SCM and SME performance in Australia: the mediating role of HRM practices

Abstract

PurposeThe present study seeks to explore the relationships among human resource management (HRM) practices, supply chain management (SCM) implementation and small and medium-sized enterprises' (SMEs) performance in Australia. It also investigates whether HRM practices have any mediating effect on such relationships.Design/methodology/approachIn line with the research objective, a quantitative model was applied and a multi-item survey questionnaire was developed to collect primary data. Cross-sectional surveys of a sample of 216 SMEs from different industries were undertaken to collect data, and factor analysis and structural equation modelling (SEM) were used to analyse data and test hypotheses.FindingsThe statistical results inform that SCM implementation and HRM practices improve SMEs' performance in Australia. SCM implementation is also found to be positively linked to HRM practices and has a significant indirect effect on organisational performance when the HRM practices are mediating. HRM practices are, thus, found in this study to mediate the relationship between SCM implementation and Australia's SMEs performance.Originality/valueThe concurrent effects of SCM and HRM practices on SMEs' performance and how businesses' internal management such as HRM practices mediate and affect SCM and SMEs' performances have not been addressed previously in the Australian business context. This study, hence, addresses the gap in the literature concerning the effect of SCM on SMEs by integrating HRM practices as a significant behavioural support system to SCM implementation in Australia's SMEs.