Enhancing employee competitiveness: The role mediation of human resources competencies
Abstract:
Purpose: Effective methods for digital literacy and financial management are expected to enhance HR competency and employee competitiveness in the job market.
Research Methodology: This quantitative study used SEM-PLS with convenience sampling to select 192 BUMD employees in DKI Jakarta. Data were collected via an online Likert-scale questionnaire.
Results: This study highlights the role of digital literacy and financial management in HR markets mediated by HR competency. It offers empirical evidence and a framework that integrates these factors to enhance HR competitiveness.
Conclusions: This study emphasizes the impact of digital literacy and financial management on HR competencies and organizational competitiveness. This study provides empirical evidence and a framework for enhancing HR capabilities.
Limitations: This study was limited by convenience sampling, self-reported data bias, and cross-sectional design. It focuses only on digital literacy and financial management, excluding factors such as leadership and organizational culture.
Contribution: This study empirically highlights the role of digital literacy and financial management in enhancing HR competency and competitiveness. It introduces a new framework, offers practical insights, and validates relationships using PLS-SEM.
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Abdallah, W., Tfaily, F., & Harraf, A. (2025). The impact of digital financial literacy on financial behavior: customers’ perspective. Competitiveness Review: An International Business Journal, 35(2), 347-370. doi:https://doi.org/10.1108/CR-11-2023-0297
Ahmad, F., Widén, G., & Huvila, I. (2020). The impact of workplace information literacy on organizational innovation: An empirical study. International Journal of Information Management, 51, 102041. doi:https://doi.org/10.1016/j.ijinfomgt.2019.102041
Ahmed, E. M. (2017). ICT and human capital spillover effects in achieving sustainable East Asian knowledge-based economies. Journal of the Knowledge Economy, 8(3), 1086-1112. doi:https://doi.org/10.1007/s13132-016-0430-4
An, M., Lin, J., & Luo, X. R. (2024). The impact of human ai skills on organizational innovation: The moderating role of digital organizational culture. Journal of Business Research, 182, 114786. doi:https://doi.org/10.1016/j.jbusres.2024.114786
Aristei, D., Gallo, M., & Vannoni, V. (2024). Preferences for ethical intermediaries and sustainable investment decisions in micro-firms: The role of financial literacy and digital financial capability. Research in International Business and Finance, 71, 102483. doi:https://doi.org/10.1016/j.ribaf.2024.102483
Arseneault, R., & Gagnon, J. (2024). Managerial accounting practices, HR metrics, and firm performance. Advances in Accounting, 64, 100730. doi:https://doi.org/10.1016/j.adiac.2024.100730
Azeem, M., Ahmed, M., Haider, S., & Sajjad, M. (2021). Expanding competitive advantage through organizational culture, knowledge sharing and organizational innovation. Technology in Society, 66, 101635. doi:https://doi.org/10.1016/j.techsoc.2021.101635
Bhutto, S. A., Jamal, Y., & Ullah, S. (2023). FinTech adoption, HR competency potential, service innovation and firm growth in banking sector. Heliyon, 9(3). doi:https://doi.org/10.1016/j.heliyon.2023.e13967
Blanka, C., Krumay, B., & Rueckel, D. (2022). The interplay of digital transformation and employee competency: A design science approach. Technological Forecasting and Social Change, 178, 121575. doi:https://doi.org/10.1016/j.techfore.2022.121575
Cetindamar, D., Abedin, B., & Shirahada, K. (2021). The role of employees in digital transformation: a preliminary study on how employees’ digital literacy impacts use of digital technologies. IEEE Transactions on Engineering Management. doi:https://doi.org/10.1109/TEM.2021.3087724
Cheng, Z. M., Bonetti, F., de Regt, A., Ribeiro, J. L., & Plangger, K. (2024). Principles of responsible digital implementation: Developing operational business resilience to reduce resistance to digital innovations. Organizational Dynamics, 53(2), 101043. doi:https://doi.org/10.1016/j.orgdyn.2024.101043
Choung, Y., Chatterjee, S., & Pak, T.-Y. (2023). Digital financial literacy and financial well-being. Finance Research Letters, 58, 104438. doi:https://doi.org/10.1016/j.frl.2023.104438
Chowdhury, S., Budhwar, P., Dey, P. K., Joel-Edgar, S., & Abadie, A. (2022). AI-employee collaboration and business performance: Integrating knowledge-based view, socio-technical systems and organisational socialisation framework. Journal of Business Research, 144, 31-49. doi:https://doi.org/10.1016/j.jbusres.2022.01.069
da Conceição Walkowski, M., dos Santos Pires, P., & Tricárico, L. T. (2019). Community-based tourism initiatives and their contribution to sustainable local development. Journal of Sustainable Tourism and Entrepreneurship, 1(1), 55-67.
