How do Entrepreneurial Human Resource Practices Determine Small Firms’ Performance?

Abstract

This study examines the effects of entrepreneurial human resource practices on market-oriented behaviour, relational capability, and business performance at small-sized firms. For the purpose of the study, a survey was carried out for two different product types, namely handi crafts and food/drink, and sample firms were purposively selected. Interestingly, the findings suggest that, though practices may not directly improve firms performance, implementing practices characterised by entrepreneurial orientation is a start for high performance as market oriented behaviour and relational capability moderate the effects. The practices stimulate employees mind-sets, shaping their behaviour and willingness to find new ways of doing business and satisfying external customers. The implication of the study was that such practices should be designed to improve small firms market-oriented behaviour and relational capability for better business performance.Keywords:Entrepreneurial Human Resource Practices, Relational Capability, Market Orientation, Business Performancehttps://doi.org/10.21632/irjbs.9.2.133-146