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The link between HRM practices and performance in Malaysian SMEs

Zakaria, Nazlina and Mohd Fauzi, Waida Irani and Abdullah, Nor Azimah Chew and Yusoff, Rushami Zien (2018) The link between HRM practices and performance in Malaysian SMEs. International Journal of Supply Chain Management (IJSCM), 7 (6). pp. 118-126. ISSN 2050-7399

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This empirical study investigated HRM-performance links in Malaysian small and medium enterprises (SMEs). SMEs performance is conceptualized within a multidimensional framework consisting of four dimensions, which are satisfaction with financial performance, satisfaction with non-financial performance, performance relative to competitors and business growth. The five HRM practices adapted consisted of communication and information sharing, compensation, job design, performance appraisal, selection and training and development. The hypothesis of this study has been built on a resource based view. Field research was conducted through surveys with a total of 321owners/managers of manufacturing SMEs,representing a response rate of 60.5%. Confirmatory factor analyses were used to analyse the quality of the scales and PLS-SEM were conducted to test the hypotheses of the study. Statistical results show certain HRM practices, namely, communication and information sharing and selection are positively related to organizational performance. Finally, this study is useful for future researchers, entrepreneurs and policy makers in realizing the importance of HRM practices towards enhancing SMEs performance.

Item Type: Article
Uncontrolled Keywords: Human resource management practices; organizational performance; manufacturing; small and medium enterprises (SMEs).
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Divisions: School of Business Management
Depositing User: Mrs. Norazmilah Yaakub
Date Deposited: 07 Mar 2019 06:22
Last Modified: 07 Mar 2019 06:22
URI: http://repo.uum.edu.my/id/eprint/25712

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