Imitation vs Innovation: Is there an alignment between supply chain organizational learning and Islamic HRM practices?

Abstract

Abstract This research emphasizes on the importance of having an alignment of organizational strategy (innovation and imitation) with supply chain organizational learning, and Islamic HRM practices toward Batik MSMEs performance in Pekalongan, especially environmental, social, and religious performance. The population of this research is Batik MSMEs in Pekalongan, Central Java, Indonesia. Pekalongan is known as the City of Batik and has religious society that can live in peace although they live side by side with different religion and ethnicity. The respondent of this research is Batik MSMEs owner/manager in Pekalongan City that is counted using purposive sampling technique about 170 respondents. The statistic technique is using Euclidience Distance Regression. After organizational strategy being tested separately, it is proved that there is an alignment between organizational strategy both innovation and imitation with innovation organizational learning and imitation organizational learning. There is also an alignment of organizational strategy both innovation and imitation in innovation Islamic HRM Practices and conservative Islamic HRM Practices. The theoretical implication in this research provides a theory contribution about the importance of alignment of organizational strategy with the contingency of supply chain organizational learning and Islamic HRM practices. The managerial implication is that while improving organizational performance, organization needs to have practical policy in the alignment of organizational strategy with the contingency of supply chain organizational learning and Islamic HRM practices.