Sustainable human resource management practices and corporate sustainable supply chain: the moderating role of firm technology orientation

ABSTRACT

This study investigates how corporate human resource management practices contribute to sustainable supply chain practices. The two types of human resource management practices relating to corporate social responsibility, include (1) employee standardised work conditions practices and (2) employee well-being and development practices. Corporate technology orientation is investigated as a moderating factor on the empirical evidence from 15 companies in the mobile technology industry. Results show that employee well-being and development practices lead to stronger community-oriented social responsibility, thus the increasing adoption of sustainable supply chain practices. Corporate technology orientation strengthens the positive impacts of employee well-being and development practices. These results imply the importance of adopting appropriate human resource management strategies, to deploy a sustainable supply chain.

KEYWORDS:

• Human resource management
• technology orientation
• corporate social responsibility
• sustainable supply chain management

1. Introduction

The increasing significance of integrating ESG and sustainability into organisational management is gaining prominence (Ding et al. 2023; Lopez-Cabrales and Valle-Cabrera 2020; Tweneboa Kodua et al. 2022). However, the process of implementation of sustainable policies and practices is not free from challenges and difficulties (Tweneboa Kodua et al. 2022), particularly regarding the associated costs incurred by organisations during their adaptation and transformation stage (Lopez-Cabrales and Valle-Cabrera 2020) in developing economies (Okwu and Tartibu 2020). Organizations are experiencing substantial shifts in their engagement with this issue as part of their pursuit of social approval (Lopez-Cabrales and Valle-Cabrera 2020). Concerns surrounding CSR (corporate social responsibility), ESG (enterprise, social, and governance), and sustainable development have ignited extensive discussions among researchers spanning various disciplines within the realms of social sciences and business and management studies (Cooke and He 2010; Lu et al. 2023), while the sustainable dimensions inherent in human resources management (HRM) practices are considered an important driver for implementing policies and procedures and enhancing companies’ long-term success (Arshad et al. 2022; Tweneboa Kodua et al. 2022). Maintaining skilled and talented human resources can provide a competitive edge for an organisation, fostering an innovative workplace culture (Arshad et al. 2022; Gunasekaran et al. 2017). The CSR strategies contain both internal strategies related to employees and external strategies related to local communities (Goergen et al. 2019) and a broader social context. A company’s sustainability efforts also encompass the management’s values and practices to harmonise the relationships between the focal company and its multiple stakeholders (Schönborn et al. 2019), including supplies, customers, and a broader social context. Therefore, sustainable supply chain management is in line with the interests of diverse stakeholders (Y.-S. Chen et al. 2019) which requires a joint effort involving internal and external stakeholders. Sustainable supply chain management ensures the integration of environmental, economic, and social considerations into operations, fostering a holistic approach to corporate responsibility (Hmouda, Orzes, and Sauer 2024). The significance of sustainability awareness in supply chain management has grown, and companies show a preference for collaborating with other entities that prioritise this matter (Gören 2018). Many firms incorporate sustainable HRM practices and sustainable supply chains into their development strategies (Silveira Ramalho and de Fátima Martins 2022; Zaid, Jaaron, and Talib Bon 2018). Previous research has examined the associated dynamics in different sectors in emerging economies, such as in Palestine (Zaid, Jaaron, and Talib Bon 2018), Ghana (Tweneboa Kodua et al. 2022), João Pessoa (Silveira Ramalho and de Fátima Martins 2022). For example, Zaid and colleagues explored associations between green Human Resource Management (HRM) practices, green supply chain management, and sustainable performance (Zaid, Jaaron, and Talib Bon 2018). This research unveiled the direct impact of green HRM on sustainable performance. Additionally, internal green supply chain practices positively mediated this relationship, while external practices only mediated the link between green HRM and the environmental dimension of sustainable performance. Therefore, there remains a gap in understanding how the interplay of green HRM and external supply chain practices influences the economic and social aspects of sustainable development (Zaid, Jaaron, and Talib Bon 2018). Moreover, previous research has observed that a considerable portion of research examining sustainability through the lens of HRM predominantly concentrates on exploring ‘best practices’ for the company’s economic sustainability, particularly from a financial standpoint (Lopez-Cabrales and Valle-Cabrera 2020). Recent studies have brought attention to the practices associated with the social aspect of ESG, with a particular focus on HR practices (e.g. talent retention, and work safety) and companies’ broader impact on local societies (Karwowski and Raulinajtys-Grzybek 2021). Moreover, studies have found that within the realm of sustainable development, the human resources category has garnered the utmost attention in the social aspect (Hmouda, Orzes, and Sauer 2024).

