High Performance Work Systems: A Necessity for Startups

  • Joshua S. Bendickson University of Louisiana at Lafayette
  • Jeffrey Muldoon Emporia State University
  • Eric W. Liguori Rowan University
  • Chelsea Midgett East Carolina University

Abstract

New businesses are an important part of any economy, yet the key elements to achieve startup success are often unclear or up for debate. Attracting, selecting, and training employees are often critical activities for most startups. Research suggests that high performance work systems (i.e., a bundle of human resource practices) enhance organizational performance. However, we posit that most startups lack these systems at the onset, yet with minimal effort can establish a system to improve their likelihood of meeting their goals, enhancing capabilities, and ensuring long-term survival. 

Author Biographies

Joshua S. Bendickson, University of Louisiana at Lafayette

Josh Bendickson earned his Ph.D. in Strategic Management from Louisiana State University. Josh’s research interests include strategic human capital, small business/ entrepreneurship, and international strategy and he is a member of multiple professional organizations including the Academy of Management, Southern Management Association, and the United States Association for Small Business and Entrepreneurship, among others. Josh is an assistant professor of management at the University of Louisiana at Lafayette.

Jeffrey Muldoon, Emporia State University

Jeffrey Muldoon is an assistant professor of management at Emporia State University. He received his doctorate from the Louisiana State University. He researches organizational behavior, leadership, management history and entrepreneurship. His work has appeared in the Journal of Management History, Leadership and Organizational Journal and Career Development International.

Eric W. Liguori, Rowan University

Dr. Eric Liguori is an entrepreneurial advocate, researcher, and educator. Dr. Liguori researches primarily on the topics of entrepreneurial self-efficacy, entrepreneurship education, and entrepreneurial ecosystems.

Chelsea Midgett, East Carolina University

Chelsea Midgett received her undergraduate degree from NC State. She is currently a M.S. Candidate in Sustainable Tourism and MBA Student at East Carolina University where she is also a graduate teaching/research assistant. Chelsea’s research interests include small businesses sustainability, entrepreneurship, and organizational culture. Chelsea is also a member of the Small Business Institute and of the International Ecotourism Society.

References

Aguinis, H. & Kraiger, K. (2009). Benefits of training and development for individuals and teams, organizations, and society. Annual Review of Psychology, 60, 451-474.

Arthur, W., Jr., Bennett, W., Jr., Edens, P.S., & Bell, S.T. (2003). Effectiveness of training in organizations: A meta-analysis of design and evaluation features. Journal of Applied Psychology, 88, 234-245.

Bamberger, P., Bacharach, S., & Dyer, L. (1989). Human resources management and organizational effectiveness: High technology entrepreneurial startup firms in Israel. Human Resource Management, 28(3), 349-366.

Bamford, C. E., Dean, T. J., & McDougall, P. P. (2000). An examination of the impact of initial founding conditions and decisions upon the performance of new bank start-ups. Journal of Business Venturing, 15(3), 253-277.

Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-120.

Baron, J. N., & Hannan, M. T. (2002). Blueprints for Success in High-Tech Start-Ups. California Management Review, 44(3), 8.

Baumol, W. J., & Strom, R. J. (2007). Entrepreneurship and economic growth. Strategic Entrepreneurship Journal, 1(1-2), 233-237.

Becker, B. E., & Huselid, M. A. (2006). Strategic human resources management: where do we go from here?. Journal of Management, 32(6), 898-925.

Bell, B.S., Kozlowski, S.W.J. (2008). Active learning: Effects of core training design elements on self-regulatory processes, learning, and adaptability. Journal of Applied Psychology, 93, 296-316.

Bendickson, J., Liguori, E. W., Muldoon, J., Newport, L., & Weaver, K. M. (2014). “Placing SMEs at the forefront of SHRM literature.” In C. Machado & P. Melo (Ed.), Effective Human Resources Management in Small and Medium Enterprises: Global Perspectives. Hershey, PA: IGI Global.

Birch, D. L. (1987). Job creation in America: How our smallest companies put the most people to work. New York: The Free Press.

Brown, M.P., Sturman, M.C., & Simmering, M.J. (2003). Compensation policy and organizational performance: The efficiency, operational, and financial implications of pay levels and pay structure. Academy of Management Journal, 46, 752-762.

Buller, P. F., & McEvoy, G. M. (2012). Strategy, human resource management and performance: Sharpening line of sight. Human Resource Management Review, 22(1), 43-56.

Cadsby, C.B., Song, F., & Tapon, F. (2007). Sorting and incentive effects of pay for performance: An experimental investigation. Academy of Management Journal, 50, 387-405.

Cardon, M. S., & Stevens, C. E. (2004). Managing human resources in small organizations: What do we know?. Human Resource Management Review, 14(3), 295-323.

Delery, J. E., & Doty, D. H. (1996). Modes of theorizing in strategic human resource management: Tests of universalistic, contingency, and configurational performance predictions. Academy of Management Journal, 39(4), 802-835.

