The Impact of Human Resource Practices and Compensation Design on Performance: An Analysis of Family-Owned SMEs

Carlson, Dawn S.; Upton, Nancy; Seaman, Samuel L.

doi:10.1111/j.1540-627x.2006.00188.x

Cited by 183 publications

(155 citation statements)

References 38 publications

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“…However, and as Neubaum et al (2017) note, stewardship claims might be best viewed as manifest in the organization's climate. Data about employees' job satisfaction, commitment, citizenship behavior, teamwork, and performance appraisal, might also be required to more completely test the theories' claims (Carlson, Upton, & Seaman, 2006;Kotey & Folker, 2007). Our study is situated in Belgium, and naturally reflects the country-specific employment regulations, such as legal protection of employment, collective labor action, employee involvement in firm decision making, and unionization.…”

Section: Limitationsmentioning

confidence: 99%

Are Family Firms Good Employers?

Neckebrouck

Schulze

Zellweger

2018

AMJ

187

174

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Family firms employ about 60 percent of the global workforce. While it is widely assumed that they are good employers, data about their conduct is mixed. In this study, we extend stewardship and agency theories to test competing propositions about the impact of family on employment practices using data from 14,961 private Belgian firms over a 19-year period. Higher investments, lower dividend payout, and higher risk tolerance indicate that family firms are better financial stewards of their companies than nonfamily firms. However, family firms are worse organizational stewards than nonfamily firms: They offer lower compensation, invest less in employee training, and exhibit higher voluntary turnover and lower labor productivity. Further, and contrary to earlier research, we find that financial practices in private family firms do not change over time, and that the deleterious influence of family on employment practices rises with both firm age and with heightened family involvement. Together, our findings suggest that a more nuanced understanding of stewardship and agency theory is needed to understand the impact of family on the governance of private firms

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Section: Limitationsmentioning

confidence: 99%

Are Family Firms Good Employers?

Neckebrouck

Schulze

Zellweger

2018

AMJ

187

174

View full text Add to dashboard Cite

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“…One key area that has been noted in the literature is that of human resource management (Flamholtz and Randle, 2000;Ardichvili, Harmon, Cardozo, Reynolds and Williams, 1998). Interventions are necessary on the part of the entrepreneur, a key goal which is the recruitment of others and delegation of responsibilities (Kao and Tan, 2001;Carlson et al 2006). There is also a need for the entrepreneur to employ technology.…”

Section: Relevant Literaturementioning

confidence: 99%

The Effects of Entrepreneurial Growth Orientation on Organizational Change and Firm Growth

Tan

Menkhoff

Chay

2007

Small Enterprise Research

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Managing growth in an enterprise as it grows beyond the startup phase is a challenge for many entrepreneurs. One key element that can help or hinder growth is the entrepreneur. Entrepreneurial growth has been linked to micro variables (motivations and psychological attributes of the entrepreneur) and macro variables. However, few studies have examined the role of the growth aspirations of the entrepreneur on the necessary elements of organization change related to growth. This paper reports a study employing a typology of entrepreneurs based on their growth aspirations using an established dichotomous scale devised by Smith to differentiate between what he called craftsmen versus opportunistic entrepreneurs. The findings support the literature that points to the growing importance of intellectual capital, technological upgrading and participative management approaches as competitive weapons of small firms.

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“…Several studies have provided empirical support for this line of argument, with HPWS having been found to raise labour productivity, reduce voluntary turnover and increase sales growth in SMEs (Carlson et al, 2006;Deshpande and Golhar, 1994;Messersmith and Guthrie, 2010;Patel and Conklin, 2012;Sels et al, 2006;Way, 2002).…”

Section: Introductionmentioning

confidence: 98%

"High Performance Work Systems and workplace performance in small, medium-sized and large firms"

Ning

Hoque

Bacon³

et al. 2014

AMPROC

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This paper draws on the Organisational Growth and Development (OGD) lifecycle model to extend understanding of congruence or 'best fit' theory within strategic human resource management (SHRM) debates on the relationship between high performance work systems (HPWS) and performance. With reference to management control theory, economies of scale and the availability of specialist managerial skills, the paper hypothesises that while an HPWS-performance relationship might exist in small, medium-sized and large firms, the relationship will be stronger in large firms than in both small and medium-sized firms, and stronger in medium-sized firms than in small firms. Analysis of data from the British Workplace Employment Relations Survey demonstrates, however, that there is no association between HPWS and workplace performance in mediumsized firms, in contrast to the positive relationship between HPWS and performance found in large firms and between HPWS and labour productivity in small firms. KeywordsHPWS, small and medium-sized enterprises (SMEs), performance, best fit, organisational growth and development

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The Impact of Human Resource Practices and Compensation Design on Performance: An Analysis of Family-Owned SMEs

Cited by 183 publications

References 38 publications

Are Family Firms Good Employers?

Are Family Firms Good Employers?

The Effects of Entrepreneurial Growth Orientation on Organizational Change and Firm Growth

"High Performance Work Systems and workplace performance in small, medium-sized and large firms"

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