Artificial intelligence-enabled human resource management: integrating dynamic capabilities theory and stakeholder theory for sustainable organizational performance

Authors

  • Cassandra Arroyo Université du Québec à Montréal (UQAM)

DOI:

https://doi.org/10.66578/btis.v2i2.33

Keywords:

Artificial Intelligence, Human Resource Management, Dynamic Capabilities Theory, Stakeholder Theory, Sustainable Organizational Performance, AI-Enabled HRM

Abstract

The rapid advancement of artificial intelligence (AI) is fundamentally transforming human resource management (HRM), creating new opportunities for organizations to enhance workforce effectiveness, improve strategic decision-making, and strengthen long-term competitiveness. Despite growing scholarly attention to AI-enabled HRM practices, existing research remains fragmented and lacks a comprehensive theoretical framework explaining how AI contributes to sustainable organizational performance while balancing the interests of diverse stakeholders. This article addresses this gap by integrating Dynamic Capabilities Theory and Stakeholder Theory to develop a novel conceptual framework for AI-enabled human resource management. Drawing upon Dynamic Capabilities Theory, the study explains how AI technologies enhance organizational capabilities through sensing workforce needs, seizing strategic opportunities, and reconfiguring HR processes to respond to changing business environments. Simultaneously, Stakeholder Theory provides a complementary perspective by emphasizing the importance of creating value for employees, managers, customers, investors, and broader society through responsible and ethical AI implementation. The proposed framework demonstrates how AI-enabled HRM practices, including talent acquisition, employee development, performance management, workforce analytics, and employee engagement, contribute to organizational agility, workforce resilience, stakeholder satisfaction, and sustainable organizational performance. The article further develops a series of research propositions and identifies future research directions for scholars examining the intersection of artificial intelligence, human resource management, organizational sustainability, and strategic management. The framework offers both theoretical and practical insights for organizations seeking to leverage AI technologies while maintaining stakeholder trust and achieving long-term organizational success.

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2026-06-15

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