Journal of Research Administration

Abstract

This study explores the influence of employee engagement on sustainable human resource practices (SHRP) within Saudi medium-sized enterprises (SMEs), emphasizing the mediating role of digital skill development (DSD). As Saudi Arabia advances toward its Vision 2030 goals—centered on economic diversification and environmental sustainability—SMEs are vital contributors to organizational innovation and responsible workforce management. Grounded in the Resource-Based View (RBV), this study employs a quantitative, deductive research design and gathers data through a structured survey administered to 384 employees and HR professionals across various Saudi SMEs. Structural equation modeling (PLS-SEM) was used for data analysis. The findings reveal that employee engagement significantly and directly affects SHRP, highlighting the importance of fostering employee commitment, recognition, and involvement in sustainable practices. Moreover, digital skill development partially mediates this relationship, demonstrating that engaged employees who are digitally competent can more effectively support and implement sustainability-focused HR strategies. While digital skills enhance the impact of engagement, the strongest influence on SHRP remains the employee engagement factor itself. These results offer both theoretical and practical contributions by linking engagement and digital capabilities within a unified HRM sustainability model. For HR leaders, the implications are clear: to meet long-term performance and sustainability objectives, SMEs must simultaneously invest in engaging their workforce and enhancing digital readiness.