Determinants of the formalization of human resource management practices: An empirical study in SMEs in eastern and western China

ABSTRACT

This quantitative study examines the role of five contingency factors, – that is, firm size, sector, location, firm age, and presence of an human resource (HR) department – in formalizing human resource management (HRM) practices in small and medium enterprises (SMEs) in eastern and western China. Using data from 227 respondents in 24 Chinese SMEs, the findings reveal a mixed pattern of relationships between these determinants and the actual formal use of five clusters of HRM practices. Location and presence of HR were found to exert stronger influence than size and sector. Theoretical and practical implications for HRM are discussed with reference to contingency factors in the SME sector in China.

KEYWORDS:

• Small and medium enterprises
• human resource management practices