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High Performance Work Systems, Performance and Innovativeness in Small Firms

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  • Jan de Kok
  • Deanne den Hartog

Abstract

The research presented in this paper focuses on the effectiveness of a high performance work system. This system is comprised of practices in the areas of extensiveness of staffing, performance based pay, pay level, job rotation, training and participation. In particular, this study focuses on the effects of such a system on the performance of small and medium-sized enterprises. Results of our study, among small and medium size enterprises in the Netherlands, show that firms with such a system have higher labour productivity and are more innovative. However, no relationships are found with workforce turnover. These results suggest that high performance work systems are not only relevant in large corporations, but may also benefit small firms through a positive impact on performance and innovation. A new version of this paper is published on 5 december 2006 as a research report, H200621: 'Is human resource management profitable for small firms?'

Suggested Citation

  • Jan de Kok & Deanne den Hartog, 2006. "High Performance Work Systems, Performance and Innovativeness in Small Firms," Scales Research Reports N200520, EIM Business and Policy Research.
    • Handle: RePEc:eim:papers:n200520
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    File URL: http://www.entrepreneurship-sme.eu/pdf-ez/N200520.pdf
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    Cited by:

    1. Chunling Zhu & Anqi Liu & Guoling Chen, 2018. "High performance work systems and corporate performance: the influence of entrepreneurial orientation and organizational learning," Frontiers of Business Research in China, Springer, vol. 12(1), pages 1-22, December.
    2. Abdul RAZIQ, 2014. "Strategic Planning And High Performance Human Resource Management Practices In Pakistani Smes," Management and Marketing Journal, University of Craiova, Faculty of Economics and Business Administration, vol. 0(2), pages 123-134, November.
    3. Naveed R Khan & Marinah Awang & Che Mohd Zulkifli, 2013. "Enhancing HR Outcomes through Best HR Practices and Organisational Commitment: A Conceptual Schema for SMEs," Indian Journal of Commerce and Management Studies, Educational Research Multimedia & Publications,India, vol. 4(1), pages 24-32, January.
    4. Abdul Raziq, Retha Wiesner, 2016. "High Performance Management Practices and Sustainability of SMEs. Evidence from Manufacturing and Services-based Industries in Pakistan," Journal of Management Sciences, Geist Science, Iqra University, Faculty of Business Administration, vol. 3(2), pages 83-107, October.
    5. Abdul Raziq, 2014. "The Relationship between Firm Size and High Performance Management Practices in Pakistani SMEs," Indian Journal of Commerce and Management Studies, Educational Research Multimedia & Publications,India, vol. 5(2), pages 27-36, May.

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