Symbolic and Instrumental Factors for Attracting People to Smes: Relationships With the Entrepreneur's Leadership Style
Keywords:SMEs, Attraction Factors. Transformational Leadership, Employer’s Attractivenes.
Literature on people management focuses on large companies and therefore has given little attention to small and medium-sized enterprises (SMEs). This research seeks to fill this gap by investigating the relationship between entrepreneur style and approaches to attracting people to SMEs. Therefore, a survey was conducted with 146 SMEs, testing a set of hypotheses by structural equations modeling. The results indicate that there is a relationship between the entrepreneur's style (transformational versus transactional) and the kinds of attributes (symbolic or instrumental) emphasized in attracting people. It was also observed that the bigger the company is, the less emphasis is given to symbolic factors. On the other hand, SMEs emphasize more symbolic factors of attraction than other segments. In addition, the results indicate that attraction approaches are more impacted by the entrepreneur's style than by the characteristics of the company/business (age, size, segment).
Afshari, L., & Gibson, P. (2016). How to increase organizational commitment through transactional leadership. Leadership & Organization Development Journal, v. 37(4), pp. 507-519.
Ambler, T., & Barrow, S. (1996). The employer brand. Journal of Brand Management, v. 4, pp. 185-206.
Auh, S., & Benguc, B. (2005). The Influence of Top Management Team Functional Diversity on Strategic Orientations: The Moderating Role of Environmental Turbulence and Inter-functional Coordination. International Journal of Research in Marketing, v. 22, pp. 333-350.
Avolio, B. J., Bass, B. M., & Jung, D. I. (1999). Re‐examining the components of transformational and transactional leadership using the Multifactor Leadership. Journal Of Occupational and Organizational Psychology, v. 72(4), pp. 441-462.
Bai, Y., Li, P., Xi, & Youmin. (2012). The distinctive effects of dual-level leadership behaviors on employees' trust in leadership: An empirical study from China. Asia Pacific Journal of Management. V. 29 (2), pp. 213-237.
Baregheh, A., Rowley, J., & Hemsworth, D. (2016). The effect of organisational size and age on position and paradigm innovation. Journal of Small Business and Enterprise Development, v. 23(3), pp. 768-789.
Baron, J. N., & Hannan, M. T. (2002). Organizational blueprints for success in high-tech startups: lessons from the Stanford project on emerging companies. California Management Review, v. 43(3), pp. 8-36.
Baron, R. A. (2003). Human resource management and entrepreneurship: Some reciprocal benefits of closer links. Human Resource Management Review, v. 13, pp. 253-256.
Barreto, L. S., Kishore, A., Reis, G. G., Baptista, L. L., & Medeiros, C. (2013). Cultura organizacional e liderança: uma relação possível? Revista de Administração, v. 48 (1), pp. 34-52.
Barrett, R., & Mayson, S. (2007). Human resource management in growing small firms. Journal of Small Business and Enterprise Development, v. 14 (2), pp. 307-320.
Bass, B. (1985). Leadership and performance beyond expectations. Free Press, New York.
Bass, B., & Avolio, B. (1993). Manual: The multifactor leadership questionnaire. Consulting Psychological Press, Palo Alto, California.
Behery, M. (2016). A New Look at Transformational Leadership and Organizational Identification: A Mediation Effect of Followership Style in a Non-Western Context. Journal of Applied Management and Entrepreneurship, v. 21(2), 70.
Berthon, P., Ewing, M., & Hah, L. (2005). Captivating company: dimensions of attractiveness in employer branding. International Journal of Advertising, v. 24 (2), pp. 151-172.
Biswas, M. K., & Suar, D. (2016). Antecedents and consequences of employer branding. Journal of Business Ethics, v. 136 (1), pp. 57-72.
Burns, J. (1978). Leadership. Harper & Row, New York.
Cable, D. M., & Turban, D. (2001). Establishing the dimensions, sources and value of job seekers' employer knowledge during recruitment. Research in Personnel and Human Resources Management, v. 20, pp. 115-163.
Cassell, C., Nadin, S., Gray, M., & Clegg, C. (2002). Exploring human resource management practices in small and medium sized enterprises. Personnel Review, v. 31(6), pp. 671-692.
Cardon, M. S., & Stevens, C. E. (2004). Managing human resources in small organizations: What do we know? Human Resource Management Review, v. 14, pp. 295-323.
Chang, Yi-Ying (2015). Strategic human resource management, transformational leadership organizational ambidexterity: evidence from Taiwan. Asia Pacific Business Review, v. 21 (4), pp. 517-533.
Chang, Yi-Ying (2016). High-performance work systems, joint impact of transformational leadership, an empowerment climate and organizational ambidexterity. Journal of Organizational Change Management, v. 29 (3), pp. 424-444.
