THE IMPACT OF HUMAN RESOURCES AND CAPABILITIES ON THE GROWTH OF SMALL FIRMS: EVIDENCE FROM TURKEY

Gülruh Gürbüz; Sinem Akyol

doi:10.14783/maruoneri.677265

THE IMPACT OF HUMAN RESOURCES AND CAPABILITIES ON THE GROWTH OF SMALL FIRMS: EVIDENCE FROM TURKEY

Abstract

This paper explores impact of human resources and capabilities on growth of small firms. Human resources and capabilities of the small firm are analyzed from two dimensions: resources and capabilities of owner/manager and labor. Age, gender, education and training, work experience, professional organization membership, having entrepreneurial parents, and responsibilities in other firms are considered as the resources and capabilities of the owner/manager. The human resources and capabilities for the small firm are identified as availability of human resources, recruitment, selection, orientation, training, compensation, appraisal and career management. Regression analysis results show that training and compensation are determinants of sales growth. Owner/managers with entrepreneurial parents, members of professional organizations and additional responsibilities in other firms are important owner/manager’s resources and capabilities for small firm growth.

Keywords

SME Grorvth,Human Resources and Capabilities,Small Firms

References

Lin, Y.C. (1998). Success Factors of Small-and Medium- Sized Enterprises in Taiwan: An Analysis of Case. Journal of Small Business Management, 36(4), 43-56.
Morrison, A.; Breen, J. & Ali, S. (2003). Small Business Growth: Intention, Ability and Opportunity. Journal of Small Business Management, 41(4), 417-425.
Poutziouris, P. (2003). The Strategic Orientation of Owner/Managers of Small Ventures. International Journal of Entrepreneurial Behavior and Research, 9(5), 185-214.
İbrahim, A.B. & Goodwin, J.R. (1986). Perceived Causes of Success in Small Business. American Journal of Small Business, 2(11), 41-50.
Lussier, R. & Pfeifer, S. (2001). A Crossnational Prediction Model for Business Success. Journal of Small Business Management, 39(3), 228-239.
Hart, M. & McGuiness, S. (2000). Exploring Small Firm growth in the UK Regions 1994-1997. Northern Ireland Economic Research Çenter Working Paper Series. No: 50.
Sadler-Smith, E.; Hampson, Y.; Chaston, I. & Badger, B. (2003). Managerial Behavior, Entrepreneurial Style and Small Firm Performance. Journal of Sınall Business Management, 41(1), 47-67.
Delmar, F.(1997). Measuring Growth: Methodological Considerations and Empirical Results. (Eds.: Donckels, R. & Miettinen, A.). Entrepreneurship and SME Research: On its way to the next millennium. London: Ashgate Publishing Ltd., 199-215.

