Enhancing Financial Management Competence Through Human Resource Management Practices: Insights From Micro, Small, And Medium Enterprises
DOI:
https://doi.org/10.58192/profit.v2i4.2059Keywords:
Financial Management Competence, Human Resource Management Practices, Micro, Small, Medium Enterprises (MSMEs), Qualitative Research, Organizational DevelopmentAbstract
This qualitative study aims to explore the relationship between Human Resource Management (HRM) practices and the enhancement of financial management competence within Micro, Small, and Medium Enterprises (MSMEs). The research model is grounded in HRM theories and financial management frameworks. A purposive sampling technique is employed to select participants from diverse MSMEs. Data analysis involves thematic analysis, focusing on identifying patterns and themes within the collected qualitative data. The findings reveal that strategic HRM practices such as recruitment, training, and performance appraisal significantly contribute to improving financial management competence in MSMEs. Additionally, fostering a culture of continuous learning and skill development emerges as a crucial factor. This study provides valuable insights for MSMEs aiming to strengthen their financial management capabilities through effective HRM strategies.
References
Ayyagari, M., Beck, T., & Demirgüç-Kunt, A. (2011). Small and medium enterprises across the globe. Small Business Economics, 45(3), 415–434.
Beck, T., Demirgüç-Kunt, A., & Singer, D. (2021). Finance, inequality and the poor. Journal of Economic Growth, 26(3), 233–258.
Benardi Benardi, Grace Yulianti, Ekawahyu Kasih, & Farah Qalbia. (2023). The Role Of Financial Literacy On MSMEs : A Qualitative Investigation. Proceeding of The International Conference on Business and Economics, 1(2), 277–284. https://doi.org/10.56444/icbeuntagsmg.v1i2.1459
Braun, V., & Clarke, V. (2006). Using thematic analysis in psychology. Qualitative Research in Psychology, 3(2), 77–101.
Cahyatih Kumandang, Ruslaini Ruslaini, Seger Santoso, & Muhammad Rizal. (2022). Optimizing Organizational Performance : Exploring The Integration Of AI And HR Practices. The International Conference on Education, Social Sciences and Technology (ICESST), 1(2), 269–277. https://doi.org/10.55606/icesst.v1i2.381
Creswell, J. W., & Poth, C. N. (2018). Qualitative inquiry and research design: Choosing among five approaches (4th ed.). SAGE Publications.
Delery, J. E., & Roumpi, D. (2017). Strategic human resource management, human capital and competitive advantage: Is the field going in circles? Human Resource Management Journal, 27(1), 1–21.
Ekawahyu Kasih, Cahyatih Kumandang, & Yessica Amelia. (2023). Empowering MSMEs Through Financial Literacy And Management Skills. The International Conference on Education, Social Sciences and Technology (ICESST), 2(2), 596–602. https://doi.org/10.55606/icesst.v2i2.379
Ekawahyu Kasih, Farah Qalbia, & Novrizal Novrizal. (2022). Empowering Talent In The Age Of Artificial Intelligence: Innovations In Human Resource Management. The International Conference on Education, Social Sciences and Technology (ICESST), 1(2), 287–295. https://doi.org/10.55606/icesst.v1i2.383
Eri Kusnanto, Ngadi Permana, & Benardi Benardi. (2023). Strategic Financial Fluency: Catalyst For Growth In Micro, Small, And Medium Enterprises. Proceeding of The International Conference on Business and Economics, 1(2), 294–305. https://doi.org/10.56444/icbeuntagsmg.v1i2.1461
European Commission. (2020). Small and medium-sized enterprises (SMEs) - Statistics & Facts. Retrieved from https://www.statista.com/topics/2112/small-and-medium-sized-enterprises-smes/
Guest, D. E., Paauwe, J., & Wright, P. M. (2013). HRM and performance: Achievements, methodological issues and prospects. Journal of Management Studies, 50(8), 1294–1313.
Huselid, M. A. (1995). The impact of human resource management practices on turnover, productivity, and corporate financial performance. Academy of Management Journal, 38(3), 635–672.
Jiang, K., Lepak, D. P., Hu, J., & Baer, J. C. (2012). How does human resource management influence organizational outcomes? A meta-analytic investigation of mediating mechanisms. Academy of Management Journal, 55(6), 1264–1294.
Kumandang, C., & Hendriyeni, N. (2021). Corporate Social Responsibility, Corporate Governance dan Manajemen Laba pada Perusahaan Manufaktur di Indonesia Tahun 2015-2019. Journal of Management and Business Review, 18(2), 193-208. https://doi.org/10.34149/jmbr.v18i2.273
Mohammad Chaidir, Grace Yulianti, Seger Santoso, & Cahyatih Kumandang. (2023). Financial Management Proficiency For MSMEs. Proceeding of The International Conference on Business and Economics, 1(2), 285–293. https://doi.org/10.56444/icbeuntagsmg.v1i2.1460
Mueller, F., & Zenker, J. (2019). Measuring financial literacy: Exploring the (valid) dimensions of financial literacy. Journal of Business Research, 98, 339–351.
Muhammad Rizal, Novrizal Novrizal, Dadang Irawan, & Mia Christy Patricia. (2023). Human Potential in the AI Era: Strategies for Cultivating Exceptional Talent. The International Conference on Education, Social Sciences and Technology (ICESST), 1(2), 260–268. https://doi.org/10.55606/icesst.v1i2.380
Palinkas, L. A., Horwitz, S. M., Green, C. A., Wisdom, J. P., Duan, N., & Hoagwood, K. (2015). Purposeful sampling for qualitative data collection and analysis in mixed method implementation research. Administration and Policy in Mental Health and Mental Health Services Research, 42(5), 533–544.
Patricia, M. C. (2023). Sustainable Retail Financing in Turbulent and Difficult Market Conditions: A Dynamic Capability Perspective. Journal of Management and Entrepreneurship Research, 4(1), 17-29. https://doi.org/10.34001/jmer.2023.6.04.1-35
Ruslaini Ruslaini, Dadang Irawan, Farah Qalbia, & Seger Santoso. (2022). Optimizing Human Capital in the Era of AI Advancements : Strategi for the Future Workforce. The International Conference on Education, Social Sciences and Technology (ICESST), 1(2), 278–286. https://doi.org/10.55606/icesst.v1i2.382
Saunders, M., Lewis, P., Thornhill, A., & Baines, N. (2018). Research methods for business students (8th ed.). Pearson.
Santoso, S., Qalbia, F., & Benardi, B. (2023). Dampak Pandemi Covid 19 Terhadap Kinerja Keuangan Bank Umum di Indonesia. ASSET: Jurnal Manajemen dan Bisnis, 6(1). doi:https://doi.org/10.24269/asset.v6i1.7133
