This study explores the concept of Smart HRM 4.0 through the lens of the dynamic capability view (DCV) perspective, which posits that an organization’s ability to integrate, build, and reconfigure internal and external competencies is crucial for achieving sustained competitive advantage. By leveraging dynamic capabilities, organizations can effectively respond to rapidly changing environments, thus enhancing their overall performance. Quantitative research using a cross-sectional survey design. To examine the relationship between Smart HRM 4.0 variables and organizational performance. Independent Variables were Stickiness to Traditional practice, mediator was Learning and knowledge skills integration and reconciliation capabilities while Dependent Variable is Organizational Performance (measured through financial performance, employee productivity, innovation outcomes, customer satisfaction, etc.) Total Participants: 55 IT Specialists and senior executives. Industry Organization Size: 40% large enterprises, 35% medium-sized companies, 25% small businesses. Technological integration and data-driven decision making are the most significant predictors of organizational performance. Dynamic capabilities enhance the effectiveness of Smart HRM practices, leading to improved organizational performance. Organizations that effectively develop and leverage their dynamic capabilities are better positioned to achieve high performance through Smart HRM 4.0 practices. Implications for Practice Organizations should invest in advanced HR technologies and foster a culture of continuous learning and innovation. Enhancing dynamic capabilities can amplify the benefits of Smart HRM 4.0 practices, leading to superior organizational performance. HR leaders should focus on building robust sensing, seizing, and reconfiguring capabilities to stay competitive in a rapidly changing environment.