International Journal of

ADVANCED AND APPLIED SCIENCES

EISSN: 2313-3724, Print ISSN: 2313-626X

Frequency: 12
line decor
  
line decor

 Volume 11, Issue 3 (March 2024), Pages: 175-182

----------------------------------------------

 Original Research Paper

Innovative human resource practices and employee productivity: Case of SMEs from Oman

 Author(s): 

 Mohammed Kutpudeen *, Muhammad Tahir

 Affiliation(s):

 Business Studies Department, College of Economics and Business Administration, University of Technology and Applied Sciences, Nizwa, Oman

 Full text

  Full Text - PDF

 * Corresponding Author. 

  Corresponding author's ORCID profile: https://orcid.org/0009-0007-3897-3413

 Digital Object Identifier (DOI)

 https://doi.org/10.21833/ijaas.2024.03.018

 Abstract

This study investigates the role of innovative human resource (HR) strategies in driving productivity within Oman's small and medium-sized businesses (SMEs). It aims to explore the effects of such HR practices on the performance and satisfaction of employees. By thoroughly examining the relationship between innovative HR strategies and employee productivity, this research provides useful guidance for companies looking to improve their workforce's efficiency and effectiveness. The study used a quantitative method, gathering data through a structured survey. A total of 383 participants completed the survey, which detailedly evaluated how innovative HR practices influence employee productivity, ensuring the findings were clear and reliable. The analysis showed that these HR practices have a positive and significant effect on various aspects of employee performance, including their commitment, skills, alignment with company goals, and job satisfaction. This contributes to existing knowledge by applying the concept of innovative HR practices in Oman's unique business environment. The results underline the importance of adopting innovative HR strategies for SMEs in Oman to boost their success.

 © 2024 The Authors. Published by IASE.

 This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).

 Keywords

 Innovative HR practices, Employee productivity, SMEs, Oman, Employee outcomes

 Article history

 Received 26 October 2023, Received in revised form 26 February 2024, Accepted 4 March 2024

 Acknowledgment 

The authors would like to express their gratitude to the Ministry of Higher Education, Research, and Innovation of the Sultanate of Oman for providing the necessary funding for this research project under TRC Grant No: BFP/RGP/EHR/21/282. We deeply appreciate the Ministry's support, which has enabled us to conduct this research and contribute to the field of innovative HR practices. We recognize the Ministry's role in promoting scientific research in Oman and are honored to have been selected for this grant.

 Compliance with ethical standards

 Ethical considerations

The present study adhered to all ethical considerations, including voluntary participation in the survey, the absence of coercion, non-infringement of privacy, and the use of data solely for academic purposes. The study ensured a safe and secure research environment that was free from any harm or discomfort to the participants. The data gathered during the study was treated with the utmost confidentiality and was only used for academic purposes.

 Conflict of interest: The author(s) declared no potential conflicts of interest with respect to the research, authorship, and/or publication of this article.

 Citation:

 Kutpudeen M and Tahir M (2024). Innovative human resource practices and employee productivity: Case of SMEs from Oman. International Journal of Advanced and Applied Sciences, 11(3): 175-182

 Permanent Link to this page

 Figures

 No Figure

 Tables

 Table 1 Table 2 Table 3 Table 4 

----------------------------------------------   

 References (31)

