Impact of Innovation-Oriented Human Resource on Small and Medium Enterprises’ Performance

Mahvish Aslam, Imran Shafi, Jamil Ahmed, Mirtha Silvana Garat de Marin, Emmanuel Soriano Flores, Marco Antonio Rojo Gutiérrez and Imran Ashraf ()
Additional contact information
Mahvish Aslam: Islamabad Campus, Abasyn University, Islamabad 44000, Pakistan
Imran Shafi: College of Electrical and Mechanical Engineering, National University of Sciences and Technology (NUST), Islamabad 44000, Pakistan
Jamil Ahmed: Hazara University Mansehra, Mansehra 21300, Pakistan
Mirtha Silvana Garat de Marin: Faculty of Social Sciences and Humanities, Universidad Europea del Atlántico, 39011 Santander, Spain
Emmanuel Soriano Flores: Faculty of Social Sciences and Humanities, Universidad Europea del Atlántico, 39011 Santander, Spain
Marco Antonio Rojo Gutiérrez: Faculty of Social Sciences and Humanities, Universidad Europea del Atlántico, 39011 Santander, Spain
Imran Ashraf: Department of Information and Communication Engineering, Yeungnam University, Gyeongsan 38541, Republic of Korea

Sustainability, 2023, vol. 15, issue 7, 1-23

Abstract: This research paper aims to examine the impact of innovative HRM practices, including employee participation, performance appraisal, reward and compensation, recruitment and selection, and redeployment–retraining on firm performance. For this purpose, four different models are utilized to examine the impact of innovative HRM department practices on the performance of small and medium enterprises (SMEs) in a country. The dependent variable, firm performance, is proxified by different variables such as labor productivity, product innovation, process innovation, and marketing innovation. For empirical analysis, primary data are collected using a questionnaire. Estimation is conducted using ordinary least squares (OLS) and logit regression techniques. The estimated results indicate that most innovative HRM practices have a statistically significant impact on firm performance in terms of labor productivity, product, process, and marketing innovations. These results imply that SMEs in a country may observe the benefits of devoting greater attention to innovative HRM practices to achieve their future growth potential.

Keywords: human resource management; human factors; small and medium enterprises; innovation (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:15:y:2023:i:7:p:6273-:d:1117041

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