This research embarks on an exploration of HRM practices in the Chinese mobile phone technology industry, where rapid growth and innovation converge with traditional operations and strategies. On one hand, in the ever-evolving landscape of global business, the Chinese mobile technology sector emerges as a crucible of technology innovation and digital transformation. This industry’s unprecedented growth and groundbreaking innovations have propelled China to the forefront of global technological advancements. On the other hand, there is a burgeoning imperative to address sustainable development concerns, particularly in the realms of environmental sustainability, social responsibility, and labour standards (Cooke and He 2010). Therefore, delving into the intricacies of HRM practices within this specific context is for several reasons. Firstly, China’s rapid socioeconomic transformations exert a direct influence on the workforce. Examining HRM practices becomes crucial in understanding how corporations adapt to societal changes and contribute to sustainable development. Secondly, corporations in the mobile technology industry in China spearhead operations with technology-driven strategies, making it imperative to understand the interplay between HRM practices, especially those related to employee well-being and development initiatives, community-based CSR initiatives, and sustainable supply chain management.

This study, therefore, aims to explore how internal HRM practices influence external community-based CSR initiatives, impacting sustainable supply chain management, in the context of the Chinese mobile phone industry. This exploration sheds light on how corporations harmonise technological progress with social responsibility, with particular emphasis on how technology-oriented corporates impact sustainable supply chain management.

The subsequent sections of this paper are structured as follows. Section 2 provides a comprehensive review of relevant research on Corporate Social Responsibility (CSR), Human Resource Management (HRM) practices, and Sustainable Supply Chain Management (SSCM). Within this section, we pinpoint gaps in existing studies and formulate research hypotheses accordingly. Moving forward, Section 3 outlines the specifics of our data collection, while Section 4 presents the analysis results. Theoretical and practical implications are deliberated in Section 5, and Section 6 wraps up the paper by summarising our research contributions. Additionally, Section 7 encompasses a discussion of limitations and offers suggestions for future work.

2. Literature review and theoretical development

2.1. CSR, ESG, and internal HRM-related CSR practices

According to stakeholder theory, organisations need to consider various groups’ interests for rapid development, including internal stakeholders’ interests, such as employees (Macassa et al. 2021) and external ones, such as suppliers (Okwu and Tartibu 2020) and local communities. CSR is a framework for enterprises to reconcile different stakeholder groups’ concerns (Carroll 1979), covering three dimensions of responsibility: economic, legal, and ethical. CSR primarily emphasises charitable activities and ethical business practices, focusing on voluntary actions that go beyond legal compliance. ESG has evolved as a more comprehensive and integrated framework in recent years, encompassing environmental, social, and governance aspects, emphasising quantifiable metrics and strategic integration into core business strategies. These strategies aim to align the self-interest of firms with the greater public good in ways that add value to both the firms and society (K. M. Y. Law and Gunasekaran 2012). ESG is viewed as a set of long-term value-relevant drivers. Unlike CSR, ESG integrates both mandatory and voluntary aspects, emphasising long-term value creation and risk management (Edmans 2023).

HRM is the critical determinant for attaining the organisations’ sustainable performance (Awwad Al-Shammari et al. 2022; Obeidat, Abdalla, and Al Bakri 2022). Integrating CSR principles into HRM practices helps corporations cope with the challenges and meet diverse stakeholders’ needs. Nevertheless, there is scarce research on HRM practices’ influence on companies’ external CSR performance, such as relationships with local communities and other impacts on sustainable supply chain management, which includes supply chain partners, environmental considerations, and the broader society. In this study, we propose that companies’ human resource management (HRM) practices, including both employees’ standardised work condition practices and employees’ well-being and developmental programmes, play a pivotal role in advancing organisations’ ESG agendas, particularly in the social aspect, and consequently shaping organisations’ sustainable supply chain management.

2.2. Maslow’s hierarchy of needs and Resource-based View (RBV)

This study focuses on two types of corporations’ HRM practices: employee standardised work conditions practices and employee well-being and development practices. Employee standardised work conditions practices comprise three aspects: (a1) employees’ working hours, (a2) fundamental human rights protection, and (a3) foundational occupational health and safety protection; whereas employee well-being and development practices include: (b1) employees’ comprehensive leave and holiday policies, (b2) robust internal grievance mechanisms, and (b3) strategic employee development initiatives. The theoretical framework guiding the differentiation between these two HRM practices is rooted in Maslow’s Hierarchy of Needs, which posits that individuals possess hierarchical levels of needs, ranging from basic to higher-order, encompassing physiological needs, safety needs, social needs, esteem needs, and self-actualisation needs.

Employee standardised work conditions practices concentrate on meeting the lower-level needs of employees, establishing a foundation for their well-being and stability within the organisation. Overall, employee standardised work conditions practices aim to fulfill the foundational needs of employees, creating a groundwork for their work conditions, safety, and stability within the organisation. Specifically, the aspect of standardised working hours ensures a comfortable and safe work environment, and fundamental human rights protection ensures employees’ rights and fair treatment, alongside the foundational health and safety measures. On the other hand, employee well-being and development practices focus on addressing higher-level needs, emphasising personal and professional development, job satisfaction, sense of purpose. Robust internal grievance mechanisms address social, and esteem needs by valuing employee feedback and fostering a sense of belonging. Strategic employee development initiatives align with esteem and self-actualisation needs by offering opportunities for personal growth, skill development, and career advancement.

