HRM Practices in Internationalised SMEs and Their Sales Growth under Different Environmental Conditions
HRM Practices in Internationalised SMEs and Their Sales Growth under Different Environmental Conditions

Summary/Abstract: Objective: This paper explores the patterns of human resource management (HRM) adopted byinternationalised small and medium-sized enterprises (SMEs) and their business outcomes withrespect to changing external contingencies. More specifically, it examines the link between HRMand sales growth under two different conditions: the relatively stable pre-pandemic period and thehighly uncertain first year of the COVID-19 pandemic.Research Design & Methods: Data stems from structured interviews with key decision-makersrepresenting 200 Polish-based SMEs operating internationally. Methods of data analysis includek-means clustering, one-way and two-way mixed ANOVAs.Findings: Cluster analysis revealed four distinctive patterns of HRM adopted by internationalisedSMEs. The significant interaction effect suggests that with changing environmental conditionsspecific patterns of HRM adopted in these firms contributed to sales growth in different ways.Implications / Recommendations: The study revealed that environmental shock can bothdampen and enhance the contribution of HRM practices to sales growth in internationalisedSMEs, depending on their initial mix and intensity of use. Contribution: The study contributes to the development of a configurational perspective inHRM research within internationalised SMEs. It demonstrates that multiple pathways can leadto positive outcomes, although not all are equally effective, especially when exogenous factorschange dramatically. Thus, it highlights the importance of the external environment in moderatingthe link between HRM and business performance in these firms.

• Details
• Contents