Deepa, R., Sekar, S., Malik, A., Kumar, J., & Attri, R. (2024). Impact of AI-focussed technologies on social and technical competencies for HR managers–A systematic review and research agenda. Technological Forecasting and Social Change, 202, 123301. doi:https://doi.org/10.1016/j.techfore.2024.123301
Dwiyanti, N. M. C., Luh Putu Agustini Karta, N., Cintya, N. P., & Bendesa, I. N. G. P. (2023). Strategi Pemasaran Museum Gunung Api Batur sebagai Daya Tarik Wisata Edukasi di Kabupaten Bangli. Jurnal Studi Perhotelan dan Pariwisata, 2(1), 37-45. doi:https://doi.org/10.35912/jspp.v2i1.2565
Ekawati, D., & Yudoko, G. (2024). Strategy for Automation and Digitalization in Indonesian Aerospace Manufacturing. Jurnal Bisnis dan Pemasaran Digital, 3(2), 91-105. doi:https://doi.org/10.35912/jbpd.v3i2.4510
Fauna, A. M., Putri, R. N. H. S., Awallillah, M. R., Anisa, E. N., Putri, D. S., & Sulaiman, M. Y. (2024). Contribution of Competency-Based Curriculum Development to Improving The Branding Quality of ITB Tuban Digital Business Study Program Graduates. International Conference of Business and Social Sciences, 4(1), 1193–1199. doi:https://doi.org/10.24034/icobuss.v4i1.603
Hamadamin, H. H., & Atan, T. (2019). The impact of strategic human resource management practices on competitive advantage sustainability: The mediation of human capital development and employee commitment. Sustainability, 11(20), 5782. doi:https://doi.org/10.3390/su11205782
Huang, X., Yang, F., Zheng, J., Feng, C., & Zhang, L. (2023). Personalized human resource management via HR analytics and artificial intelligence: Theory and implications. Asia Pacific Management Review, 28(4), 598-610. doi:https://doi.org/10.1016/j.apmrv.2023.04.004
Imjai, N., Promma, W., Usman, B., & Aujirapongpan, S. (2024). The intertwined effects of digital literacy, agile mindset on design thinking skill and management control competency: Insights from Thai young accountants. International Journal of Information Management Data Insights, 4(2), 100244. doi:https://doi.org/10.1016/j.jjimei.2024.100244
Iskandar, Y. (2023). Digital Transformation Model and the Role of HR in Indonesian MSMEs. International Journal of Business, Law, and Education, 4(2), 1427-1453. doi:https://doi.org/10.56442/ijble.v4i2.334
Kamkankaew, P., Thanitbenjasith, P., Sribenjachot, S., Sanpatanon, N., Phattarowas, V., & Thanin, P. (2024). How Artificial Intelligence is Helping Businesses Grow and Thrive: The Transformative Role of Artificial Intelligence in Thai B2C Digital Marketing. International Journal of Sociologies and Anthropologies Science Reviews, 4(1), 137-164.