Papadaki, E. & Chami, B. (2002). Growth Determinants of Micro-Businesses in Canada. Research report presented at CEA 37th Annual Meetings Thursday, May 29-June 1, 2003. (http://strategis.ic.gc.ca/epic/internet/insbrp-rppe.nsf/ vwapj/growth_determinants.pdf/$FILE/growth_determinan tspdf). [12.03.2004],
Storey, D.J. (1994). Understanding the Small Business Sector. London: Routledge.
Yonggui W.; Yuli, Z. & Lo, H. (2002). The Kev Factors Distineuishins Hieh-Growth Small And Medium-Sized Enterprises From Those Of Poor Performance: Evidence From China. (www.ncer.tsinghua.edu.cn/lunwen/paper2/ wp200212.pdf). [31.03.2006],
DÎE (2003). 2002 Genel Sanayi ve İşyerleri Sayımı. (http://www.die.gov.tr/sanayi_sayimi/gsisII141003.pdf). [20.12.2003].
Sarıaslan, H. (2001). Avrasya ve Türkiye’de KOBİ’lerin ekonomik kalkınmadaki yeri ve Önemi. 1. Avrasya Küçük ve Orta Ölçekli İşletmeler Kongresi, Bişkek, Kırgızistan, 27-35.
Yılmaz, F. (2003). Türkiye’de Küçük ve Orta Boy İşletmeler. İktisadi Araştırmalar ve Planlama Müdürlüğü. (www.isbank.com.tr/dosya/ekon-tr_kobiler2004.pdf). [31.03.2006].
Carmeli, A. & Tishler, A. (2004).Resources, Capabilities, and the Performance of Industrial Firms: A Multivariate Analysis. Managerial and Decision Economics, 25(6/7), 299-315.
De Kok, J. & Uhlaner, L. (2001). Organisation Context and Human Resource Management in the Small Firm. Small Business Economics, 17(4), 273-291.
Bamey, J. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, 17(1), 99-120.
Teece, D.J.; Pisano, G. & Shuen, A. (1997). Dynamic Capabilities and Strategic Management. Strategic Management Journal, 18(7), 509-533.
Wernerfelt, B. (1984). A Resource Based View of the Firm. Strategic Management Journal, 5(2), 171-180.
Penrose, E. (1959). The Theory of Growth of the Firm. New York: John Wiley & Sons.
Khatri, N. (2000). Managing Human Resource for Competitive Advantage: A Study of Companies in Singapore. The International Journal of Human Resource Management, 11(2), 336-365.
Davidsson, P. & Wiklund, J. (2000). Conceptual and Methodological Challenges in the Study of Firm Growth. In Sexton, D. & H. Landström (Eds.). Blacbvell's Handbook of Entrepreneurship. Oxford, MA: Blackwell, 26-44.
Ray, G.; Bamey, J.B. & Muhanna, W.A. (2004). Capabilities, Business Processes, and Competitive Advantage: Choosing the Dependent Variable in Empirical Tests of the Resource-Based View. Strategic Management Journal, 25(1), 23-37.
Grant, R.M. (1991). The Resource Based Theory of Competitive Advantage: Implications for Strategy Formulation. California Management Revievı, 33(3), 114- 135.
Ethiraj S.K.; Kale, P.; Krishnan, M.S. & Singh, V.J. (2005). Where Do Capabilities Come From and How Do They Matter? A Study in the Software Services Industry. Strategic Management Journal, 26(1), 25-45.
Chandler, G. & Hanks, S. (1994). Market Attractiveness, Resource-Based Capabilities, Venture Strategies and Venture Performance. Journal of Business Venturing, 9(4), 331-349.
Greene, P.G. & Brown, T.E. (1997). Resource Needs and the Dynamic Capitalism Typology. Journal of Business Venturing, 12(3), 161-173.
Miller, D. & Toulouse, J.M. (1986). Strategy, Structure, CEO Personality and Performance in Small Firms. American Journal of Small Business, 10(3), 47-61.
Yu, T.F.L. (2001). Toward a Capabilities Perspective of the Small Firm. International Journal of Management Review, 3(3), 185-197.
Gibb, A. & Davies, L. (1990). In Pursuit ofFrameworks for the Development of Growth Models of the Small Business. International Small Business Journal, 9(1), 15-31.
Lee, D. & Tsang, E. (2001). The Effects of Entrepreneurial Personality, Background and Network Activities on Venture Growth. Journal of Management Studies, 38(4), 583-602.
Premaratne, S.P. (2001). Networks, Resources, and Small Business Growth: The Experience in Sri Lanka. Journal of Small Business Management, 39(4), 363-371.
Barkham, R.; Gudgin, G.; Hart, M. & Hanvey, E. (1996). The Determinants of Small Firm Growth. Gateshead, Tyne and Wear, UK: Athenaeum Press.
