Relationship between human resource management practices, relationship commitment and sustainable performance

Muzzammil Wasim Syed; Ji Zu Li; Muhammad Junaid; Muhammad Ziaullah; Muzzammil Wasim Syed; Ji Zu Li; Muhammad Junaid; Muhammad Ziaullah

doi:10.3934/GF.2020013

Green Finance

2020, Volume 2, Issue 3: 227-242. doi: 10.3934/GF.2020013

Previous Article Next Article

Research article Special Issues

Relationship between human resource management practices, relationship commitment and sustainable performance

1.
School of Economics and Management, Taiyuan University of Technology 030000, China
2.
Department of Business Administration, Ghazi University, Dera Ghazi Khan 32200, Pakistan

Received: 02 May 2020 Accepted: 09 June 2020 Published: 11 June 2020
JEL Codes: M10, O15, Q01, Q56

Severe competition in today's global market, shorter lifecycles, and everchanging customer needs have forced companies to invest and think about their supply chains. The increasing competition significantly influences the role of human resource management practices (HRMPs) to relationship commitment (RC) in the market, and we see that more and more companies build stable relationships with network partners to reduce costs, reduce risks and increase competitive advantage. RC is a key principle for mutually beneficial between exchange partners, which in turn increases a firm's sustainable performance. Therefore, this research aims at exploring the relationship between HRMPs, RC, and sustainable performance (SP). The data from 246 manufacturing firms in Pakistan were subjected to analysis by AMOS 26. The maximum likelihood regression results of AMOS suggest that HRMPs have a significant positive relationship with RC and environmental performance. Moreover, RC mediates the relationship between HRMPs, environmental and economic performance.
- human resource management,
- human resource practices,
- relationship commitment,
- sustainability,
- performance
Citation: Muzzammil Wasim Syed, Ji Zu Li, Muhammad Junaid, Muhammad Ziaullah. Relationship between human resource management practices, relationship commitment and sustainable performance[J]. Green Finance, 2020, 2(3): 227-242. doi: 10.3934/GF.2020013

Related Papers:

Abstract

Severe competition in today's global market, shorter lifecycles, and everchanging customer needs have forced companies to invest and think about their supply chains. The increasing competition significantly influences the role of human resource management practices (HRMPs) to relationship commitment (RC) in the market, and we see that more and more companies build stable relationships with network partners to reduce costs, reduce risks and increase competitive advantage. RC is a key principle for mutually beneficial between exchange partners, which in turn increases a firm's sustainable performance. Therefore, this research aims at exploring the relationship between HRMPs, RC, and sustainable performance (SP). The data from 246 manufacturing firms in Pakistan were subjected to analysis by AMOS 26. The maximum likelihood regression results of AMOS suggest that HRMPs have a significant positive relationship with RC and environmental performance. Moreover, RC mediates the relationship between HRMPs, environmental and economic performance.