According to the resource-based view of the firm, employee standardised work conditions practices are perceived as foundational resources that contribute to the stability and reliability of the organisation. These practices ensure compliance with legal and ethical standards, providing a basis for employee well-being. Employee well-being and development practices are viewed as strategic resources, that are not easily imitated or substituted. These practices contribute to the development of a skilled and engaged workforce, fostering a competitive advantage and long-term sustainability.

By integrating Maslow’s Hierarchy of Needs and the resource-based view, this framework effectively distinguishes between practices addressing fundamental requirements for organisational stability (e.g. employee standardised work conditions practices) and those for strategic competitiveness and sustained success (e.g. employee well-being and development practices). This theoretical foundation offers a comprehensive perspective on HRM practices, aligning with both employee needs and organisational resource considerations.

2.3. Sustainable supply chain management (SSCM)

Implementing sustainable supply chain management can bring competitive advantages (Mardani et al. 2020) for corporates. For example, Okwu and Tartibu (2020) encouraged companies in the retail industry to seek sustainability opportunities because this would help them improve their competitiveness for selection in the bidding process and consequently help create a sustainable supply chain. However, the adoption of SSCM practices falls behind the theoretical development, especially in emerging economies. This partially owes to the stress from internal stakeholders, such as employees’ resistance to the transformation of sustainable supply chain management (Singh and Maheswaran 2024). To examine corporate adoption of SSCM practices, five practical aspects have been identified, including bribery and corruption, supply chain monitoring, supplier diversity, product, and consumer protection, and community environmental concerns according to the UN Global Compact (2004). While earlier research has validated the potential for enhanced efficiency through sustainable supply chain management practices over the long term, many companies remain uncertain about the implications of incorporating sustainable practices into their business operations (Singh and Maheswaran 2024), and the adoption rate of these SSCM practices is not very high.

2.4. Influence of internal HRM-related CSR practices on corporate SSCM practice adoption

The resource-based view (RBV) elucidates how organisations leverage resources to attain and uphold competitive advantages (Zahra 2021). According to the RBV, specific resources (such as effective HRM practices) possess unique qualities that serve as the driving force behind such a competitive advantage (Zahra 2021). Effective HRM practices enable firms to initiate social responsibility performance from the internal aspects. This also cultivates a competitive advantage by reducing the barriers to transforming towards sustainable development. The implementation of effective human resource management practices (such as protecting human rights, setting internal grievance mechanisms, and developing employee capabilities) can promote employee participation in external related social responsibility activities, for instance, connecting with local communities. This helps to sustain close connections with external stakeholders, contributing to better supply chain performance (Mani, Jabbour, and Mani 2020).

In this research, we operationalised HRM practices with six aspects, including employee working hours, human rights protection, occupational health and safety, leave and holiday, internal grievance mechanisms, and employee development (Beske and Seuring 2014; UN Global Compact 2000). Dividing the HRM practices into these two groups enables us to provide deeper implications about corporate HRM strategies. This study divides these aspects into (A) employee standardised work conditions practices and (B) employee well-being and development practices. Employee standardised work conditions practices contain employee working hours, human rights protection, occupational health, and safety. According to Maslow’s Hierarchy of Needs Theory, individuals are inclined to seek social affiliation, respect, and self-actualisation after their physiological needs are satisfied. Employee well-being and development practices include leave and holiday, internal grievance mechanisms, and employee development, satisfying higher ‘spiritual’ needs. Since CSR incorporates human resource management practices in enterprises, including (A) employee standardised work conditions practices and (B) employee well-being and development practices, can promote SSCM adoption. Thus, we put forward the following hypotheses:

H1:

HRM practices are positively related to corporate SSCM practice adoption.

H1a:

Employee standardised work conditions practices are positively related to corporate SSCM practice adoption.

H1b:

Employee well-being and development practices are positively related to corporate SSCM practice adoption.

2.5. The mediating role of external community-based CSR practice

CSR involves a firm’s efforts to enhance employees’ quality of life and improve business-community relations (Levy and Park 2011). According to stakeholder theory, enterprises need to encourage the joint participation of the employees and external groups such as communities to promote the sustainable development of enterprises (Freeman et al. 2010). Lowitt (2013) also notes that enterprises should show their willingness to invest in sustainable development and make necessary commitments to social and environmental development. Public image-building and relationship-building with local communities are crucial parts of community-based CSR practices that enable others to observe organisations’ social concerns. Maintaining a close relationship with the local community can enhance the corporate social reputation and is important for implementing CSR’s social aspect (Harik et al. 2015).

As mentioned earlier, effective human resource management can promote employee participation in external related social responsibility activities, such as connecting with local communities. According to the social identity theory, when employees’ needs are met, their sense of pride and respect are enhanced (Tajfel 1974). Thus, they would like to adopt corporate strategies for the collective benefit (Nazira and Islam 2020), such as helping the organisation build a long-term relationship with local communities and maintaining a corporate positive social reputation. In this way, organisations face less resistance to carrying out community-oriented CSR activities and contributing to the local communities. Therefore, we put forward the following hypotheses:

H2:

HRM practices are positively related to the corporates’ community-based CSR practice.

