Exploring the role of HR practices in supply chain

Abstract

Purpose – The purpose of this study is to establish the importance of human resource (HR) practices in achieving high levels of supply chain (SC) integration through a conceptual framework (depicting the moderation effect of HR practices on the relationship between information sharing and SC integration) and validating the framework empirically to establish the proposed relationships. Design/methodology/approach – The conceptual framework is proposed based on gaps in extant literature. Data from 60 automobile component manufacturing organizations in India are used to analyse the relationship between the study variables. Regression analysis is used to find the relative impact of predictor variable (Information sharing) on SC integration and the moderation effect of HR practices (training, collaborative performance systems and reward alignment) on this relationship. Findings – The results indicate that information sharing has a significant effect on SC integration, and the relationship between these two variables is found to be positively moderated by “training” and “reward alignment”, while “collaborative performance systems” does not emerge as a significant moderator in the proposed relationships. Research limitations/implications – It is expected that this study will contribute to both academics and practice. Along with extending the scope of research at the academic level, it is also expected to help practising managers to understand the importance of HR in SC, and to identify various HR practices which can be focused on to improve SC integration. Originality/value – The framework and analysis presented in this paper help to provide an understanding of how HR practices of organizations can help in improving the relationship between information sharing and SC integration.