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The impact of management practices on SME performance

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  • John Forth

    (National Institute of Social and Economic Research)

  • Alex Bryson

    (University College London, National Institute of Social and Economic Research and Institute for the Study of Labor)

Abstract

We examine the impact of management practices on firm performance among SMEs in Britain over the period 2011-2014, using a unique dataset which links survey data on management practices with firm performance data from the UK's official business register. We find that SMEs are less likely to use formal management practices than larger firms, but that such practices have demonstrable benefits for those who use them, helping firms to grow and increasing their productivity. The returns are most apparent for those SMEs that invest in human resource management practices, such as training and performance-related pay, and those that set formal performance targets.

Suggested Citation

  • John Forth & Alex Bryson, 2018. "The impact of management practices on SME performance," DoQSS Working Papers 18-04, Quantitative Social Science - UCL Social Research Institute, University College London.
    • Handle: RePEc:qss:dqsswp:1804
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    References listed on IDEAS

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    Cited by:

    1. Mahvish Farhan & Karl Taylor, 2021. "The Impact of a New Quality Management Practice on Firm Performance: Evidence From Pakistan," Working Papers 2021008, The University of Sheffield, Department of Economics.
    2. Josef Milezi & Asa Romeo Asa & Johanna Pangeiko Nautwima & Bojan Obrenovic, 2023. "Assessing the Impact of Management Practices on Organisational Growth at a Multinational Company in Namibia," International Journal of Operations Management, Inovatus Services Ltd., vol. 3(2), pages 22-34, May.
    3. Kostadin Kolarov & Maria Vasilska, 2019. "The Bulgarian Entrepreneur as a Manager – background, managerial approaches and some reflections on SMEs performance," Conference Proceedings Chapters, in: Kiril Todorov & Jan Degadt (ed.), Youth and Women Entrepreneurship in Challenging International (Global) Business Environment. Proceedings of the Ninth International Conference, 11 – 1, edition 1, chapter 127, pages 170-187, Bulgarian Association for Management Development and Entrepreneurship.
    4. Rico Belda, Paz & Cabrer-Borrás, Bernardí, 2021. "La importancia de los factores internos y externos en el éxito empresarial || The importance of internal and external factors in business success," Revista de Métodos Cuantitativos para la Economía y la Empresa = Journal of Quantitative Methods for Economics and Business Administration, Universidad Pablo de Olavide, Department of Quantitative Methods for Economics and Business Administration, vol. 32(1), pages 241-256, December.
    5. Laura Peutere & Antti Saloniemi & Petri Böckerman & Simo Aho & Jouko Nätti & Tapio Nummi, 2022. "High-involvement management practices and the productivity of firms: Detecting industry heterogeneity," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 43(2), pages 853-876, May.

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    More about this item

    Keywords

    SMEs; small and medium-sized enterprises; employment growth; high-growth firms; productivity; workplace closure; management practices; HRM; recession;
    All these keywords.

    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects
    • M53 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Training

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