SME performance has been viewed in many aspects. This concept paper will highlight human resource management among SME. In managing its human resources, SME needs to at least practice the important parts such as training and development, employee performance evaluation, and rewards. This study’s objective is to identify which human resource practice can contribute to firm performance of SMEs. Using the simple random sampling method, the data will be collected by distributing questionnaires to SME’s human resource managers and top executives responsible for managing human resources. Data will be analyses for reliability, multiple regression, Pearson’s Correlation test, and using PLS-SEM to estimate the model with multiple constructs, indicator variables and structural paths. This study will fill in the gap to identify which HR practices are the most important for SMEs to focus on. It will benefit the SMEs as they can identify which HR practices influence the most in firm performance. HR practitioners can use the findings to support the case for implementing HR practices in organizations. This is in line to help the SMEs to remain in the business and able to expand it.
Aragon-Sanchez, A., & Sanchez-Marin, G. (2005). Strategic orientation, management characteristics, and performance: A study of spanish SMEs. Journal of Small Business Management, 43(3), 287-308. doi:10.1111/j.1540-627X.2005.00138.x
Asemokha, A., Musona, J., Torkkeli, L., and Saarenketo, S. (2019), “Business model innovation and entrepreneurial orientation relationships in SMEs: implications for international performance”, Journal of International Entrepreneurship, Vol. 17 No. 3, pp. 425-453.
Belsito, C. A., & Reutzel, C. R. (2019). SME employee performance appraisal formalization and trust in leadership change. International Journal of Organizational Analysis.
Budget. (2021). Geran Khas Prihatin (GKP).
https://belanjawan2021.treasury.gov.my/manfaat/index.php/en/gkp-en
Budget. (2021). Smart Automation Grant.
http://belanjawan2021.treasury.gov.my/selfserviceportal/faq/smart-auto-en.html#
Creswell, J. W., & Creswell, J. D. (2017). Research design: Qualitative, quantitative, and mixed methods approaches. Sage publications.
Diamantidis, A. D., & Chatzoglou, P. D. (2011). Human resource involvement, job-related factors, and their relation with firm performance: Experiences from Greece. International Journal of Human Resource Management, 22(7), 1531-1553. doi:10.1080/09585192.2011.561964
Delaney, J. T., and Huselid, M. A. (1996), ‘‘The impact of human resource management practices on perceptions of organizational performance’’, Academy of Management Journal, Vol. 39 No. 4, pp. 949-69.
Downes, M. J., Brennan, M. L., Williams, H. C., & Dean, R. S. (2016). Development of a critical appraisal tool to assess the quality of cross-sectional studies (AXIS). BMJ Open. 6: e011458.doi:10.1136/bmjopen-2016-011458
Fening, F. A., Pesakovic, G., & Amaria, P. (2008). Relationship between quality management practices and the performance of small and medium size enterprises (SMEs) in Ghana. International Journal of Quality and Reliability Management, 25(7), 694-708. doi:10.1108/02656710810890881
Geringer, J. M., Frayne, C. A., and Milliman, J. F. (2002), ‘‘In search of ‘best practices’ in international human resource management: research design and methodology’’, Human Resource Management, Vol. 41 No. 1, pp. 5-26.
Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European business review, 31(1), 2-24.
Hooi, L. W., & Ngui, K. S. (2014). Enhancing organizational performance of Malaysian SMEs the role of HRM and organizational learning capability. International Journal of Manpower, 35(7), 973-995. doi:10.1108/IJM-04-2012-0059
Jalil, M. F., Ullah, W., & Ahmed, Z. (2021). Training Perception and Innovative Behavior of SME Employees: Examining the Mediating Effects of Firm Commitment. SAGE Open, 11(4), 21582440211067250.
Kafetzopoulos, D. (2020). Performance management of SMEs: a systematic literature review for antecedents and moderators. International Journal of Productivity and Performance Management.
Kitchot, S., Siengthai, S., & Sukhotu, V. (2021). The mediating effects of HRM practices on the relationship between SCM and SMEs firm performance in Thailand. Supply Chain Management, 26(1), 87-101. doi:10.1108/SCM-05-2019-0177
Knezovic, E., Busatlic, S., & Ridic, O. (2020). Strategic human resource management in small and medium enterprises. International Journal of Human Resources Development and Management, 20(2), 114-139. doi:10.1504/IJHRDM.2020.106255
Lai, Y., Saridakis, G., & Johnstone, S. (2017). Human resource practices, employee attitudes and small firm performance. International Small Business Journal: Researching Entrepreneurship, 35(4), 470-494. doi:10.1177/0266242616637415
Mengist, W., Soromessa, T., & Legese, G. (2020). Method for conducting systematic literature review and meta-analysis for environmental science research. MethodsX, 7, 100777.
Ministry of Agriculture and Agro Based. (2014). Fishery Products. https://web.archive.org/web/20140821141617/http://www.dof.gov.my/en/fishery-products1
Ministry of Entrepreneur Development and Cooperative. (2021) NEP 2030 National Entrepreneurship Policy https://www.medac.gov.my/admin/files/med/image/portal/NEP2030-Final.pdf
Shaffril, M. H. A., Samsuddin, S. F., & Abu Samah, A. (2021). The ABC of systematic literature review: The basic methodological guidance for beginners. Quality & Quantity, 55(4), 1319-1346. https://doi.org/10.1007/s11135-020-01059-6
Moser, T., Seibt, T., & Neuert, J. (2021). Organizational culture and organizational climate research: a systematic literature review. EBOR Publication Group, Turkey, 21-37.
Moustaghfir, K., El Fatihi, S., & Benouarrek, M. (2020). Human resource management practices, entrepreneurial orientation and firm performance: What is the link? Measuring Business Excellence, 24(2), 267-283. doi:10.1108/MBE-12-2019-0119
Wuen, C. H., Ibrahim, F., & Ringim, K. J. (2020). The impact of human resource management practices on SMEs performance: an exploratory study in Brunei Darussalam. International Journal of Asian Business and Information Management (IJABIM), 11(2), 68-87.
Zakaria, N., Fauzi, M. W. I., Abdullah, N. A. C., & Yusoff, R. Z. (2018). The link between HRM practices and performance in Malaysian SMEs. International Journal of Supply Chain Management (IJSCM), 7(6), 118-126.
