The role of HRM in networking SMEs

Abstract

In networked businesses, the HRM practices of the participating SMEs face serious challenges. The purpose of this study is to analyse the relationship between employees' perceptions of their work conditions and their feelings regarding supporting work organisation within three different types of organisations: core organisations, SME subcontractors and agencies of temporary workers. The survey data (n = 143) was collected through questionnaires distributed in the work places. The analysis showed that the subcontractors' employees rate all HRM practices higher than the employees in other organisation types in the network. The organisations' role in networks affects the way the employment relationship is formed. That is, the employees of core organisations seem to be less affected by the discretionary HRM practices than the employees of the two other groups. The results of this study suggest that the relationship between discretionary HRM practices and organisational citizenship behaviour is dependent on contingent factors affecting the employees.