About HRMinSMEs

Project's main goals, objectives and challenges

Small and Medium-sized Enterprises (SMEs) are considered a key driver of economic development, especially in economies dominated by the service sector. Simultaneously, human capital or human resources represents a critical competitive advantage for any enterprise. However, while evidence regarding effective Human Resource Management (HRM) systems in larger organizations is abundant, there is a gap in scientific evidence regarding effective HRM systems for SMEs. The "HRM in SMEs" research project aims to study HRM in SMEs, with the goal of identifying and proposing best practices that support and enhance innovation and business performance. We will develop and conduct a survey on prevailing HRM practices in European (Greek, Cypriot, Irish, and English) SMEs. The purpose is to measure the impact of HRM practices on innovation and business performance in SMEs by addressing three key questions.

1. Which are the dominant HRM practice configurations in SMEs?

To answer this question, the unit of analysis is the firm, and the respondents are the individuals responsible for HRM. We will develop a questionnaire based on a systematic literature review and a series of exploratory in-depth interviews with SME owners and managers, followed by discussions among HRM and SME management academics, including the HRMinSMEs members and collaborators in partner universities. The questionnaire will be developed in English, translated into Greek, back-translated, and pilot-tested.

2. Are HRM practice configurations in SMEs linked with specific business demographics?

This is a rather descriptive research aim. Our goal is to formulate HRM application profiles for SMES using cluster analysis and/or fuzzy set qualitative comparative analysis (fsQCA).

3. Which HRM practice configurations in SMEs lead to higher innovation and business outcomes?

This is a prescriptive research aim. We attempt to identify the dominant profiles of HRM application in the best-performing SMES using Generalized Structural Equation Modeling (GSEM). Our primary objective is to practically identify and propose sets of High-Performance Work Systems to SMEs, similar to those in larger organizations. Figure 1 shows the relations under study in the project.