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Effects of socially responsible human resource management (SR-HRM) on innovation and reputation in entrepreneurial SMEs

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Abstract

This work focuses on the importance of responsible human resource management, and its link to innovation and reputation, which are deemed to be relevant intangible assets for all firms, although particularly for entrepreneurial SMEs, and which are of particular interest since they have remained relatively unexplored despite their key role in the business fabric. Specifically, we present an explanatory model comprising three variables; the latent independent variable is socially responsible human resource management (SR-HRM), and the corresponding endogenous variables are reputation and innovation. In order to empirically validate the conceptual model developed, we design a survey which has been answered by a representative sample of entrepreneurs of their own firms. Using partial least squares (PLS), we analyse both the measuring model as well as the structural model. Results prove satisfactory and allow us to confirm the direct positive and significant relation between socially responsible human resource management and reputation, as well as the causal relation when innovation acts as a mediating variable.

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Notes

  1. SmartPLS 3 version was used (2015).

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Acknowledgments

The authors would like to thank the anonymous referees for their constructive comments on this paper.

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This research was funded by the UCM-Cofares Research Chair, INBOTS project H2020 (grant agreement 780073) and ISDI.

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Ramos-González, M.d.M., Rubio-Andrés, M. & Sastre-Castillo, M.Á. Effects of socially responsible human resource management (SR-HRM) on innovation and reputation in entrepreneurial SMEs. Int Entrep Manag J 18, 1205–1233 (2022). https://doi.org/10.1007/s11365-020-00720-8

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