Digital HR for the Non-Profit Sector: Opportunities and Constraints

The digital revolution has reshaped the strategic and operational landscapes of organizations across all sectors. Yet, its impact on the non-profit sector remains
underexplored and complex. Unlike their for-profit counterparts, non-profit organizations (NPOs) operate within
resource constraints, volunteer-driven ecosystems, and mission-centric governance structures. These
characteristics shape the adoption, implementation, and impact of DigitalHuman Resource Management (Digital
HRM) within the sector.
This chapter examines the
opportunities and constraints of Digital
HRM in the non-profit context. Drawing
upon Resource-Based View (Barney,
1991), Institutional Theory (DiMaggio &
Powell, 1983), and Public Value Theory
(Moore, 1995), it theorizes how NPOs
balance digital inclusion, resource
limitations, and mission alignment. It
introduces the Digital HRM for Non-Profit
Effectiveness Framework (DHRM-NPEF),
which conceptualizes how digital tools
such as HR Information Systems (HRIS),
e-recruitment, and people analytics can
strengthen volunteer management, talent
retention, and social impact while
respecting organizational values and
inclusivity.