This study explores the relationship between electronic Human Resource Management (e-HRM) practices and innovation by focusing on the processes of resource deployment, utilization, and integration, through a “digital fit” perspective. We investigate how e-HRM facilitates innovation both at the organizational and individual levels. At the organizational level, we analyze multi-sourced panel data in Korea. We find that e-HRM positively affects innovation at the organizational level. Further, the relationship between e-HRM and organizational innovation was strengthened when firms adopt HRM systems (e.g., High-Performance Work Systems). At the individual level, we utilized survey data at three-time points. Our findings suggest that e-HRM enhances individuals’ innovation by being integrated into their daily work through digital embeddedness. We also identify workplace digitalization as a key moderator that enhances the effectiveness of e-HRM in fostering individual innovation. The study adds to the growing body of literature on HRM and workforce digitalization by demonstrating how e-HRM can drive innovation through the strategic deployment, utilization, and integration of digital resources. Practical implications for organizations include the importance of fostering digital embeddedness, investing in workplace digitalization, and aligning e-HRM with complementary HRM systems to maximize innovation outcomes.