References

[1]	Ahmad S, Schroeder RG (2003) The impact of human resource management practices on operational performance: recognizing country and industry differences. J Oper Manage 21: 19-43. doi: 10.1016/S0272-6963(02)00056-6
[2]	Ahlstrom D, Bruton G, Chan ES (2001) HRM of foreign firms in China: The challenge of managing host country personnel. Bus Horiz 44: 59-68. doi: 10.1016/S0007-6813(01)80036-7
[3]	Ali M, Lei S, Wei XY (2018) The mediating role of the employee relations climate in the relationship between strategic HRM and organizational performance in Chinese banks. J Innovation Knowl 3: 115-122. doi: 10.1016/j.jik.2016.12.003
[4]	Arther MB (1994) The boundaryless career. J Organ Behav 15: 295-306. doi: 10.1002/job.4030150402
[5]	Bisharat H, Obeidat BY, Alrowwad A, et al. (2017) The effect of human resource management practices on organizational commitment in chain pharmacies in Jordan. Int J Bus Manage 12: 50-67. doi: 10.5539/ijbm.v12n1p50
[6]	Browning V, Delahaye BL (2011) Enhancing workplace learning through collaborative HRD, In Readings in HRM and sustainability, Australia: Tilde University Press, 36-50.
[7]	Carey S, Lawson B, Krause DR (2011) Social capital configuration, legal bonds and performance in buyer-supplier relationships. J Oper Manage 29: 277-288. doi: 10.1016/j.jom.2010.08.003
[8]	Celma D, Martinez-Garcia E, Raya JM (2018) Socially responsible HR practices and their effects on employees' wellbeing: Empirical evidence from Catalonia, Spain. Eur Res Manage Bus Econ 24: 82-89. doi: 10.1016/j.iedeen.2017.12.001
[9]	Chaturvedi (2015) Economics and Discussion. Available from: http://www.economicsdiscussion.net/human-resource-management/recruitment-and-selection-process/31594.
[10]	Chen J, Eldridge D (2010) Are "standardized performance appraisal practices" really preferred? A case study in China. Chinese Manage Stud 4: 244-257. doi: 10.1108/17506141011074138
[11]	Cousins PD, Handfield RB, Lawson B, et al. (2006) Creating supply chain relational capital: The impact of formal and informal socialization processes. J Oper Manage 24: 851-863. doi: 10.1016/j.jom.2005.08.007
[12]	Darrag M, Mohamed A, Aziz HA (2010) Investigating recruitment practices and problems of multinational companies (MNCs) operating in Egypt. Educ Bus Society Contemp Middle Eastern Issues 3: 99-116. doi: 10.1108/17537981011047943
[13]	Das D (2017) Development and validation of a scale for measuring Sustainable Supply Chain Management practices and performance. J Clean Prod 164: 1344-1362. doi: 10.1016/j.jclepro.2017.07.006
[14]	De Kok J, Uhlaner LM, Thurik R (2003) Human resource management with small firms; facts and explanations, London: Edward Elgar publishing.
[15]	Derous E, De Fruyt F (2016) Developments in recruitment and selection research. Int J Select Asses 24: 1-3. doi: 10.1111/ijsa.12123
[16]	Dupuis JP (2014) New approaches in cross-cultural management research: The importance of context and meaning in the perception of management styles. Int J Cross Cultural Manage 14: 67-84. doi: 10.1177/1470595813501476
[17]	Dyer JH, Singh H (1998) The relational view: Cooperative strategy and sources of interorganizational competitive advantage. Acad Manage Rev 231: 660-679. doi: 10.5465/amr.1998.1255632
[18]	Ehnert I (2009) Sustainability and human resource management: reasoning and applications on corporate websites. Eur J Int Manage 3: 419-438. doi: 10.1504/EJIM.2009.028848
[19]	Fornell C, Larker D (1981) Evaluating Structural Equation Models with Unobservable Variables and Measurement Error. J Mark Res 18: 39-50. doi: 10.1177/002224378101800104
[20]	Huselid MA, Jackson SE, Schuler RS (1997) Technical and strategic human resources management effectiveness as determinants of firm performance. Acad Manage J 40: 171-188.
[21]	Inkpen AC, Tsang EW (2005) Social capital, networks, and knowledge transfer. Acad Manage Rev 30: 146-165. doi: 10.5465/amr.2005.15281445
