International Journal of Research Studies in Management
CollabWritive Special Issue
2023 Volume 11 Issue 8
Available Online: 25 August 2023
Author/s:
Zhang, Yong
Graduate School, Lyceum of the Philippines University – Batangas, Philippines
Abstract:
The study aimed to assess the strategic capability, financial performance and human resource management practices of SME’s in China and developed an improved Human Resource Management Framework for SMEs. The study made use of descriptive research design which is a procedure where a specific data and information were gathered from a population or group of people being assessed. Respondents were selected based on the fact that they belonged to technology-based SMEs identified by the Chinese government. The sample size of 338 were employees and middle level managers of selected companies from different regions of 16 cities in Shandong Province. The study used an adapted questionnaire in order to answer the problems of the study. Results of the study revealed that strategic capability in terms of learning capability, research and development capability and marketing capability was positively agreed upon by the respondents. Respondents assessment on financial management practices as to recording, budgeting and reporting were performed by the companies. As to human resource management practices were established in the company as to opportunity, motivation and ability. A high significant relationship was found between strategic capability, human resource management and financial management. The better the strategic capability, the better are the financial management practices as well as human resource management. It was also revealed that the better the financial management practices, the better is the human resource practices. A framework for Human Resource Innovation was developed to improve SME’s.
Keywords: strategic capability, financial management practices, human resource management
DOI: https://doi.org/10.5861/ijrsm.2023.1100
Cite this article:
Zhang, Y. (2023). Strategic capability, financial management practices, and human resource management of SMEs in China: Basis for improved HRM framework for SMEs. International Journal of Research Studies in Management, 11(8), 101-111. https://doi.org/10.5861/ijrsm.2023.1100