Sandberg, W.R., & Hofer, C.W. (1987). Improving New Venture Performance: The Role of Strategy, Industry Structure, and the Entrepreneur. Journal of Business Venturing, 2(1), 5-28.
Cooper, A.C.; Gimeno-Gascon, F.J. & Woo, C.Y. (1994). Initial Human and Financial Capital as Predictors of New Venture Performance. Journal of Business Venturing, 9(5), 371-395.
Barringer, B.R.; Jones, F.F. & Neubaum, D.O. (2005). A Quantitative Content Analysis of the Characteristics of Rapid-Growth Firms and Their Founders. Journal of Business Venturing, 20(5), 663-687.
Welter, F. (2001). Who Wants To Grow? Growth Intentions and Growth Profil es of (Nascent) Entrepreneurs in Germany. (Eds.: Reynolds, P.D.; Bygrave, W.D.; Carter, N.M.; Davidsson, P.; Gartner, W.B.; Mason, C.M. & Mcdougall, P.P.). Frontiers of Entrepreneurship Research. Wellesley, Ma: Babson College, 91-100.
Dyke, L.S.; Fischer, E.M. & Reuber, A.R. (1992). An Inter- Industry Examination of the Impact of Own Experience on Firm Performance. Journal of Small Business Management, 30(4), 72-87.
Birley, S. & Westhead, P. (1990). Grovvth and Performance Contrasts Betrveen "Types" of Small Firms. Strategic Management Journal, 11(7), 535-557.
Cragg, P.B. & King, M. (1988). Organizational Characteristics and Small Firms Performance Revisited. Entrepreneurship Theory andPractice, 13(2), 49-64.
Wiklund, J. (1998). Small Firm Growth and Performance: Entrepreneurship and Beyond. Doctoral Dissertation. Jönköping: Jönköping International Business School.
Rauch, A., & Frese, M. (2000). Psychological Approaches to Entrepreneurial Success: A. General Model and an Overview of Findings. (Eds.: Cooper, C.L. & Robertson, I.T.). International Review of Industr'ıal and Organizational Psychology. 15. Chichester Sussex: Wiley & Sons. 101-142.
Schuler, R.S. & Jackson, S.E. (1987). Linking Competitive Strategies with Human Resource Management Practices. Academy of Management Executive, 1 (3), 207-219.
Deshpande, S. & Golhar, D. (1994). HRM Practices in Large and Small Manufacturing Firms: A Comparative Study. Journal of Small Business Management, 32(2), 49- 56.
Homsby, J.S. & Kuratko, D.F. (1990). Human Resource Management in Small Business: Critical Issues for the 1990s. Journal of Small Business Management, 28(3), 9- 18.
Cardon, M.S. & Stevens, C.E. (2004). Managing Human Resources in Small Organizations: What Do We Know? Human Resource Management Review, 14(3), 295-323.
Kotey, B. & Slade, P. (2005). Formal human resource management practices in small, grovving firms. Journal of Small Business Management, 43, 16—40.
Pearson, T.R.; Stringer, D.Y.; Mills, La Velle H. & Summers, D.F. (2006). Micro vs Small Enterprises: A Profile of Human Resource Personnel, Practices and Support Systems. Journal of Management Research, 6(2), 102-112.
Heneman, R.; Tansky, J. & Camp, S. (2000). Human Resource Management Practices in Small and Medium- Sized Enterprises: Unanswered Questions and Future Research Perspectives. Entrepreneurship Theory and Practice, 25(1), 11-26.
Heneman, H.G. & Berkley, R. (1999). Applicant Attraction Practices and Outcomes among Small Businesses. Journal of Small Business Management, 37(1), 53-74.
Voss C.A.; BIackmon,K.; Cagliano,R.; Hanson, P. & Wilson, F. (1998). Made in Europe: Small Companies. Business Strategy Review, 9(4), 1-20.
Covin, J.G. & Slevin, D.P. (1997). High Grovvth Transitions: Theoretical Perspectives and Suggested Directions. (Eds.: Sexton, D. & Smilor, R.). Entrepreneurship 2000. Chicago: Upstart Publishing, 99- 129.
Chrisman, J.J.; Bauerschmidt, A. & Hofer, C.W. (1998). The Determinants of New Venture Performance: An Extended Model. Entrepreneurship: Theory & Practice, 23(1), 5-30.
Pelham, A.M. (1999). İnfluence of Environment, Strategy, and Market Orientation on Performance in Small Manufacturing Firms. Journal of Business Research, 45(1), 33-46.
Faems, D.; Sels L.; De Winne, S. & Maes, J. (2005). The effect of individual HR domains on Financial performance: evidence from Belgian small businesses. International Journal of Human Resource Management, 16(5), 676-700.
