Business Legitimacy and Adoption of Human Resource Information Systems in Danish SMEs

This chapter is a case study of the search for business legitimacy in relation to human resource management in Danish Small and Medium Size Enterprises (SMEs). The chapter examines the determinants for Danish SMEs to adopt Human Resource Information Systems (HRIS) in order to require legitimacy in technological development. To do so the chapter applies the technology-organizational-environmental (TOE) framework of innovation adoption and qualitative analysis. Perceived benefits, organizational HRIS knowledge and expertise and top management support are proven significant in driving HRIS SMEs’ adoption decision in the four cases. With the use of HRIS, SMEs HR management has especially improved work efficiency and been able to grow faster and this has benefit for acceptance and legitimacy by employees.