De Winne, S., & Sels, L. (2010). Interrelationships between human capital, HRM and innovation in Belgian start-ups aiming at an innovation strategy. International Journal of Human Resource Management, 21(11), 1863-1883.

Eisenhardt, K.M., & Bourgeois, L.J. (1988). Politics of strategic decision making in high-velocity environments: Toward a midrange theory. Academy of Management Journal, 31(4), 737-770).

Evans, W.R., & Davis, W.D. (2005). High-performance work systems and organizational performance: the mediating role of internal social structure. Journal of Management, 31, 758-775.

Gibson, C.B., Porath, C.L., Benson, G.S., & Lawler, E.E. (2007). What results when firms implement practices: the differential relationship between specific practices, firm financial performance, customer service, and quality. Journal of Applied Psychology, 92(6), 1467-1480.

Gong, Y., Chang, S., & Cheung, S. Y. (2010). High performance work system and collective OCB: A collective social exchange perspective. Human Resource Management Journal, 20(2), 119-137.

Heimovies, R.D., Herman, R.D., & Jurkiewicz, C.L. (1993). Executive leadership and resource dependence in nonprofit organizations: a firm analysis. Public Administration Review, 53(5), 419-427.

Hornsby, J. S., & Kuratko, D. F. (1990, July). Human resource management in small business: Critical issues for the 1990s. Journal of Small Business Management, 9–18.

Kaufman, B. E. (2010). SHRM Theory in the Post‐Huselid Era: Why It Is Fundamentally Misspecified. Industrial Relations: A Journal of Economy and Society, 49(2), 286-313.

Lepak, D.P., & Snell, S.A. (1999). The human resource architecture: Toward a theory of human capital allocation and development. Academy of Management Review, 24, 31-48.

Locke, E. A., & Latham, G. P. (1990). A theory of goal setting & task performance. Englewood Clitts: Prentice-Hall, Inc.

Major, D.A., Turner, J.E., & Fletcher, T.D. (2006). Linking proactive personality and the Big Five to motivation to learn and development activity. Journal of Applied Psychology, 91, 927-935.

Mazzarol, T., Volery, T., Doss, N., & Thein, V. (1999). Factors influencing small business start-ups. International Journal of Entrepreneurial Behaviour & Research, 5(2), 48-65.

Nahapiet, J., & Ghoshal, S. (1998). Social capital, intellectual capital, and the organizational advantage. Academy of Management Review, 23(2), 242-266.

Pfeffer, J. (2007). Human resources from an organizational behavior perspective: Some paradoxes explained. The Journal of Economic Perspectives, 21, 115-134.

Pfeffer, J. S., & Salancik, G. (1978). The external control of organizations: a resource dependence perspective. New York: Harper & Row.

Pfeffer, J., & Veiga, J. F. (1999). Putting people first for organizational success. The Academy of Management Executive, 13(2), 37-48.
Pink, D. H. (2011). Drive: The surprising truth about what motivates us. Penguin.

Purcell, J. (1999). Best practice and best fit: chimera or cul‐de‐sac?. Human Resource Management Journal, 9(3), 26-41.

Rynes, S.L. & Barber, A.E. (1990). Applicant attraction strategies: An organizational perspective. Academy of Management Review, 15, 286-310.

Salas, E., & Cannon-Bowers, J.A. (2001). The science of training: A decade of progress. Annual Review of Psychology, 52, 471-499.

Scandura, T. A., & Lankau, M. J. (1997). Relationships of gender, family responsibility and flexible work hours to organizational commitment and job satisfaction. Journal of Organizational Behavior, 18(4), 377-391.

Schmidt, F.L., & Hunter, J.E. (1998). The validity and utility of selection methods in personnel psychology: Practical and theoretical implications of 85 years of research findings. Psychological Bulletin, 124, 262-274.

Subramony, M. (2009). A meta‐analytic investigation of the relationship between HRM bundles and firm performance. Human Resource Management,48(5), 745-768.

Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509-533.

Tekleab, A.G., Bartol, K.M., & Liu, W. (2005). Is it pay levels or pay raises that matter to fairness and turnover? Journal of Organizational Behavior, 26, 899-921.

Wright, P. M., Dunford, B. B., & Snell, S. A. (2001). Human resources and the resource based view of the firm. Journal of Management, 27(6), 701-721.

Wright, P. M., & McMahan, G. C. (1992). Theoretical perspectives for strategic human resource management. Journal of Management, 18(2), 295-320.

Wright, P.M., Gardner, T.M., Moynihan, L.M. (2003). The impact of HR practices on the performance of business units. Human Resource Management Journal, 13(3), 21-36.
Published
2017-06-19
How to Cite
BENDICKSON, Joshua S. et al. High Performance Work Systems: A Necessity for Startups. Journal of Small Business Strategy, [S.l.], v. 27, n. 2, p. 1-12, june 2017. ISSN 2380-1751. Available at: <http://libjournals.mtsu.edu/index.php/jsbs/article/view/611>. Date accessed: 17 june 2018.
Section
Articles