The adoption of artificial intelligence in employee recruitment: The influence of contextual factors

TLDR

AI is touted as a powerful HRM tool, yet academic research on its use remains scarce. The study aims to understand the facilitators and constraints of AI adoption in employee recruitment. It applies the TOE model and transaction cost theory to examine how organizational and environmental factors influence adoption. Surveying 297 Chinese firms, the study finds that perceived AI complexity hinders adoption, while technology competence and regulatory support promote it; relative advantages, company size, and industry have no significant effect, and transaction costs moderate the impact of complexity and competence.

Abstract

Artificial intelligence (AI) has been presented as a powerful tool in human resource management (HRM), but little academic research exists on the topic. The present study introduces the technology, organization, and environment (TOE) model from information systems research and integrates it with the transaction cost theory to better understand the facilitators and the constraints of companies’ AI adoption behavior during employee recruitment. Survey results from 297 Chinese companies suggest that companies’ perceived complexity toward AI constrains AI adoption, while technology competence and regulatory support encourage AI adoption. Relative advantages of AI technology, company size, and industry have no significant impact on AI usage. The findings also demonstrate the moderating effects of transaction costs on the influential power of technological complexity and organizations’ technology competence.