Interdependent supply relationships as institutions: The role of HR practices

This paper aims to use institutional theory to explore the role of humanresource (HR) practices as carriers in the evolution of interdependent supplyrelationships. Design/methodology/approach – This is a qualitative study of aninter-firm supply relationship where the two partners were interdependent as aresult of a “closed loop” supply relationship. The paper explores theperspectives of employees at multiple levels within both partners, and collectspluralist evidence from 36 interviewees from both sides of the dyad. It collectsdocumentary evidence such as minutes, contractual agreements and HR documents.This paper re-analyses the evidence from earlier work using an institutionaltheory framework. Findings – Using Scott's “three pillars” the paper shows thatHR practices can act as carriers of regulative, normative and cultural-cognitiveelements in interdependent supply relationships through both formal and informalmechanisms. Regulative elements were less evident, but could be fundamental inshaping the other two. A tension was found between institutional pressures atthe inter- and intra-firm levels, an emergence of innovative practices and newroutines at inter-organizational level, and an evolution over time that couldinvolve a de-institutionalisation of the relationship as a result of internalpriorities competing with the resource requirements of the supply relationship.Originality/value – The paper addresses the interface between OM andorganisational theory. Areas are proposed where institutionalisation of a supplyrelationship can be strengthened or weakened. The findings further challenge theview of supply relationships as a “spectrum” in which progress is unidire