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International Handbook of Entrepreneurship and HRM

International Handbook of Entrepreneurship and HRM

Elgar original reference

Edited by Rowena Barrett and Susan Mayson

This invaluable reference tool has been designed in response to the growing recognition that too little is known about the intersection between entrepreneurship and human resource management. Paying particular attention to the ‘people’ side of venture emergence and development, it offers unique insights into the role that human resource management (HRM) plays in small and entrepreneurial firms.

Chapter 17: Organizational Attractiveness of Small Businesses

Melissa S. Cardon and Ibraiz Tarique

Subjects: business and management, entrepreneurship, human resource management


Melissa S. Cardon and Ibraiz Tarique Introduction The last two decades have seen a significant increase in research at the nexus of human resource management and entrepreneurship. Several reviews of this literature have been done (for example, Cardon and Stevens, 2004; Heneman and Tansky, 2002; Heneman et al., 2000) and special issues of journals such as Human Resource Management, Human Resource Management Review and Entrepreneurship: Theory and Practice have been devoted to relevant manuscripts. Yet despite the increase in research at this nexus, there is still much we do not know about even basic functions within small and/or emerging ventures. Cardon and Stevens (2004) provide a comprehensive review of this literature while in Tansky and Heneman’s (2006) edited book several new promising lines of research in this area are detailed. The majority of research at the intersection of entrepreneurship and human resources is in the area of recruitment and selection. For example, Cardon and Stevens (2004) found 15 of the 37 articles reviewed included these topics. What we know about selection in small firms is that it is important (Hornsby and Kuratko, 1990), but difficult (Gupta and Tannenbaum, 1989), because these firms often lack resources and stability (Bruderl and Schussler, 1990; Ranger-Moore, 1997) and may be seen as illegitimate employers to potential applicants (Williamson, 2000; Williamson et al., 2002). Learning how to attract the best applicants has become critical but small firms have a problem with their ‘organizational attractiveness’. In addition, much of our knowledge of hiring practices...

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