Journal of Research Administration

Abstract

In the context of rapid digital transformation and growing sustainability demands, small and medium-sized enterprises (SMEs) in Saudi Arabia face increasing pressure to modernize their human resource management (HRM) practices. This study develops a conceptual framework that examines the combined influence of artificial intelligence (AI) and employee engagement on sustainable HRM practices, with a particular focus on the mediating role of digital skill development. Drawing upon the Sustainable HRM theory, the Resource-Based View (RBV), and the Technology Acceptance Model (TAM), the framework captures the interplay between technological innovation, human capital, and organizational sustainability. While existing literature addresses these variables in isolation, few studies have integrated them into a cohesive model, especially within the unique socio-economic and digital context of Saudi Arabian SMEs. This research addresses that gap by proposing that digital skill development enables employees to effectively utilize AI systems and enhances their engagement in sustainability-driven HRM initiatives. The framework also underscores how digitally capable and engaged employees can become catalysts for sustainable organizational practices. The study provides practical implications for HR managers, SME leaders, and policymakers by emphasizing the need for targeted digital training, strategic engagement practices, and supportive infrastructure to promote sustainable HR outcomes. It also offers a theoretical foundation for future empirical validation. This integrative approach offers a timely contribution to the evolving discourse on digitalization, engagement, and sustainability in human resource management.