Learning about small business profitability: the influence of management practices and owner-manager human capital.

In a free market economy the importance of small business as a major job supplier, innovatorand source of growth is widely recognized. Given the importance of small business for aneconomy, the survival, success and performance of these firms is an issue of continuousconcern. Research that can lead to the identification of those factors associated with smallbusiness performance is of great interest to policy makers, owner-managers and their advisors.This article aims at detecting predictors of small business profitability. Our objective is todistinguish internal factors of small construction companies that enhance firm profitability.Based on the data of an empirical survey in the construction industry to which certifiedfinancial data has been added, this paper investigates the influence of owner-manager humancapital characteristics and selected management practices on the profitability of smallconstruction companies. For this purpose, we develop and test a structural model. Resultsindicate that industry experience and level of education of the owner-manager andmanagement practices such as avoidance of cash credit and the use of actual costing systemscontribute to higher profitability. Furthermore, owner-manager human capital characteristicsinfluence profitability both directly and indirectly.Characteristics; Companies; Construction; Credit; Data; Economy; Factors; Firms; Industry; Job; Learning; Management; Management practices; Market; Model; Owner-manager; Owner-manager human capital; Performance; Policy; Profitability; Research; Small business; Small business profitability; Structural model; Success; Systems; Working;

The search for corporate entrepreneurship: a clarification of the concept and its measures.

Research;

Het investors in people keurmerk als LLL-label in Vlaanderen?.

Investors in people; Vlaanderen;

Learning about small business profitability: the influence of management practices and owner-manager human capital

In a free market economy the importance of small business as a major job supplier, innovator and source of growth is widely recognized. Given the importance of small business for an economy, the survival, success and performance of these firms is an issue of continuous concern. Research that can lead to the identification of those factors associated with small business performance is of great interest to policy makers, owner-managers and their advisors. This article aims at detecting predictors of small business profitability. Our objective is to distinguish internal factors of small construction companies that enhance firm profitability. Based on the data of an empirical survey in the construction industry to which certified financial data has been added, this paper investigates the influence of owner-manager human capital characteristics and selected management practices on the profitability of small construction companies. For this purpose, we develop and test a structural model. Results indicate that industry experience and level of education of the owner-manager and management practices such as avoidance of cash credit and the use of actual costing systems contribute to higher profitability. Furthermore, owner-manager human capital characteristics influence profitability both directly and indirectly. Keywords: small business profitability, management practices, owner-manager human capital, structural mode

How HRM affects corporate financial performance: Evidence from Belgian SMEs.

In this paper, we provide a summary of several results from a study of HRM in small and medium-sized enterprises in Belgium. The central issue is whether the investment in HRM practices for smaller organizations is 'profitable'. This study differs in three ways from existing research. (1) It deals with the results from a survey of organizations with between 10 and 100 employees from various sectors. (2) In composing an index for 'HRM intensity', we started with a different interpretation of HRM practices, which also fits in more closely with the Belgian institutional context. (3) The operationalization of performance is based on a number of financial indicators which also help determine the 'state of health' of a company. Using the results of the survey, we examined the link between the score for HRM intensity, some performance outcomes and the financial performance of the organization using structural equation modeling. The results show that intensive HRM also offers added value for smaller organizations. Firstly, HRM intensification has a highly positive effect on productivity and, through productivity, reduces personnel costs/added value. This effect is sufficiently strong to compensate for the increased costs associated with intensive HRM. On top of this 'compensation effect', HRM intensity also has major effects on the profitability of the company.

How HRM affects corporate financial performance. Evidence from Belgian SMEs. Paper.

Employment; Expected; Managers; Studies; Management; Performance;

Peri-articular histiocytic sarcoma and synovial cell sarcoma in Bernese Mountain dogs : a retrospective investigation of the prevalence of these tumours in association with previously diseased joints

C

Effecten van individuele HRM-domeinen op de financiële resultaten van een bedrijf: een onderzoek in Belgische KMO's.

Management;