Tansky, J. & Heneman, T. (2003). Guest editors' note: Introduction to the special issue on human resource management in SMEs: A cali for more research. Human Resource Management, 42(4), 299-302.
Gardenne D. (1998). Critical Success Factors For Small Business: An Inter-Industry Comparison. International Small Business Journal, 17(1), 36-37.
Keating, M. Olivares, M. (2007), Human Resource Management Practices in Irish High-Tech Start-Up Firms. lrish Journal Of Management, 28(2), 171-192.
O’Regan, N. & Ghobadian, A. (2004). The Importance of Capabilities for Strategic Direction and Performance. Management Decision, 42(2), 292-312.
De Kok, J.; Uhlaner, L. & Thurik, A.R. (2003). Human Resource Management With Small Firms; Facts and Explanations. Erasmus Research Institute of Management, Report Series No. ERS-2003-015-STR.
Chaganti, R. & Chaganti, R. (1983). A Profile of Profıtable and Not-So-Profitable Small Businesses. Journal of Small Business Management, 21(3), 43-52.
Steiner, M. & Solem, D. (1988). Factors for Success in Small Manufacturing Firms. Journal of Small Business Management, 26(1), 51-56.
Fombrun, C.J. & Wally, S. (1989). Structuring Small Firms for Rapid Growth. Journal of Business Venturing, 4(2), 107-222.
Kickul J. (2001). Promises Made, Promises Broken: An Exploration of Employee Attraction & Retention Practices in Small Business. Journal of Small Business Management, 39(4), 320-335.
Davidsson, P.; Achtenhagen, L. & Naldi, L. (2004), Research on Small Firm Growth: A Revievv. 35th Entrepreneurship, Innovation, and Small Business Conference 2005, Barcelona, 12-14 September 2005.
Delmar, F. & Davidsson, P. (1998). A Taxonomy of High- Growth Firms. (Eds.: Reynolds, P.D.; Bygrave, W.D.; Carter, N.M.; Davidsson, P.; Gartner, W.B.; Mason, C.M. & Mcdougall, P.P.). Froııtiers of Entrepreneurship Research. Wellesley, MA: Babson College, 399-413.
Weinzimmer, L.G.; Nystrom, P.C. & Freeman, S.J. (1998). Measuring Organizational Growth: Issues, Consequences and Guidelines. Journal of Management, 24(2), 235-262.
Lyon, D.W.; Lumpkin, G.T. & Dess, G.G. (2000). Enhancing Entrepreneurial Orientation Research: Operationalizing and Measuring a Key Strategic Decision Making Process. Journal of Management, 26(5), 1055- 1085.
Hoy, F.; McDougall, P.P. & Dsouza, D.E. (1992). Strategies and Environments of High-Growth Firms. (Eds.: Sexton, D.L. & Kasarda, J.D.). The State of the Art of Entrepreneurship. Boston, MA: PWS-Kent Publishing, 341-357.
Edelman L.F.; Brush, C.G. & Manolova, T. (2005). Co- Alignment in the Resource-Performance Relationship: Strategy as Mediator. Journal of Business Venturing, 20(3), 359-383.
Westhead, P. & Storey, D.J. (1997). Training provision and the development of small and medium-sized enterprises. DfEE Research Report No. 26, London, DfEE/HMSO.
Wynarczyk, P.; Watson, R.; Storey, D.; Short, H. & Keasey, K. (1993). Managerial Labour Markets in Small and Medium Sized Enterprises. London: Routledge.
Boreham, P.; Lafferty, G.; Roan, A. & Whitehouse, G. (1996). Training, Careers and Numerical Flexibility: equity Implications in Hospitality and Retailing. Journal of IndustrialRelations, 38(1), 3-21.
Cambridge Small Business Centre (1992). The State of British Enterprise: Growth, Innovation and Competitive Advantage in Small and Medium Sized Firms. Cambridge: University of Cambridge.
Katz, J.A.; Aldrich, H.E.; Welboume, T.M. & Williams, P.M. (2000). Guest Editors Comments Special Issue on Human Resource Management and The SME: Toward a New Synthesis. Entrepreneurship Theory and Practice, 25(1), 7-10.
Wang, T & Thornhill, S. (2008), Paying Right or Paying High: The Role of Compensation Policy and Employee Participation in Improving Smes’ Entrepreneurial Action. Academy of Management Proceedings (Best Paper Proccedings), 1-6,
Zheng, C., Morrison, M. & O'Neill, G. (2006). An empirical study of high performance HRM practices in Chinese SMEs. International Journal of Human Resource Management, 17(10), 1772-1803

