Impact of Digital Transformation in Human Resource Management on Resource Utilisation Efficiency in Vietnamese Garment Manufacturing Enterprises

Abstract

The era of rapidly advancing digital technology, digital transformation has become a global inevitability, and Vietnam is actively participating in this trend. The digital transformation of human resource management is not only a necessity but also a key factor in optimizing human resources and enhancing labor productivity. According to PwC's 2022 report, the digital transformation of human resource management is a critical step in improving the competitiveness of businesses amid constantly evolving technological landscapes. Garment businesses are facing a revolution in digital human resource management. This study aims to analyze the impact of digital transformation in human resource management on the efficiency of human resource utilization in garment businesses in Vietnam, with managers acting as mediating variables. Quantitative research was conducted through a survey of 300 production managers, supervisors, and especially line team leaders in Ho Chi Minh City and Dong Nai. The research model analysis used Partial Least Squares (PLS) with SMART software version 3.0.

Experimental results indicate that digitalizing recruitment processes and implementing real-time performance management have a profound impact on resource optimization. Digital training has not yet had a direct impact on resource optimization. An organization's digital agility is a lever for applying digital transformation in human resource management to maximize resources. The findings of this study have managerial implications: suggesting solutions for garment businesses that need to optimize recruitment, ensure data transparency, and provide timely rewards to motivate and encourage employees to increase productivity, thereby contributing to resource optimization for the business. Therefore, support from the government and financial institutions, and proactive efforts from businesses themselves, are needed to invest in technology and improve management capabilities to promote digital transformation in human resource management, to develop Vietnam's textile and garment industry.