Contextual influences on HRM practices in social enterprises: the case of Thailand

Purpose - The purpose of this paper is to contribute to the social enterprises and human resource management (HRM) literatures by examining how institutional and cultural contexts influence human resources (HR) practices, i.e., recruitment practices (specifically, recruitment channels) and employee relations (ER) practices that are adopted in social enterprises in the developing country of Thailand. Design/methodology/approach - This paper applies an embedded cross-case analysis of four social enterprises in Thailand across a variety of industries. The case study evidence in this paper draws on semi-structured interviews with each social enterprise’s representatives; field visits to each social enterprise in Bangkok and in other provinces in Thailand; and a review of archival documents and web-based reports and resources. This paper uses thematic analysis to pinpoint, examine and record the patterns or themes found in the data. Findings - Based on these four case studies, this paper proposes that the deficiencies in the Thai skill formation system, especially skill shortages, are associated with the adoption of alternative or substream recruitment channels among social enterprises. Additionally, the weak and highly fragmented ER institution and the cultural context that favor conflict avoidance and unassertiveness among workers within the workplace are associated with the adoption of a paternalistic ER practice in these enterprises. Research limitations/implications - This paper has only focused on the role of national skill formation system, ER system, and the cultural context that favor conflict avoidance and unassertiveness among workers within the workplace. Future research may explore how other institutional and cultural domains influence the adoption of HR practices in these enterprises in the context of emerging market economies. Additionally, because this research is based on the case studies of four social enterprises in a variety of industries in Thailand, the findings of this paper may not be generalizable to all social enterprises across countries. Another limitation of this research is that it did not include social enterprises in several other industries, including the entertainment and media industry and the printing and publishing industry, and it does not include other forms of social enterprises, such as community-led social ventures. Future research may explore how institutional and cultural contexts influence HR practices adopted in social enterprises in other industries or in other types of social enterprises. Moreover, quantitative studies using large samples of social enterprises across industries might be useful in deepening our understanding of a topic that is significant from the perspective of both social enterprises and HRM. Practical implications - This paper provides practical implications for HR professionals, founders and top managers of social enterprises not only in Thailand but also in other countries that face the problem of a skill shortage in the labor market. Social implications - This paper provides policy implications for the government of Thailand and the governments of several other emerging market economies in which the skill shortage is particularly severe. These governments should focus on solving this problem to alleviate severe competition among several types of organizations in the labor market. Furthermore, these governments should foster the implementation of a partnership model for employee–management relationships within the workplace. In this model, employees and management perceive each other as partners rather than enemies to sustain win–win solutions to any problems or disputes that may occur. Originality/value - This paper aims to fill the gap in the literature regarding how social enterprises manage HR across contexts, especially in developing countries where institutional and cultural contexts might differ from those of developed countries. Batt and Banerjee (2012) suggested that the literature on HRM, including strategic human resource management (SHRM), should extend beyond the organizational context and examine how institutional contexts influence the adoption of organizations’ HR practices. Additionally, Batt and Banerjee (2012) noted that the majority of studies in the HRM literature focus on profit-oriented firms in the private sector and ignore other types of organizations such as non-profits or social enterprises.