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This paper explores the performance effects of Human Resource Management (HRM) practices in seventy-four Chinese small and medium sized enterprises (SMEs). Four high performance HRM practices are identified: performance-based pay, participatory decision making, free market selection, and performance evaluation. Regression analysis results support the conventional idea that the adoption of HRM practices generates better HRM outcomes and, in turn, better HRM outcomes contribute positively to firm performance. However, not all HRM practices, and their effects, led to improved SME performance. Among the Chinese SMEs investigated, a high level of employee commitment was identified as being the key HRM outcome for enhancing performance.

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PurposeThe purpose of this paper is to show how understanding of human resource (HR) management practices which have been adopted in the emerging markets such as that in China is particularly interesting to academia and management practitioners. The purpose of this study is to shed some light on the implementation of innovative HR practices among 74 Chinese small and medium‐sized enterprises (SMEs) and to explain how the HR practices influence their firm performance.Design/methodology/approachCluster analysis is used to group Chinese SMEs according to their adoption of innovative human resource (HR) practices and examine how the practices are associated with HR outcomes and firm performance.FindingsIt is found that the membership of clusters is influenced by several factors, including ownership, age and size of firms. These characteristics have influenced the motivation, capacity and ability of firms in the sample to adopt high performance human resource practices. The extent to which firms have adopted innovative human resource practices is shown to be closely associated with human resource outcomes and firm performance.Originality/valueThe key implication is that SMEs, especially those rapidly developing domestic and collectively owned small firms, as well as those state‐owned enterprises in China, may see clearly the benefits of devoting greater attention to HR practices to achieve their future growth potential.

PurposeThis study contributes to the leadership literature by examining how and when despotic leadership jeopardizes employees' performance. Specifically, we examine whether employees' job performance could be harmed by despotic supervision through employees' work withdrawal behaviour. Moreover, we investigate whether the quality of work-life (QWL) helps in toning down the harmful effects of despotic supervision on work withdrawal.Design/methodology/approachWe used a multi-wave research design with data collected from 195 employees and their supervisors working in Pakistan's manufacturing sector. At time 1, we measured the independent variable (i.e. despotic leadership) and moderator (QWL), whereas, at time-2, the mediator (work withdrawal) was tapped by the same respondent with a time interval of three weeks between them. At time 3, the outcome (supervisor-rated job performance) was assessed directly by the supervisors.FindingsThe results support the mediating effect between despotic leadership and employees' performance through an enhanced level of work withdrawal behaviour. The effect of despotic leadership on job performance via work withdrawal behaviour was found to be weaker among employees with a higher level of QWL.Practical implicationsFor individuals, QWL serves as an enhancement of personal resources to deal with despotic leaders at the workplace; for organizations, our study results alert managers and leaders at the workplace to address employees' need for QWL as this positive resource may discourage work withdrawal behaviour and stimulate employees to perform well in their jobs despite facing despotic supervision.Originality/valueThis study contributes to the leadership literature by introducing work withdrawal as an underlying mechanism to explain the despotic leadership – job performance relationship. Further, we examined how the harmful effects of despotic leadership can be toned down through the moderating variable of QWL thus having practical implications for both employers and employees.