Digital Transformation in Human Resource Management: Examining Big Data Analytics Adoption Among Non-Listed Firms in Kosovo

Abstract

The rapid advancement of digital technologies has transformed organizational practices, with Big Data Analytics (BDA) becoming a key driver of data-based decision making in Human Resource Management (HRM). This study examines the determinants of BDA adoption in HRM among non-listed firms in Kosovo, a transitioning economy where financial, technological, and institutional constraints often hinder digital transformation. Using data from 50 non-listed firms registered with the Kosovo Council for Financial Reporting (KCFR) for the period 2015–2022, the study employs panel data techniques including fixed effects, random effects, and pooled ordinary least squares (POLS) to identify factors influencing adoption. Variables considered include company size, technological readiness, employee skills, financial resources, organizational culture, regulatory compliance, and competitive pressure. The results show that company size, technological readiness and financial resources significantly and positively influence BDA adoption, while regulatory compliance burdens and low employee skill levels act as major barriers. Organizational culture and competitive pressure have only moderate effects. The findings highlight the need for internal investments in training and change management, and external support through streamlined regulation and digital literacy initiatives. The study contributes to understanding BDA adoption in HRM within resource-constrained environments and offers practical insights for managers and policymakers.