The relation between human resource management practices, supply chain management practices and competitive strategy as strategic instruments and their impact on organizational performance in manufacturing industry

Abstract

Doing business in an increasingly turbulent marketplace requires integrating strategically sound choices (to increase the ability to survive, adapt and prosper despite dynamic changes) that go beyond organizational boundaries. Although, a strategic approach is essential to achieving a competitive advantage and improving organizational performance in a tumultuous environment, competition is no longer through a single strategic instrument but rather among a strategic chain of managerial choices. A perusal of the literature shows that a broad frame of references for organizational success is not adequately developed; it suffers from the absence of an integrative strategic model. Therefore, by taking an interdisciplinary approach with a relational perspective, this thesis takes an integrative and fresh approach toward illuminating the role of supply chain management practices and competitive strategy in realizing the potential influence of human resource management practices on organizational performance. Using the data obtained from 157 manufacturing organizations, it tests, examines and develops the mediating role of supply chain management practices and the moderating role of competitive strategy. The findings indicate a positive linkage between HRM practices and SCM practices, and a positive influence of HRM practices, SCM practices and two competitive strategies on organizational performance. In addition, the findings also show that SCM practices mediate the relationship between HRM practices and organizational performance. Although this research thesis could not provide significant evidence to show that competitive strategies moderate the direct effect of HRM practices and the mediation effect of SCM practices on organizational performance, it highlights that both SCM practices and competitive strategy are necessary to increase the actual value of HRM practices and achieve business success.