International Journal of Business and Economics Volume 21, No. 1 June, 2022

The Impact of HR Analytics Adoption on Firm Return on Investment: A PSM Model Approach

Susmita Ekka

Research Scholar, School of Management studies, University of Hyderabad, India.

Punam Singh

Assistant Professor, School of Management studies, University of Hyderabad, India.

Priyadarashi Ranjan

Research Scholar, School of Management studies, University of Hyderabad, India.

Abstract

Human resource analytics (HRA), adopted by firms in India and across the globe, is forecasted to increase at a decent pace, as reported by various market research firms. However, few studies have explained that mixed benefits may be due to differences in company HR practices. This research paper studies HR adoption at the firm level in the Indian context. Data from 116 Indian BSE listed companies for the 2018-2019 period is investigated using propensity score matching (PSM) followed by linear regression analysis. The result reveals that HR analytics firms have a higher return on investment. Our findings will prove helpful to firms who wish to adopt HRA practices.

Keywords：HR Analytics, Return of Investment (ROI), Propensity Score Matching.

JEL Classifications：M15, M21, O33.

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