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Human Resource Management, TQM, and Firm Performance in Small and Medium-Size Enterprises

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  • Gaylen N. Chandler
  • Glenn M. Mcevoy

Abstract

This study analyzes the moderating effect of two key human resource practices on the relationship between organizational strategy and firm performance. In a sample of 66 small to medium-sized manufacturing firms we found that a total quality management strategy was most effective when supported by significant training and group-based incentive compensation. This result is discussed in light of the current debate in the field about “best practice†versus “fit†models of human resource management and business strategy.

Suggested Citation

  • Gaylen N. Chandler & Glenn M. Mcevoy, 2000. "Human Resource Management, TQM, and Firm Performance in Small and Medium-Size Enterprises," Entrepreneurship Theory and Practice, , vol. 25(1), pages 43-58, October.
    • Handle: RePEc:sae:entthe:v:25:y:2000:i:1:p:43-58
    DOI: 10.1177/104225870002500105
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    Cited by:

    1. Christian Hagin & Livingstone Divine Caesar, 2021. "The antecedents of success among small- and medium-sized enterprises: evidence from Ghana," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 11(1), pages 279-297, December.
    2. Abdul Raziq, 2014. "The Relationship between Firm Size and High Performance Management Practices in Pakistani SMEs," Indian Journal of Commerce and Management Studies, Educational Research Multimedia & Publications,India, vol. 5(2), pages 27-36, May.
    3. Lilian DE MENEZES & Garry GELADE & Stephen WOOD, 2008. "A Longitudinal Study of the Latent Class Clusters of Modern Management Practices and their Association with Organizational Performance in British Manufacturing," EcoMod2008 23800028, EcoMod.
    4. Seyed Gholam Hossein Hashemi Nassab, 2016. "The Role of Financial Management on Productivity of the Refinery Case Study: Khangiran Gas Refinery of Iran," Modern Applied Science, Canadian Center of Science and Education, vol. 10(6), pages 1-44, June.
    5. Unai Arzubiaga & Amaia Maseda & Txomin Iturralde, 2019. "Entrepreneurial orientation in family firms: New drivers and the moderating role of the strategic involvement of the board," Australian Journal of Management, Australian School of Business, vol. 44(1), pages 128-152, February.
    6. David Urbano & Desislava Yordanova, 2008. "Determinants of the adoption of HRM practices in tourism SMEs in Spain: an exploratory study," Service Business, Springer;Pan-Pacific Business Association, vol. 2(3), pages 167-185, September.
    7. Lai, Yanqing & Saridakis, George & Blackburn, Robert & Johnstone, Stewart, 2016. "Are the HR responses of small firms different from large firms in times of recession?," Journal of Business Venturing, Elsevier, vol. 31(1), pages 113-131.
    8. Ahmed Alzahrani & Ali Shaddady, 2021. "Influences of Financial and Non-Financial Compensation on Employees’ Turnover Intention in the Energy Sector: The Case of Aramco IPO," International Business Research, Canadian Center of Science and Education, vol. 14(6), pages 108-108, June.
    9. Mackelprang, Alan W. & Jayaram, Jayanth & Xu, Kefeng, 2012. "The influence of types of training on service system performance in mass service and service shop operations," International Journal of Production Economics, Elsevier, vol. 138(1), pages 183-194.
    10. Paul Jones & Malcolm J Beynon & David Pickernell & Gary Packham, 2013. "Evaluating the Impact of Different Training Methods on SME Business Performance," Environment and Planning C, , vol. 31(1), pages 56-81, February.
    11. Gabriela ÞUÞUEANU & Elena Claudia ªERBAN, 2014. "High Performance Activity Practices in Small Firms in Romania," Economia. Seria Management, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 17(2), pages 290-303, December.
    12. 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.

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