The Effect of Human Resource Management Activities on Social Capital Dimensions and the Strategic Performance of SMEs

پژوهش نامه مدیریت تحول

Article 1, Volume 9, Autumn & Winter 2018, February 2018, Pages 1-23   

Document Type: Articles

DOI: 10.22067/pmt.v9i18.58075

Authors

hossein rahmanseresht; bahram jabarzadeh karbasi^*

Allameh Tabatabai University

Abstract

1- INTRODUCTION
In the current turbulent conditions, proper use of all assets, especially human capital is the success factor for businesses and Human human resource management is a strategic approach for the recruitment, development, management, motivation, achievement, and the commitment of organizations’ key resources. In the case of successful implementation of human resource activities, it is expected that the created social capital have long-term strategic interests for the organization. Accordingly, the present study aimed at investigating the effect of human resource management activities and social capital dimensions on the strategic performance of small and medium sized companies

2- THEORETICAL FRAMEWORK
The results of prior studies have indicated that the characteristics and dimensions of social capital and human resource management have a bilateral and significant relationship with each other and this case is more among professionals. The human resource management activities significantly correlated with measures of performance and strategy of firms. Structural social capital refers to the pattern of communication between the parties; this means that alternating interaction between multiple hierarchy levels and sectors lead to shared advantage with more reliable information. Such interaction between people causes knowledge sharing that leads to the formation of stronger communication. The findings of other studies show that the relational, structural and cognitive dimensions of social capital affect the strategic performance of different companies.

3- METHODOLOGY
Regarding the objectives, this study is classified as an applied one, but in terms of the methodology it is a descriptive survey. The study sample consisted of 306 employees of SMEs of industrial city of Kerman. In this study, a questionnaire was used to collect data and its reliability was obtained to be 0.97 using Cronbach's alpha coefficient.

4- RESULTS & DISCUSSION
According to the results of the regression coefficient, the impact of human resources activities on cognitive social capital is 0.85 and because P value is 0.001 which is smaller than 0.05, at this level, H0 is rejected, and thus it can be said that human resource activity has effect on cognitive social capital. The results of the regression coefficient of the impact of human resource activities on relational social capital is 0.79 (P = 0.001

Keywords

Human resource management activities; Cognitive social capital; Structural social capital; Relational social capital; Strategic performance

References

Adler, P. S., & Kwon, S. W. (2002). Social capital: prospects for a new concept. Academy of Management Review, 27(1), 17–40.

Andrews, R. (2010). Organizational social capital, structure and performance. Human Relations, 63(5), 583–608.

Beck, T.; Demirguc-Kunt, A., & Levine, R. (2003). SMEs, growth and poverty: cross-country evidence. World Bank, working paper.

Burt, R. S. (2000). The network structure of social capital. Research in organizational behavior, 22, 345-423.

Caniëls, M. C. J., & Gelderman, C. J. (2010). The safeguarding effect of governanceme-chanisms in inter-firm exchange: the decisive role of mutual opportunism. British Journal of Management, 21(1), 239–254.

Carey, S.; Lawson, B., & Krause, D.R. (2011). Social capital configuration, legal bonds and performance in buyer–supplier relationships. Journal of operation management, 29(4), 277–288.

Chuang, C. H.; Chen, S. j., & Chuang, C. W. (2013). Human resource management practices and organizational social capital: The role of industrial characteristics. Journal of Business Research, 66,678–687.

Collins, C. J., & Smith, K. G. (2006). Knowledge exchange and combination: The role of human resource practices in the performance of high-technology firms. Academy of Management Journal, 49(3), 544–560.

Collins, C. J., & Clark, K. D. (2003). Strategic human resource practices, top management team social networks, and firm performance: The role of human resource practices in creating organizational competitive advantage. Academy of Management Journal, 46(6), 740–751.

Datta, D. K.; Guthrie, J. P., & Wright, P. M. (2005). Human resource management and labor productivity: Does industry matter? Academy of Management Journal, 48(1), 135–157.

Elmi, Z.; Ehsani, M. A., & Javidnia, D. (2013). Effect of small and medium industries on Iranian provinces economic growth in 2004-2006 periods. Journal of Macroeconomics, 8(15), 34-13. (In Persian).

Forghani, M. A.; Sharifi, H.; Jabarzadeh karbasi, B., & Kolak, A. (2010). Investigation the Effect of human resource activities on organizational performance at the Islamic Azad University Kerman. The first International Conference on Management, Innovation and Entrepreneurship, Shiraz University. (In Persian).

