HR practices have significant impact on organizational performance relatively justified in many studies from the
developed to developing countries. explained that HR decisions influence organizational performance through
either improving HR efficiency or contributing to revenue growth. Moreover, HR practices have direct and
positive relation on the business financial aspects. For example, it has impact on income by employee , sales growth , return on
asset (ROA) and assets each employee, asset turnover, equity turnover, receivable turnover, and
return on equity (ROE). The Society for HRM and CCH Incorporation contracted for a
study (under Dr. Cheri Ostroff direction, Associate Professor at the University of Minnesota’s Industrial
Relations Center) to evaluate the financial impact of HR practices. An overall quality
of HR index developed for each firm and the study results clearly pointed out organizations with high quality of
HR practices have higher business results. On the other hand, the rapid development of the ICT during the last
two decades has increased the HRIS implementation. IT has considerable potentiality that
managers can use in human resource functions in particular to escalate the organization’s capabilities. A meta-analysis conducted on 42 published empirical studies that
adapted resource-based view (RBV) to examine whether information technology (IT) and organizational
resources have significant effect on firm performance. They also found organizational capabilities as mediators
between organizational resources and firm performance. They suggested that organization should use IT to
resources that can increase the firm capabilities which ultimately increase the firm performance. Hence, our first
hypothesis is: