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

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.