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Human Resource Management With Small Firms; Facts And Explanations

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  • de Kok, J.M.P.
  • Uhlaner, L.M.
  • Thurik, A.R.

Abstract

This study examines determinants of the formalization of HRM practices with small firms. We derive five hypotheses that identify possible determinants of the level of formalization, including firm size, family business, the availability of an HRM department or HRM manager, and the existence of a formal business plan. We test these hypotheses using data on more than 700 Dutch small firms. We find that, within this sample of small firms, larger firms apply more formalized HRM practices than smaller firms do. However, once we take certain contextual variables into account, the direct relation with firm size becomes substantially less. Indirect relations with firm size also exist: firm size is a determinant of the probability that an HRM department is present, which in turn is related to the formalization of all HRM scales. Finally, family businesses apply less formal HRM practices, as do businesses without a business plan.

Suggested Citation

  • de Kok, J.M.P. & Uhlaner, L.M. & Thurik, A.R., 2003. "Human Resource Management With Small Firms; Facts And Explanations," ERIM Report Series Research in Management ERS-2003-015-STR, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    • Handle: RePEc:ems:eureri:286
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    References listed on IDEAS

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    1. David B. Audretsch & A. Roy Thurik, 2000. "Capitalism and democracy in the 21st Century: from the managed to the entrepreneurial economy," Journal of Evolutionary Economics, Springer, vol. 10(1), pages 17-34.
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    4. Robert L. Heneman & Judith W. Tansky & S. Michael Camp, 2000. "Human Resource Management Practices in Small and Medium-Sized Enterprises: Unanswered Questions and Future Research Perspectives," Entrepreneurship Theory and Practice, , vol. 25(1), pages 11-26, October.
    5. Barron, John M & Black, Dan A & Loewenstein, Mark A, 1987. "Employer Size: The Implications for Search, Training, Capital Investment, Starting Wages, and Wage Growth," Journal of Labor Economics, University of Chicago Press, vol. 5(1), pages 76-89, January.
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    Keywords

    firm behavior; labor relations; personnel management; small and medium-sized enterprises;
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