The role of human resource management in the SMEs’ financial performance improvement

Economic Annals-XXI: Volume 208, Issue (3-4), Pages: 15-20

Citation information:
Yamali, F. R., Nuraeni, Sarinastiti, N., Suryobuwono, A. A., Limakrisna, N., & Shavkatov, N. (2024). The role of human resource management in the SMEs’ financial performance improvement. Economic Annals-XXI, 208(3-4), 15-20. doi: https://doi.org/10.21003/ea.V208-03

Fakhrul Rozi Yamali
PhD (Management),
Economic Faculty,
Universitas Batanghari Jambi
Jl. Slamet Riyadi No.1, Sungai Putri, Danau Sipin, Kota Jambi, Jambi, 36122, Indonesia
fakhrul_65@yahoo.co.id
ORCID ID: https://orcid.org/0000-0001-8062-4291

Nuraeni
PhD (Management),
Doctoral Program of Management,
Faculty of Economics and Business,
Universitas Muhammadiyah Jakarta
Jl. KH. Ahmad Dahlan Cirendeu Tangerang Selatan, 15419, Indonesia
nur.aini@umj.ac.id
ORCID ID: https://orcid.org/0000-0002-9617-2864

Nia Sarinastiti
PhD (Communication),
Faculty of Business Administration and Communication Sciences
Universitas Katolik Indonesia Atma Jaya
Jl. Jend. Sudirman No. 51 5, RT.004/RW.4, Karet Semanggi, Kecamatan Setiabudi, Kota
Jakarta Selatan, Daerah Khusus Ibukota Jakarta, 12930, Indonesia
nia.sarinastiti@atmajaya.ac.id
ORCID ID: https://orcid.org/0000-0003-3345-9881

Abdullah Ade Suryobuwono
PhD (Management),
Doctoral Program of Management Transportation,
Trisakti Institute of Transportation and Logistics
(Institut Transportasi dan Logistik Trisakti)
Jl. IPN No. 2, Kebon Nanas, Cipinang Besar Sel., Kecamatan Jatinegara, Kota Jakarta
Timur, Daerah Khusus Ibukota Jakarta, 13410, Indonesia
adesuryo.lptl@itltrisakti.ac.id
ORCID ID: https://orcid.org/0000-0003-4386-168X

Nandan Limakrisna
PhD (Management),
Economics and Business Faculty,
Universitas Persada Indonesia
Y.A.I, Jl. Dipenogoro No. 74 Jakarta Pusat, 10440, Indonesia
amarta.nandan@gmail.com
ORCID ID: https://orcid.org/0000-0002-7720-6117

Navruzbek Shavkatov
PhD (Economics),
Department of Corporate Finance and Securities,
Tashkent State University of Economics
49 Islam Karimov Str., Tashkent, 100066, Uzbekistan
n.shavkatov@tsue.uz
ORCID ID: https://orcid.org/0000-0003-1305-2507

The role of human resource management in the SMEs’ financial performance improvement

Abstract. One of the most important factors that ensure the survival of Small and Midsize Enterprises (SMEs) is the financial performance of the company. On the other hand, the existence of human resources and its management is the main factor in the economic prosperity of SMEs, which can achieve this through organizational structure and innovative management. Therefore, the aim of this research is to investigate the effects of human resource management (HRM) on financial performance through the organizational system and innovative management in SMEs. According to what was stated, the correct identification of strategic factors affecting the performance of SMEs and the correct use of each of them will act as a powerful toll and protect SMEs against untimely environmental changes. Therefore, the present research has identified the internal strategic factors effective on the performance of SMEs, while reviewing the relevant literature, various definitions, and an integrated model of the internal strategic factors effective on the performance of SMEs has been presented, and in the following, it is presented for each of the case dimensions. The results showed that HRM through organizational systems and innovative management can have a direct impact on the financial performance of SMEs. In the end, while summarizing and expressing the results of the research, related suggestions for the managers as well as the continuation and follow-up of similar research in the future are presented.

Keywords: Innovative Management; Financial Performance; Organizational Structure; SME

JEL Classifications: Е24; Е41; Е64; I18; J28; J31

Acknowledgements and Funding: The authors received no direct funding for this research.

Contribution: The authors contributed equally to this work.

Data Availability Statement: The dataset is available from the authors upon request.

DOI: https://doi.org/10.21003/ea.V208-03

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Received 14.12.2023
Received in revised form 20.01.2024
Accepted 25.01.2024
Available online 28.04.2024