Commitment to Employees: Does It Help or Hinder Small Business Performance?

Commitment to Employees: Does It Help or Hinder Small Business Performance? This study used a sample of 4,637 small businesses to test the relationship between organizational commitment to employees (OCE) and company performance. OCE was significant in all five of the performance models. The results of the employee productivity model revealed a significant positive relationship between OCE and company performance, suggesting that small businesses might be able to realize some benefit in employee productivity from OCE programs. In addition, results from the return on assets, return on sales, return on cashflow, and employee growth models indicated that some OCE programs might be more beneficial to small businesses than others. Potential antecedents of OCE were also examined. Company size, owner education, and gender of the owner had positive relationships with OCE. Partial support was also found for a positive relationship between owner experience and OCE. Differences in the results of this study compared to studies for larger corporations and suggestions for future research are also discussed. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Small Business Economics Springer Journals

Commitment to Employees: Does It Help or Hinder Small Business Performance?

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Publisher
Kluwer Academic Publishers
Copyright
Copyright © 2005 by Springer
Subject
Business and Management; Management; Microeconomics; Entrepreneurship; Industrial Organization
ISSN
0921-898X
eISSN
1573-0913
D.O.I.
10.1007/s11187-003-3098-7
Publisher site
See Article on Publisher Site

Abstract

This study used a sample of 4,637 small businesses to test the relationship between organizational commitment to employees (OCE) and company performance. OCE was significant in all five of the performance models. The results of the employee productivity model revealed a significant positive relationship between OCE and company performance, suggesting that small businesses might be able to realize some benefit in employee productivity from OCE programs. In addition, results from the return on assets, return on sales, return on cashflow, and employee growth models indicated that some OCE programs might be more beneficial to small businesses than others. Potential antecedents of OCE were also examined. Company size, owner education, and gender of the owner had positive relationships with OCE. Partial support was also found for a positive relationship between owner experience and OCE. Differences in the results of this study compared to studies for larger corporations and suggestions for future research are also discussed.

Journal

Small Business EconomicsSpringer Journals

Published: Feb 28, 2003

References

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