IDEAS home Printed from
   My bibliography  Save this paper

Is human resource management profitable for small firms?


  • Jan de Kok
  • Deanne den Hartog


The impact of high performance work systems on labour productivity and profit of small and medium sized enterprises. Previous versions of this paper have been presented at the 2005 conference of the Dutch HRM Network on HRM and performance (held on 4 and 5 November of that year) and the invited workshop 'Entrepreneurship from the employee's perspective' at the Max Planck Institute of Economics in Jena (Februari 2006). The paper presented at the Mack Planck Institute has been published as EIM Scales Paper N200520. The research presented in this paper focuses on the effectiveness of a high performance work system. This system is comprised of practices in the areas of extensiveness of staffing, performance based pay, pay level, job rotation, training and participation. In particular, this study focuses on the effects of such a system on the performance of small and medium-sized enterprises. Results of our study, among small and medium size enterprises in the Netherlands, show that firms with such a system have higher labour productivity, are more innovative and generate higher profits. These results suggest that high performance work systems are not only relevant in large corporations, but may also benefit small firms.

Suggested Citation

  • Jan de Kok & Deanne den Hartog, 2006. "Is human resource management profitable for small firms?," Scales Research Reports H200621, EIM Business and Policy Research.
  • Handle: RePEc:eim:papers:h200621

    Download full text from publisher

    File URL:
    Download Restriction: no

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eim:papers:h200621. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Webmaster EIM). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.