Human Resource Management Practices and Corporate Entrepreneurship; an Empirical Study in Sri Lankan SMEs

Abstract

Entrepreneurial activities are regularly started and completed by people inside the firms. Firms by themselves sit idle. Most aggregate activities that occur inside organizations combine their exercises. During the last decade, the past literature declares the effect of Corporate Entrepreneurship on organizational performance. Similarly, some influential factors contribute to the advancement of Corporate Entrepreneurship; the companies outside climate, organizational culture, structure, and human resource management (HRM) focused on the importance of HRM practices as critical components to advance corporate entrepreneurship. The main objective of the present study is to investigate the influence of HRM practices on corporate entrepreneurship success in Sri Lanka. HRM practices – Employee acquisition, Technical Training, Performance appraisals, Employee compensation considered independent variables, and success of corporate entrepreneurship considered as dependent variable for this study purpose. Data were collected from 130 small and medium corporate entrepreneurs in the Northern region, Sri Lanka with convenient sampling technique from the Data Base of Chamber of Commerce. The collected data were analyzed using the SPSS 23 and AMOS. For testing the two hypotheses, correlation analysis and the Structural Equation model with path model diagram were measured. The findings of this study indicated that the relationship between HRM practices and the success of corporate entrepreneurship has been positively significant in this study. Based on the SEM, the HRM practices have positively impacted the success of corporate entrepreneurship in SMEs in Sri Lanka. The finding of this study supports the prior studies. The research only considered the perceived profitability as the success of corporate entrepreneurs. This is a significant limitation of the study, but the researchers believe SME sales volume and SME profit for their future study.