Karim, M. S., Nahar, S., & Demirbag, M. (2022). Resource-based perspective on ICT use and firm performance: A meta-analysis investigating the moderating role of cross-country ICT development status. Technological Forecasting and Social Change, 179, 121626. doi:https://doi.org/10.1016/j.techfore.2022.121626
Kokkaew, N., Jokkaw, N., Peansupap, V., & Wipulanusat, W. (2022). Impacts of human resource management and knowledge management on non-financial organizational performance: Evidence of Thai infrastructure construction firms. Ain Shams Engineering Journal, 13(6), 101750. doi:https://doi.org/10.1016/j.asej.2022.101750
Lampropoulos, I., Astara, O.-E., Skordoulis, M., Panagiotakopoulou, K., & Papagrigoriou, A. (2024). The contribution of education and ICT knowledge in sustainable development perceptions: The case of higher education students in Greece. Journal of Human Resource and Sustainability Studies, 12(1), 15-31. doi:https://doi.org/10.4236/jhrss.2024.121002
Li, J., Wang, H., & Soh, W. (2024). Digital transformation, financial literacy and rural household entrepreneurship. Finance Research Letters, 62, 105171. doi:https://doi.org/10.1016/j.frl.2024.105171
Long, T., & Cooke, F. L. (2023a). Advancing the field of employee assistance programs research and practice: A systematic review of quantitative studies and future research agenda. Human Resource Management Review, 33(2), 100941. doi:https://doi.org/10.1016/j.hrmr.2022.100941
Long, T., & Cooke, F. L. (2023b). Employee assistance programmes in China: a state?of?the?art review and future research agenda. Asia Pacific Journal of Human Resources, 61(1), 3-31. doi:https://doi.org/10.1111/1744-7941.12345
Manurung, A. S. P., & Putro, U. S. (2024). Decision Analysis of ANH Gas Field Using Value Focused Thinking and AHP. Jurnal Bisnis dan Pemasaran Digital, 3(2), 155-173. doi:https://doi.org/10.35912/jbpd.v3i2.4516
Miftah, M., & Prasetyo, A. (2024). Digital Literacy Mastery and its Role in Human Resource Competitiveness. Paper presented at the 5th Borobudur International Symposium on Humanities and Social Science 2023.
Murugesan, U., Subramanian, P., Srivastava, S., & Dwivedi, A. (2023). A study of artificial intelligence impacts on human resource digitalization in industry 4.0. Decision Analytics Journal, 7, 100249. doi:https://doi.org/10.1016/j.dajour.2023.100249
Paarima, Y., Kwashie, A. A., & Ofei, A. M. A. (2021). Financial management skills of nurse managers in the Eastern Region of Ghana. International Journal of Africa Nursing Sciences, 14, 100269. doi:https://doi.org/10.1016/j.ijans.2020.100269
Pilav-Veli?, A., ?erne, M., Trkman, P., Wong, S. I., & Kadi?-Abaz, A. (2021). Digital or innovative: Understanding “Digital Literacy–practice–innovative work behavior” chain. The South East European Journal of Economics and Business, 16(1), 107-119. doi:https://doi.org/10.2478/jeb-2021-0009
Piwowar-Sulej, K., Blštáková, J., Ližbetinová, L., & Zagorsek, B. (2024). The impact of digitalization on employees' future competencies: has human resource development a conditional role here? Journal of Organizational Change Management, 37(8), 36-52. doi:https://doi.org/10.1108/JOCM-10-2023-0426
Rudiyanto, R., Munawar, N. A., Prayoga, R., Arini, D. U., & Mufliha, D. I. (2025). Maintaining Cooperative Sustainability: The Mediation Role of Performance Measurement Systems. Annals of Human Resource Management Research, 5(1). doi:https://doi.org/10.35912/ahrmr.v5i1.2904
Schiuma, G., Santarsiero, F., Carlucci, D., & Jarrar, Y. (2024). Transformative leadership competencies for organizational digital transformation. Business Horizons, 67(4), 425-437. doi:https://doi.org/10.1016/j.bushor.2024.04.004
Schöggl, J.-P., Rusch, M., Stumpf, L., & Baumgartner, R. J. (2023). Implementation of digital technologies for a circular economy and sustainability management in the manufacturing sector. Sustainable Production and Consumption, 35, 401-420. doi:https://doi.org/10.1016/j.spc.2022.11.012
Selmer, J., & Chiu, R. (2004). Required human resources competencies in the future: a framework for developing HR executives in Hong Kong. Journal of World Business, 39(4), 324-336. doi:https://doi.org/10.1016/j.jwb.2004.08.001
