The interrelationship between HR, strategy and profitability in service SMEs: empirical evidence from the UK tourism hospitality and leisure sector

Andreas Georgiadis and Christos Pitelis

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: We investigate the strategies, HR attributes and their synergies that are associated with superior performance in service SMEs using data from the UK Tourism Hospitality and Leisure (THL) sector. A major advantage of our analysis is that our sample includes information also on very small firms which makes results representative of the industry but also sheds light on a very little investigated area related to the nature of HRM and its link with performance of micro businesses. Our results suggest that high-performing SMEs in the THL sector are managed by more experienced entrepreneurs. Moreover, they employ a combination of technological and know-how firm differentiation strategies together with a highly skilled workforce, and/or a combination of (product) differentiation strategies based on quality of service and personal attention to customers, and a generous compensation package and attention to employees development.

Keywords: Value capture strategies; Human capital; Organisation Commitment to Employees; Profitability (search for similar items in EconPapers)
JEL-codes: J2 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2010
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http://eprints.lse.ac.uk/28722/ Open access version. (application/pdf)

Related works:
Working Paper: The Interrelationship between HR, Strategy and Profitability in Service SMEs: Empirical Evidence from the UK Tourism Hospitality and Leisure Sector (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:28722

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