Title: The relationship between human resource management and firm performance in small businesses: evidence from Canada and New Zealand

Authors: Terry H. Wagar, Wendy R. Carroll, Kent Rondeau

Addresses: Sobey School of Business, Saint Mary's University, Barrington St, Halifax, N.S., B3H 3C3, Canada. ' School of Business, University of Prince Edward Island, 550 University Av., Charlottetown, PE, C1A 4P3, Canada. ' School of Public Health, University of Alberta, 3-23 University Terrace, Edmonton, AB T6G 2T4, Canada

Abstract: Despite an extensive body of research examining Human Resource Management (HRM) and firm performance, relatively little has addressed this issue using all three firm performance outcomes, namely, employee performance, operational performance and financial performance. In addition, little research has focused on small firms or compared differences between countries. This paper uses data from three studies from two different countries to examine the relationship between HRM practices and perceptions of firm performance. The findings from all three studies indicate that the effect of HRM practices on firm financial performance is mediated by overall employee satisfaction and operational performance.

Keywords: SHRM; strategic HRM; human resource management; firm performance; HRM practices; small business; country comparison; Canada; New Zealand; employee performance; operational performance; financial performance; financial performance; employee satisfaction.

DOI: 10.1504/JGBA.2011.040333

Journal for Global Business Advancement, 2011 Vol.4 No.1, pp.32 - 49

Published online: 24 May 2011 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article