Title: Unravelling the HRM-performance link: Value-creating and cost-increasing effects of small business HRM
Authors: Sels, Luc ×
De Winne, Sophie
Maes, Johan
Delmotte, Jeroen
Faems, Dries
Forrier, Anneleen #
Issue Date: 2006
Publisher: Blackwell publishing
Series Title: Journal of Management Studies vol:43 issue:2 pages:319-342
Abstract: The majority of empirical studies on the HRM-performance link report a positive story. The costs associated with the productivity rise due to high performance work practices (HPWP) have been largely neglected. The purpose of this study is to develop a conceptual framework that maps both the value-enhancing and cost-raising impact of HPWP. In addition, we want to pronounce upon their overall effect on financial performance. To test our model, we rely on a sample of small businesses. Understanding both performance and cost-related effects of the implementation of HPWP is particularly valuable for small businesses since they often lack financial resources to implement HPWP and benefit less from economies of scale compared to their larger counterparts. Study results indicate that although greater use of HPWP is associated with increased productivity, this effect is offset by increased labour costs. However, we find an overall positive effect of HPWP on firm profitability.
ISSN: 0022-2380
Publication status: published
KU Leuven publication type: IT
Appears in Collections:Research Centre for Organisation Studies, Leuven
Department of Human Resources Management, Campus Carolus Antwerp
Faculty of Economics and Business (FEB) - miscellaneous
× corresponding author
# (joint) last author

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