Effects of the provision of training and fringe benefits to workers on performance of manufacuturing SMEs
Main Article Content
Abstract
There are few rigorous empirical studies about the roles of human resource management practices (HRM) in performance of SMEs in transition economies. Based on a dataset from surveys of manufacturing SMEs in Vietnam, the study finds that SMEs’ owners/managers educational background has direct and indirect effects on HRM outcomes and SMEs performance and that HRM practices including provision of training and fringe benefits to workers raise labor productivity and improve performance of SMEs.
Article Details
Keywords
Human resource management, performance, SME, Vietnam
References
1. Akoten, J.E., Sawada, Y., and Otsuka, K. (2006) The determinants of credit access and its impacts on micro and small enterprises: The case of garment producers in Kenya. Economic Development and Cultural Change, 54 (4): 927-944.
2. Akoten, J.E., and Otsuka, K. (2007) From tailors to mini-manufacturers: The role of traders in the performance of garment enterprises in Kenya. Journal of African Economies, 16 (4): 564-595.
3. Becker, B., and Gerhart, B. (1996) The impact of human resource management on organizational performance: Progress and prospects. Academy of Management Journal, 39: 779–801.
4. Beer, M., Spector, B., Lawrence, P.R., Mills, D.Q., and Walton, R.E. (1984) Managing human assets: The groundbreaking Havard Business School program. The Free Press, Macmillan, New York.
5. Bowen, D.E., and Ostroff, C. (2004), Understanding HRM-firm performance linkages: The role of the “strength” of the HRM system, Academy of Management Review, Vol. 29, No. 2, 203-211.
6. Boxall, P. (1996) The strategic HRM debate and the resource-based view of the firm, Human Resource Management Journal, 6, 59-75.
7. Cawthorne, P. (1995) Of networks and markets: The rise and rise of a South Indian town, the example of Tiruppur`s cotton knitwear industry. World Development, 23 (1): 43-56.
8. Chinh Phu. (2009) http://www.chinhphu.vn/portal/page/portal/chinhphu/hethongvanban? class_id=1&mode=detail&document_id=88612. Accessed in May, 2014.
9. CIEM. (2012) Characteristics of the Vietnamese business environment - Evidence from a SMEs survey in 2011. Social and Labour Publishing House.
10. Dunphy, D., and Stace, D. (1992) Under new management: Australian organizations in transition. Roseville, NSW: McGraw-Hill.
11. Gereffi, G. (2001) Local clusters in global chains: The causes and consequences of export dynamism in Torreon`s blue jeans industry. World Development, 29 (11): 1885-1903.
12. Giuliani, E., Pietrobelli, C., and Rabellotti R. (2005) Upgrading in global value chains: Lessons from Latin American clusters. World Development, 33 (4): 549-573.
13. Guest, D. E. (1987) Human resource management and industrial relations. Journal of Management Studies, 25:5, pp. 503-521.
14. Hansen, H., Rand, J., and Tarp, F. (2004) SME growth and survival in Vietnam: Did direct government support matter? Discussion Paper 0413, University of Copenhagen.
15. Huselid, M.A. (1995) The impact of human resource management practices on turnover, productivity, and corporate financial performance. Academy of Management, Vol. 28, No. 3, pp 635-672.
16. Iddrisu, A., and Sonobe, T. (2006) Transformation of an industrial cluster: The case of vehicle repair and metalworking in Ghana. Mimeo, Foundation for Advanced Studies on International Development, Tokyo.
17. Lee, M., Byungnam., and Chee, Y-H. (1996) Business strategy, participative human resource management and organizational performance: The case of South Korea. Asia Pacific Journal of Human Resources, 34, pp. 77-94.
18. Mengistae, T. (2006) Competition and entrepreneurs’ human capital in small business longevity and growth. Journal of Development Studies, 42 (5): 812-836.
19. Nadvi, K. (1999) Collective efficiency and collective failure: The response of the Sialkot surgical instrument cluster to global quality pressures. World Development, 27 (9): 16051626.
20. Nguyen, N.A., Pham, Q.N., Nguyen, C.D., and Nguyen, N.D. (2008) Innovation and exports in Vietnam’s SME sector. The European Journal of Development Research, 20 (2): 262-280.
21. Nichter, S., and Goldmark, L. (2009) Small firm growth in developing countries. World Development, 37 (9): 1453–1464.
22. OECD. (2004) Promoting smEs for development. second OECD Conference of ministers responsible for small and medium-sized enterprises (SMEs), Istanbul, Turkey.
