The Impact of Management Practices on SME Performance

38 Pages Posted: 2 Apr 2018

See all articles by John Forth

John Forth

National Institute of Economic and Social Research (NIESR)

Alex Bryson

UCL; National Institute of Economic and Social Research (NIESR)

Abstract

We examine the impact of management practices on firm performance among SMEs in Britain over the period 2011-2014, using a unique dataset which links survey data on management practices with firm performance data from the UK's official business register. We find that SMEs are less likely to use formal management practices than larger firms, but that such practices have demonstrable benefits for those who use them, helping firms to grow and increasing their productivity. The returns are most apparent for those SMEs that invest in human resource management practices, such as training and performance-related pay, and those that set formal performance targets.

Keywords: SMEs, small and medium-sized enterprises, employment growth, high-growth firms, productivity, workplace closure, management practices, HRM, recession

JEL Classification: L25, L26, M12, M52, M53

Suggested Citation

Forth, John and Bryson, Alex, The Impact of Management Practices on SME Performance. IZA Discussion Paper No. 11399, Available at SSRN: https://ssrn.com/abstract=3153363

John Forth (Contact Author)

National Institute of Economic and Social Research (NIESR) ( email )

2 Dean Trench Street
Smith Square
London SW1P 3HE
United Kingdom

Alex Bryson

UCL ( email )

20 Bedford Way
London, WC1H 0AL
United Kingdom

National Institute of Economic and Social Research (NIESR) ( email )

2 Dean Trench Street
Smith Square
London, SW1P 3HE
United Kingdom

HOME PAGE: http://www.niesr.ac.uk/staff/staffdetail.php?StaffID=307

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