[22]	Jamali D, Lund-Thomsen P, Jeppesen S (2017) SMEs and CSR in developing countries. Bus Society 56: 11-22. doi: 10.1177/0007650315571258
[23]	Kale P, Singh H, Perlmutter H (2000) Learning and protection of proprietary assets in strategic alliances: Building relational capital. Strat Manage J 21: 217-237. doi: 10.1002/(SICI)1097-0266(200003)21:3<217::AID-SMJ95>3.0.CO;2-Y
[24]	Kam BH, Tsahuridu EE, Ding MJ (2010) Does human resource management contribute to the development of logistics and supply chain capabilities? an empirical study of logistics service providers in China. Res Pract Human Resour Manage 18: 15-34.
[25]	Kline SJ, Rosenberg N (2010) An overview of innovation, In Studies On Science And The Innovation Process: Selected Works of Nathan Rosenberg, England: John Wiley & Sons Ltd, 173-203.
[26]	Kline RB (2015) Principles and practice of structural equation modeling, 4^th eds., London: Guilford publications.
[27]	Kotey B, Slade P (2005) Formal human resource management practices in small growing firms. J Small Bus Manage 4: 16-40. doi: 10.1111/j.1540-627X.2004.00123.x
[28]	Krause DR, Handfield RB, Tyler BB (2007) The relationships between supplier development, commitment, social capital accumulation and performance improvement. J Oper Manage 25: 528-545. doi: 10.1016/j.jom.2006.05.007
[29]	Lamba S, Choudhary N (2013) Impact of HRM practices on organizational commitment of employees. Int J Adv Res Tech 2: 407-423.
[30]	Lee SY (2007) Structural equation modeling: A Bayesian approach, 3^rd eds., New York: Springer, 49-129.
[31]	Likhitkar P, Verma P (2017) Impact of green HRM practices on organization sustainability and employee retention. Int J Innovative Res Multidiscip Field 3: 152-157.
[32]	Loganathan C, Dharmaraj A (2017) A Study on Impact of HRM Practices and Policies on Employee's Organizational Commitment in Textile Spinning Mills in Tamil Nadu, India. Indian J Sci Technol 10: 1-11. doi: 10.17485/ijst/2017/v10i15/114239
[33]	Lytras MD, Pablos POD (2008) The role of a "make" or internal human resource management system in Spanish manufacturing companies: Empirical evidence. Human Factors Ergon Manuf Serv Industries 18: 464-479. doi: 10.1002/hfm.20117
[34]	Madison TF, Ward S, Royalty K (2012) Corporate social responsibility, organizational commitment, and employer-sponsored volunteerism. Int J Bus Soc Sci 3: 1-14.
[35]	Maheshwari S, Vohra V (2015) Identifying critical HR practices impacting employee perception and commitment during organizational change. J Organ Change Manage 28: 872-894. doi: 10.1108/JOCM-03-2014-0066
[36]	Menon ST (2012) Human resource practices, supply chain performance, and wellbeing. Int J Manpower 33: 769-785. doi: 10.1108/01437721211268311
[37]	Mishra P (2017) Green human resource management: A framework for sustainable organizational development in an emerging economy. Int J Organ Anal 25: 762-788. doi: 10.1108/IJOA-11-2016-1079
[38]	Moore KR (1998) Trust and relationship commitment in logistics alliances: a buyer perspective. Int J Purchasing Mater Manage 34: 24-37.
[39]	Morgan RM, Hunt S (1999) Relationship-based competitive advantage: the role of relationship marketing in marketing strategy. J Bus Res 46: 281-290. doi: 10.1016/S0148-2963(98)00035-6
[40]	Nahapiet J, Ghoshal S (1998) Social capital, intellectual capital, and the organizational advantage. Acad Manage Rev 23: 242-266. doi: 10.5465/amr.1998.533225
[41]	Naz F, Aftab J, Awais M (2016) Impact of human resource management practices (HRM) on performance of SMEs in Multan, Pakistan. Int J Manage Accounting Econ 3: 699-708.
[42]	Nielsen P, Rasmussen P, Fong CY, et al. (2011) HRM practices and knowledge sharing: an empirical study. Int J Manpower 12: 704-723.
[43]	Nishii LH, Wright PM (2007) Variability within organizations: Implications for strategic human resource management, London: oxford press, 599-600.
