Abstract:
Orientation: This article argues that the best practice approach (BPA) to HRM fails to
capture the peculiarities of HR practices in small and medium-sized enterprises (SMEs). The
article instead articulates the view that the different and unique traits inherent in SMEs firms
allows the firms to adopt distinct HR practices, which may not cohere with the prescriptive
one-size-fits-all view which BPA advocates.
Research purpose: The article aims to further the thesis that the long-held BPA approach to
HRM does not always apply to SME firms given their unique characteristics which renders HR
prescriptions applied in large firms invalid in SME firms.
Research approach/design and method: As a theoretical article, a systematic literature review
was conducted to draw findings and conclusions.
Main findings: The article concludes that the eclectic nature of SME HR practices complicates
the extent of generalisability of such practices across organisational settings, thus showing
that HR practices that work in SME firms cannot be applied in large firms with equal success.
Practical/managerial implications: The findings provide a platform to enhance the
understanding surrounding managing human resources in SME firms by revealing the
differences between people management in SME firms as compared to their larger counterparts.
Contribution/value-add: The article is groundbreaking as it has opened new avenues in the
quest to understand the nature and contribution of HRM in SME firms.
