Power-dependence in Regulated Social Enterprise: Evidence from Human Resource Management Practices at Continuous Employment Support Offices for People with Disabilities in Japan

This study examines human resource management (HRM) practices in Continuous Employment Support Offices, Japan’s context of work integration social enterprise (WISE) which provides employment and training to people with disabilities (PwD). Investigation from an HRM perspective is relevant for the Offices' distinctive workforce while ensuring business profitability. Utilizing the constructivist grounded theory approach, interviews with 21 Offices across Japan were conducted. This study identifies key HRM practices: tasks/job design and assignment, sought specifications, recruitment, pay policy, and user mobility, which vary depending on the Office’s classification as either Type A (employment provider) or Type B (training provider) organization. This finding elucidates power dynamics between the Offices, the government, and PwD within the context of welfare service provision. Drawing from power-dependence relations, the subsequent analysis suggests the Office as a less powerful actor within the dyadic relations between the government and PwD. Offices employ a balancing operations mechanism to reduce this power disadvantage by regaining control and minimizing risk. The study contributes to the understanding of WISE by intersecting HRM practices and power-dependence relations and offering insights into Japan’s unique context.