The purpose of the paper is to examine the impact of supply chain management (SCM) on the HRM practice of suppliers. The paper argues that the performance requirement in an SCM system requires that suppliers develop specific HRM practices.
A structured interview was used to collect the data from seven companies.
This paper found evidence to suggest that impact of SCM on the HRM practice of local suppliers is related to the extent of linkage the customers develop with their suppliers.
This paper relied on an examination of seven companies. This limits the generalizability of its findings.
The findings of this paper suggest that a successful supplier‐customer relationship is dependent on the suppliers developing specific HRM practices that will enable them to fulfill customer's requirements.
This paper is probably the first attempt to examine how SCM affects the HRM practice of suppliers.
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