ABSTRACT
Business environments characterized by volatility challenge the idea of sustained investments in human capital that underlies much SHRM research. We adopt a stakeholder perspective to explore how employees and managers (i.e. internal stakeholders), as well as investors, governments, suppliers, distributors, and clients (i.e. external stakeholders) affect SHRM in Latin America. We argue that information regarding stakeholder needs and access to stakeholders’ resources allows for more effective reconfiguration of organizational capabilities. Within a sample of 1,643 respondents we find that the extent to which organizations consider internal and external stakeholders in strategic decision-making is positively associated with implementation of High Performance Work Practices (HPWPs). We discuss the implications for HRM in the region and offer suggestions for internationally oriented SHRM research.
