Human Resources and SME Performance in Services: Empirical Evidence From the UK

The International Journal of Human Resource Management, 23(4), pp.808-825

Posted: 12 Feb 2011 Last revised: 15 Dec 2015

See all articles by Andreas Georgiadis

Andreas Georgiadis

University of Leeds

Christos N. Pitelis

Head of International Business Department

Date Written: February 9, 2011

Abstract

We investigate the relationship between Human Resources (HR) and superior firm performance, as well as the role of business strategy as a key mediating factor of this relationship, for Small and Medium Sized Enterprises (SMEs) in the UK Tourism Hospitality and Leisure (THL) sector. Our results suggest that high-performing SMEs in the THL sector are managed by more experienced entrepreneurs. We also find that more profitable SMEs combine a highly skilled workforce with technological and know-how-based firm differentiation strategies, and/or product differentiation strategies, which are based on quality of service and personal attention to customers, alongside generous compensation and attention to employee development.

Keywords: human capital, organisation commitment to employees, business strategy, profitability, service SMEs

JEL Classification: J24, J41, L83

Suggested Citation

Georgiadis, Andreas and Pitelis, Christos N., Human Resources and SME Performance in Services: Empirical Evidence From the UK (February 9, 2011). The International Journal of Human Resource Management, 23(4), pp.808-825, Available at SSRN: https://ssrn.com/abstract=1757765

Andreas Georgiadis

University of Leeds ( email )

Leeds LS2 9JT
United Kingdom
07799122667 (Phone)

Christos N. Pitelis (Contact Author)

Head of International Business Department ( email )

Leeds, LS2 9JT
United Kingdom

Do you have negative results from your research you’d like to share?

Paper statistics

Abstract Views
1,170
PlumX Metrics