“…SMEs tend to have a higher preference for informal management of the employment relationship (Chadwick et al ., 2013; Gilman, Raby and Pyman, 2015; Mallett and Wapshott, 2014). This informality, including a lack of HRM expertise, has often been linked to resource constraints, reduced trade union representation and a lack of managerial capabilities (Gautam and Markey, 2017; Gilman, Raby and Pyman, 2015; Marlow, Taylor and Thompson, 2010). For example, in a qualitative study on four UK SMEs, Wilkinson, Dundon and Grugulis (2007) showed that the effectiveness of the adoption of employee involvement practices is more influenced by informal than formal aspects, and that formal practices may also reduce employee satisfaction with the company.…”