High-performance work systems and their impact on financial performance in SMEs
Small and medium-sized enterprises (SMEs) are a significant source of wealth and employment in economies. Enterprises must use modern systems to manage their employees in an increasingly turbulent business environment. These systems will help them to improve their financial performance and gain a co...
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| Format: | Article |
| Language: | English |
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Entrepreneurship and Sustainability Center
2024-12-01
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| Series: | Entrepreneurship and Sustainability Issues |
| Online Access: | https://jssidoi.org/jesi/article/1253 |
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| _version_ | 1850030608400515072 |
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| author | Dana Jašková Katarína Kráľová Jana Sochuľáková |
| author_facet | Dana Jašková Katarína Kráľová Jana Sochuľáková |
| author_sort | Dana Jašková |
| collection | DOAJ |
| description | Small and medium-sized enterprises (SMEs) are a significant source of wealth and employment in economies. Enterprises must use modern systems to manage their employees in an increasingly turbulent business environment. These systems will help them to improve their financial performance and gain a competitive advantage in the marketplace. This study examined the role of High-Performance Work Systems (HPWS) as a predictor of SMEs' financial performance (FP) based on the link between human resource management and economic performance. The study examined the mediating role of SMEs' reputation (RE) and SMEs' social value (SV) in the relationship between HPWS and FP and the direct relationship between these constructs. The study quantifies this relationship in the context of human resource management in small and medium-sized enterprises in Slovakia. Data were collected from 128 SME owners/managers through a questionnaire instrument. Partial least squares structural equation modelling (PLS-SEM) using Smart PLS 4 was used to test the study's hypotheses. The study highlighted a significant positive effect of HPWS on all RE, SV and FP constructs. In addition, this study also confirmed the mediating role of RE in the relationship between HPWS and FP. The expected direct mediating effect of the SV construct between HPWS and FP was not confirmed. The study also includes limitations and recommendations for future research. |
| format | Article |
| id | doaj-art-a9fdc9ff6c6e442bb891de033b4f55a5 |
| institution | DOAJ |
| issn | 2345-0282 |
| language | English |
| publishDate | 2024-12-01 |
| publisher | Entrepreneurship and Sustainability Center |
| record_format | Article |
| series | Entrepreneurship and Sustainability Issues |
| spelling | doaj-art-a9fdc9ff6c6e442bb891de033b4f55a52025-08-20T02:59:11ZengEntrepreneurship and Sustainability CenterEntrepreneurship and Sustainability Issues2345-02822024-12-0112216317510.9770/e5377654439High-performance work systems and their impact on financial performance in SMEsDana Jaškováhttps://orcid.org/0000-0002-7250-9207Katarína Kráľováhttps://orcid.org/0000-0001-5774-851XJana Sochuľákováhttps://orcid.org/0000-0003-2839-1296Small and medium-sized enterprises (SMEs) are a significant source of wealth and employment in economies. Enterprises must use modern systems to manage their employees in an increasingly turbulent business environment. These systems will help them to improve their financial performance and gain a competitive advantage in the marketplace. This study examined the role of High-Performance Work Systems (HPWS) as a predictor of SMEs' financial performance (FP) based on the link between human resource management and economic performance. The study examined the mediating role of SMEs' reputation (RE) and SMEs' social value (SV) in the relationship between HPWS and FP and the direct relationship between these constructs. The study quantifies this relationship in the context of human resource management in small and medium-sized enterprises in Slovakia. Data were collected from 128 SME owners/managers through a questionnaire instrument. Partial least squares structural equation modelling (PLS-SEM) using Smart PLS 4 was used to test the study's hypotheses. The study highlighted a significant positive effect of HPWS on all RE, SV and FP constructs. In addition, this study also confirmed the mediating role of RE in the relationship between HPWS and FP. The expected direct mediating effect of the SV construct between HPWS and FP was not confirmed. The study also includes limitations and recommendations for future research.https://jssidoi.org/jesi/article/1253 |
| spellingShingle | Dana Jašková Katarína Kráľová Jana Sochuľáková High-performance work systems and their impact on financial performance in SMEs Entrepreneurship and Sustainability Issues |
| title | High-performance work systems and their impact on financial performance in SMEs |
| title_full | High-performance work systems and their impact on financial performance in SMEs |
| title_fullStr | High-performance work systems and their impact on financial performance in SMEs |
| title_full_unstemmed | High-performance work systems and their impact on financial performance in SMEs |
| title_short | High-performance work systems and their impact on financial performance in SMEs |
| title_sort | high performance work systems and their impact on financial performance in smes |
| url | https://jssidoi.org/jesi/article/1253 |
| work_keys_str_mv | AT danajaskova highperformanceworksystemsandtheirimpactonfinancialperformanceinsmes AT katarinakralova highperformanceworksystemsandtheirimpactonfinancialperformanceinsmes AT janasochulakova highperformanceworksystemsandtheirimpactonfinancialperformanceinsmes |