Abstract
This study explores the configurations of people management practices in micro-firms and their relation with entrepreneurial orientation and firm performance in a four-year window. Based on the ability-, motivation- and opportunity-focused practices framework (Appelbaum, Bailey, & Berg, 2000), we employ an inductive data analysis strategy to identify configurations of HRM practices used in micro-firms and, in conjugation with entrepreneurial orientation, how they affect employee growth and net income. We analyzed primary data collected from 114 micro-firm owners in the Enterprise Resource Planning selling sector in combination with secondary data on firm objective performance over a four-year period using Multiple Correspondence Analysis and Cluster Analysis. Results show a taxonomy of three different configurations of HRM practices that are associated with different entrepreneurial orientation strategic postures in micro-firms:
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