Title: Mediating effect of competitive strategy in the relationship between strategic human resource management and performance of small and medium enterprises in Brunei Darussalam

Authors: Chin Han Wuen; Fahmi Ibrahim; Kabiru Jinjiri Ringim

Addresses: School of Business, Universiti Teknologi Brunei, Tungku Link Highway, BE1410, Brunei Darussalam ' School of Business, Universiti Teknologi Brunei, Tungku Link Highway, BE1410, Brunei Darussalam ' Business Administration Department, ABU Business School, Ahmadu Bello University, Zaria, Nigeria

Abstract: This paper investigates the mediating effect of competitive strategy in the relationship between strategic human resource management (SHRM) and small and medium enterprises (SMEs) performance. The data collection was conducted using questionnaire surveys on 254 SME owners/managers operating under the service industry in Brunei Darussalam. Following this, the collected data was analysed with the structural equation modelling to establish the reliability and validity of the measurement model. Subsequently, the structural model assessment was done to test the hypotheses by examining the path coefficient of the direct and indirect relationships. The findings revealed a significant positive relationship between SHRM and SME performance. Additionally, competitive strategy has a significant positive mediating effect on SHRM and SME performance. The findings suggest the positive relationship between SHRM and SME performance can be explained by the formation of competitive strategy. Furthermore, these findings extend the knowledge of SHRM by combining with competitive strategy in SMEs performance contexts through SEM analysis.

Keywords: strategic human resource management; SHRM; SME performance; competitive strategy; resource-based view.

DOI: 10.1504/MEJM.2021.114010

Middle East Journal of Management, 2021 Vol.8 No.2/3, pp.254 - 277

Received: 31 May 2019
Accepted: 21 May 2020
Published online: 06 Apr 2021 *

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