H2a:

Employee standardised work conditions practices are positively related to community-based CSR practice.

H2b:

Employee well-being and development practices are positively related to the corporates’ community-based CSR practice.

H3:

Corporates’ community-based CSR practice positively influences corporate SSCM practice adoption.

2.6. The moderating role of technology orientation

Technology orientation determines the efforts exerted by organisations to develop new techniques and products. Companies highly technology-oriented in the mobile industry tend to invest more research and development resources (R&D) to foster their competitive barrier in the dynamic business environment. These companies tend to value training and developing talents in the focal field, therefore caring more about CSR-related HRM practices such as human rights, leave and holiday, employee development, etc. As a consequence, employees in these companies are more inclined to participate in CSR activities. On the other hand, companies with weak technology orientation tend to rely more on labour cost advantage than a technological advantage. Employees in these companies tend to have a weaker sense of social responsibility and resist getting involved in community-based CSR activities. In recent times, organisations have been required to employ innovative technologies effectively to ensure sufficient productivity levels within their processes of sustainable development (Arshad et al. 2022). Technology used in supply chain activities can enable organisations to identify opportunities for supporting sustainable development while pursuing growth (D. Q. Chen, Preston, and Swink 2015). Technology capabilities such as big data analytics enhance the capacity to link datasets and offer dynamic study possibilities, which can elucidate relationships and furnish additional insights for policy-making based on evolving outcomes (MacFeely 2019). Therefore, we put forward the following hypotheses:

H4:

Corporate technology orientation moderates the influence of HRM practices on community-based CSR practice.

H4a:

Corporate technology orientation moderates the influence of employee standardised work conditions practices on community-based CSR practice.

H4b:

Corporate technology orientation moderates the influence of employee well-being and development practices on community-based CSR practice.

2.7. Summary of the conceptual model

Our hypotheses are summarised in the conceptual model shown in Figure 1. In this study, our overarching hypothesis is that companies contribute to corporate involvement in community-based CSR practice and further impact the corporate SSCM practice adoption. In addition, we examine the moderating role of corporate technology orientation on this influencing path.

Figure 1. Conceptual model.

3. Methods

3.1. Sample and procedure

In this study, a questionnaire was developed to collect empirical evidence about our focal constructs in Figure 1. The questionnaire contains 13 items corresponding to the four constructs and two questions about participant demographic information (see Appendix 1). A total of 157 questionnaires were disseminated through a combination of phone calls and emails, facilitated by personal professional contacts. Before data collection, all participating companies had affirmed their initiation of CSR-related initiatives and demonstrated a comprehensive understanding of sustainable development concepts. The targeted companies encompassed a diverse spectrum, including high-end mobile technology firms and contract manufacturers, each exhibiting varying degrees of technology orientation. According to the patent disclosure data from 2018 to 2020 in the IncoPat (https://www.incopat.com/) database (Table 1) and the List of Global Invention Patents in the field of Wireless Communication Network Technology (TOP100) released on 19 November 2020, these fifteen companies are grouped into two groups. Specifically, we categorised the sample into low-level and high-level technology-oriented groups based on the number of patent applications (2018–2020). The number of patent applications is utilised as a quantitative indicator of a company’s technological innovation and investment in research and development. In applying this categorisation, we utilised the mean (Mean = 7,792) as a threshold to separate companies into high-level technology-oriented and low-level technology-oriented groups.

Table 1. Classification of technology-oriented companies.

Group	Company	Number of patent applications (2018–2020)
Low-level technology-oriented cases	DBSJ	0
	OFEi	0
	Rosenberg	0
	TTM Technologies	9
	Shennan Circuits	295
	Sunny	490
	Lansi	927
	Foxconn	1197
	DAZU	3097
	Tianma	5947
High-level technology-oriented cases	Xiaomi	9626
	VIVO	13266
	Sony	20363
	BOE	25711
	Huawei	46555

Companies with patent applications above the mean are considered high-level technology-oriented. This group includes companies with significant innovation and a higher-than-average number of patent applications. These companies are leaders in technology and innovation within the sample. Conversely, companies with patent applications below the mean are classified as low-level technology-oriented. This group comprises companies with fewer patent applications, indicating a relatively lower emphasis on technological innovation compared to the high-level counterparts. By doing so, we aim to capture the spectrum of technology-driven approaches among enterprises and explore the complex interplay between HRM practices, technology orientation, and sustainable business practices across these groups within the mobile phone industry.

We received 110 valid survey replies, resulting in a response rate of 69%. After excluding two incomplete responses from participants who opted out of the study, the dataset comprises 108 valid results for the subsequent data analysis. Demographic details of the participants are shown in Table 2. Nearly equal responses were collected from high-tech companies (N = 53) and low-tech companies (N = 55). The working experience of respondents covers a wide range from less than one year to more than five years.

