HUMAN RESOURCE PRACTICES AND SUPPLY CHAIN PERFORMANCE: THE MEDIATING ROLE OF WORKFORCE FLEXIBILITY FROM A RESOURCE-BASED AND DYNAMIC CAPABILITIES PERSPECTIVE

Abstract

This study examines the impact of selected human resource (HR) practices—training, empowerment, and rewards—on supply chain performance (SCP), with work flexibility (WF) proposed as a mediating mechanism. Although HRM encompasses broader practices such as recruitment, performance appraisal, compensation, and engagement, this research focuses specifically on training, empowerment, and reward systems as strategic capability-building practices within supply chain contexts. A quantitative, cross-sectional design was employed, collecting primary data from 192 supply chain professionals in manufacturing and service sectors using purposive sampling. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) to assess reliability, validity, structural relationships, and mediation effects. Results indicate that training, empowerment, and rewards significantly enhance work flexibility (R² = 0.486). Furthermore, training, rewards, and work flexibility significantly predict supply chain performance (R² = 0.545), with work flexibility mediating the relationship between HR practices and SCP. The findings support Resource-Based View and Dynamic Capability Theory, demonstrating that HR practices improve supply chain outcomes by strengthening adaptive workforce capabilities.

Keywords: Human Resource Practices, training, empowerment, rewards, work flexibility, supply chain performance, PLS-SEM.