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Commitment to Employees: Does It Help or Hinder Small Business Performance?

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  • Lori Muse
  • Matthew Rutherford
  • Sharon Oswald
  • Jennie Raymond

Abstract

This study used a sample of 4,637 small businesses to test the relationship between organizational commitment to employees (OCE) and company performance. OCE was significant in all five of the performance models. The results of the employee productivity model revealed a significant positive relationship between OCE and company performance, suggesting that small businesses might be able to realize some benefit in employee productivity from OCE programs. In addition, results from the return on assets, return on sales, return on cashflow, and employee growth models indicated that some OCE programs might be more beneficial to small businesses than others. Potential antecedents of OCE were also examined. Company size, owner education, and gender of the owner had positive relationships with OCE. Partial support was also found for a positive relationship between owner experience and OCE. Differences in the results of this study compared to studies for larger corporations and suggestions for future research are also discussed. Copyright Springer 2005

Suggested Citation

  • Lori Muse & Matthew Rutherford & Sharon Oswald & Jennie Raymond, 2005. "Commitment to Employees: Does It Help or Hinder Small Business Performance?," Small Business Economics, Springer, vol. 24(2), pages 97-111, March.
    • Handle: RePEc:kap:sbusec:v:24:y:2005:i:2:p:97-111
    DOI: 10.1007/s11187-003-3098-7
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    Citations

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    Cited by:

    1. Paul Olusiji Ogunyomi & Rasheed Kola Ojikutu, 2014. "Employee Resourcing and Performance of Small and Medium Enterprises in Lagos State, Nigeria," Journal of Entrepreneurship and Business Innovation, Macrothink Institute, Journal of Entrepreneurship and Business Innovation, vol. 1(1), pages 16-35, June.
    2. Dean Shepherd & J. Michael Haynie, 2009. "Family Business, Identity Conflict, and an Expedited Entrepreneurial Process: A Process of Resolving Identity Conflict," Entrepreneurship Theory and Practice, , vol. 33(6), pages 1245-1264, November.
    3. Unger, Jens M. & Rauch, Andreas & Frese, Michael & Rosenbusch, Nina, 2011. "Human capital and entrepreneurial success: A meta-analytical review," Journal of Business Venturing, Elsevier, vol. 26(3), pages 341-358, May.
    4. Johan Lindeque & Olga Samuel & Corin Kraft, 2022. "Small Businesses’ Social Responsibility and Political Activity Survey Studies: A Review, Synthesis, and Research Agenda," SAGE Open, , vol. 12(2), pages 21582440221, April.
    5. David L. Brannon & Johan Wiklund & J. Michael Haynie, 2013. "The Varying Effects of Family Relationships in Entrepreneurial Teams," Entrepreneurship Theory and Practice, , vol. 37(1), pages 107-132, January.
    6. Mayer-Haug, Katrin & Read, Stuart & Brinckmann, Jan & Dew, Nicholas & Grichnik, Dietmar, 2013. "Entrepreneurial talent and venture performance: A meta-analytic investigation of SMEs," Research Policy, Elsevier, vol. 42(6), pages 1251-1273.
    7. Neil Tocher & Matthew W. Rutherford, 2009. "Perceived Acute Human Resource Management Problems in Small and Medium Firms: An Empirical Examination," Entrepreneurship Theory and Practice, , vol. 33(2), pages 455-479, March.
    8. Jon C. Carr & Keith M. Hmieleski, 2015. "Differences in the Outcomes of Work and Family Conflict between Family– and Nonfamily Businesses: An Examination of Business Founders," Entrepreneurship Theory and Practice, , vol. 39(6), pages 1413-1432, November.
    9. Bernice Kotey & Isaac Koomson, 2021. "Firm size differences in financial returns from flexible work arrangements (FWAs)," Small Business Economics, Springer, vol. 56(1), pages 65-81, January.
    10. Carmon, Anna F. & Miller, Amy N. & Raile, Amber N.W. & Roers, Michelle M., 2010. "Fusing family and firm: Employee perceptions of perceived homophily, organizational justice, organizational identification, and organizational commitment in family businesses," Journal of Family Business Strategy, Elsevier, vol. 1(4), pages 210-223, December.
    11. Rauch, Andreas & Hatak, Isabella, 2016. "A meta-analysis of different HR-enhancing practices and performance of small and medium sized firms," Journal of Business Venturing, Elsevier, vol. 31(5), pages 485-504.
    12. Francesco Barbera & Ken Moores, 2013. "Firm ownership and productivity: a study of family and non-family SMEs," Small Business Economics, Springer, vol. 40(4), pages 953-976, May.

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