Not a single path to success: alternative HRM configurations for well-performing small and medium-sized hotels
| Date | 13 February 2024 |
| Pages | 21-41 |
| DOI | https://doi.org/10.1108/ER-06-2023-0295 |
| Published date | 13 February 2024 |
| Subject Matter | HR & organizational behaviour,Industrial/labour relations,Employment law |
| Author | I. Zografou,E. Galanaki,N. Pahos,I. Deligianni |
Not a single path to success:
alternative HRM configurations for
well-performing small and
medium-sized hotels
I. Zografou and E. Galanaki
Department of Marketing and Communication, HRM Laboratory,
School of Business, Athens University of Economics and Business, Athens, Greece
N. Pahos
Department of Values, Technology and Innovation, TU Delft, Delft, Netherlands, and
I. Deligianni
Department of Management Science and Technology, School of Business,
Athens University of Economics and Business, Athens, Greece
Abstract
Purpose –Previous literature has identified human resources as a key source of competitive advantage in
organizations of all sizes. However, Small and Medium- sized Enterprises (SMEs) face difficulty in
comprehensively implementing all recommended Human Resource Management (HRM) functions. In this
study, we shed light on the field of HRM in SMEs by focusing on the context of Greek Small and Medium-sized
Hotels (SMHs), which represent a dominant private sector employer across the country.
Design/methodology/approach –Using a fuzzy-set qualitative comparative analysis (fsQCA) and 34 in-
depth interviews with SMHs’owners/managers, we explore the HRM conditions leading to high levels of
performance, while taking into consideration the influence of internal key determinants.
Findings –We uncover three alternative successful HRM strategies that maximize business performance,
namely the Compensation-based performers, the HRM developers and the HRM investors. Each strategy fits
discreet organizational characteristics related to company size, ownership type and organizational structure.
Originality/value –To the best of the authors’knowledge this is among the first empirical studies that
examine different and equifinal performance-enhancing configurations of HRM practices in SMHs.
Keywords Small and medium-sized enterprises (SMEs), Human resource management (HRM),
Small and medium-sized hotels (SMHs), Business performance,
Fuzzy-set qualitative comparative analysis (fsQCA), HRM configurations
Paper type Research paper
1. Introduction
Small and Medium-Sized Enterprises (SMEs) are the backbone of all economies, as they
account for more than 95% of businesses and provide about 60–70% of total employment
across the world (OECD, 2019). Therefore, despite their limited resources in comparison to
their larger counterparts, SMEs are seen as key drivers for economic performance, innovation
SMEs and
HRM
21
© I. Zografou, E. Galanaki, N. Pahos and I. Deligianni. Published by Emerald Publishing Limited. This
article is published under the Creative Commons Attribution (CC BY 4.0) licence. Anyone may
reproduce, distribute, translate and create derivative works of this article (for both commercial and non-
commercial purposes), subject to full attribution to the original publication and authors. The full terms of
this licence may be seen at http://creativecommons.org/licences/by/4.0/legalcode
This study was financed by the Hellenic Foundation for Research and Innovation (H.F.R.I.) under the
“First Call for H.F.R.I. Research Projects to support Faculty members and Researchers and the
procurement of high-cost research equipment grant”(Project Number: 1683).
The current issue and full text archive of this journal is available on Emerald Insight at:
https://www.emerald.com/insight/0142-5455.htm
Received 12 June 2023
Revised 28 September 2023
20 November 2023
Accepted 21 November 2023
Employee Relations: The
International Journal
Vol. 46 No. 9, 2024
pp. 21-41
Emerald Publishing Limited
0142-5455
DOI 10.1108/ER-06-2023-0295
and social integration (European Commission, 2015). At the same time, existing research in
the field of Human Resource Management (HRM) focuses traditionally on large and
established enterprises, showcasing a strong underrepresentation of SMEs in current HRM
research (Harney and Nolan, 2022), while under specific circumstances HRM has been shown
to link with high business performance, especially in service enterprises (Madera et al., 2017;
Nolan et al., 2020). On this note, it is only recently, that some researchers have started to
explore effective HRM in SMEs (e.g. Nyamubarwa and Chipunza, 2019).
Under the lens of previous theoretical HRM perspectives (Delery and Doty, 1996), the
majority of existing works in the field studying the link between HRM and business
performance build on either a universalistic/best practices approach and explorations of High
Performance Work Systems (HPWS) (e.g. Newman and Sheikh, 2014), or on a contingency/
best fit approach with an emphasis on the fit between HRM practices and the organizational
context (e.g. McClean and Collins, 2019). However, the use of configurational/bundling
approach, with an emphasis on the internal fit of HRM practices is underrepresented,
constituting a key research gap in the field of HRM in SMEs (Harney and Alkhalaf, 2020),
with the exception of some works that have shifted the emphasis towards a configurational
approach in HRM of SMEs with noteworthy results (e.g. Kroon and Paauwe, 2021;Fabi et al.,
2009;Lacoursi
ere et al., 2008). At the same time, while there is some evidence on the link
between HRM and internal determinants/contextual factors, such as size, ownership and
structure, there is limited research on such evidence in SMEs (Harney and Alkhalaf, 2020).
The largest part of the limited evidence on configurations leading to success has considered
SMEs as a single category regardless of economic activity, which may be vulnerable to
sectorial effects: it is debatable how much of the variance of these models is based on the size
category and how much depends on the type of business activity.
Our study aims at filling the abovementioned research gaps by performing a fuzzy-set
Qualitative Comparative Analysis (fsQCA) and identifying equifinal configurations in the
context of Greek Small and Medium-Sized Hotels (SMHs). Our study contributes to the
literature in several ways. First, we respond to Harney’s and Alkhalaf’s (2020) calls and
investigate the optimal HRM configurations necessary for enhancing SME performance,
under the lens of organizational size, ownership type and organizational structure. Second,
we focus on only one sector, to minimize variance spillovers from the incorporation of
multiple sectors. We choose the hotel industry, being a large sub-section within the service
industry. In the specific context, the products are service experiences, which are mostly
intangible and dependent on face-to-face interactions between employees and customers
(Nolan et al., 2020). Importantly, the hotel industry in Greece, and globally is dominated by
small businesses (Chand, 2010). Third, our study explores the field of SMEs under a novel
methodological lens and takes a sector specific approach, by using a configurational
approach, specifically the fuzzy-set Qualitative Comparative Analysis (fsQCA) (Ragin, 2008),
in the context of Greek hospitality SMEs. Finally, this study touches upon both the
“bundling”and “best fit”HRM perspectives, while providing recommendations to
practitioners in the hotel industry.
2. Literature review
The importance of implementing HRM practices in SMEs has been highlighted during the
last decade by a number of authors (e.g. Sheehan, 2014). There is no doubt that SMEs, due to
their small size, limited financial resources and lack of economies of scale, often encounter
multiple problems and challenges in relation to people management. Some have argued that
SMEs are likely to employ informal, unstructured and unsophisticated HRM practices
(Cardon and Stevens, 2004), but others have suggested that high levels of formality in HRM
lead to positive outcomes (Bobera and Bjeki
c, 2016).
ER
46,9
22
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