23. Purcell, J. (1995) Corporate strategy and its link with human resource management strategy. In Human Resource Management: A Critical Text, eds J Storey, Routledge, London, pp. 63-86.
24. Rabellotti, R. (1995) Is there an industrial district model? Footwear districts in Italy and Mexico compared. World Development, 23 (1): 29-41.
25. Rand, J., and Tarp, F. (2011) Does gender influence the provision of fringe benefits? Evidence from Vietnamese smEs. Feminist Economics, 17(1), pp. 59-87.
26. Schmitz, H. (1999) Global competition and local cooperation: Success and failure in the Sinos Valley, Brazil. World Development, 27 (9): 1627-1650.
27. Schuler, R.S. (1988) Personnel and human resource management choices and organizational strategy. In Readings in personnel and human resource management, eds RS Schuler, SA Youngblood and V Huber, Third edition, West Publishing, St. Paul, Minnesota.
28. Sonobe, T., and Otsuka, K. (2006) “Cluster-based industrial development: An East Asian model”, Palgrave macmillan.
29. Sonobe, T., Akoten, J.E., and Otsuka, K. (2007) The development of the footwear industry in Ethiopia: How different is it from the East Asian experience? Global Development Network Annual Conference, Beijing, January 14-16.
30. UN. (2012) Policy guide book for SME development in Asia and the Pacific, UNESCAP, Bangkok.
31. Vien Dan Toc. (2013), Ethnic groups in Vietnam. http://viendantoc.org.vn/modules.php? name=Content&op=details&mid=353 (accessed 11 July 2013).
32. Vu, N.H., Sonobe, T., and Otsuka, K. (2009) An inquiry into the transformation process of village-based industrial clusters: The case of an iron and steel cluster in northern Vietnam. Journal of Comparative Economics, 37 (4): 568–581.
33. Vu, N.H., Sonobe, T., and Otsuka, K. (2010) An inquiry into the development process of village Industries: The case of a knitwear cluster in northern Vietnam. Journal of Development Studies, 46 (2): 312-330.
34. Wong, C., Marshall, J.N., Alderman, N., and Thwaites, A. (1997) Management training in small and medium-Sized enterprises: Methodological and conceptual issues. The International Journal of Human Resource Management, 8:1 February, pp44-65.
35. Youndt, M.A., Snell, S.A., Dean, J.W.Jr., and Lepak, D.P. (1996) Human resource management, manufacturing strategy, and firm performance. The Academy of Management Journal, Vol. 39, No. 4, pp 836-866.
36. Zheng, S. (2013) The relationship between HRM and Chinese SME performance. International Journal of Organization Behaviour, 4, pp. 125-137.
2. Akoten, J.E., and Otsuka, K. (2007) From tailors to mini-manufacturers: The role of traders in the performance of garment enterprises in Kenya. Journal of African Economies, 16 (4): 564-595.
3. Becker, B., and Gerhart, B. (1996) The impact of human resource management on organizational performance: Progress and prospects. Academy of Management Journal, 39: 779–801.
4. Beer, M., Spector, B., Lawrence, P.R., Mills, D.Q., and Walton, R.E. (1984) Managing human assets: The groundbreaking Havard Business School program. The Free Press, Macmillan, New York.
5. Bowen, D.E., and Ostroff, C. (2004), Understanding HRM-firm performance linkages: The role of the “strength” of the HRM system, Academy of Management Review, Vol. 29, No. 2, 203-211.
6. Boxall, P. (1996) The strategic HRM debate and the resource-based view of the firm, Human Resource Management Journal, 6, 59-75.
7. Cawthorne, P. (1995) Of networks and markets: The rise and rise of a South Indian town, the example of Tiruppur`s cotton knitwear industry. World Development, 23 (1): 43-56.
8. Chinh Phu. (2009) http://www.chinhphu.vn/portal/page/portal/chinhphu/hethongvanban? class_id=1&mode=detail&document_id=88612. Accessed in May, 2014.
9. CIEM. (2012) Characteristics of the Vietnamese business environment - Evidence from a SMEs survey in 2011. Social and Labour Publishing House.
10. Dunphy, D., and Stace, D. (1992) Under new management: Australian organizations in transition. Roseville, NSW: McGraw-Hill.
11. Gereffi, G. (2001) Local clusters in global chains: The causes and consequences of export dynamism in Torreon`s blue jeans industry. World Development, 29 (11): 1885-1903.