Table 2. Demographic details of respondents.

		High tech companies	Low tech companies	Total
Positions	Individual employee	20	31	51
	Manager	24	18	42
	Senior manager	7	5	12
	Director or above	2	1	3
Working years	Less than 1 year	3	8	11
	1–3 years	2	23	25
	3–5 years	17	14	31
	More than 5 years	31	10	41
Total		53	55	108

3.2. Measurements

In this study, we operationalised our research using four distinct constructs (See Appendix 1). The first construct of Employee Standardized Work Conditions Practices was assessed through three items: the protection of employee working hours, human rights, and occupational health and safety. The measurement of the second construct, Employee Wellbeing and Development Practices involved three items, focusing on aspects such as employee Leave and Holiday planning, internal grievance mechanisms, and employee development programmes. For the third construct, Community-Based CSR Practices, two items are employed. The fourth construct, Sustainable Supply Chain Management Practices, was evaluated using items related to bribery and corruption management, supplier management, supplier diversity, company product and consumer protection, and environmental health.

4. Results

4.1. Instrument validity and reliability

Factor analysis was performed to test the validity and reliability of our instrument. As reported in Table 3, most survey items achieve factor loading higher than 0.7, except for two items (SSCM2, SSCM3), considered acceptable in this explorative study (Sanchez 2013).

Table 3. Factor loadings, construct reliability and validity.

Constructs	Items	Factor loadings	Cronbach’s Alpha	Composite Reliability (CR)	Average Variance Extracted (AVE)
Employee standardised work conditions practices (BP)	BP1	0.709	0.56	0.77	0.53
	BP2	0.704
	BP3	0.769
Community-based CSR practice (CB)	CB1	0.762	0.41	0.77	0.63
	CB2	0.821
Employee well-being and development practices (HP)	HP1	0.822	0.73	0.85	0.65
	HP2	0.731
	HP3	0.865
SSCM practice adoption (SSCM)	SSCM1	0.747	0.75	0.83	0.50
	SSCM2	0.644
	SSCM3	0.603
	SSCM4	0.746
	SSCM5	0.773

The four constructs’ composite reliability and AVE values are higher than 0.50 (Chin and Gopal 1995; Fornell and Larcker 1981). The Cronbach’s Alpha values of ‘Basic level CSR-HRM practice’ and ‘Community-based CSR practice’ are relatively lower, probably due to the limited sample size (Nunnally and Bernstein 1994). The correlations among constructs and the square root of AVE for each construct are reported in Table 4. All the square roots of AVEs are the largest in each column, proving the discriminant validity of constructs (Fornell and Larcker 1981). Overall, the survey instrument demonstrated acceptable reliability and validity for testing the proposed model.

Table 4. Discriminant validity.

	BP	CB	HP	SSCM
BP	0.728
CB	0.371	0.792
HP	0.519	0.415	0.808
SSCM	0.659	0.505	0.66	0.706

The boldface figures in the diagonal represent the square root of AVE figures.

4.2. Difference between high-tech and low-tech companies

Comparative analysis investigated the difference between high-tech companies (companies in the high-level technology-oriented group) and low-tech companies (companies in the low-level technology-oriented group). The results of the ANOVA analysis are shown in Table 5. Results show that high-tech companies achieve significantly higher scores for the four constructs than low-tech companies. The results confirm the superiority of high-tech companies’ CSR-related performance and supply chain management practices. These two groups’ significant differences also support our testing of company technology orientation’s moderating effect.

Table 5. ANOVA analysis results.

	Mean	High tech	Low tech	Difference	F value	Significance
BP	4.323	4.519	4.133	0.386	26.031	0.000
HP	4.120	4.355	3.894	0.461	27.314	0.000
CB	4.278	4.509	4.055	0.454	34.658	0.000
SSCM	4.338	4.613	4.073	0.54	98.211	0.000

4.3. Hypotheses testing results

The conceptual model (Figure 1) was tested using the PLS method with SmartPLS (version 3.2.7). PLS-based structural equation modelling is a less rigid method requiring a smaller sample size with less strict assumptions about the variable distribution (Fornell and Bookstein 1982). It is also a popular method employed by researchers from social science, business research, and management (Gray and Meisterr 2004). Thus, PLS estimates the path coefficients and tests the proposed model (Barclay, Higgins, and Thompson 1995). Table 6 and Figure 2 report the hypotheses testing results.

Figure 2. Modelling results.

p < 0.001*** p < 0.01** p < 0.05*

Table 6. Hypotheses testing results.

