Digital HR, Artificial Intelligence, and Employee Engagement in the Hospitality Industry of Bagmati Province

The Mediating Role of Knowledge Management

Authors

Keywords:

Artificial intelligence, digital HR, employee engagement, hospitality industry, knowledge management

Abstract

Purpose: This study examines the effects of Digital Human Resource Management (Digital HR) and Artificial Intelligence (AI) on Employee Engagement (EE), with Knowledge Management (KM) as a mediator, in the hospitality sector of Bagmati Province, Nepal.

Design/methodology/approach: A quantitative, cross-sectional survey was conducted among 400 hospitality employees using convenience sampling. Data were analysed using SmartPLS 4.

Findings: Digital HR positively influenced employee engagement and knowledge management, while AI positively influenced knowledge management. Knowledge management positively influenced employee engagement and partially mediated the relationship between Digital HR and employee engagement. It fully mediated the relationship between AI and employee engagement, as the direct effect of AI on employee engagement was not significant.

Implications: Hospitality organisations should integrate Digital HR and AI with effective knowledge management practices, emphasising knowledge sharing, learning, and technology-enabled knowledge processes to strengthen employee engagement.

Originality/value: The study highlights the importance of knowledge management in translating technology-driven HR practices into greater employee engagement in Nepal’s hospitality sector.

JEL Classification: D83, L83, M12, M15, O33,

Author Biographies

Sadhana Khati Chhetri , School of Management , Tribhuvan University, Nepal

Sadhana Khati Chhetri is an MBA graduate from the School of Management, Tribhuvan University, Nepal. Her research interests include Human Resource Management, digital HR, artificial intelligence, employee engagement, and organisational behaviour. She is interested in quantitative research, especially in emerging technologies and their implications for employees and organisations.

Renu Chaurasiya , School of Management, Tribhuvan University, Nepal

Renu Chaurasiya is an MBA graduate from the School of Management, Tribhuvan University, Nepal. Her research interests include Human Resource Management, organisational behaviour, digital transformation, artificial intelligence, and employee engagement. She is particularly interested in emerging technologies and their applications in organisations, with a focus on their influence on employees and workplace practices, and generating practical, evidence-based insights for effective organisational management.

Sudeep Ijam , School of Management , Tribhuvan University, Nepal

Sudeep Ijam is an MBA graduate from the School of Management, Tribhuvan University, Nepal. His research interests focus on Human Resource Management, organisational behaviour, digital transformation, artificial intelligence, and employee engagement, particularly the impact of emerging technologies on employees and organisational practices.

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Published

2026-09-23

Issue

Vol. 1 No. 1 (2026)

Section

Research Articles