The adoption and implementation of sustainable human resource management practices across firms: evidence from an emerging market economy in Asia

Purpose This study aims to identify sustainable human resource management (HRM) practices that firms in emerging market economies (EMEs) adopt and implement to improve their financial, social and environmental performance and foster sustainability over time. Design/methodology/approach A cross-case analysis is conducted of 16 firms in diverse industries in Thailand, an EME in Asia with various societal and environmental concerns. Evidence is drawn from semi-structured interviews with top managers, HR managers and employees; virtual and onsite field visits; nonparticipant observations; and a review of archival documents and Web-based resources, including newspaper reports. Findings Sustainable HR practices to improve firms’ financial, social and environmental performance and foster sustainability over time tend to be classified into eight categories: (1) strategic HRM; (2) workforce planning, recruitment and selection; (3) training and development; (4) compensation and benefits; (5) employee relations; (6) employee safety and well-being; (7) HR information systems and metrics; and (8) diversity and equal employment opportunities. Each area consists of HR practices that reinforce one another. These HR practices can be grouped into three bundles–ability, motivation and opportunities–which foster common values. In addition, the adoption and implementation of the above sustainable HRM practices can respond to problems incurred in nations with constrained skill formation systems, health-care institutions and welfare state regimes. Research limitations/implications This study does have some limitations. First, because the study is based on 16 firms in Thailand, the findings may not be generalizable to firms in other countries. Second, the study did not include key industries, such as agriculture and fisheries. Future research could explore these industries as well. Moreover, quantitative studies using large samples of managers and employees across industries could deepen the understanding of the adoption and implementation of sustainable HR practices. Furthermore, future studies can explore how sustainable HR practices lead to personal and organizational resilience, because both types of resilience are crucial in helping firms remain viable within rapidly changing organizational contexts and pressures from various stakeholders. Practical implications This study has practical implications for top HR managers of firms in Thailand and in other EMEs. Specifically, these firms need to adopt and implement the HR practices analyzed here to sustainably achieve their financial, social and environmental goals. These HR practices, ultimately classified into three bundles, reinforce each other to encourage firm response to stakeholders. They support not only the firms but also the collective interests of society and the environment. Thus, these practices can help a country solve various societal and environmental problems and move toward achieving the sustainable development goals proposed by the United Nations and the bio-circular-green economic model. The sustainable HR practices identified also foster personal and organizational resilience so that firms can respond quickly to dynamic and uncertain environments. Social implications The paper has social and policy implications for governments and relevant public agencies in Thailand and in other EMEs, especially as they face problems related to economic and social inequality, environmental pollution and climate change. These governments need to encourage firms to adopt and implement sustainable HR practices, as such practices can help alleviate skill shortages and mismatches in the labor market, as well as problems incurred in health-care institutions and welfare state regimes. Originality/value This study contributes to HRM literature in the following ways. First, it focuses on how firms translate sustainable HRM concepts into practices. These practices are based on the perspectives of both employers and employees, whereas previous studies in strategic HRM have focused primarily on the employer perspective. In fact, formal company practices may differ from actual HR practices as perceived by employees (Khilji and Wang, 2006). In addition, the study explores the impact of national institutions of the EME of Thailand on the adoption and implementation of sustainable HRM practices aimed at improving financial, social and environmental performance and fostering sustainability over time. Finally, the author discusses the need for sustainable HRM practices in Thailand, as well as other EMEs. The literature on HRM, especially sustainable HRM, tends to overlook EMEs, such as Thailand, an under-researched country in Asia.