PREDICTIVE PEOPLE ANALYTICS AND ORGANIZATIONAL PERFORMANCE: THE MEDIATING ROLE OF SMART HR PRACTICES

Abstract

The spread of artificial intelligence and predictive people analytics (PPA) is changing the way businesses handle their human resources. However, there is still disagreement about how these technologies improve the performance of organisations. This study examines the enhancement of organisational performance by predictive analytics, facilitated by the mediating influence of intelligent HR practices and the moderating effect of institutional support. Based on Strategic Alignment Theory and the Dynamic Capabilities Framework, it argues that aligning AI-enabled analytics with HR systems strategically leads to innovation, flexibility, and strategic adaptability, which are all important factors in a company's success. The research utilises a mixed-methods design that integrates a cross-industry dataset of Chinese enterprises with qualitative case studies. It employs Partial Least Squares (PLS) modelling and cluster analysis to delineate performance pathways. The findings indicate that predictive analytics yield substantial value solely when strategically integrated with intelligent HR processes, bolstered by digital infrastructure and facilitating institutions. These results offer theoretical understanding of digital–human complementarities and practical direction for integrating AI-enabled HR analytics with organisational strategy.