Enhancing Sustainable Competitive Advantage through Digital HRM in India’s Emerging Digital Economy

India’s accelerating digital transformation has reshaped job roles, requiring employees to continuously upskill and develop strong digital competencies to remain sustainable in the changing workplace. As reflected in evolving job structures, Digital Human Resource Management (Digital HRM) has become essential for supporting employee development, adaptability, and long-term employability. This study examines the influence of key digitalization factors—Technology Integration, Knowledge Sharing, Autonomy, and Digital Competency—on employee sustainability and organizational performance within India’s digital economy. A quantitative research design was employed using a structured questionnaire administered to employees across various sectors. Data were analyzed using regression and structural equation model to assess the significance of digital HRM dimensions in shaping sustainable employee outcomes. The findings reveal that Knowledge Sharing, Autonomy, and Technology Integration significantly predict Sustainable Competitive Advantage, while Digital Competency, though important, did not show a direct statistical effect in the regression model. The results emphasize the growing need for digital readiness, collaborative learning, and empowered work environments to support employee sustainability. The study recommends that organizations strengthen digital training initiatives, promote knowledge-sharing cultures, enhance employee autonomy, and strategically implement digital HRM tools to build a resilient and future-ready workforce.