Threading risk and resilience: insurance law and HRM synergies in the global weaving industry

Abstract

This study investigates the integration of insurance law into Human Resource Management (HRM) systems and its influence on organizational resilience in India’s handloom weaving cooperatives, which are susceptible to economic shocks and global trade fluctuations. The objective is to assess how legally embedded HRM practices enhance employee satisfaction, perceived security, and adaptive capacity within decentralized cooperative models.
Utilizing a cross-sectional quantitative design, the research draws data from 150 respondents across three strata of weaving cooperatives—mature, transitional, and informal—selected via purposive sampling. Data collection combined structured questionnaires and semi-structured interviews, supported by field observations that revealed informal HR mechanisms such as grievance redressal and insurance registration drives. Confirmatory Factor Analysis (CFA) validated latent constructs, while Structural Equation Modelling (SEM) tested direct and mediating effects among variables. Internal consistency and validity were established using Cronbach’s Alpha, Composite Reliability, AVE, and RMSEA metrics.
Results show that insurance-HRM synergies significantly correlate with organizational commitment (β = 0.285), employee satisfaction (β = 0.472), and resilience (β = 0.060). Cooperatives with mature integration display stronger institutional stability and workforce morale. Contextual tailoring of legal terminology and participatory HR processes contributed to successful implementation across clusters.
The findings underscore the role of legally operationalized HR practices in supporting adaptive behaviors and systemic resilience in artisan-driven SMEs. In conclusion, the study advocates for inclusive risk governance and wider insurance access to strengthen traditional sectors, enhance worker well-being, and promote institutional continuity amidst socioeconomic disruptions.