In the era of digitalization, enterprises have come to rely on digital technology to increase their personnel’s efficiency, maintain competitiveness, and meet customer demands in a rapidly shifting technological landscape [
1]. High-performance work systems (HPWS) have been related to the advancement of workplace innovation, specifically digital innovation. The practices that make up HPWS are comprised of approaches designed for developing workers’ abilities, understanding, and motivation; involve employee communication, training, and development; and performance-based rewards [
2]. When businesses successfully innovate with the latest technologies, they are better positioned to acquire a competitive edge, maximize productivity, and satisfy changing customer needs [
3]. Hence, it is significant for businesses to understand the factors that contribute to digital innovation. A vital aspect of a firm’s success in the digital age includes digital innovation, which involves the use of digital technologies to create new and improved products, services, and processes [
4]. The high-performance work system (HPWS) is a collection of procedures that raise employee motivation and skill levels. By incorporating the principles of the circular economy, organisations can further leverage their selective staffing practices and HPWS implementation [
5]. In a circular economy framework, businesses strive to minimize waste, promote resource efficiency, and encourage the reuse, recycling, and repurposing of materials. Selective staffing aligns with these principles by ensuring that individuals with the best skills and behavioural patterns are hired, leading to improved productivity and reduced resource wastage [
3]. Moreover, the extensive training provided to employees underpins their familiarity with sustainable processes and practices, enabling them to contribute to the organisation’s circular economy initiatives [
6]. Internal mobility opportunities within a circular economy context can facilitate the development of employees’ skills in sustainable business practices, promoting their involvement in the design and implementation of innovative circular solutions [
5]. Thus, the combination of selective staffing, HPWS, and the circular economy concept creates a synergistic approach that drives both organisational success and sustainability [
7]. Employees can acquire the information and skills necessary to comprehend and apply the ideas of the circular economy through training and development programmes [
1]. However, fostering a culture of digital innovation requires not only technological investments but also significant human-resource investments [
6]. However, the tourism industry is one of the most competitive and dynamic areas and it has been quickly adopting digital technologies to improve its consumer experience and retain its competitiveness [
7]. high-performance work systems (HPWS) are a set of human-resource management practices that are designed to boost employee engagement, motivation, and skill levels in order to enhance organisational performance [
8]. Innovation in the digital sphere refers to the creation and implementation of new technologies, applications, and services that enhance business performance and establish a competitive edge [
9]. Business involvement, training and development, and performance-based rewards are examples of practices that HPWSs adopt to enhance the skills, knowledge, and motivation of their employees [
10]. In the context of establishing an innovative culture and facilitating the adoption of digital technology, HPWS is an important aspect [
2]. Additionally, HPWSs foster a culture of innovation by encouraging employee involvement and creativity [
11]. However, further research is required to fully understand the nature and scope of this association. E-learning has emerged as a popular tool for promoting employee learning and development in organisations and has the potential to enhance employee skills and knowledge in the digital domain [
12]. However, the use of e-learning as a mediator between HPWS and digital innovation has not been extensively studied. E-learning can be delivered through a variety of formats, including online courses, webinars, and simulations [
13]. In addition, e-learning could enhance the impact of HPWS on digital innovation by providing employees with the necessary skills and knowledge to effectively adopt and utilise digital technologies [
12]. Accordingly, e-learning acts as a middleman by offering a flexible platform for delivering training that is specifically targeted towards the circular economy. Employees can obtain pertinent material using e-learning at their own time and pace, learning the expertise they require to successfully apply circular ideas [
4]. Thus, this study aims to examine how e-learning mediates the relationship between HPWS and digital innovation. A supportive organisational culture, characterized by a climate of trust, openness, and risk-taking culture, that values and supports innovation, risk-taking, and experimentation, has also been found to be a critical factor in promoting digital innovation [
14]. A supportive organisational culture encourages employees to take risks, try new approaches, and think creatively, which could lead to the development of innovative products, services, and processes [
15]. As a moderator between HPWS and digital innovation, a supportive organisational culture enhances the impact of HPWS on digital innovation by providing an environment that fosters innovation and supports the adoption of digital technologies. Additionally, the role of supportive organisational culture in promoting digital innovation has been recognized but its moderating effect on the relationship between HPWS and digital innovation has not been thoroughly examined. While the literature has been explored, the factors such as digital technology [
16] and digital workplace [
17] as key determinants in the achievement of digital innovation; in addition, previous researchers also explored the impacts of HPWS on knowledge-sharing behaviour [
18] and employee wellbeing [
19]; however, the relationship between factors suggested by this study and digital innovation remains underexplored. Therefore, to meet this gap, this research aims to examine the relationship between HPWS and digital innovation. Furthermore, this research explores how e-learning mediates and supportive organisational culture moderates in the relationship between HPWS and digital innovation. By exploring these relationships, this study seeks to provide insights into how organisations can strategically invest in human resources to foster a culture of digital innovation and gain a competitive edge in the digital age. Specifically, this study has three main objectives.