Contribution of Human Resource Management Practices In Supply Chain Success in Small and Medium Enterprises

Abstract

The purpose of this paper is to investigate the relationship between human resource
management (HRM) practices and supply chain management (SCM) success in SME from the Pakistani
industry context. A sample of 174 responses was collected through convenience sampling from
manufacturing and service sectors of SME in Karachi. The method of confirmatory factor analysis and
path analysis were employed to evaluate the fitness of the measurement model. The Path analysis
method was applied to examine the theoretical framework. The results indicate that all HRM practices,
showed a significant relationship with supply chain management, as perceived by the employees of the
Pakistani SME manufacturing and service organizations. Since the study has contributed by giving
valuable insights for enhancing the SCM success by implementing these HRM practices; therefore,
companies should concentrate more on these four HRM practices and pay extra attention when
managing their respective organization to give edge over competitors. Findings from this study would be
beneficial for HRM managers in developing countries such as