Competitive Advantage Through HRM Practices in MSMEs
Shrabani B. Bhattacharjee1, Balaram Bhattacharjee2

1Shrabani B. Bhattacharjee, Doctoral Student, Institute of Management, Nirma University, Ahmedabad, Gujarat, India.
2Balaram Bhattacharjee, Sr Manager-Sales, Kellog’s India Ltd, Mumbai, India.
Manuscript Received on April 02, 2015. | Revised Manuscript Received on April 08, 2015. | Manuscript published on April 15, 2015. | PP: 15-22 | Volume-1 Issue-7, April 2015.
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Abstract: Micro, small and medium enterprises (MSME) are considered as backbone of economic growth in majority countries as it contributes 80 percent of global economic growth. 90 percent of enterprises in most economies constitute of MSMEs which are highest employment generator even at low capital cost. Despite the importance MSME keeps, HR practices are still considered to be emergent rather than fully developed because relatively little focus has actually been placed on HR practices in MSME context. Some amount of positive result has been found between formal or sophisticated HR practices and improved organisational performance even in MSMEs. It signifies of having human resource management practices as a potential for competitive advantage. This literature review tries to connect MSME and human resource practice and eventually the competitive advantage gained by the connection. The effort is to bring out new research areas for exploration in this domain to eventually benefit the MSMEs.
Keywords: MSME, competitive advantage, human resource practice, resource-based view