THE IMPACT OF HRM PRACTICES ON SUPPLY CHAIN MANAGEMENT SUCCESS IN SME

Background: Management practices are being carried out by most of the small and medium sized enterprises (SME) which substantially switched to sophisticated manner. This study aims to determine the relationship between human resource management (HRM) and supply chain management (SCM) in SME.

Methods: the data from 195 manufacturing and service sectors SME were collected.  The Pearson's correlation and multiple regression were employed to examine the relationship and measure the overall impact of IV on DV respectively. This study found that SME performed moderate level of HRM and SCM practices and there is a correlation between HRM practices that proactively contributes in supply chain success. Lastly, training contributed greater to SCM success as compared to other HRM factors.

Results and conclusions: Results suggest that SCM success is activated by HRM practices.  SME owners/managers should focus on enhancing the SCM success by implementing sophisticated HRM practices. This integration will allow mapping unique strategies to gain an edge over competitors. Appropriate approaches should be considered at national level to boost the national economy through SME sector.