The Digital-Inclusive Nexus: How Technology-Mediated HRM Practices Foster Employee-Driven Social Responsibility in Smes

Abstract

This paper grew out of a puzzle I encountered during fieldwork in three Chinese SMEs. Some employees in these firms volunteered for community projects and environmental initiatives. Others did not. What explained the difference? I set out to answer this question by looking at how inclusive HRM practices shape employees' voluntary social-responsibility behaviors. I also wanted to know whether digital technologies—which these firms had adopted at different levels—amplified or dampened those effects. I used stakeholder theory, self-determination theory, and digital embeddedness theory as my conceptual lenses. To test my ideas, I conducted a multi-case grounded-theory study of three SMEs in the Yangtze River Delta. I carried out 18 semi-structured interviews, reviewed internal company documents, and examined publicly available CSR materials. My analysis revealed a consistent pattern. Employees who experience inclusive HRM—characterized by equity, development, support, and participation—develop stronger psychological ownership of their organization. This leads them to perceive their employer as genuinely committed to social values. That perception, in turn, motivates them to act in socially responsible ways on their own initiative. Digital tools play a moderating role: when they make HR processes transparent and accessible, they strengthen the entire chain. When they are used for surveillance, the chain weakens. These findings contribute to CSR scholarship by showing the micro-level processes through which HRM affects employee behavior, and they offer practical guidance for SMEs with limited resources.