Purpose

This study aims to explore the strategic barriers hindering the digital transformation of human resource management (HRM) within service-based organizations. It also investigates how they relate to the unique characteristics of service organizations, such as labor intensity, human interactions and customer-centricity, emphasizing the role of HR in facilitating a technology-driven culture necessary for successful digital initiatives.
Design/methodology/approach

A multi-method approach is adopted combining a systematic literature review, expert interviews and Total Interpretive Structural Modeling (TISM). This methodology helps identify, classify and model the interrelationships among key barriers to HR digital transformation, thereby enabling the development of a conceptual hierarchical framework specific to service-level organizations.
Findings

Findings show that the core barriers to digital transformation include lack of top management support, inadequate financial resources, complexities in technology adoption and data quality issues, while linkage variables, such as absence of employee training and job security concerns further compound the challenges. These barriers are then structured hierarchically, revealing their interdependencies and influence patterns that restrict the smooth progression toward digital HRM.
Research limitations/implications

The focus on service-sector organizations and reliance on domain experts may limit the generalizability of the findings. Future research could expand across industries or validate findings using quantitative methods. Nonetheless, the conceptual framework offers a basis for theory development in digital HRM transformation.
Practical implications

By mapping the barriers and their relationships, the study provides actionable insights for service organization leaders. Understanding the hierarchy and interconnectedness of transformation challenges enables targeted interventions, prioritization of resources and more strategic planning for HR digitalization efforts.
Originality/value

This study contributes a novel conceptual framework specific to HR digital transformation in service-based organizations, integrating TISM and expert insights. By highlighting the often-passive role of HR in digitalization, it offers a structured understanding of strategic barriers, thereby enriching both academic literature and managerial practice.