Sharma, R., & Gupta, H. (2024). Harmonizing sustainability in industry 5.0 era: Transformative strategies for cleaner production and sustainable competitive advantage. Journal of cleaner production, 445, 141118. doi:https://doi.org/10.1016/j.jclepro.2024.141118
Wang, G., Niu, Y., Mansor, Z. D., Leong, Y. C., & Yan, Z. (2024). Unlocking digital potential: Exploring the drivers of employee dynamic capability on employee digital performance in Chinese SMEs-moderation effect of competitive climate. Heliyon, 10(4). doi:https://doi.org/10.1016/j.heliyon.2024.e2558
Zaimovic, A., Meskovic, M. N., Dedovic, L., Arnaut-Berilo, A., Zaimovic, T., & Torlakovic, A. (2024). Measuring digital financial literacy. Procedia Computer Science, 236, 574-581. doi:https://doi.org/10.1016/j.procs.2024.05.068
- Abdallah, W., Tfaily, F., & Harraf, A. (2025). The impact of digital financial literacy on financial behavior: customers’ perspective. Competitiveness Review: An International Business Journal, 35(2), 347-370. doi:https://doi.org/10.1108/CR-11-2023-0297
- Ahmad, F., Widén, G., & Huvila, I. (2020). The impact of workplace information literacy on organizational innovation: An empirical study. International Journal of Information Management, 51, 102041. doi:https://doi.org/10.1016/j.ijinfomgt.2019.102041
- Ahmed, E. M. (2017). ICT and human capital spillover effects in achieving sustainable East Asian knowledge-based economies. Journal of the Knowledge Economy, 8(3), 1086-1112. doi:https://doi.org/10.1007/s13132-016-0430-4
- An, M., Lin, J., & Luo, X. R. (2024). The impact of human ai skills on organizational innovation: The moderating role of digital organizational culture. Journal of Business Research, 182, 114786. doi:https://doi.org/10.1016/j.jbusres.2024.114786
- Aristei, D., Gallo, M., & Vannoni, V. (2024). Preferences for ethical intermediaries and sustainable investment decisions in micro-firms: The role of financial literacy and digital financial capability. Research in International Business and Finance, 71, 102483. doi:https://doi.org/10.1016/j.ribaf.2024.102483
- Arseneault, R., & Gagnon, J. (2024). Managerial accounting practices, HR metrics, and firm performance. Advances in Accounting, 64, 100730. doi:https://doi.org/10.1016/j.adiac.2024.100730
- Azeem, M., Ahmed, M., Haider, S., & Sajjad, M. (2021). Expanding competitive advantage through organizational culture, knowledge sharing and organizational innovation. Technology in Society, 66, 101635. doi:https://doi.org/10.1016/j.techsoc.2021.101635
- Bhutto, S. A., Jamal, Y., & Ullah, S. (2023). FinTech adoption, HR competency potential, service innovation and firm growth in banking sector. Heliyon, 9(3). doi:https://doi.org/10.1016/j.heliyon.2023.e13967
- Blanka, C., Krumay, B., & Rueckel, D. (2022). The interplay of digital transformation and employee competency: A design science approach. Technological Forecasting and Social Change, 178, 121575. doi:https://doi.org/10.1016/j.techfore.2022.121575
- Cetindamar, D., Abedin, B., & Shirahada, K. (2021). The role of employees in digital transformation: a preliminary study on how employees’ digital literacy impacts use of digital technologies. IEEE Transactions on Engineering Management. doi:https://doi.org/10.1109/TEM.2021.3087724
- Cheng, Z. M., Bonetti, F., de Regt, A., Ribeiro, J. L., & Plangger, K. (2024). Principles of responsible digital implementation: Developing operational business resilience to reduce resistance to digital innovations. Organizational Dynamics, 53(2), 101043. doi:https://doi.org/10.1016/j.orgdyn.2024.101043
- Choung, Y., Chatterjee, S., & Pak, T.-Y. (2023). Digital financial literacy and financial well-being. Finance Research Letters, 58, 104438. doi:https://doi.org/10.1016/j.frl.2023.104438
- Chowdhury, S., Budhwar, P., Dey, P. K., Joel-Edgar, S., & Abadie, A. (2022). AI-employee collaboration and business performance: Integrating knowledge-based view, socio-technical systems and organisational socialisation framework. Journal of Business Research, 144, 31-49. doi:https://doi.org/10.1016/j.jbusres.2022.01.069
- da Conceição Walkowski, M., dos Santos Pires, P., & Tricárico, L. T. (2019). Community-based tourism initiatives and their contribution to sustainable local development. Journal of Sustainable Tourism and Entrepreneurship, 1(1), 55-67.
