This paper aims to use institutional theory to explore the role of human
resource (HR) practices as carriers in the evolution of interdependent supply
relationships. Design/methodology/approach – This is a qualitative study of an
inter-firm supply relationship where the two partners were interdependent as a
result of a “closed loop” supply relationship. The paper explores the
perspectives of employees at multiple levels within both partners, and collects
pluralist evidence from 36 interviewees from both sides of the dyad. It collects
documentary evidence such as minutes, contractual agreements and HR documents.
This paper re-analyses the evidence from earlier work using an institutional
theory framework. Findings – Using Scott's “three pillars” the paper shows that
HR practices can act as carriers of regulative, normative and cultural-cognitive
elements in interdependent supply relationships through both formal and informal
mechanisms. Regulative elements were less evident, but could be fundamental in
shaping the other two. A tension was found between institutional pressures at
the inter- and intra-firm levels, an emergence of innovative practices and new
routines at inter-organizational level, and an evolution over time that could
involve a de-institutionalisation of the relationship as a result of internal
priorities competing with the resource requirements of the supply relationship.
Originality/value – The paper addresses the interface between OM and
organisational theory. Areas are proposed where institutionalisation of a supply
relationship can be strengthened or weakened. The findings further challenge the
view of supply relationships as a “spectrum” in which progress is unidir
