High-performance work systems and their impact on financial performance in SMEs

Dana Jašková (), Katarína Kráľová () and Jana Sochuľáková ()
Additional contact information
Dana Jašková: Alexander Dubček University of Trenčín, Slovakia
Katarína Kráľová: Alexander Dubček University of Trenčín, Slovakia
Jana Sochuľáková: Alexander Dubček University of Trenčín, Slovakia

Entrepreneurship and Sustainability Issues, 2024, vol. 12, issue 2, 163-175

Abstract: 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.

Keywords: high-performance work systems; financial performances; small and medium-sized enterprises; social value; company's reputation (search for similar items in EconPapers)
JEL-codes: C31 C83 O30 (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
https://jssidoi.org/jesi/uploads/articles/46/Jasko ... formance_in_SMEs.pdf (application/pdf)
https://jssidoi.org/jesi/article/1253 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ssi:jouesi:v:12:y:2024:i:2:p:163-175

DOI: 10.9770/e5377654439

Access Statistics for this article

Entrepreneurship and Sustainability Issues is currently edited by Manuela Tvaronaviciene

More articles in Entrepreneurship and Sustainability Issues from VsI Entrepreneurship and Sustainability Center
Bibliographic data for series maintained by Manuela Tvaronaviciene ().