Understanding the Role of HR Practices in the Improvement of MSMEs in India

Abstract

Human resource practices are one of the most valuable practices that help the firm to achieve a competitive advantage. With the passage of time, MSME have shown a major shift in its functioning. Employees are at the center if organizations need to climb the ladder of survival, success, and growth. The present study intends to investigate the role of HR practices in the improvement of MSME performance. The study has analyzed double-blind peer-reviewed research papers on the role of HR practices on micro, small, and medium enterprises. With the help of existing research studies, job satisfaction is identified as a mediating variable. The findings of the study suggest that HR practices directly impact employee performance and outcomes attributes. The mediating role of job satisfaction was found to be significant. Empirical results of the study are presented through reliability, correlation, regression, and mediation analysis using SPSS and HAYES PROCESS Macro software.