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The study presented here explores innovation as a corporate entrepreneurial outcome in recently established small firms. More precisely, we explore the role of upper echelon and employee human capital and human resources management as determinants of innovation. Our approach builds on a 'human resource'-based view, stressing the importance of (1) entrepreneur/entrepreneurial team ('upper echelon') human resources and (2) employee human resources and their management in determining the innovation performance of start-ups. As innovation is one of the three possible outcomes of corporate entrepreneurship (innovation, venturing and renewal), we take a corporate entrepreneurship research approach in examining innovation in start-ups. The analyses are based on a sample of 294 start-ups covering a wide range of economic activities, having 1 to 49 employees and being in their second year of life in 2003. The results indicate that both types of human capital do matter in the context of start-up innovation. First of all, employee human capital and HRM have a strong positive effect on innovation. Second, while we could not trace direct effects of entrepreneur/entrepreneurial team human capital on innovation, indirect effects (via HRM or employee human capital) of for instance education level and business advice are indisputably present. All things considered, the study teaches us that valuing human capital in start-ups can contribute to a considerable extent to preserving their innovation performance, thus stimulating their chances of building a viable business model and safeguarding future growth and further development. ispartof: DTEW Research Report 0504 pages:1-29 status: published

In a free market economy the importance of small business as a major job supplier, innovatorand source of growth is widely recognized. Given the importance of small business for aneconomy, the survival, success and performance of these firms is an issue of continuousconcern. Research that can lead to the identification of those factors associated with smallbusiness performance is of great interest to policy makers, owner-managers and their advisors.This article aims at detecting predictors of small business profitability. Our objective is todistinguish internal factors of small construction companies that enhance firm profitability.Based on the data of an empirical survey in the construction industry to which certifiedfinancial data has been added, this paper investigates the influence of owner-manager humancapital characteristics and selected management practices on the profitability of smallconstruction companies. For this purpose, we develop and test a structural model. Resultsindicate that industry experience and level of education of the owner-manager andmanagement practices such as avoidance of cash credit and the use of actual costing systemscontribute to higher profitability. Furthermore, owner-manager human capital characteristicsinfluence profitability both directly and indirectly. ispartof: Working Paper Series 2004/07 pages:1-38 status: published

The contribution of this study, which assesses the influence of HRM on financial performance, is fourfold. (1) We assess the relative contribution of different HR domains to organizational performance. By controlling for the overall HRM intensity in all analyses we try to meet one of the most striking shortcomings of 'single HR practice research', namely the neglect of the potential simultaneity that might exist with other HR practices. (2) By studying small Belgian companies, we focus on the importance of HRM for small business management. (3) Relying on bankruptcy prediction models, we optimize the conceptualization of financial performance. (4) Using structural equation modeling, we try to capture the mediating effect of operational performance on the relationship between HRM and financial performance. The analyses indicate mixed results for different HR domains with regard to their impact on operational and financial performance. ispartof: DTEW Research Report 0331 pages:1-34 status: published

In deze bijdrage staat de vraag centraal of de investering in HRM-praktijken voor kleinere organisaties 'rendeert'. Deze studie wijkt op drie punten af van bestaand onderzoek. (1) Het betreft de resultaten van een survey bij organisaties met 10 tot 100 werknemers uit diverse sectoren. (2) Bij het opstellen van een index voor de 'HRM-intensiteit' zijn we vertrokken van een gedifferentieerde invulling van HRM-praktijken die ook sterker aansluit bij de Belgische institutionele context. (3) De operationalisering van performantie is gebaseerd op een aantal boekhoudkundige indicatoren die mede de 'gezondheidstoestand' van een bedrijf bepalen. Aan de hand van de resultaten van de survey hebben we het verband tussen de score op de HRM-intensiteit, enkele 'performance outcomes' en de financiële performantie van de organisatie onderzocht. De resultaten tonen aan dat een intensief HRM ook voor kleinere organisaties meerwaarde biedt. Vooreerst gaat er een sterk positief effect uit van HRM-intensivering op de productiviteit en via die productiviteit een drukkende werking op de personeelskosten/toegevoegde waarde. Dit effect is voldoende sterk om de kostenverhogingen die een intensief HRM met zich brengt, te compenseren. Bovenop dit 'terugverdieneffect' is er het sterke effect van de HRM-intensiteit op de rendabiliteit van de onderneming. ispartof: Tijdschrift voor HRM vol:5 issue:2 pages:61-86 status: published