RESOURCES MANAGEMENT AND SME'S PERFORMANCE

Abstract

Purpose of the Study: This study aimed at investigating the level of tangible and intangible resources management of small and medium-sized enterprises (SMEs) entrepreneurs that affect the business unit performance. Methodology: The population used in this study was 300 entrepreneurs and executives representing businesses in Pakistan's production and service sectors. This study was quantitative, and data was collected through questionnaires related to business performance. There were three factors of intangible resource management, i.e., human capital management, relationship capital management, and customer capital management. Data were analyzed using structural equation modelling. Principal Findings: The outcomes indicated that human capital management and customer capital management positive and significant influence on the business performance of SMEs, whereas no influence on capital management. Technology capital management fully mediates the association between human capital management and customer capital management. Applications of the study: This study is useful in strategic management and implementation to build relation capital among approximately 6 million business units of SMEs and micro SMEs in Pakistan, which will lead to the strong foundations of the country. Novelty/Originality of this study: The present study examined the resources management practices of SMS across the country for the first time that indicates that how efficient resource management practices influence the performance of business units and entrepreneurs in a developing economy like Pakistan.