Understanding the link between socially responsible human resource management and competitive performance in SMEs

Abstract

Purpose Regardless of the noteworthy growth in research and practice associating corporate social responsibility (CSR) with human resource management, little has been written in regard to one major dimension of CSR in small- and medium-sized enterprises (SMEs), as CSR policies and practices are directed toward employees. The purpose of this paper is to develop and test a conceptual framework connecting socially responsible human resource management (SRHRM) to competitive performance that fits small business. Design/methodology/approach In order to get empirical evidence, structural equation modeling technique was applied on the data from 481 Spanish SMEs. Findings Results confirm both the direct contribution of SRHRM to business competitiveness and the multiple effects resulting from including two variables of additional interest for the relationship under study: employee’s commitment and relational marketing. Practical implications One of the main research limitations is that the paper only reflects the perceptions of owners/managers of SMEs. Although it was believed that the respondents give reliable and accurate information about the way their firms are involved in CSR practices, there is a possibility that they might provide incorrect or incomplete information. Originality/value The relationships proposed have never been studied before in context of SMEs. This is a worthwhile endeavor, which makes an empirical contribution.

Sustainability and financial performance of small and medium sized enterprises: A bibliometric and systematic literature review

“…In this meaning, Torres, Ferraz, and Santos‐Rodrigues () posit that knowledge assets and organizational capabilities can foster business growth and sustainable competitive advantage. Lechuga Sancho, Martinez‐Martinez, Larran Jorge, and Herrera Madueno () show the direct contribution of socially responsible human resource management on competitive performance and the significant effect of employees' commitment and relational marketing. Upstill‐Goddard, Glass, Dainty, and Nicholson (), following the case study approach, understand that strong communication channels and commitment to training programs increase the sustainability standards implementation; nevertheless, they also maintain that SMEs tend only to approach to these standards if they see immediate financial benefits from their implementation.…”

“…posit that knowledge assets and organizational capabilities can foster business growth and sustainable competitive advantage Lechuga Sancho, Martinez- Martinez, Larran Jorge, and Herrera Madueno (2018). show the direct contribution of socially responsible human resource management on competitive performance and the significant effect of employees' commitment and relational marketing.…”

Double-Edged Effects of Socially Responsible Human Resource Management on Employee Task Performance and Organizational Citizenship Behavior: Mediating by Role Ambiguity and Moderating by Prosocial Motivation

“…Such HRM practices help to engage employees in CSR activities and gradually transform employee responsibility awareness into organizational competitiveness and sustainable development. Indeed, evidence has shown that SRHRM has pronounced effects in promoting positive employee outcomes, such as commitment [3], task performance, organizational citizenship behavior (OCB) [4], employee support for external CSR initiatives [5], and competitive performance [6].…”

Mapping the Link between Corporate Social Responsibility (CSR) and Human Resource Management (HRM): How Is This Relationship Measured?

“…Shen and Benson [66] highlighted the mediation role that employee commitment plays between SR-HRM and task performance. In that sense, Lechuga Sancho et al [91] also considered that employee's commitment positively mediates the relationship between SR-HRM and the performance of small and medium enterprises. López-Fernández et al [23] studied the influence of employees' perceptions toward SR-HRM on employee commitment.…”