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Determinants of the formalization of human resource management practices: An empirical study in SMEs in eastern and western China

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  • Shaoheng Li
  • Christopher J. Rees

Abstract

This quantitative study examines the role of five contingency factors, – that is, firm size, sector, location, firm age, and presence of an human resource (HR) department – in formalizing human resource management (HRM) practices in small and medium enterprises (SMEs) in eastern and western China. Using data from 227 respondents in 24 Chinese SMEs, the findings reveal a mixed pattern of relationships between these determinants and the actual formal use of five clusters of HRM practices. Location and presence of HR were found to exert stronger influence than size and sector. Theoretical and practical implications for HRM are discussed with reference to contingency factors in the SME sector in China.

Suggested Citation

  • Shaoheng Li & Christopher J. Rees, 2021. "Determinants of the formalization of human resource management practices: An empirical study in SMEs in eastern and western China," Journal of Small Business Management, Taylor & Francis Journals, vol. 59(4), pages 735-755, July.
    • Handle: RePEc:taf:ujbmxx:v:59:y:2021:i:4:p:735-755
    DOI: 10.1080/00472778.2019.1705663
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    Cited by:

    1. Wickramasinghe, Vathsala, 2022. "The relationship between formalization of HRM function and HRM intensity in SMEs: An empirical investigation in Sri Lanka," Small Business International Review, Asociación Española de Contabilidad y Administración de Empresas - AECA, vol. 6(2), pages 529-529, December.

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