (e.g. for comprehensive searching, provide the numbers of studies search throughout the research phase as HRA is an emerging topic
screened and reasons for exclusion indicated in a figure/flowchart; for the
iterative searching, give reasons for study exclusion and inclusion based on
modifications regarding the research question and/or contribution to theory
development).
10 Rationale for Describe the rationale and approach used to appraise the included studies or Two reviewers were involved in the process independently to establish
appraisal selected findings (e.g. assessment of conduct (validity and robustness), inter-rate reliability. The coding of challenges was systematically done
assess reporting (transparency), asses content and the utility of findings). using spreadsheet
11 Appraisal items State the tools, frameworks and criteria used to appraise the studies or The process of framework synthesis has been explained with the steps
selected findings (reviewer developed tools; describe the domains assessed: undertook.
research team, study design, data analysis and interpretations, reporting).
12 Appraisal process Indicate whether the appraisal was conducted independently by more than Two reviewers
one reviewer and if consensus was required.
13 Appraisal results Present results of the quality assessment and indicate which articles, if any, To maintain the quality, only articles published in Scopus and WoS were
were weighted/excluded based on the assessment and give the rationale. used. Only limited consulting practitioner reports were referred to, which
are again cited in the previous literature.
14 Data extraction Indicate which sections of the primary studies were analysed and how the Only challenges as contents were extracted from each selected paper
data extracted from the primary studies was? (e.g., all texts under the
headings “results /conclusions” were extracted electronically and entered
into a computer software).
15 Software State the computer software used, if any. MS Excel for spreadsheet
16 Number of Identify who was involved in coding and analysis. Co researchers
reviewers
17 Coding Describe the process for coding of data (e.g. line by line coding to search for Explained in the method
concepts).
18 Study comparison Describe how were comparisons made within and across studies (e.g., Explained in the method
subsequent studies were coded into pre-existing concepts, and new concepts
were created when deemed necessary).
19 Derivation of Explain whether the process of deriving the themes or constructs was Using thematic analysis
themes inductive or deductive.
20 Quotations Provide quotations from the primary studies to illustrate themes/constructs, Using content analysis for challenges identification
and identify whether the quotations were participant quotations of the
author’s interpretation.
21 Synthesis output Present rich, compelling and useful results that go beyond a summary of the Emerging framework out of the challenges to propose framework for
primary studies (e.g., new interpretation, models of evidence, conceptual adoption of HRA.
models, analytical framework, development of a new theory or construct).
323
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conferences and journals, including the following: Academy of Management Journal,
325
European Journal of Information Systems, International Journal of Production Economics, School of Management, Swansea University, Wales, UK. Professor Dwivedi is also
International Journal of Operations & Production Management, International Journal of currently leading the International Journal of Information Management as its Editor-in-
Production Research, Journal of Business Research, Electronic Markets, Technology Chief. His research interests are at the interface of Information Systems (IS) and Market
Forecasting and Social Change, Information Systems Frontiers, and Production Planning & ing, focusing on issues related to consumer adoption and diffusion of emerging digital
Control. In 2017, he won the Best Paper Award by The Academy of Management Journal innovations, digital government, and digital and social media marketing particularly in the
and by The Electronic Markets: The International Journal on Networked Business. He has context of emerging markets. Professor Dwivedi has published more than 300 articles in a
been serving as a member on the editorial board of five international journals. Moreover, range of leading academic journals and conferences that are widely cited (more than 24
he is a CompTIA RFID+ Certified Professional, and the Academic Co-Founder of RFID thousand times as per Google Scholar). Professor Dwivedi is an Associate Editor of the
Academia Journal of Business Research, European Journal of Marketing, Government Information
Quarterly and International Journal of Electronic Government Research, and Senior Editor
of the Journal of Electronic Commerce Research.
Yogesh K. Dwivedi is a Professor of Digital Marketing and Innovation, Founding Director
of the Emerging Markets Research Centre (EMaRC) and Co-Director of Research at the
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Journal of Business Research 131 (2021) 311–326

Contents lists available at ScienceDirect

Journal of Business Research

Examining the determinants of successful adoption of data analytics in

1. Introduction organizational challenges (Boudreau & Ramstad, 2007). The adoption of

Systematic review process (Gough et al.,2012)

1.Familarization Temporal progression of review

5.Mapping & Interpretation

Stages of Framework synthesis method (Ritchie et al.,2014)

Author Challenges Technological Organizational Environmental Data Individual

Andersen, 2017 Lack of the implementation of good software √

Author Challenges Technological Organizational Environmental Data Individual

DiClaudio, 2019 Rigorously testing solutions √

4.1.3. Data quality 4.1.5. Compatibility

4.2.3. Financial readiness 4.3.1. Competitiveness/external pressure (EP)

Fig. 2. Framework for Adoption of data analytics in HRM.

# Areas Guide and description Comments

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