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The adoption of human capital services by small and medium enterprises: A diffusion of innovation perspective

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  • Klaas, Brian S.
  • Klimchak, Malayka
  • Semadeni, Matthew
  • Holmes, Jeanne Johnson
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    Abstract

    While lack of scale economies have traditionally limited the use of human capital programs among small and medium enterprises (SMEs), outsourcing models have recently emerged to provide cost-effective access to these programs. Drawing on the diffusion of innovation literature, we apply the rational accounts model and institutional theory to examine why SMEs differ in their willingness to use newly available human capital programs. We specifically examine the impact of SME size on the adoption of human capital innovations. Using survey and archival data from over 400 SMEs, we found broad support for the integrated approach we propose.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of Business Venturing.

    Volume (Year): 25 (2010)
    Issue (Month): 4 (July)
    Pages: 349-360

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    Handle: RePEc:eee:jbvent:v:25:y:2010:i:4:p:349-360

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    Web page: http://www.elsevier.com/locate/jbusvent

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    Keywords: Small and medium sized enterprises Human capital programs Consulting firms;

    References

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    1. Christopher L. Erickson & Sanford M. Jacoby, 2003. "The effect of employer networks on workplace innovation and training," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, ILR Review, Cornell University, ILR School, vol. 56(2), pages 203-223, January.
    2. Paul Osterman, 1994. "How common is workplace transformation and who adopts it?," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, ILR Review, Cornell University, ILR School, vol. 47(2), pages 173-188, January.
    3. Robinson, Peter B. & Sexton, Edwin A., 1994. "The effect of education and experience on self-employment success," Journal of Business Venturing, Elsevier, Elsevier, vol. 9(2), pages 141-156, March.
    4. Peter Cappelli & David Neumark, 2001. "Do "high-performance" work practices improve establishment-level outcomes?," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, ILR Review, Cornell University, ILR School, vol. 54(4), pages 737-775, July.
    5. Deroian, Frederic, 2002. "Formation of social networks and diffusion of innovations," Research Policy, Elsevier, Elsevier, vol. 31(5), pages 835-846, July.
    6. Jasjit Singh, 2005. "Collaborative Networks as Determinants of Knowledge Diffusion Patterns," Management Science, INFORMS, INFORMS, vol. 51(5), pages 756-770, May.
    7. Gavin Sinclair & Steven Klepper & Wesley Cohen, 2000. "What's Experience Got to Do With It? Sources of Cost Reduction in a Large Specialty Chemicals Producer," Management Science, INFORMS, INFORMS, vol. 46(1), pages 28-45, January.
    8. Baron, James N & Burton, M Diane & Hannan, Michael T, 1996. "The Road Taken: Origins and Evolution of Employment Systems in Emerging Companies," Industrial and Corporate Change, Oxford University Press, Oxford University Press, vol. 5(2), pages 239-75.
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    Cited by:
    1. Petra Andries & Dirk Czarnitzki, 2014. "Small firm innovation performance and employee involvement," Small Business Economics, Springer, Springer, vol. 43(1), pages 21-38, June.

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