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High performance work practices in small firms: a resource-poverty and strategic decision-making perspective

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  • Brigitte Kroon
  • Karina Voorde
  • Jules Timmers

Abstract

High performance work practices (HPWPs) are human resource management practices aimed at stimulating employee and organisational performance. The application of HPWPs is not widespread in small organisations. We examine whether the implementation of coherent bundles of HPWPs (aimed at employee ability, employee motivation or at the opportunity to perform) depends on the scarcity of resources, as reflected in the size of the company, and on strategic decision-making in small firms related to the owner’s expertise and attitudes. In our research, a total of 211 employees from 45 small organisations were asked to rate the presence of HPWPs in their organisation. These averaged perceptions were linked to information provided by the owner–managers on the size of their firm and their own expertise and attitudes. The findings support that smaller but coherent bundles of HPWPs can be found in small organisations and that the implementation of these bundles depends on available resources, strategic decision-making and the combination of the two. These findings highlight the need to integrate the notions of resource poverty and strategic decision-making to understand the uptake of bundles of HPWPs within small firms. Copyright The Author(s) 2013

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  • Brigitte Kroon & Karina Voorde & Jules Timmers, 2013. "High performance work practices in small firms: a resource-poverty and strategic decision-making perspective," Small Business Economics, Springer, vol. 41(1), pages 71-91, June.
    • Handle: RePEc:kap:sbusec:v:41:y:2013:i:1:p:71-91
    DOI: 10.1007/s11187-012-9425-0
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    Cited by:

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    2. Antonín Korauš & Zuzana Kaščáková & Miroslav Felcan, 2020. "The Impact Of Ability-Enhancing Hrm Practices On Perceived Individual Performance In It Industry In Slovakia," Central European Journal of Labour Law and Personnel Management, Labour Law Association, vol. 3(1).
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    4. Abdul Raziq, Retha Wiesner, 2016. "High Performance Management Practices and Sustainability of SMEs. Evidence from Manufacturing and Services-based Industries in Pakistan," Journal of Management Sciences, Geist Science, Iqra University, Faculty of Business Administration, vol. 3(2), pages 83-107, October.
    5. Margarita Nyfoudi & Nicholas Theodorakopoulos & Alexandros Psychogios & Anders Dysvik, 2022. "Tell it like it is in SME teams: Adverse working conditions, citizenship behaviour and the role of team information sharing in a turbulent economy," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 43(2), pages 516-535, May.
    6. Lenihan, Helena & McGuirk, Helen & Murphy, Kevin R., 2019. "Driving innovation: Public policy and human capital," Research Policy, Elsevier, vol. 48(9), pages 1-1.
    7. Gregorio Sánchez-Marín & Gabriel Lozano-Reina & Mané Beglaryan, 2022. "HRM Policies and SMEs Performance: The Moderating Role of CSR Orientation," Central European Business Review, Prague University of Economics and Business, vol. 2022(1), pages 85-110.
    8. Miguel A. Hernandez, 2019. "Unveiling International New Ventures’ Success: Employee’s Entrepreneurial Behavior," Administrative Sciences, MDPI, vol. 9(3), pages 1-32, August.
    9. Yasangi Anuradha Iddagoda & Henarath H. D. N. P. Opatha, 2020. "Relationships and Mediating Effects of Employee Engagement: An Empirical Study of Managerial Employees of Sri Lankan Listed Companies," SAGE Open, , vol. 10(2), pages 21582440209, April.
    10. Goo Hyeok Chung & Jongwook Pak, 2021. "Is there internal fit among ability-, motivation-, and opportunity-enhancing HR practices? Evidence from South Korea," Review of Managerial Science, Springer, vol. 15(7), pages 2049-2074, October.
    11. Shakeel Sarwar, Jawad Iqbal, 2020. "Framework Development of High Performance Work Systems (HPWSs) and Faculty Productivity: A Qualitative Approach," Journal of Management Sciences, Geist Science, Iqra University, Faculty of Business Administration, vol. 7(1), pages 1-13, March.
    12. Corral de Zubielqui, Graciela & Fryges, Helmut & Jones, Janice, 2019. "Social media, open innovation & HRM: Implications for performance," Technological Forecasting and Social Change, Elsevier, vol. 144(C), pages 334-347.
    13. Pruneda, Gabriel, 2014. "Employee coverage of high-performance work systems in Spain: a comparative analysis before and during economic retrenchment," MPRA Paper 83909, University Library of Munich, Germany.
    14. Ionuț, Antohi & Silvia, Ghița - Mitrescu, 2019. "High Performance Work Practices - Evidence From Romanian Companies," Management Strategies Journal, Constantin Brancoveanu University, vol. 46(4), pages 39-46.
    15. Yiyang Sun & Foteini Kravariti, 2016. "To What Extent the Adoption of Innovative Human Resource Practices Is Explained by Top Management Support in Chinese SMEs," Proceedings of Business and Management Conferences 3405845, International Institute of Social and Economic Sciences.
    16. Bernice Kotey & Isaac Koomson, 2021. "Firm size differences in financial returns from flexible work arrangements (FWAs)," Small Business Economics, Springer, vol. 56(1), pages 65-81, January.
    17. Nyu, Valeria & Nilssen, Frode & Kandemir, Destan, 2022. "Small exporting firms’ choice of exchange mode in international marketing channels for perishable products: A contingency approach," International Business Review, Elsevier, vol. 31(1).
    18. 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.
    19. Jyoti, Jeevan & Rani, Asha, 2019. "Role of burnout and mentoring between high performance work system and intention to leave: Moderated mediation model," Journal of Business Research, Elsevier, vol. 98(C), pages 166-176.

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    More about this item

    Keywords

    High performance work system; Entrepreneurial orientation; Small firms; Human resource management; Resource poverty; Strategic decision making; Best-practice awareness; Innovative HR vision; D22; D89; L26; M12; M51; M52; M53;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • D89 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Other
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation
    • M51 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Firm Employment Decisions; Promotions
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects
    • M53 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Training

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