The role of human resource management in the SMEs’ financial performance improvement

One of the most important factors that ensure the survival of Small and Midsize Enterprises (SMEs) is the financial performance of the company. On the other hand, the existence of human resources and its management is the main factor in the economic prosperity of SMEs, which can achieve this through organizational structure and innovative management. Therefore, the aim of this research is to investigate the effects of human resource management (HRM) on financial performance through the organizational system and innovative management in SMEs. According to what was stated, the correct identification of strategic factors affecting the performance of SMEs and the correct use of each of them will act as a powerful toll and protect SMEs against untimely environmental changes. Therefore, the present research has identified the internal strategic factors effective on the performance of SMEs, while reviewing the relevant literature, various definitions, and an integrated model of the internal strategic factors effective on the performance of SMEs has been presented, and in the following, it is presented for each of the case dimensions. The results showed that HRM through organizational systems and innovative management can have a direct impact on the financial performance of SMEs. In the end, while summarizing and expressing the results of the research, related suggestions for the managers as well as the continuation and follow-up of similar research in the future are presented

Business · Economics · Human resource management · Human resources · Knowledge management · Management · Business and Economic Development · Computer Science · Economic and Business Development Strategies · Finance