E-HRM as Driver of Financial Firm's Service Quality: Exploring the Mediating Role of Employee Performance from a Resource-Based View

Purpose: This study investigates the potential of Transformational Electronic Human Resource Management (E-HRM) as a significant driver of service quality in the financial sector, focusing on the mediating role of employee perform-ance within a Resource-Based View (RBV) framework. Design/methodology/approach: This study utilized two sample sets: bank employees to evaluate E-HRM practices and employee performance and customers to assess service quality levels. A priori sample size calculation de-termined the sample size, and 448 respondents' data from each set were analyzed using the structural equation model (SEM). Findings: The findings revealed a strong and significant correlation between transformational E-HRM, employee performance, and service quality. Within the RBV framework, the study demonstrated that E-HRM practices are crucial drivers of employee performance enhancement, serving as valuable resources that empower and equip employees. This enhanced performance directly translated into superior perceptions of service quality, as employees with increased knowledge, skills, and motivation delivered better service to customers. Research limitations/implications: The research primarily examines advanced E-HRM functions and does not ac-count for other potential mediating variables. Future studies should incorporate a broader range of E-HRM functions and consider organizational culture to understand the dynamics between E-HRM and service quality comprehensively. Originality/value: Unlike previous research, which primarily addresses the effect of E-HRM on efficiency and employee satisfaction, this study explores its influence on service quality, a critical success metric.