A ‘Partnership’ Route To Human Resource Management?

Collaborative relationships between firms have been growing in importance, including ‘partnerships’ between customers and suppliers. Institutional economists and sociologists have different views on the origins, character and consequences of partnership, and the nature of this debate is outlined, as well as the implications for the reality of ‘partnership’ and its role in the diffusion of business practice. Against this background we use case study and survey evidence to explore the transition within the supply chain relationship, from a customer ‘demands’ model and hence to ‘supplier development’. Supplier development can be seen as an aid to risk reduction, particularly where it involves management control system development in the supply organization. The partnership implications for the human resource management (HRM) function are explored. Supply‐side partners are likely to be involved increasingly with activities that will underpin the alliance (for example, training, cultural change and removal of industrial relations obstacles to change). These indirect effects may be supplemented by direct involvement by the HRM specialists in the customer organization, especially where partnership development places strong reliance on the human resource dimensions of the two organizations. Examples of this form of development are discussed. This evidence is assessed in terms of the different disciplinary approaches discussed at the outset. What emerges most strongly is that although ‘partnership’ is used to describe many inter‐firm relationships, many of these are very unequal and are recognized to be so, but in other cases evolutionary steps can be taken to reduce the risks involved and lead to apparently equitable alliances. Within this risk reduction process, the role of human resources appears to be of varying importance.