  1. Aini AQ, Febriyantoro MT, Zulkifli Z, Suleman D, Saputra F, and Suyoto T (2022). The effect of training and compensation for employee performance with employee job satisfaction as intervening variables on MSME in South Tangerang. Journal of Industrial Engineering and Management Research, 3(6): 231-240.   [Google Scholar]
  2. Alves I and Lourenço SM (2022). The use of non-financial performance measures for managerial compensation: Evidence from SMEs. Journal of Management Control, 33(2): 151-187. https://doi.org/10.1007/s00187-022-00337-8   [Google Scholar]
  3. Ambarwati T, Wardhana ET, Wardoyo C, Churiyah M, and Jihadi M (2023). The role of compensation, job rotation, employee engagement and employees performance of SMEs. International Journal of Professional Business Review, 8(7): e03045. https://doi.org/10.26668/businessreview/2023.v8i7.3045   [Google Scholar]
  4. Arwab M, Ansari J, Azhar M, and Ali M (2022). Exploring the influence of training and development on employee’s performance: Empirical evidence from the Indian tourism industry. Management Science Letters, 12(2): 89-100. https://doi.org/10.5267/j.msl.2021.10.004   [Google Scholar]
  5. Aslam M, Shafi I, Ahmed J, de Marin MSG, Flores ES, Gutiérrez MAR, and Ashraf I (2023). Impact of innovation-oriented human resource on small and medium enterprises’ performance. Sustainability, 15(7): 6273. https://doi.org/10.3390/su15076273   [Google Scholar]
  6. Balluerka N, Aritzeta A, Gorostiaga A, Elorza U, and Madinabeitia D (2020). Measuring high performance work practice systems: The training, information, participation and autonomy (TIPA) scale. International Journal of Management (IJM), 11(2): 248-263.   [Google Scholar]
  7. Becker TE, Billings RS, Eveleth DM, and Gilbert, RL (1996). Foci and bases for employee commitment: Implications for job performance. Academy of Management Journal, 39: 464-482. https://doi.org/10.5465/256788   [Google Scholar]
  8. Cammann C, Fichman M, Jenkins D, and Klesh J (1983). Assessing the attitudes and perceptions of organizational members. In: Seashore S, Lawler E, Mirvis P, and Cammann C (Eds.), Assessing organizational change: A guide to methods, measures and practices: 71-138. Wiley, New York, USA.   [Google Scholar]
  9. Chen CJ and Huang JW (2009). Strategic human resource practices and innovation performance-The mediating role of knowledge management capacity. Journal of Business Research, 62(1): 104-114. https://doi.org/10.1016/j.jbusres.2007.11.016   [Google Scholar]
  10. Combs J, Liu Y, Hall A, and Ketchen D (2006). How much do high-performance work practices matter? A meta-analysis of their effects on organizational performance. Personnel Psychology, 59: 501-528. https://doi.org/10.1111/j.1744-6570.2006.00045.x   [Google Scholar]
  11. Cook J and Wall T (1980). New work attitude measures of trust, organizational commitment and personal need non‐fulfilment. Journal of Occupational Psychology, 53(1): 39-52. https://doi.org/10.1111/j.2044-8325.1980.tb00005.x   [Google Scholar]
  12. Demirkan I, Srinivasan R, and Nand A (2022). Innovation in SMEs: The role of employee training in German SMEs. Journal of Small Business and Enterprise Development, 29(3): 421-440. https://doi.org/10.1108/JSBED-07-2020-0246   [Google Scholar]
  13. Dhanabhakyam M and Fahad KP (2023). Influence of performance appraisal system in private sector banks on employee morale. International Journal of Advanced Research, 9(2): 284-288. https://doi.org/10.22271/allresearch.2023.v9.i2e.10623   [Google Scholar]
  14. Frimpomaa P (2014). An evaluation of employee satisfaction with performance appraisal system: A case study of Vodafone Ghana (Kumasi-Adum and Accra-Head Office). M.Sc. Thesis, School of Business, KNUST, College of Arts and Social Sciences, Kumasi, Ghana. 
  15. Idris B, Saridakis G, and Johnstone S (2023). Training and performance in SMEs: Empirical evidence from large-scale data from the UK. Journal of Small Business Management, 61(2): 769-801. https://doi.org/10.1080/00472778.2020.1816431   [Google Scholar]
  16. Iqbal S, Tian H, Akhtar S, and Sohu J (2019). Impacts of performance-based pay on employee productivity; Mediated by employee training. International Journal of Research and Review, 6(10): 235-241.   [Google Scholar]
