Abstract
This study carries out an empirical analysis of what influences the informality of HR practices in SMEs, using the 3rd wave of Workplace Panel Survey by Korea Labor Institute.
The Empirical models are based on the rational choice perspective and the institutional iso-morphism perspective. The results of this study are as follows. (1) Rational choice perspective: employment variations as an indicator of organizational flexibility have a significantly positive effect on informal HR practices in SMEs, and employment size as an indicator of indirect control system has significantly negative effects on informal HR practices in SMEs. Skill requirement has partially significantly negative effects on informal HR practices in SMEs, but educational levels and tenures do not. (2) Institutional iso-morphism perspective: Foreign direct investor's shares, unionization, professional CEO,and networks with external HR specialists have significantly negative effects on informal HR practices in SMEs. Export ratio and the existence of benchmarker have weakly significant negative effects, but institutional customer and the number of HR staffs do not. Overall, the results of this study indicate that both the rational choice perspective and the iso-morphism perspective account for the informal HR practices in SMEs reasonably well, and that the latter perspective has better explanatory power. Finally, the results are summarized and their implications are discussed.
The Empirical models are based on the rational choice perspective and the institutional iso-morphism perspective. The results of this study are as follows. (1) Rational choice perspective: employment variations as an indicator of organizational flexibility have a significantly positive effect on informal HR practices in SMEs, and employment size as an indicator of indirect control system has significantly negative effects on informal HR practices in SMEs. Skill requirement has partially significantly negative effects on informal HR practices in SMEs, but educational levels and tenures do not. (2) Institutional iso-morphism perspective: Foreign direct investor's shares, unionization, professional CEO,and networks with external HR specialists have significantly negative effects on informal HR practices in SMEs. Export ratio and the existence of benchmarker have weakly significant negative effects, but institutional customer and the number of HR staffs do not. Overall, the results of this study indicate that both the rational choice perspective and the iso-morphism perspective account for the informal HR practices in SMEs reasonably well, and that the latter perspective has better explanatory power. Finally, the results are summarized and their implications are discussed.
| Translated title of the contribution | On the Influentials of Informal HR Practices in SMEs |
|---|---|
| Original language | Korean |
| Pages (from-to) | 31-63 |
| Number of pages | 33 |
| Journal | 산업관계연구 |
| Volume | 22 |
| Issue number | 4 |
| State | Published - Dec 2012 |