HRM capabilities as a determinant and enabler of productivity for manufacturing SMEs

Abstract

In this article we assume that the entrepreneurial capability of SME owner-managers is reflected in the choices they make to coordinate their action in terms of human resource management (HRM), research and development (R&D), and advanced manufacturing technologies (AMT). However, to what extent do managerial choices made in these areas affect the performance of SMEs? And to what extent do the interactions of HRM capabilities with R&D and AMT capabilities also affect the performance of these enterprises? In order to answer these questions, an empirical study was conducted among 182 Canadian SMEs. Emanating from a perspective based on human systems and contingency theory, the results of this study indicate that the development of HRM capabilities allow SMEs not only to improve their productivity but also to significantly amplify the effect of R&D and AMT capabilities on this same productivity.