Gelderman, C. J.; Semeijn, j., & Mertschuweit, P. P. (2016). The impact of social capital and technological uncertainty on strategic performance: The supplier perspective. Journal of Purchasing and Supply Management, http://dx.doi.org/10.1016/j.pursup.2016.05.004i

Ghasemi, V. (2010). Structural equation modeling in social research by Using Amos Graphics, sociologists Publishing, Tehran. (in Persian).

Gittell, J. H.; Seidner, R., & Wimbush, J. (2010). A relational model of how high-performance work systems work. Organization Science, 21(2), 490–506.

Gubbins, C., & Garavan, T. (2015). Social capital effects on the career and development outcomes of HR professionals. Human Resource Management, 55(2), 241–260.

Hayton, J. C. (2005). Promoting corporate entrepreneurship through human resource management practices: A review of empirical research. Human Resource Management, 14, 21–41.

Horn, P.; Scheffler, P., & Schiele, H. (2014). Internal integration as a pre-condition for external integration in global sourcing: a social capital perspective. International journal of production economy. 153(July), 54–65.

Hung, S.; Chen, P., & Chung, C. (2014). Gaining or losing? the social capital perspective on supply chain members’ knowledge sharing of green practices. Technological Anal Strategic Management, 26(2), 189–206.

Inkpen, A. C., & Tsang, E. W. K. (2005). Social capital, networks, and knowledge transfer. Academy of Management Journal, 30(1), 146–165.

Kale, P., & Singh, H. (2009). Strategic alliances: what do we know, and where do we go from here? Academy of Management Journal, 23(3), 45–62.

Khatir, A. R. (2016). The financing of small and medium industries, Iran capital market's website, accessible in: http://www.sena.ir/Sena__31460. (in Persian).

Koka, B. R., & Prescott, J. E. (2008). Design in alliance networks: the influence of network position, environmental change and strategy on firm performance. Strategic Management journal. J, 29(6), 639–661.

Krause, D. R.; Handfield, R. B., & Tyler, B. B. (2007). The relationships between supplier development, commitment, social capital accumulation and performance improvement. Journal of operation management, 25,528–545.

Lawson, B.; Tyler, B. B., & Cousins, P. D. (2008). Antecedents and consequences of social capital on buyer performance improvement. Journal of operation management, 26(3), 446–460.

Lee, S. (2015). The effects of green supply chain management on the supplier's performance through social capital accumulation. Supply Chain Management international journal, 20(1), 42–55.

Liao, H.; Toya, K.; Lepak, D. P., & Hong, Y. (2009). Do they see eye to eye? Management and employee perspectives of high-performance work systems and influence processes on service quality. Journal of Applied Psychology, 94(2), 371–391

Muniady, R. A. L.; Mamun, A. A.; Mohamad, M. R.; Permarupan, P. Y., & Zainol, N. R. B. (2015). The effect of cognitive and relational social capital on structural social capital and micro-enterprise performance. SAGE Open, 5(4), 1-9.

Nahapiet, J., & Ghoshal, S., (1998). Social capital, intellectual capital, and the organizational advantage. Academy of Management review, 23(2), 242–266.

Portaheri, M.; Roknedin eftekhari, A., & Naghavi, M. R. (2013). Role of industrial towns in economic development of surrounding villages (case study: behshahr industrial zone). Journal of Geographical Research, 28(3), 116-103. (in Persian).

Roden, S., & Lawson, B. (2014). Developing social capital in buyer-supplier relationships: the contingent effect of relationship specific adaptations. International journal of production economy, 151, 89–99.

Saha, M., & Banerjee, S. (2015). Impact of social capital on small firm performance in West Bengal. The Journal of Entrepreneurship, 24(2), 91-114.

Sanders, R. N. (2008). Pattern of information technology use: the impact on buyer–supplier coordination and performance. Journal of operation management, 26(3), 349–367.

Tseng, Y., & Lee, T. Z, (2009). Comparing appropriate decision support of human resource practices on organizational performance with DEA/AHP model. Expert Systems with Applications, 36, 6548–6558.

Villena, V. H.; Revilla, E., & Choi, T. Y. (2011). The dark side of buyer–supplier relationships: a social capital perspective. Journal of operation management, 29(6), 561–576.

Vlachos, I. (2008). The effect of human resource practices on organizational performance: evidence from Greece. The International Journal of Human Resource Management, 19(1), 74-97.

Whipple, J.; Wiedmer, R., & Boyer, K. (2015). A dyadic investigation of collaborative competence, social capital, and performance in buyer-supplier relationships. Journal of Supply Chain Management, 51(2), 3–21.

Wright, P. M.; Gardner, T. M., & Moynihan, L. M. (2003). The impact of HR practices on the performance of business units. Human Resource Management Journal, 13(3), 21-36.