Human resource management and performance Evidence from small and medium-sized firms / Sheehan, Maura

By: Sheehan, Maura
Material type: ArticleArticlePublisher: 2014Description: 545-570Subject(s): Smes | Small And Medium-Sized Enterprises | Performance | Human Resource Management | Causal Order In: International Small Business JournalSummary: This article examines human resource management (HRM) practices in small and medium-sized enterprises (SMEs). In particular, by examining the issue of causal order, it addresses a significant gap in the extant HRM-performance literature within the context of such firms. Significant simultaneous and longitudinal relationships between HRM practices and specific performance indicators are found. Controlling for past performance and thus, testing for the potential for reverse causality does not eliminate the significant relationship between human resource practices and performance. In sum, the use of human resource practices is found to positively enhance sustained competitive advantage. By explicitly examining the issue of causality in the human resources-performance relationship, this article makes a contribution to both the human resource and SME literatures.
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Articles Articles Ahmedabad (HO)
(Browse shelf) Vol. 32, Issue. 5 Available 018152

This article examines human resource management (HRM) practices in small and medium-sized enterprises (SMEs). In particular, by examining the issue of causal order, it addresses a significant gap in the extant HRM-performance literature within the context of such firms. Significant simultaneous and longitudinal relationships between HRM practices and specific performance indicators are found. Controlling for past performance and thus, testing for the potential for reverse causality does not eliminate the significant relationship between human resource practices and performance. In sum, the use of human resource practices is found to positively enhance sustained competitive advantage. By explicitly examining the issue of causality in the human resources-performance relationship, this article makes a contribution to both the human resource and SME literatures.

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