James C. Hayton , 2004



How can human resource management (HRM) practices promote entrepreneurial performance in small and medium-sized enterprises (SMEs)? This article discusses the association between human capital management (HCM) and other contemporary HRM practices and the ability of SMEs to be entrepreneurial. In a study of 99 SMEs, HRM practices that promote employee discretionary behavior, knowledge sharing, and organizational learning are found to be positively associated with entrepreneurial performance. Two contingencies are also identified for this relationship. First, the use of strategic HCM practices enhances the observed positive association. Second, these relationships are strongest for SMEs operating in high-technology industries.






Strategic human capital and the performance of public sector organizations  

 Abraham Carmeli

Department of Political Science, Graduate School of Business Administration, Bar-Ilan University,

Ramat-Gan 52900, Israel

Received 1 August 2003; accepted 1 November 2004



Organization scientists have long considered human capital as a strategic asset that contributes to organizational effectiveness. Whereas the strategic importance of human capital has been widely studied in the case of for-profit organizations, measurement difficulties and the role of human capital in the public sector have received little attention. The present study attempts to bridge this gap by suggesting a behavioral approach to measuring organizationspecific human capital and examining its impact on the financial performance of local government authorities in Israel. The results confirm the strategic importance of human capital. Local government authorities that possess strategic human capital—namely, a workforce that ishighly educated, that exhibits organization-specific competencies and experience, and that isvaluable, unique, and imperfectly imitable—exhibited a better financial performance, as measured by a three-financial ratio scale over 2 fiscal years.













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