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Organization Context and Human Resource Management in the Small Firm

Author

Listed:
  • Jan de Kok

    (Erasmus University Rotterdam)

  • Lorraine M. Uhlaner

    (Erasmus University Rotterdam, and Eastern Michigan University)

Abstract

This paper examines the relationship between organization contextual variables and humanresource management (HRM) practices in small firms. The proposed model is based on anintegration of theoretical perspectives, including the resource-based approach, institutionaltheory, transaction cost economics (TCE), and concepts from strategic management. The model isexplored empirically, with qualitative and quantitative analyses of data collected from a sample ofsixteen small Dutch firms. Specific contextual variables examined include company size, thepresence of a collective labor agreement, having a large firm associate, either as supplier,purchasing group or franchiser, and the company's strategic orientation toward growth (growthstrategy). An important finding is the significance of having a large firm associate. Companies witha large firm associate are more likely to report having employer-based training programs. Aspredicted, company size is associated with more formal HRM practices, including greater regularityof performance appraisal and greater likelihood of employer-based training. A weak relationship isfound between a more growth-oriented strategy and greater formality of these two HRM practices.Predictions based on collective labor agreements are not supported. The paper concludes that thefindings warrant further research on the relationship between organization contextual variablesand the formalization of HRM practices, although a clearer definition of the latter variable isneeded in future research.

Suggested Citation

  • Jan de Kok & Lorraine M. Uhlaner, 2001. "Organization Context and Human Resource Management in the Small Firm," Tinbergen Institute Discussion Papers 01-038/3, Tinbergen Institute.
    • Handle: RePEc:tin:wpaper:20010038
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    References listed on IDEAS

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    More about this item

    Keywords

    firm behavior; labor relations; personnel management; small and medium-sized enterprises;
    All these keywords.

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation

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