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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

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.

Suggested Citation

  • Klaas, Brian S. & Klimchak, Malayka & Semadeni, Matthew & Holmes, Jeanne Johnson, 2010. "The adoption of human capital services by small and medium enterprises: A diffusion of innovation perspective," Journal of Business Venturing, Elsevier, vol. 25(4), pages 349-360, July.
  • Handle: RePEc:eee:jbvent:v:25:y:2010:i:4:p:349-360
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    References listed on IDEAS

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    1. Deroian, Frederic, 2002. "Formation of social networks and diffusion of innovations," Research Policy, Elsevier, vol. 31(5), pages 835-846, July.
    2. 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, vol. 5(2), pages 239-275.
    3. Jasjit Singh, 2005. "Collaborative Networks as Determinants of Knowledge Diffusion Patterns," Management Science, INFORMS, vol. 51(5), pages 756-770, May.
    4. Robinson, Peter B. & Sexton, Edwin A., 1994. "The effect of education and experience on self-employment success," Journal of Business Venturing, Elsevier, vol. 9(2), pages 141-156, March.
    5. 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, vol. 46(1), pages 28-45, January.
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    Cited by:

    1. Petra Andries & Dirk Czarnitzki, 2014. "Small firm innovation performance and employee involvement," Small Business Economics, Springer, vol. 43(1), pages 21-38, June.
    2. Siepel, Josh & Cowling, Marc & Coad, Alex, 2017. "Non-founder human capital and the long-run growth and survival of high-tech ventures," Technovation, Elsevier, vol. 59(C), pages 34-43.
    3. Lisa K. Gundry & Laurel F. Ofstein & Javier Monllor, 2016. "Entrepreneurial Team Creativity: Driving Innovation from Ideation to Implementation," Journal of Enterprising Culture (JEC), World Scientific Publishing Co. Pte. Ltd., vol. 24(01), pages 55-77, March.
    4. Rauch, Andreas & Hatak, Isabella, 2016. "A meta-analysis of different HR-enhancing practices and performance of small and medium sized firms," Journal of Business Venturing, Elsevier, vol. 31(5), pages 485-504.

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