Understanding that the measurement of HRM construct in Small and Medium Enterprises (SMEs) context is relatively critical, this study aims to assess the validity and reliability of HRM measurement based on the SME owner-managers' perspective in the Malaysian context. Following a data collection from 95 SME owner-managers, a confirmatory factor analysis was performed to investigate the factorial validity and reliability of the HRM measurement. The finding indicates that the measurement model was acceptable in consideration of the evidences of adequate reliability, convergent validity and discriminant validity. This study will be beneficial for future researchers, entrepreneurs and policy makers in better understanding to the value of HRM practices towards boosting the SMEs performance.
The purpose of this research was to identify the role of high performance work practices of banks, work-family conflict, job stress, and personality of bank employees in affecting their work-life balance. To accomplish this goal, self-administered structured questionnaires were distributed to those bank employees who were either married, divorced, or separated, had children, and at least one year working experience in that bank. Final sample was comprised of 726 employees from 277 banks of South Punjab. The results revealed that high performance work practices of banks, family to work conflict, and personality type B behavioral patterns of bank employees increase their work-life balance, and work to family conflict of bank employees decreased their work-life balance. However, job stress and personality type A behavioral patterns of bank employees did not affect their work-life balance. Contrary to previous studies, these results suggest that moderate family to work conflict is actually good for work-life balance, and job stress and personality type A behavioral patterns are inherently not bad for work-life balance. Hence, State Bank of Pakistan should consider developing policies to en-hance employee friendly high performance work practices in banks. Banks should also consider taking personality tests prior to recruiting and selecting employees for hectic posts.
Small Medium Enterprises (SMEs) has become significant in today’s economic growth. To gain and sustain the SMEs performance, one of the ways the organization should do is to be flexible and improvise in its business activities. The link between flexibility, improvisation and SMEs performance is still vague, thus this paper aims to investigate the effect of improvisation as a mediator between organizational flexibility and SMEs performance. Three hypotheses are put forward to achieve the aforementioned research goal. Obtaining on a survey data from 202 manufacturing SMEs in Malaysia, the findings of the study confirmed that all hypotheses have a positive significant association. Theoretically and in practice, this study denotes rich addition to the vocabulary of business and management.
It has long been acknowledged that SMEs contribute significantly to the overall economic performance in Malaysia. However, SMEs in Malaysia are yet to reach their full potential. To improve the performance of SMEs, understanding its drivers is crucial. Previous research found that organization which have a more innovative behavior are likely to initiate an organizational change that could affect organizational performance. Thus, the aim of this study is to investigate the relationship between organizational innovation and organizational performance of Malaysian SMEs. Therefore, this article discusses the concept of organizational innovation, organizational performance and end with the findings of the organizational innovation-organizational performance linkage. Data was collected from SMEs in manufacturing sectors. A total of 321 self-administered questionnaires were used for gathering data from the respondents. Smart PLS 2.0 was used to test the hypotheses. The result reveals a positive relationship between organizational innovation and organizational performance. This study is useful for future researchers, entrepreneurs and policy makers in realizing the importance of organizational innovation towards enhancing SMEs performance.
Many studies have focused on direct link between HRM practices and organizational performance. There is a strong relationship between these two variables that driven further research to identify the mechanism through which such relationship exists. Following resource-based view (RBV), the aim of this research was to investigate the indirect effect of organizational innovation on HRM practices-performance linkage. Data was collected from owners/managers of manufacturing SMEs in West Malaysia. 331 (60.5%) distributed questionnaires were received and analyzed through PLS-SEM. Out of six hypotheses on mediation, only one hypothesis was rejected. The findings strongly supported the RBV theory when organizational innovation significantly mediated the relationship. These results clearly indicate that organizational innovation plays an intermediate role between HRM practices (i.e. communication and information sharing, compensation, selection, performance appraisal, and training and development) and organizational performance of SMEs.
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