[44]	Obeidat BY, Abdallah AB (2014) The relationships among human resource management practices, organizational commitment, and knowledge management processes: A structural equation modeling approach. Int J Bus Manage 9: 1-9. doi: 10.5539/ijbm.v9n3p9
[45]	Parmigiani A, Klassen RD, Russo MV (2011) Efficiency meets accountability: Performance implications of supply chain configuration, control, and capabilities. J Oper Manage 29: 212-223. doi: 10.1016/j.jom.2011.01.001
[46]	Paşaoğlu D (2015) Analysis of the relationship between human resources management practices and organizational commitment from a strategic perspective: Findings from the banking industry. Proc-Social Behav Sci 207: 315-324. doi: 10.1016/j.sbspro.2015.10.101
[47]	Randev KK, Jha JK (2019) Sustainable Human Resource Management: A Literature-based Introduction. NHRD Net J 12: 241-252. doi: 10.1177/2631454119873495
[48]	Renwick DW, Jabbour CJ, Muller-Camen M, et al. (2016) Contemporary developments in Green (environmental) HRM scholarship. Int J Human Res Manage 27: 114-128. doi: 10.1080/09585192.2015.1105844
[49]	Savaneviciene A, Kersiene K (2015) How are HRM practices transferred in MNCs? Lithuania case. Procedia Econ Financ 26: 982-990. doi: 10.1016/S2212-5671(15)00920-X
[50]	Şendoğdu AA, Kocabacak A, Güven Ş (2013) The relationship between human resource management practices and organizational commitment: A field study. Proc- Social Behav Sci 99: 818-827. doi: 10.1016/j.sbspro.2013.10.553
[51]	Shabbir A, Malik SA (2016) Measuring patients' healthcare service quality perceptions, satisfaction, and loyalty in public and private sector hospitals in Pakistan. Int J Qual Reliab Manage 33: 538-557. doi: 10.1108/IJQRM-06-2014-0074
[52]	Sripirabaa B, Krishnaveni R (2009) Performance management systems in an Indian manufacturing sector. Manage Res News 32: 942-952. doi: 10.1108/01409170910994150
[53]	Stavrou ET, Brewster C (2005) The configurational approach to linking strategic human resource management bundles with business performance: myth or reality? Manage Revue 161: 186-201. doi: 10.5771/0935-9915-2005-2-186
[54]	Syed MW, Li JZ, Junaid M, et al. (2019) An Empirical Examination of Sustainable Supply Chain Risk and Integration Practices: A Performance-Based Evidence from Pakistan. Sustainability 11: 5334. doi: 10.3390/su11195334
[55]	Tang G, Chen Y, Jiang Y, et al. (2018) Green human resource management practices: scale development and validity. Asia Pacific Journal Human Resour 56: 31-55. doi: 10.1111/1744-7941.12147
[56]	Tang G, Wei LQ, Snape E, et al. (2015) How effective human resource management promotes corporate entrepreneurship: Evidence from China. Int J Human Resour Manage 26: 1586-1601. doi: 10.1080/09585192.2014.953973
[57]	Villena VH, Revilla E, Choi TY (2011) The dark side of buyer-supplier relationships: A social capital perspective. J Opera Manage 29: 561-576. doi: 10.1016/j.jom.2010.09.001
[58]	Voegtlin C, Greenwood M (2016) Corporate social responsibility and human resource management: A systematic review and conceptual analysis. Human Res Manage Rev 26: 181-197.
[59]	Weerts K, Vermeulen W, Witjes S (2018) On corporate sustainability integration research: Analysing corporate leaders' experiences and academic learnings from an organisational culture perspective. J Clean Prod 203: 1201-1215. doi: 10.1016/j.jclepro.2018.07.173
[60]	Wells A (2011) Metacognitive therapy for anxiety and depression, London, Guilford press.
[61]	Westerman JW, Rao MB, Vanka S, et al. (2020) Sustainable human resource management and the triple bottom line: Multi-stakeholder strategies, concepts, and engagement. Human Res Manage Rev 100742: 1053-4822.
[62]	Whelan T, Fink C (2016) The comprehensive business case for sustainability. Harvard Bus Rev 21: 1-12.

Reader Comments

Your name:*

Email:*
© 2020 the Author(s), licensee AIMS Press. This is an open access article distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0)