The Impact of Human Resource Management Practices on SMEs Performance

Abstract

There is currently a dearth of knowledge for human resource management under an SMEs context. As a result, it is assumed that human resource management based on large business organizations is applicable for SMEs at a smaller scale. From the resource-based view, this article investigates the impact of human resource management practices towards the SMEs in Brunei Darussalam. By conducting an exploratory study, a questionnaire survey of 296 was collected from the local SMEs to ascertain how the human resource management practices impact their performance. This is followed by the analyzing the result via the Pearson Correlation and Multiple Linear Regression which suggests that specific human resource management practices have a significant impact on the SMEs. As part of the contribution, the article extends the knowledge of human resource management in SMEs context by understanding their impact towards the SMEs performance.