The Influence of AI-Driven Sustainable Human Resource Management on Employee Creative Performance: Analyzing Idiosyncratic Deals in the Indian Information Technology Sector

Thangaraju Karthikeyan () and Palani Poonguzhali
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Thangaraju Karthikeyan: Faculty of Management, SRM Institute of Science and Technology, Kattankulathur, SRM Nagar, Kattankulathur, Chengalpattu, India
Palani Poonguzhali: Faculty of Management, SRM Institute of Science and Technology, Kattankulathur, SRM Nagar, Kattankulathur, Chengalpattu, India

Economics, 2025, vol. 13, issue 3, 1-17

Abstract: The research explores how AI-powered sustainable HR practices influence employee creative performance within India’s IT sector through the mediating role of individualized agreements. The research applies structural equation modeling to examine survey data from 360 IT professionals based on the frameworks of the Job Demands-Resources model and Social Exchange Theory. AI-based training and performance management systems raise creative performance levels and show that ideals partially mediate these relationships. The research results reveal contextual differences because ideals mediate recruitment effects and performance management outcomes but show no significant mediation for training interventions, likely because of the sector’s inclination toward standardized learning approaches. The research delivers significant theoretical advancements by analysing AI-HRM systems in emerging economies and exploring personal work arrangements’ limits in tech-heavy settings. These insights serve as essential guidance for practitioners deploying HR technologies that successfully combine standardization with personalization to promote workplace innovation. The research reveals surprising results about the minimal direct influence of sustainability orientation. The research advocates for integrated strategies to synchronize sustainability initiatives with innovation objectives within India’s IT sector.

Keywords: AI-enabled HR practices; Employee creative performance; Idiosyncratic deals; Sustainable HRM; Structural Equation Modeling; Indian IT industry (search for similar items in EconPapers)
JEL-codes: O32 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:econom:v:13:y:2025:i:3:p:1-17:n:1028

DOI: 10.2478/eoik-2025-0081

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