Abstract
Purpose – The main purpose of this paper is to examine the nature and impact of human resource
capabilities and involvement on the firm’s performance in the SME sector.
Design/methodology/approach – This research is based on an empirical survey of Chief Executive
Officers (CEOs) and their perception of the HR involvement in strategy development in high tech SMEs
operating in the electronics industry in the UK. Postal questionnaire is the main data collection
instrument for this research. A combination of qualitative and quantitative approaches has been
employed for data analysis.
Findings – The important conclusion reached is that increasing the core competencies of the firm, in
particular in HR, is the key element to the success of the firm. Moreover, it is posed that the growing
involvement of the HR in the development and implementation of business strategy will lead to the
increased effectiveness of the organisation and the industry as a whole. Finally, the competitive
advantage a firm enjoys can come from the distinctive capabilities which provide it with a core
competence in HR.
Research limitations/implications – The present study is concerned solely with small and
medium-sized enterprises in the electrical and electronic manufacturing sector in the UK. A further
comparative international-wide study is recommended.
Practical implications – In order to increase firm performance and to benefit from HR capabilities, it is
recommended that practitioners and SME CEOs increase the involvement of their HR specialists in the
processes of strategic management in their firms.
Originality/value – The principal contribution of this first-time study has been the attempt to explore the
CEO’s perceptions of HR, its capabilities and its degree of strategic involvement as significant
determining factors to ensure competitive advantages for the firm in a highly changing market.
Keywords Human resources management, Small to medium-sized enterprises,
Organizational performance, Managers, United Kingdom
Paper type Research paper
AbstractPurpose – The main purpose of this paper is to examine the nature and impact of human resourcecapabilities and involvement on the firm’s performance in the SME sector.Design/methodology/approach – This research is based on an empirical survey of Chief ExecutiveOfficers (CEOs) and their perception of the HR involvement in strategy development in high tech SMEsoperating in the electronics industry in the UK. Postal questionnaire is the main data collectioninstrument for this research. A combination of qualitative and quantitative approaches has beenemployed for data analysis.Findings – The important conclusion reached is that increasing the core competencies of the firm, inparticular in HR, is the key element to the success of the firm. Moreover, it is posed that the growinginvolvement of the HR in the development and implementation of business strategy will lead to theincreased effectiveness of the organisation and the industry as a whole. Finally, the competitiveadvantage a firm enjoys can come from the distinctive capabilities which provide it with a corecompetence in HR.Research limitations/implications – The present study is concerned solely with small andmedium-sized enterprises in the electrical and electronic manufacturing sector in the UK. A furthercomparative international-wide study is recommended.Practical implications – In order to increase firm performance and to benefit from HR capabilities, it isrecommended that practitioners and SME CEOs increase the involvement of their HR specialists in theprocesses of strategic management in their firms.Originality/value – The principal contribution of this first-time study has been the attempt to explore theCEO’s perceptions of HR, its capabilities and its degree of strategic involvement as significantdetermining factors to ensure competitive advantages for the firm in a highly changing market.Keywords Human resources management, Small to medium-sized enterprises,Organizational performance, Managers, United KingdomPaper type Research paper
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