Hypothesis		Relationship	Coefficient	P-value	Result
H1	H1a	BP→SSCM	0.390***	0.000	Support
	H1b	HP→SSCM	0.372***	0.000	Support
H2	H2a	BP→CB	1.14n.s.	0.245	Not support
	H2b	HP→CB	0.234*	0.034	Support
H3	H3	CB→SSCM	0.206**	0.003	Support
H4		TO→CB	0.327**	0.002	Support
	H4a	BP*TO→CB	0.097n.s.	0.308	Not support
	H4b	HP*TO→CB	0.255*	0.017	Support

Results for direct effect hypotheses, H1a (b = 0.390, p < 0.001) and H1b (b = 0.372, p < 0.001), proved that human resource man^agement practices concerning corporate social responsibility effectively contribute to the adoption of SSCM practices. Employee well-being and development practices also contribute to the community-based CSR practice (b = 0.234, p < 0.05), which further impacts the corporate SSCM (b = 0.206, p < 0.01). Interestingly, the technology orientation level can magnify the impacts of high-level CSR-HRM practice on community-based CSR practice (b = 0.255, p < 0.05). On the contrary, it does not moderate the effect of basic-level HRM practice on Community-based CSR practice.

5. Discussion

This study has justified several hypotheses in the proposed structural model. Firstly, Corporate CSR-HRM practices positively relate to corporate SSCM practice adoption (H1). Higher-level HRM practices contribute to community-based practices (H2b), but not basic-level HRM practices. Technological orientation impacts community-based practices and, thus, the SSCM (H3). Corporate technology orientation moderates the influence of high-level corporate CSR-HRM practices on community-based CSR practice (H4b).

Our research found that (A) employee standardised work conditions practices do not significantly influence higher levels of employees’ community-based CSR practices. This may be attributed to the nature of these basic and standardised practices. While factors like standardised working hours, fundamental human rights protection, and occupational health and safety are crucial components of a positive work environment, their direct impact on encouraging employees to actively engage in external community-based CSR initiatives might be indirect or less pronounced. These conditions, although essential for employee well-being, may not inherently foster a strong motivation for the workforce to conduct extra, and external CSR activities. Employees may perceive these standardised conditions as internal organisational responsibilities rather than motivators for community involvement. In contrast, (B) employee well-being and development practices exhibit a significantly positive influence on employees’ community-based CSR practices. Comprehensive leave and holiday policies, robust internal grievance mechanisms, and strategic employee development initiatives contribute to a positive organisational culture that values both internal and external well-being. Such practices foster a sense of belonging, job satisfaction, and personal growth among employees. Consequently, employees who experience well-being and development practices are more likely to extend their positive experiences to community-based CSR initiatives, as they perceive themselves as integral contributors to a socially responsible and sustainable corporate culture.

Moreover, the reinforcement of the relationship between (B) employee well-being and development practices, community-based CSR practices, and sustainable supply chain management by technology orientation can be attributed to the role of technology as an enabler. In technology-oriented companies, the emphasis on innovation and efficiency often aligns with a broader commitment to sustainability. This alignment creates a synergistic effect where positive employee practices related to well-being and development translate seamlessly into community-based CSR efforts. Moreover, technology-oriented companies are more likely to have integrated systems that facilitate the tracking and implementation of sustainable practices throughout the supply chain. This integration strengthens the positive relationship, creating a cohesive and interconnected approach to corporate sustainability. The justified hypotheses offer theoretical contributions to existing literature and practical implications.

5.1. Theoretical implications

This study extends the existing literature on HRM and SSCM practice adoption in three aspects. First, the justification of H1 supplemented the extant literature on sustainability-related human resource management, for instance, the association between CSR and green human resource management (Úbeda-García et al. 2021). It can be seen that human-related practices are found associated with the adoption of sustainable supply chain management practices. The study’s objective evidence shows human factors are one of the major concerns when consideration of sustainable practices adoption needs to be in place. Second, according to Maslow’s hierarchy of needs, corporate HRM practices are divided into two groups. The two types of HRM practices (i.e. employee standardised work conditions practices, employee well-being, and development practices) perform differently in impacting the SSCM practice adoption. The difference in their impacts implies that employees’ basic needs tend to be individualistic, which is more about the physiological issue for people to survive and live. As basic needs are crucial to one’s survival, basic HRM practices (employee standardised work conditions practices) may not be as influential as high-level HRM practices (employee well-being and development practices) towards the organisation’s supply chain performance. Third, the significant moderating effect of corporate technology orientation on the influence of employee well-being and development practices suggests the synergistic effect of corporates’ investment in R&D activities and employee development. The corporation that values the technological advantage over competitors may notice the critical role of talent cultivation, thus inclined to devote more resources to employee skills training and overall well-being.

5.2. Practical implications

The identified relationships between human resource management (HRM) practices centred on employee well-being and development and their positive influence on companies’ community-focused CSR initiatives and sustainable supply chain management carry significant implications for shaping ESG strategies and guiding disclosure practices within organisations. Firstly, organisations can establish a human resources management system aligned with ESG principles. By prioritising employee well-being and development, organisations demonstrate a commitment to the ‘social’ aspect of ESG. These practices significantly boost employee organisational identity and satisfaction, cultivate a positive company image, and enhance competitiveness in sustainable markets (Zhang, Zhang, and Tu 2024). Furthermore, these practices help foster a positive organisational culture and improve stakeholder engagement and relationships. Secondly, organisations can recruit more talents with expertise and practical experience in ESG to serve on their board of directors (Zhang, Zhang, and Tu 2024). Organisations are also encouraged to prioritise investments in employee training and development programmes. The objective is to equip individuals with the necessary mindsets and skills to contribute to ESG-related performance and disclose ESG-related information. Thirdly, companies can disclose their investments in employee well-being, development, and community engagement as part of their ESG reporting. Community involvement is no longer an optional CSR activity for businesses; it is becoming an integral part of their identity (Kandpal et al. 2024). Community involvement acts as a bridge, fostering deeper connections and mutual growth of different stakeholders, which can ultimately lead to improved financial performance (Kandpal et al. 2024).

