High-performance work systems and performance of French small- and medium-sized enterprises: examining causal order

Abstract

In order to improve our understanding of human resource management (HRM) in small- and medium-sized enterprises (SMEs) and causality inside the black box of the firm's human management, this paper examines the relationship between high-performance work systems (HPWSs) and SMEs' performance. HPWSs are conceived here like a whole of complementary HRM practices and not in terms of isolated practices. Firm's performance is studied through profitability, degree of innovation and social climate. In the case of 275 French SMEs, we have found simultaneous and longitudinal correlations between HPWS and all performance indicators; and that controlling past performance does not eliminate the correlation of HPWS with future performance.

Keywords:

• configurational approach
• French small- and medium-sized enterprises
• high-performance work system
• longitudinal study
• performance
• strategic human resource management