Effect of electronic recruitment on organizational performance through the mediating role of organizational learning capability in the Commercial Bank of Ethiopia

As organizations increasingly adopt electronic recruitment (e-recruitment), the mechanisms through which it translates into performance outcomes remain underexplored. This study investigates the relationship between e-recruitment (ER) and organizational performance (OP), proposing organizational learning capability (OLC) as a key mediator within the Commercial Bank of Ethiopia (CBE). Using a quantitative approach, data were collected through a survey of 338 managers (94% response rate) and analyzed using structural equation modeling. The findings reveal that ER significantly enhances OLC (β = 0.83, p < 0.001). Furthermore, ER positively affects OP both directly (β = 0.51, p < 0.001) and indirectly through OLC (indirect effect = 0.27, p < 0.001), indicating partial mediation. OLC accounts for approximately 35% of the total effect, demonstrating that learning mechanisms represent a substantial pathway through which digital recruitment influences organizational outcomes. This study moves beyond prior direct-effect models by explaining how e-recruitment improves performance through organizational learning capability. Accordingly, the study makes three novel contributions. First, it is the first to empirically establish OLC as a mediating mechanism in the ER–OP relationship, extending the Resource-Based View and Dynamic Capability Theory by showing that e-recruitment functions as a strategic capability that facilitates knowledge acquisition and innovation. Second, unlike prior studies focusing only on direct effects, this study demonstrates that 35% of e-recruitment’s performance impact operates through learning mechanisms. Third, it provides the first empirical evidence from Ethiopia’s banking sector, an emerging economy context where digital HRM is rapidly diffusing. For managers, the findings highlight the importance of integrating e-recruitment systems with deliberate strategies to strengthen organizational learning, thereby enhancing adaptability, innovation, and sustainable competitive advantage.