Furthermore, our research also underscores the critical role of technology in achieving ESG performance objectives within organisations. When digital transformation efforts are tied to ESG goals, technology can be effectively leveraged to enhance sustainability performance (Wang and Esperança 2023). Firstly, focusing on technology empowers organisations to leverage tools and platforms that enhance and streamline HRM processes. For example, digital platforms can automate employee wellness initiatives, enhancing employee satisfaction. They also facilitate flexible work arrangements that promote work-life balance. More importantly, information systems facilitate aggregating and synthesising sustainability data from diverse sources, including HR records, operational metrics, supply chain activities, and community engagement endeavours (Uwizeyemungu et al. 2018; Xie 2022). For example, Enterprise Resource Planning (ERP) systems, a cornerstone of organisational IT infrastructure, integrate data from diverse departments, facilitating a comprehensive view of ESG-related metrics. By centralising this data within a unified platform, organisations gain a comprehensive perspective of their ESG performance across multiple dimensions. These systems also enhance communication and collaboration among employees and stakeholders, facilitating organisations’ ongoing interaction with stakeholders to gain deeper insights into their perspectives and align business strategies accordingly (Kandpal et al. 2024). Secondly, technology orientation supports tracking and monitoring organisations’ ESG performance metrics, ensuring disclosure information’s accuracy, timeliness, and completeness (Zhang, Zhang, and Tu 2024). Information systems leveraging real-time and historical data empower data-driven decision-making that enhances organisations’ ESG performance. Decision-makers can evaluate the impact of specific HR initiatives on CSR and supply chain sustainability, allowing for strategic adjustments to achieve desired ESG outcomes. Notably, the lack of comparability of ESG metrics across time poses a significant challenge for investment decisions (Kotsantonis and Serafeim 2019), underscoring the importance of leveraging real-time data for comparative analysis and informed decision-making. Thirdly, businesses can identify patterns and pinpoint effective interventions to enhance community engagement and social impact by applying analytics techniques such as predictive modelling, trend analysis, and correlation studies. For example, recent innovative research suggests using satellite imagery to forecast sales or predict ESG factors such as methane emissions (Gu, Dai, and Vasarhelyi 2023). Fourthly, through digital documentation and disclosure of ESG-related activities and outcomes, organisations can showcase their commitment to sustainability to different stakeholders. Technology-enabled ESG reporting enhances transparency and credibility and fosters stakeholder trust (Bhimavarapu et al. 2022; Kandpal et al. 2024).

The intensely competitive nature of for-profit businesses (such as firms in the mobile phone industry) might lead to a ‘race to the bottom’ concerning ecological devastation and inequality. These firms might aggressively pursue profit in the short term, potentially overshadowing those adopting a more balanced and sustainable approach (Hinton 2020). The surge in these socially responsible business activities aligns with the principles of legitimacy theory, embodying a social contract between organisations and the societies or communities in which they operate (Karwowski and Raulinajtys-Grzybek 2021). Within this social contract, organisations are expected to adhere to societal norms and expectations throughout their operations, striving to ensure that their activities are perceived as fitting within the societal expectations of diverse stakeholders. Firms employ various communication strategies to gain or uphold legitimacy, often manifested through disclosures in financial reports. As organisations increasingly incorporate sustainability into their annual reports and set elevated standards for attaining sustainable performance, there is growing pressure on them (Ding et al. 2023). Moreover, there is a growing trend in the disclosure of social and environmental information across diverse forms and communication channels (Kouloukoui et al. 2019). Facilitating communication between organisations and stakeholders is a fundamental objective of legitimacy theory, extensively employed in research to elucidate the motivations prompting companies to engage in social and environmental disclosure even in the absence of legal mandates (Karwowski and Raulinajtys-Grzybek 2021).

