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Impact of Innovation-Oriented Human Resource on Small and Medium Enterprises’ Performance

Author

Listed:
  • Mahvish Aslam

    (Islamabad Campus, Abasyn University, Islamabad 44000, Pakistan)

  • Imran Shafi

    (College of Electrical and Mechanical Engineering, National University of Sciences and Technology (NUST), Islamabad 44000, Pakistan)

  • Jamil Ahmed

    (Hazara University Mansehra, Mansehra 21300, Pakistan)

  • Mirtha Silvana Garat de Marin

    (Faculty of Social Sciences and Humanities, Universidad Europea del Atlántico, 39011 Santander, Spain
    Department of Projects, Universidad Internacional Iberoamericana, Arecibo, PR 00613, USA
    Department of Extension, Universidade Internacional do Cuanza, Cuito P.O. Box 841, Angola)

  • Emmanuel Soriano Flores

    (Faculty of Social Sciences and Humanities, Universidad Europea del Atlántico, 39011 Santander, Spain
    Department of Projects, Universidad Internacional Iberoamericana, Campeche 24560, Mexico
    Department of Projects, Fundación Universitaria Internacional de Colombia, Bogotá 111311, Colombia)

  • Marco Antonio Rojo Gutiérrez

    (Faculty of Social Sciences and Humanities, Universidad Europea del Atlántico, 39011 Santander, Spain
    Department of Projects, Universidad Internacional Iberoamericana, Arecibo, PR 00613, USA
    Department of Projects, Universidad Internacional Iberoamericana, Campeche 24560, Mexico)

  • Imran Ashraf

    (Department of Information and Communication Engineering, Yeungnam University, Gyeongsan 38541, Republic of Korea)

Abstract

This research paper aims to examine the impact of innovative HRM practices, including employee participation, performance appraisal, reward and compensation, recruitment and selection, and redeployment–retraining on firm performance. For this purpose, four different models are utilized to examine the impact of innovative HRM department practices on the performance of small and medium enterprises (SMEs) in a country. The dependent variable, firm performance, is proxified by different variables such as labor productivity, product innovation, process innovation, and marketing innovation. For empirical analysis, primary data are collected using a questionnaire. Estimation is conducted using ordinary least squares (OLS) and logit regression techniques. The estimated results indicate that most innovative HRM practices have a statistically significant impact on firm performance in terms of labor productivity, product, process, and marketing innovations. These results imply that SMEs in a country may observe the benefits of devoting greater attention to innovative HRM practices to achieve their future growth potential.

Suggested Citation

  • Mahvish Aslam & Imran Shafi & Jamil Ahmed & Mirtha Silvana Garat de Marin & Emmanuel Soriano Flores & Marco Antonio Rojo Gutiérrez & Imran Ashraf, 2023. "Impact of Innovation-Oriented Human Resource on Small and Medium Enterprises’ Performance," Sustainability, MDPI, vol. 15(7), pages 1-23, April.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:7:p:6273-:d:1117041
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    References listed on IDEAS

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