Contextual influences on HRM homogeneity and heterogeneity in SMEs : a case study of high value-added and low value-added sectors
type: CreativeWork
description: Abstract: This research draws attention to the problematic premises underpinning the UK government's policy goal of a competitive national economy predicated on the notion of a high skills. high value-added economic trajectory. In particular, the research highlights the limitations of the policy assumptions (inherent in the Investors in People standard) that formalised HRM practices in SMEs in high value-added sectors make them more competitive than those in low value-added sectors, which are frequently associated with informal HRM practices. The research compared the selection and recruitment, training and development, and appraisal and rewards practices of SMEs. The methodological approach adopted was constructivist, with the assumption that SME owner-managers are involved in constructing their own individual reality based on how they perceive the world around them. A case study strategy was adopted to examine the H R.M" practices of a purposive sample of six SMEs in high value-added (3) and low value-added (3) sectors. Data collection combined semi-structured in-depth interviews with document searches. It was found that HRM in the sample of SMEs in both sectors combined formality and informality; characterised by institutional contextual (i.e. homogeneous) and situational contextual (i.e. heterogeneous) practices. It is suggested that a situational contextual perspective is simplistic in that although it acknowledges the interplay between HRM formality and informality, it fails to take account of the homogenising influence of the institutional contexts of SMEs. Consequently, just as normative models of HRM seek to isolate SMEs from their operating contexts, the situational contextual perspective dislocates SMEs from their institutional contexts. Therefore, the research contributes by proposing an open systems model, which reflects the complexity of HRM in SMEs by integrating the institutional and situational contextual perspectives of HRM. In view of the complexi…
abstract: Abstract: This research draws attention to the problematic premises underpinning the UK government's policy goal of a competitive national economy predicated on the notion of a high skills. high value-added economic trajectory. In particular, the research highlights the limitations of the policy assumptions (inherent in the Investors in People standard) that formalised HRM practices in SMEs in high value-added sectors make them more competitive than those in low value-added sectors, which are frequently associated with informal HRM practices. The research compared the selection and recruitment, training and development, and appraisal and rewards practices of SMEs. The methodological approach adopted was constructivist, with the assumption that SME owner-managers are involved in constructing their own individual reality based on how they perceive the world around them. A case study strategy was adopted to examine the H R.M" practices of a purposive sample of six SMEs in high value-added (3) and low value-added (3) sectors. Data collection combined semi-structured in-depth interviews with document searches. It was found that HRM in the sample of SMEs in both sectors combined formality and informality; characterised by institutional contextual (i.e. homogeneous) and situational contextual (i.e. heterogeneous) practices. It is suggested that a situational contextual perspective is simplistic in that although it acknowledges the interplay between HRM formality and informality, it fails to take account of the homogenising influence of the institutional contexts of SMEs. Consequently, just as normative models of HRM seek to isolate SMEs from their operating contexts, the situational contextual perspective dislocates SMEs from their institutional contexts. Therefore, the research contributes by proposing an open systems model, which reflects the complexity of HRM in SMEs by integrating the institutional and situational contextual perspectives of HRM. In view of the complexi…
author: Kinigoma, D D
keywords: HF5001 Business, HC Economic History and Conditions, HF Commerce
date published: 2013-01
date modified: 2026-07-24T06:30:19Z
provider: Liverpool Jon Moores University
publisher: Networked Digital Library of Theses and Dissertations
type: WebPage
source organization: Liverpool John Moores University

PropertyValue
property ID: DOI
value: 10.24377/LJMU.t.00006185