In prosperity and adversity? The value of high-performance work practices for SMEs under conditions of environmental hostility and social embeddedness
Citation:
Martínez-del-Río, J., Perez-Luño, A. & Bojica, A.M., In prosperity and adversity? The value of high-performance work practices for SMEs under conditions of environmental hostility and social embeddedness, International Journal Of Manpower, 44, 4, 2023, 618 - 634Download Item:
Abstract:
Purpose – Taking a resource-based view, the authors analyse the effect of high-performance work practices
(HPWPs) on the performance of small- and medium-sized enterprises (SMEs) under conditions of environmental
hostility, and consider how this relationship is influenced by managers’ embeddedness in social networks. The
authors argue that high perceived levels of environmental hostility strengthen the strategic value of HPWPs in
SMEs, whereas high levels of manager embeddedness in social networks weaken this contingent relationship.
Design/methodology/approach – These hypotheses were tested in a sample of 249 SMEs, from two Spanish
industries related to food production, using linear regression with two- and three-way interaction effects.
Findings – The study results show that the implementation of HPWPs benefits SMEs’ performance in hostile
environments. However, the dark side of managers’ social capital could undermine any such benefit, especially
if there is a high degree of network closure. In hostile contexts, such closure appears to limit managers’
willingness to depart from the common practice of reducing investment in human resources.
Practical implications – Contrary to predominant beliefs that managers facing economic adversity should
reduce costs by cutting investment in personnel development, this study indicates that supporting HPWPs
enhances a firm’s objective financial performance.
Originality/value – This study advances our understanding of the specific conditions under which HPWPs
sustain SME performance. It also introduces the dark side of managers’ social capital into considerations of this
relationship. The study findings provide new insights that are counterintuitive to business practice.
Author's Homepage:
http://people.tcd.ie/perezluaDescription:
PUBLISHED
Author: Perez-Luno, Ana
Type of material:
Journal ArticleSeries/Report no:
International Journal Of Manpower;44;
4;
Availability:
Full text availableSubject (TCD):
Inclusive Society , Human Resource Management , LeadershipDOI:
https://doi.org/10.1108/IJM-12-2021-0707ISSN:
0143-7720Metadata
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