Two divergent ways to manage HR and to get to the top: an exploratory study in micro firms

Aim of the paper: The purpose of this paper is to examine human resources management practices (HRM practices) in small firms and to improve the understanding of the relationship between this kind of practices and business growth. This exploratory study is based on the resource-based view of the firm and empirical work carried out in two small firms by relating HRM practices with the firms’ results. Contribution to the literature: This is an in-depth study of HRM practices and its impact on performance growth in micro firms, isolating and controlling for most of the contextual and internal variables considered in the literature that relate HRM to growth. Firm growth analysis was broadened by the use of several dependent variables: employment growth and operational and financial performance growth. Some hypotheses for further research in identifying HRM practices in small business and its relation with firm growth are suggested. Methodology: Case study methodology was used to study two firms. The techniques used to collect data were semi-structured interviews to the owner and all the employees, unstructured observation at the firms’ facilities (during two days), entrepreneur profile definition (survey answer) and document data collection (on demographic characterization and performance results). Data was analyzed through content analysis methodology, and categories derived from the interviews’ protocols and literature. Results and implications: Results revealed that despite the firms’ organizational characteristics similarities, they differ significantly in owners’ motivation to grow, HRM practices and organizational performance and growth. Future studies should pay special attention to owner willingness to grow, to firms’ years of experience in business, to staff’s years of experience in their field of work and turnover. HRM practices in micro/small firms should be better defined and characterized. The external image of management posture relating to longitudinal financial results and growth should also be explored.

Influence of entrepreneurial orientation in export performance

This study aims at investigating the influence that entrepreneurial orientation has on export performance of Portuguese footwear small and mediumenterprises (SMEs). Therefore, a quantitative methodological approach was used, conducting a descriptive, exploratory and transversal empirical study, having applied a questionnaire to a sample of Portuguese companies exporting footwear. The research results suggest that entrepreneurial orientation enhances export performance in the analysed SMEs, particularly innovation and proactiveness, through the amount of funds invested, human resources dedicated to this activity, number of new products or services introduced in the market and frequent change in product lines or services and materialization of a long-term perspective, which is accompanied by innovative activities or new businesses. Therefore, the findings sustain the necessity to invest in entrepreneurial orientation as a strategic determinant, which contributes to the growth of small firms in foreignmarkets. Finally, the main limitation of this study is related to the sample size, since it was difficult to find companies willing to collaborate with this kind of research.