Application of Artificial Intelligence in Human Resource Management in SMEs: A Systematic Literature Review With Chinese Case Studies
DOI:
https://doi.org/10.51137/wrp.ijarbm.641Keywords:
Artificial Intelligence, Human Resource Management, Small and Medium-Sized Enterprises, Systematic Literature Review, Algorithmic GovernanceAbstract
Artificial intelligence (AI) is transforming human resource management (HRM) by automating tasks and enabling data-driven decisions. Small and medium-sized enterprises (SMEs), which constitute over 98.5% of businesses in many economies including China, face unique resource constraints yet lag in AI-HRM adoption. This systematic literature review synthesizes global evidence on AI applications in SME HRM, with a specific focus on Chinese case studies. Following PRISMA 2020 guidelines, searches across Google Scholar, Web of Science, Scopus, ScienceDirect, and CNKI yielded 1,562 initial records, of which 21 studies published between 2019 and 2026 met inclusion criteria. Findings were synthesized around three research questions addressing AI applications and outcomes, adoption opportunities and constraints in the Chinese context, and responsible implementation strategies. Results show that AI enhances operational efficiency primarily in recruitment and performance analytics. Chinese SMEs exhibit a distinctive policy- and platform-mediated adoption pathway, where state-backed digitalization lowers entry barriers but creates dependencies on external ecosystems. Challenges including algorithmic bias, data privacy concerns, high costs, and skill gaps persist across contexts. This review extends the resource-based view to AI-enabled capabilities in SMEs and recommends staged, governance-aware implementation.
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Copyright (c) 2026 Jianze Zhang (Author)
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