Implementation Challenges of Strategic HRM in State-Owned Enterprises of Pakistan: An Institutional Perspective

Abstract

Purpose – Captivated by the success of private sector management practices, the public sector is implanting the strategic human resource management (SHRM) model to enhance HR effectiveness. However, contextual differences may hinder successful adoption. With this proposition, this study explores the implementation challenges of SHRM in Pakistan’s state enterprises.

Design/methodology/approach– The study adopted the case study approach to analyse the implementation of SHRM in Sui Northern Gas Pipelines Limited, a company operating as a public entity. Data sources include 17 semi-structured interviews, with diverse respondents working in the HR or other departments of the organization. The HR policy documents were also accessed for analysis purposes. The techniques of triangulation of perspectives, triangulation of data, and thematic analysis are used to explore the phenomenon. Thematic analysis was performed using NVivo-12 for data analysis.

Findings –The study found several external, organizational, and HR competency factors affecting the successful implementation of SHRM in SOEs. Results imply that it is worthwhile for SOEs to have a strategic orientation of HR but its usefulness depends on its successful implementation, which is quite challenging for SOEs due to differences in the institutional context.

Practical implications – Enhancing SOE’s strategic autonomy, HR competency, and the vision of strategic apex can be helpful in the implementation process.

Originality/value – Supporting the argument of institutional theory, the study highlights the significance of contextual differences in the implementation of private-sector models in public organizations.