12. Giuliani, E., Pietrobelli, C., and Rabellotti R. (2005) Upgrading in global value chains: Lessons from Latin American clusters. World Development, 33 (4): 549-573.
13. Guest, D. E. (1987) Human resource management and industrial relations. Journal of Management Studies, 25:5, pp. 503-521.
14. Hansen, H., Rand, J., and Tarp, F. (2004) SME growth and survival in Vietnam: Did direct government support matter? Discussion Paper 0413, University of Copenhagen.
15. Huselid, M.A. (1995) The impact of human resource management practices on turnover, productivity, and corporate financial performance. Academy of Management, Vol. 28, No. 3, pp 635-672.
16. Iddrisu, A., and Sonobe, T. (2006) Transformation of an industrial cluster: The case of vehicle repair and metalworking in Ghana. Mimeo, Foundation for Advanced Studies on International Development, Tokyo.
17. Lee, M., Byungnam., and Chee, Y-H. (1996) Business strategy, participative human resource management and organizational performance: The case of South Korea. Asia Pacific Journal of Human Resources, 34, pp. 77-94.
18. Mengistae, T. (2006) Competition and entrepreneurs’ human capital in small business longevity and growth. Journal of Development Studies, 42 (5): 812-836.
19. Nadvi, K. (1999) Collective efficiency and collective failure: The response of the Sialkot surgical instrument cluster to global quality pressures. World Development, 27 (9): 16051626.
20. Nguyen, N.A., Pham, Q.N., Nguyen, C.D., and Nguyen, N.D. (2008) Innovation and exports in Vietnam’s SME sector. The European Journal of Development Research, 20 (2): 262-280.
21. Nichter, S., and Goldmark, L. (2009) Small firm growth in developing countries. World Development, 37 (9): 1453–1464.
22. OECD. (2004) Promoting smEs for development. second OECD Conference of ministers responsible for small and medium-sized enterprises (SMEs), Istanbul, Turkey.
23. Purcell, J. (1995) Corporate strategy and its link with human resource management strategy. In Human Resource Management: A Critical Text, eds J Storey, Routledge, London, pp. 63-86.
24. Rabellotti, R. (1995) Is there an industrial district model? Footwear districts in Italy and Mexico compared. World Development, 23 (1): 29-41.
25. Rand, J., and Tarp, F. (2011) Does gender influence the provision of fringe benefits? Evidence from Vietnamese smEs. Feminist Economics, 17(1), pp. 59-87.
26. Schmitz, H. (1999) Global competition and local cooperation: Success and failure in the Sinos Valley, Brazil. World Development, 27 (9): 1627-1650.
27. Schuler, R.S. (1988) Personnel and human resource management choices and organizational strategy. In Readings in personnel and human resource management, eds RS Schuler, SA Youngblood and V Huber, Third edition, West Publishing, St. Paul, Minnesota.
28. Sonobe, T., and Otsuka, K. (2006) “Cluster-based industrial development: An East Asian model”, Palgrave macmillan.
29. Sonobe, T., Akoten, J.E., and Otsuka, K. (2007) The development of the footwear industry in Ethiopia: How different is it from the East Asian experience? Global Development Network Annual Conference, Beijing, January 14-16.
30. UN. (2012) Policy guide book for SME development in Asia and the Pacific, UNESCAP, Bangkok.
31. Vien Dan Toc. (2013), Ethnic groups in Vietnam. http://viendantoc.org.vn/modules.php? name=Content&op=details&mid=353 (accessed 11 July 2013).
32. Vu, N.H., Sonobe, T., and Otsuka, K. (2009) An inquiry into the transformation process of village-based industrial clusters: The case of an iron and steel cluster in northern Vietnam. Journal of Comparative Economics, 37 (4): 568–581.
33. Vu, N.H., Sonobe, T., and Otsuka, K. (2010) An inquiry into the development process of village Industries: The case of a knitwear cluster in northern Vietnam. Journal of Development Studies, 46 (2): 312-330.
34. Wong, C., Marshall, J.N., Alderman, N., and Thwaites, A. (1997) Management training in small and medium-Sized enterprises: Methodological and conceptual issues. The International Journal of Human Resource Management, 8:1 February, pp44-65.
35. Youndt, M.A., Snell, S.A., Dean, J.W.Jr., and Lepak, D.P. (1996) Human resource management, manufacturing strategy, and firm performance. The Academy of Management Journal, Vol. 39, No. 4, pp 836-866.
36. Zheng, S. (2013) The relationship between HRM and Chinese SME performance. International Journal of Organization Behaviour, 4, pp. 125-137.