- Deepa, R., Sekar, S., Malik, A., Kumar, J., & Attri, R. (2024). Impact of AI-focussed technologies on social and technical competencies for HR managers–A systematic review and research agenda. Technological Forecasting and Social Change, 202, 123301. doi:https://doi.org/10.1016/j.techfore.2024.123301
- Dwiyanti, N. M. C., Luh Putu Agustini Karta, N., Cintya, N. P., & Bendesa, I. N. G. P. (2023). Strategi Pemasaran Museum Gunung Api Batur sebagai Daya Tarik Wisata Edukasi di Kabupaten Bangli. Jurnal Studi Perhotelan dan Pariwisata, 2(1), 37-45. doi:https://doi.org/10.35912/jspp.v2i1.2565
- Ekawati, D., & Yudoko, G. (2024). Strategy for Automation and Digitalization in Indonesian Aerospace Manufacturing. Jurnal Bisnis dan Pemasaran Digital, 3(2), 91-105. doi:https://doi.org/10.35912/jbpd.v3i2.4510
- Fauna, A. M., Putri, R. N. H. S., Awallillah, M. R., Anisa, E. N., Putri, D. S., & Sulaiman, M. Y. (2024). Contribution of Competency-Based Curriculum Development to Improving The Branding Quality of ITB Tuban Digital Business Study Program Graduates. International Conference of Business and Social Sciences, 4(1), 1193–1199. doi:https://doi.org/10.24034/icobuss.v4i1.603
- Hamadamin, H. H., & Atan, T. (2019). The impact of strategic human resource management practices on competitive advantage sustainability: The mediation of human capital development and employee commitment. Sustainability, 11(20), 5782. doi:https://doi.org/10.3390/su11205782
- Huang, X., Yang, F., Zheng, J., Feng, C., & Zhang, L. (2023). Personalized human resource management via HR analytics and artificial intelligence: Theory and implications. Asia Pacific Management Review, 28(4), 598-610. doi:https://doi.org/10.1016/j.apmrv.2023.04.004
- Imjai, N., Promma, W., Usman, B., & Aujirapongpan, S. (2024). The intertwined effects of digital literacy, agile mindset on design thinking skill and management control competency: Insights from Thai young accountants. International Journal of Information Management Data Insights, 4(2), 100244. doi:https://doi.org/10.1016/j.jjimei.2024.100244
- Iskandar, Y. (2023). Digital Transformation Model and the Role of HR in Indonesian MSMEs. International Journal of Business, Law, and Education, 4(2), 1427-1453. doi:https://doi.org/10.56442/ijble.v4i2.334
- Kamkankaew, P., Thanitbenjasith, P., Sribenjachot, S., Sanpatanon, N., Phattarowas, V., & Thanin, P. (2024). How Artificial Intelligence is Helping Businesses Grow and Thrive: The Transformative Role of Artificial Intelligence in Thai B2C Digital Marketing. International Journal of Sociologies and Anthropologies Science Reviews, 4(1), 137-164.
- Karim, M. S., Nahar, S., & Demirbag, M. (2022). Resource-based perspective on ICT use and firm performance: A meta-analysis investigating the moderating role of cross-country ICT development status. Technological Forecasting and Social Change, 179, 121626. doi:https://doi.org/10.1016/j.techfore.2022.121626
- Kokkaew, N., Jokkaw, N., Peansupap, V., & Wipulanusat, W. (2022). Impacts of human resource management and knowledge management on non-financial organizational performance: Evidence of Thai infrastructure construction firms. Ain Shams Engineering Journal, 13(6), 101750. doi:https://doi.org/10.1016/j.asej.2022.101750
- Lampropoulos, I., Astara, O.-E., Skordoulis, M., Panagiotakopoulou, K., & Papagrigoriou, A. (2024). The contribution of education and ICT knowledge in sustainable development perceptions: The case of higher education students in Greece. Journal of Human Resource and Sustainability Studies, 12(1), 15-31. doi:https://doi.org/10.4236/jhrss.2024.121002
- Li, J., Wang, H., & Soh, W. (2024). Digital transformation, financial literacy and rural household entrepreneurship. Finance Research Letters, 62, 105171. doi:https://doi.org/10.1016/j.frl.2024.105171
- Long, T., & Cooke, F. L. (2023a). Advancing the field of employee assistance programs research and practice: A systematic review of quantitative studies and future research agenda. Human Resource Management Review, 33(2), 100941. doi:https://doi.org/10.1016/j.hrmr.2022.100941
- Long, T., & Cooke, F. L. (2023b). Employee assistance programmes in China: a state?of?the?art review and future research agenda. Asia Pacific Journal of Human Resources, 61(1), 3-31. doi:https://doi.org/10.1111/1744-7941.12345
- Manurung, A. S. P., & Putro, U. S. (2024). Decision Analysis of ANH Gas Field Using Value Focused Thinking and AHP. Jurnal Bisnis dan Pemasaran Digital, 3(2), 155-173. doi:https://doi.org/10.35912/jbpd.v3i2.4516
- Miftah, M., & Prasetyo, A. (2024). Digital Literacy Mastery and its Role in Human Resource Competitiveness. Paper presented at the 5th Borobudur International Symposium on Humanities and Social Science 2023.