Details

Primary Language

English

Subjects

-

Journal Section

Research Article

Authors

Gülruh Gürbüz ^* This is me
Türkiye

Sinem Akyol ^* This is me
Türkiye

Publication Date

January 10, 2009

Submission Date

July 15, 2008

Acceptance Date

October 15, 2008

Published in Issue

Year 2009 Volume: 8 Number: 31

DOI

https://doi.org/10.14783/maruoneri.677265

IZ

https://izlik.org/JA27AZ78TZ

Cite

RIS / Bibtex

APA

Gürbüz, G., & Akyol, S. (2009). THE IMPACT OF HUMAN RESOURCES AND CAPABILITIES ON THE GROWTH OF SMALL FIRMS: EVIDENCE FROM TURKEY. Öneri Dergisi, 8(31), 9-22. https://doi.org/10.14783/maruoneri.677265

AMA

1.Gürbüz G, Akyol S. THE IMPACT OF HUMAN RESOURCES AND CAPABILITIES ON THE GROWTH OF SMALL FIRMS: EVIDENCE FROM TURKEY. Öneri Dergisi. 2009;8(31):9-22. doi:10.14783/maruoneri.677265

Chicago

Gürbüz, Gülruh, and Sinem Akyol. 2009. “THE IMPACT OF HUMAN RESOURCES AND CAPABILITIES ON THE GROWTH OF SMALL FIRMS: EVIDENCE FROM TURKEY”. Öneri Dergisi 8 (31): 9-22. https://doi.org/10.14783/maruoneri.677265.

EndNote

Gürbüz G, Akyol S (January 1, 2009) THE IMPACT OF HUMAN RESOURCES AND CAPABILITIES ON THE GROWTH OF SMALL FIRMS: EVIDENCE FROM TURKEY. Öneri Dergisi 8 31 9–22.

IEEE

[1]G. Gürbüz and S. Akyol, “THE IMPACT OF HUMAN RESOURCES AND CAPABILITIES ON THE GROWTH OF SMALL FIRMS: EVIDENCE FROM TURKEY”, Öneri Dergisi, vol. 8, no. 31, pp. 9–22, Jan. 2009, doi: 10.14783/maruoneri.677265.

ISNAD

Gürbüz, Gülruh - Akyol, Sinem. “THE IMPACT OF HUMAN RESOURCES AND CAPABILITIES ON THE GROWTH OF SMALL FIRMS: EVIDENCE FROM TURKEY”. Öneri Dergisi 8/31 (January 1, 2009): 9-22. https://doi.org/10.14783/maruoneri.677265.

JAMA

1.Gürbüz G, Akyol S. THE IMPACT OF HUMAN RESOURCES AND CAPABILITIES ON THE GROWTH OF SMALL FIRMS: EVIDENCE FROM TURKEY. Öneri Dergisi. 2009;8:9–22.

MLA

Gürbüz, Gülruh, and Sinem Akyol. “THE IMPACT OF HUMAN RESOURCES AND CAPABILITIES ON THE GROWTH OF SMALL FIRMS: EVIDENCE FROM TURKEY”. Öneri Dergisi, vol. 8, no. 31, Jan. 2009, pp. 9-22, doi:10.14783/maruoneri.677265.

Vancouver

1.Gülruh Gürbüz, Sinem Akyol. THE IMPACT OF HUMAN RESOURCES AND CAPABILITIES ON THE GROWTH OF SMALL FIRMS: EVIDENCE FROM TURKEY. Öneri Dergisi. 2009 Jan. 1;8(31):9-22. doi:10.14783/maruoneri.677265