Understanding the link between socially responsible human resource management and competitive performance in SMEs

Purpose: Regardless of the noteworthy growth in research and practice associating corporate social responsibility (CSR) with human resource management, little has been written in regard to one major dimension of CSR in small- and medium-sized enterprises (SMEs), as CSR policies and practices are directed toward employees. The purpose of this paper is to develop and test a conceptual framework connecting socially responsible human resource management (SRHRM) to competitive performance that fits small business. Design/methodology/approach: In order to get empirical evidence, structural equation modeling technique was applied on the data from 481 Spanish SMEs. Findings: Results confirm both the direct contribution of SRHRM to business competitiveness and the multiple effects resulting from including two variables of additional interest for the relationship under study: employee’s commitment and relational marketing. Practical implications: One of the main research limitations is that the paper only reflects the perceptions of owners/managers of SMEs. Although it was believed that the respondents give reliable and accurate information about the way their firms are involved in CSR practices, there is a possibility that they might provide incorrect or incomplete information. Originality/value: The relationships proposed have never been studied before in context of SMEs. This is a worthwhile endeavor, which makes an empirical contribution.