- Murugesan, U., Subramanian, P., Srivastava, S., & Dwivedi, A. (2023). A study of artificial intelligence impacts on human resource digitalization in industry 4.0. Decision Analytics Journal, 7, 100249. doi:https://doi.org/10.1016/j.dajour.2023.100249
- Paarima, Y., Kwashie, A. A., & Ofei, A. M. A. (2021). Financial management skills of nurse managers in the Eastern Region of Ghana. International Journal of Africa Nursing Sciences, 14, 100269. doi:https://doi.org/10.1016/j.ijans.2020.100269
- Pilav-Veli?, A., ?erne, M., Trkman, P., Wong, S. I., & Kadi?-Abaz, A. (2021). Digital or innovative: Understanding “Digital Literacy–practice–innovative work behavior” chain. The South East European Journal of Economics and Business, 16(1), 107-119. doi:https://doi.org/10.2478/jeb-2021-0009
- Piwowar-Sulej, K., Blštáková, J., Ližbetinová, L., & Zagorsek, B. (2024). The impact of digitalization on employees' future competencies: has human resource development a conditional role here? Journal of Organizational Change Management, 37(8), 36-52. doi:https://doi.org/10.1108/JOCM-10-2023-0426
- Rudiyanto, R., Munawar, N. A., Prayoga, R., Arini, D. U., & Mufliha, D. I. (2025). Maintaining Cooperative Sustainability: The Mediation Role of Performance Measurement Systems. Annals of Human Resource Management Research, 5(1). doi:https://doi.org/10.35912/ahrmr.v5i1.2904
- Schiuma, G., Santarsiero, F., Carlucci, D., & Jarrar, Y. (2024). Transformative leadership competencies for organizational digital transformation. Business Horizons, 67(4), 425-437. doi:https://doi.org/10.1016/j.bushor.2024.04.004
- Schöggl, J.-P., Rusch, M., Stumpf, L., & Baumgartner, R. J. (2023). Implementation of digital technologies for a circular economy and sustainability management in the manufacturing sector. Sustainable Production and Consumption, 35, 401-420. doi:https://doi.org/10.1016/j.spc.2022.11.012
- Selmer, J., & Chiu, R. (2004). Required human resources competencies in the future: a framework for developing HR executives in Hong Kong. Journal of World Business, 39(4), 324-336. doi:https://doi.org/10.1016/j.jwb.2004.08.001
- Sharma, R., & Gupta, H. (2024). Harmonizing sustainability in industry 5.0 era: Transformative strategies for cleaner production and sustainable competitive advantage. Journal of cleaner production, 445, 141118. doi:https://doi.org/10.1016/j.jclepro.2024.141118
- Wang, G., Niu, Y., Mansor, Z. D., Leong, Y. C., & Yan, Z. (2024). Unlocking digital potential: Exploring the drivers of employee dynamic capability on employee digital performance in Chinese SMEs-moderation effect of competitive climate. Heliyon, 10(4). doi:https://doi.org/10.1016/j.heliyon.2024.e2558
- Zaimovic, A., Meskovic, M. N., Dedovic, L., Arnaut-Berilo, A., Zaimovic, T., & Torlakovic, A. (2024). Measuring digital financial literacy. Procedia Computer Science, 236, 574-581. doi:https://doi.org/10.1016/j.procs.2024.05.068