Supply chain management and suppliers' HRM practice

Purpose The purpose of the paper is to examine the impact of supply chain management (SCM) on the HRM practice of suppliers. The paper argues that the performance requirement in an SCM system requires that suppliers develop specific HRM practices. Design/methodology/approach A structured interview was used to collect the data from seven companies. Findings This paper found evidence to suggest that impact of SCM on the HRM practice of local suppliers is related to the extent of linkage the customers develop with their suppliers. Research limitations/implications This paper relied on an examination of seven companies. This limits the generalizability of its findings. Practical implications The findings of this paper suggest that a successful supplier‐customer relationship is dependent on the suppliers developing specific HRM practices that will enable them to fulfill customer's requirements. Originality/value This paper is probably the first attempt to examine how SCM affects the HRM practice of suppliers.