In the contemporary digital economy, human capital stands as a decisive factor in attaining sustainable competitive advantage. The integration of advanced people management approaches—particularly Strategic Human Resource Management (SHRM) with e-marketing strategies is increasingly vital for enhancing corporate performance. Despite growing recognition of SHRM’s importance, limited empirical research has explored its combined impact with digital marketing capabilities and happenings on business outcomes, especially in the context of emerging economies. This study addresses this gap by examining how SHRM, supported by digital marketing practices, influences organizational performance among micro, small, and medium-sized enterprises (MSMEs) in India. Data were collected from 420 MSMEs using a structured questionnaire based on a 5-point Likert scale. Moderated Regression Analysis (MRA) was applied to evaluate the direct and moderating effects of digital marketing capabilities and happenings on the SHRM–performance relationship. Findings reveal that SHRM exerts a significant positive influence on corporate performance (β = 0.291, p < 0.001). Digital marketing capabilities (β = 0.364, p < 0.001) and digital marketing activities (β = 0.317, p < 0.001) independently enhance performance, while also strengthening the SHRM–performance link (β = 0.442 and β = 0.332, respectively). The results underscore the synergistic effect of advanced HR practices and e-marketing integration in driving operational efficiency, customer satisfaction, and profitability. The implications are twofold: for practitioners, investing in both human capital development and digital marketing infrastructure is critical to achieving sustainable growth; for policymakers, capacity-building programs that combine HR and digital skills training could significantly improve MSME competitiveness in the Industry 4.0 era. This research extends the SHRM literature by incorporating digital marketing as a strategic complement, offering a nuanced understanding of performance drivers in digitally transforming markets.