To effectively communicate sustainability insights aligned with digitalisation practices, companies can implement digital dashboards and visualisation techniques for real-time monitoring to ensure transparency and stakeholder satisfaction, contributing to effective ESG strategies. Firstly, they can utilise an impact metrics dashboard to visually display the effects of HRM practices, CSR initiatives, and supply chain sustainability efforts. This dashboard, updated in real-time or over specific periods, helps stakeholders easily understand the organisation’s sustainability outcomes. Secondly, organisations can leverage multimedia elements like videos and interactive maps on digital platforms to showcase community engagement initiatives. By sharing stories through these mediums, organisations can humanise CSR efforts, fostering emotional connections with stakeholders and highlighting the positive impact of employee-focused HRM practices. Thirdly, organisations can benefit from supply chain mapping tools (MacCarthy, Ahmed, and Demirel 2022) to support digital transformations in supply systems. For instance, integrating interactive maps that display sourcing locations, supplier diversity, and transportation routes can enhance transparency and accountability. By using geographical information systems (GIS) alongside supply chain mapping, organisations can visualise, explore, and analyse supply chain data effectively. For example, to align with ESG strategies, companies can use advanced computer programmes to optimise the supply chain and distribution process, balancing economic (e.g. vehicle speed, customer satisfaction) and environmental goals (carbon emissions) (Ferraro et al. 2023). Prior research (van den Brink et al. 2020) also underscores the value of visualisation in identifying risky suppliers within supply networks, emphasising the importance of these strategies in promoting responsible business practices.

6. Contributions

In the dynamic emerging market of the mobile industry, sustainable SCM has become a vital factor in corporate development. Although HRM and CSR are closely related to sustainable development, extant studies fail to guide how to adopt appropriate HRM practices, especially basic-level practices and high-level practices related to CSR, to enhance the corporate SSCM. Our research empirically investigates the influence of two types of HRM practices related to CSR on corporate community-based CSR practice and their other impacts on SSCM adoption. In addition, the moderating effect of corporate technology orientation is considered in our research model. Our findings indicate that adopting both high-level and basic-level HRM practices can enhance corporate SSCM adoption. At the same time, high-level HRM also contributes to the greater adoption of community-based CSR practices. Furthermore, high technology orientation can magnify the positive influence of high-level HRM practices. Overall, the findings suggest that corporate managers should customise their adoption of HRM practices according to their corporate features to maximise the benefit of SSCM.

This research has several important contributions. Firstly, by exploring the link between internal HRM practices and community-based CSR initiatives, which in turn impact sustainable supply chain management, the study contributes to a deeper understanding of the multifaceted relationships between corporations, communities, and the environment. Secondly, the findings from this research extend their applicability to benefit other emerging economies undergoing similar transformations, providing some implications on how HRM practices and technological orientations align with societal and environmental concerns. Moreover, the Chinese mobile phone technology industry is an important player in the global economy, shaping trends and impacting markets worldwide. Researching HRM practices within this influential industry establishes benchmarks for emerging sectors and economies. Understanding the effect of internal HRM-related CSR practices on external community-related CSR practices and, consequently, sustainable supply chain management, provides invaluable insights for elevating business practices, especially during transformative stages.

7. Limitation and future direction

This study has several limitations that will guide future research. Firstly, it is imperative to acknowledge the exploratory nature of our study and the associated limitations arising from this sample size. Caution is warranted when attempting to generalise our research findings to a broader context. Future studies should consider including a larger and more diverse sample to enhance statistical power and enable more robust quantitative analyses. Simultaneously, future studies would benefit from supplementing the quantitative analysis with qualitative methods to capture nuanced aspects. Moreover, future studies could delve into specific industry segments within the mobile phone industry for a more detailed exploration before expanding the scope to include a broader array of industries. Secondly, it is crucial to acknowledge that our study employed cross-sectional data, and as such, we didn’t conduct a direct test of causal relationships. Cross-sectional data capture a snapshot of relationships at a specific point in time, limiting our ability to establish a clear causal sequence. Therefore, caution should be exercised when interpreting the findings in a causal framework. Future research could consider incorporating longitudinal data or experimental designs to examine the dynamic processes and causality more explicitly among HRM practices, CSR, and SSCM elements. This would provide a more nuanced understanding of how HRM practices may influence and contribute to CSR initiatives and sustainable supply chain management over time. Thirdly, before initiating the data collection process, we ensured that the participating companies, sourced through personal professional contacts, had already embarked on implementing CSR-related initiatives. However, the diversity in viewpoints among employees within high-tech and low-tech companies, especially between managerial staff and subordinates, adds a layer of complexity to their perceptions of the companies’ sustainable practices (K. M. Law, Lau, and Ip 2021). Although the proposed model does not vary significantly with and without the control variables of the participants’ organisational roles (i.e. managerial staff and subordinates), we acknowledge a limitation in our study’s scope. Specifically, our exploratory quantitative analysis did not integrate a qualitative component, such as individual interviews or in-depth case studies, to probe into nuanced differences in perspectives among participants holding distinct roles. Thus, future research endeavours could consider incorporating qualitative methodologies to gain a more comprehensive understanding of these variations, providing a richer and more nuanced exploration of HRM and CSR practices within different organisational levels and technological contexts. Fourthly, the existing study mainly concentrates on two aspects of HRM practices. Other HRM practices may also affect corporate SSCM, and further exploration of other HRM practices can contribute to managerial practice and this emerging stream of literature.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Supplemental data

Supplemental data for this article can be accessed online at https://doi.org/10.1080/17517575.2024.2351862.