Title: Strategic human resource management in small and medium enterprises

Authors: Emil Knezović; Senad Bušatlić; Ognjen Riđić

Addresses: Faculty of Business and Administration, International University of Sarajevo, Bosnia and Herzegovina ' Faculty of Business and Administration, International University of Sarajevo, Bosnia and Herzegovina ' Faculty of Business and Administration, International University of Sarajevo, Bosnia and Herzegovina

Abstract: Small and medium enterprises (SMEs) are seen as one of the main drivers of economic growth in the modern economy that is characterised with free markets, private ownership, entrepreneurship, and a major change in the basic approach to business and management. As a result, human capital is regarded as the most important asset, and therefore, in order to grow and prosper, SMEs need to embrace the strategic approach to the human resource management (HRM) which should, in return, increase their competitiveness and responsiveness to the market changes. The aim of this study was to analyse the influence of strategic human resource (HR) practices on organisational performance. The results of hierarchical regression used to test the hypothesis supported the relationship between strategic HR practices and business performance. The findings presented in this study were used for making recommendations to the SMEs' managers in the Federation of Bosnia and Herzegovina.

Keywords: strategic human resource management; SHRM; small and medium enterprises; SMEs; business performance; universalistic approach; Federation of Bosnia and Herzegovina; F.B&H.

DOI: 10.1504/IJHRDM.2020.106255

International Journal of Human Resources Development and Management, 2020 Vol.20 No.2, pp.114 - 139

Received: 12 Jun 2017
Accepted: 29 Jun 2018

Published online: 11 Mar 2020 *

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