Effects of Human Resources Management Practices on Supply Chain Flexibility: Evidence from Tourist Hotels in Tanzania

Abstract

The study was designed to examine the effects of human resource management practices on supply chain flexibility. Specifically, it sought to determine the influence of participation practices, selective hiring practices, compensation practices, job security practices and teamwork practices on supply chain flexibility of tourist hotels in Tanzania. The study adopted a cross-sectional survey approach, where 228 respondents were involved. Hypotheses linking human resources management practices and supply chain flexibility were developed and tested using a structural equation modelling technique. The findings indicate that selective hiring practices, job security practices and teamwork practices have a significant positive influence on supply chain flexibility. The findings imply that employees with appropriate skills, knowledge, abilities and cultural fit, who are highly motivated through job security and compensation practices are important in ensuring supply chain flexibility in hotel settings. Therefore, directors and managers in the hotel industry are urged to deploy human resources management practices as strategies to increase supply chain flexibility as tactical measures to satisfy customers and win their loyalty.