  17. Kankisingi GM and Dhliwayo S (2022). Rewards and innovation performance in manufacturing small and medium enterprises (SMEs). Sustainability, 14(3): 1737. https://doi.org/10.3390/su14031737   [Google Scholar]
  18. Kathiravan M, Saikumari V, and Sunitha V (2017). Convergence in effective performance appraisal system technique: Foster employee involvement and organizational commitment evidence from Indian SMEs. Asian Journal of Research in Banking and Finance, 7(12): 87-110. https://doi.org/10.5958/2249-7323.2017.00130.4   [Google Scholar]
  19. Kehoe RR and Wright PM (2013). The impact of high-performance human resource practices on employees’ attitudes and behaviors. Journal of Management, 39(2): 366-391. https://doi.org/10.1177/0149206310365901   [Google Scholar]
  20. Khan MA, Du J, Anwar F, Qalati SA, Waqas M, and Iqbal S (2023). Relationship between workplace romance, job involvement, and work effort: moderating roles of gender and workplace romance types. Current Psychology, 42: 12359-12373. https://doi.org/10.1007/s12144-021-02665-9   [Google Scholar]
  21. Klepić I (2019). Correlation of recruitment and selection of human resources and the performance of small and medium enterprises. Naše Gospodarstvo/Our Economy, 65(4): 14-26. https://doi.org/10.2478/ngoe-2019-0016   [Google Scholar]
  22. Kotey B and Folker C (2007). Employee training in SMEs: Effect of size and firm type—family and nonfamily. Journal of Small Business Management, 45(2): 214-238. https://doi.org/10.1111/j.1540-627X.2007.00210.x   [Google Scholar]
  23. Mazllami A (2020). The impact of rewards on employee performance: In SMEs in Polog Region. Economic Vision-International Scientific Journal in Economics, Finance, Business, Marketing, Management and Tourism, 7(13-14): 53-62.   [Google Scholar]
  24. Nishii LH and Wright PM (2008). Variability within organizations: Implications for strategic human resources management. In: Smith DB (Ed.), LEA’s organization and management series. The people make the place: Dynamic linkages between individuals and organizations: 225–248. Taylor & Francis Group/Lawrence Erlbaum Associates, Oxfordshire, UK.   [Google Scholar]
  25. Pfeffer J (1998). The human equation: Building profits by putting people first. Harvard Business School Press, Boston, USA.   [Google Scholar]
  26. Rabie C, Cant MC, and Wiid JA (2016). Training and development in SMEs: South Africa’s key to survival and success? The Journal of Applied Business Research, 32(4): 1009-1024. https://doi.org/10.19030/jabr.v32i4.9717   [Google Scholar]
  27. Rahaman MA and Uddin MS (2022). The effect of promotion and job training on job satisfaction of employees: An empirical study of the SME sector in Bangladesh. The Journal of Asian Finance, Economics and Business, 9(2): 255-260.   [Google Scholar]
  28. Rana W, Mukhtar S, and Mukhtar S (2022). Job satisfaction, performance appraisal, reinforcement and job tasks in medical healthcare professionals during the COVID‐19 pandemic outbreak. The International Journal of Health Planning and Management, 37(4): 2345-2353. https://doi.org/10.1002/hpm.3476   [Google Scholar] PMid:35411574 PMCid:PMC9087389
  29. Sunarsi D, Rohaeni N, Wulansari R, Andriani J, Muslimat A, Rialmi Z, Kustini E, Kristianti LS, Rostikawati D, Effendy AA, Purwanto A, and Fahlevi M (2020). Effect of e-leadership style, organizational commitment and service quality towards Indonesian school performance. Systematic Reviews in Pharmacy, 11(10): 472-481.   [Google Scholar]
  30. Wongsansukcharoen J and Thaweepaiboonwong J (2023). Effect of innovations in human resource practices, innovation capabilities, and competitive advantage on small and medium enterprises’ performance in Thailand. European Research on Management and Business Economics, 29(1): 100210. https://doi.org/10.1016/j.iedeen.2022.100210   [Google Scholar]
  31. Zakaria N, Wei F, Abdullah N, and Yusoff R (2021). Unravelling the HRM practices and performance link in Malaysian SMEs: The role of organizational innovation. Management Science Letters, 11(4): 1111-1120. https://doi.org/10.5267/j.msl.2020.11.028   [Google Scholar]