Human resource management in Chinese small and medium enterprises

Abstract

Purpose -The purpose of this article is to emphasise the development, importance and pressures on the under-researched area of Chinese small and medium-sized enterprises (SMEs) and human resource management (HRM) and provide a review and research agenda, especially relating to the debate on convergence vis-à -vis divergence. Design/methodology/approach -Recent research papers are discussed and possible convergence and the pressures on HRM and its practice in Chinese SMEs are examined. Key elements in Chinese HRM are highlighted. Four main dimensions of HRM are compared in terms of western and Chinese characteristics and their cultural impacts and problems. A conceptual framework to locate influences on Chinese HRM is outlined as well as a set of propositions for future research and examination of key HRM areas. Findings -The continuing influences on HRM suggest that a distinctly Chinese HRM approach combining western practice with Chinese characteristics may be one way for SMEs to develop. Originality/value -It is central to a better understanding of Chinese SMEs and helps fill some of the gap in the analysis of HRM in Chinese SMEs. It also offers insights which managers, policy makers and Chinese government can use to construct and reform the supporting system for SMEs.

Overcoming the liability of smallness by recruiting through networks in China: a guanxi-based social capital perspective

“…Human capital-the knowledge that employees acquire through investing in schooling, job training, and other experience-enhancing exercises-has long been argued to be one of the most critical resources for firms (Cunningham & Rowley, 2007;Huang, 2008;Leung, Zhang, Wong, & Foo, 2006). Despite its importance, firms often report challenges in acquiring human capital through recruitment due to their small size (lack of resources).…”

“…In doing so, our study contributes to the HRM and labor market research efforts in emerging or transitional economies (e.g. Cheung & Gui, 2006;Cunningham & Rowley, 2007;Hsu & Leat, 2000;Huang, 2008;Zhu & Nyland, 2004).…”

“…Aycan, 2005;Kim & Gao, 2010) and others (e.g. Cunningham & Rowley, 2007. In comparison, HRM scholars have done little empirical work on the role of guanxi in the area of recruitment practice (e.g.…”

“…In doing so, we provide a more comprehensive picture of the role of guanxi in recruitment practice (e.g. Cunningham & Rowley, 2007;Hsu & Leat, 2000;Huang, 2008). Second, we develop and introduce a new theoretical lens -the GBSC perspective -by integrating insights from the social capital and guanxi literature to interpret the role that guanxi plays in recruitment practice.…”

“…The first research question is: how do Chinese firms use guanxi strategically in their recruitment practices? The existing discussions on guanxi and recruitment practice focus primary on demonstrating that guanxi enables Chinese firms to acquire jobseekers through networks (Cunningham & Rowley, 2007;Hsu & Leat, 2000;Huang, 2008), while paying less attention to understanding exactly how they use it. As a result, we know little about the processes through which Chinese firms use guanxi strategically in their recruitment practice.…”