The effectiveness of more advanced human resource systems in small firms

A. de Grip*, I.J.P. Sieben

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

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In this paper, we analyze whether human resource (hr) systems in small firms can be associated with higher performance as well as higher wages. Our study, which focuses on dutch pharmacies, shows that more advanced hr systems do not have any effect on firms' productivity. In these micro firms, it is only employees who significantly benefit from the introduction of both a basic and a more advanced hr system. Our findings that small firms do not significantly benefit from introducing less traditional hr practices offer an explanation for the thresholds in the diffusion of these hr practices in small firms, and suggest that in these firms formal hr practices are less important than personal relations between the employer and his or her employees.
Original languageEnglish
Pages (from-to)1914-1928
Number of pages15
JournalInternational Journal of Human Resource Management
Issue number9
Publication statusPublished - 1 Jan 2009


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