Chin, W. W. (1998). The partial least squares approach to structural equation modeling. In: Modern Methods for Business Research, in G. A. Marcoulides (Ed.) Modern Methods for Business Research, London, p. 295-336. Mahwah, NJ: Lawrence Erlbaum Associates
Collins, C. (2007). Research report on phase 5 of Cornell University/Gevity Institute Study: Human resource management practices and firm performance in small businesses: A look at differences across industries. (CAHRS Working Paper #07-10). Ithaca, NY: Cornell University, School of Industrial and Labor Relations, Center for Advanced Human Resource Studies. Disponível em:<http://digitalcommons.ilr.cornell.edu/cahrswp/23>. Acesso em: 20 jan. 2017.
Collins, C., Ericksen, J., & Allen, M. (2004). A qualitative investigation of the human resource management practices in small businesses. (CAHRS Working Paper #04-14). Ithaca, NY: Cornell University, School of Industrial and Labor Relations, Center for Advanced Human Resource Studies. Disponível em: <http://digitalcommons.ilr.cornell.edu/cahrswp/23>. Acesso em: 20 jan. 2017.
Collins, C., & Kanar, A. (2013). Employer brand equity and recruitment research. In: Yu, K; Cable, D. (eds.) The Oxford Handbook of Recruitment. Oxford Library of Psychology.
Dabic, M., Ortiz-De-Urbina-Criado, M., & Romero-Martínez, A. M. (2011). Human resource management in entrepreneurial firms: A literature review. International Journal of Manpower, v. 32(1), pp. 14-33.
Dan, N. H., Liu, Y., Hsu, P. F., & Yu, S. H. (2014). An Empirical Study of The Organizational Culture, Leadership And Firm Performance In A Vietnam Family Business. International Journal of Organizational Innovation, v. 6 (4), pp. 109-121.
Della Torre, E., & Solari, L. (2011). High Performance Work Systems, Technological Innovations and Firm Performance in SME: Evidences From Italy, International Journal of Entrepreneurial Venturing, v. 3, pp. 375-391.
Della Torre, E., & Solari, L. (2013). High-performance work systems and the change management process in medium-sized firms. International Journal of Human Resource Management, v. 24 (13), pp. 2583-2607.
Edwards, M. (2010). An integrative review of employer branding and OB theory. Personnel Review, v. 39 (1), pp. 5-23.
Ensley, M. D., & Pearce, C. L. (2006). The Moderating Effect of Environmental Dynamism on the Relationship Between Entrepreneur Leadership Behavior and New Venture Performance. Journal of Business Venturing, v. 21, pp. 234-263.
Naz, F., Aftab, J., & Awais, M. (2016). Impact of Human Resource Management Practices (HRM) on Performance of SMEs in Multan, Pakistan. International Journal of Management, Accounting & Economics, v. 3 (11), pp. 699-708.
Fornell, C., & Larcker, D. (1981). Evaluating Structural Equation Models with Unobservable Variables and Measurement Error”, Journal of Marketing Research, v. 18(1), pp. 39–50.
Freire, D. A. L. (2015). Identidade organizacional e suas influências na gestão de pessoas das micro e pequenas empresas. Revista de Carreiras e Pessoas, v. 5(3), pp. 294-310.
GEM Brasil (Global Entrepreneurship Monitor Empreendedorismo no Brasil) (2016). Curitiba: IBQP, 2016.
Hair, J., Ringle, C., & Sarstedt, M. (2011). PLS-SEM: Indeed a Silver Bullet, Journal of Marketing Theory and Practice, v. 19 (20), pp. 139–152.
Hambrick, D.C. (2007). Upper Echelons Theory: An Update. Academy of Management Review, v. 32 (2): 334–43.
Hamstra, M., Yperen, N. V., Wisse, B., & Sassenberg, K. (2014). Transformational and Transactional Leadership and Followers' Achievement Goals. Journal of Business & Psychology. V. 29 (3), pp. 413-425.
Hartog, D. N. D., Van Muijen, J. J., & Koopman, P. L. (1997). Transactional versus transformational leadership: An analysis of the MLQ. Journal of Occupational & Organizational Psychology, v. 70 (1), pp. 19-34.
He, L., Standen, P., & Coetzer, A. (2017). The perceived personal characteristics of entrepreneurial leaders. Small Enterprise Research, pp. 1-23.
Helm, S. (2013). A matter of reputation and pride: associations between perceived external reputation, pride in membership, job satisfaction and turnover intentions. British Journal of Management, v. 24 (4), pp. 542-556.
Heneman, R. L., Tansky, J. W., & Camp, S. M. (2000). Human resource management practices in small and medium-sized enterprises: unanswered questions and future research perspectives. Entrepreneurship Theory and Practice, v. 25(1), pp. 11-26.
Henseler, J., Dijkstra, T. K., Sarstedt, M., Ringle, C. M., Diamantopoulos, A., Straub, D.W., Ketchen, D.J. Jr., Hair, J.F., Hult, G. T. M., & Calantone, R. J. (2014), Common beliefs and reality about PLS: comments on Rönkkö & Evermann (2013), Organizational Research Methods, v. 17 (2), pp. 182-209.
Hulland, J. (1999). Use of Partial Least Squares (PLS) in strategic management research: a review of four recent studies, Strategic Management Journal, v. 20 (2), pp. 195-204.
Karami, A., Analoui, F., & Kakabadse, N. K. (2006). The CEOs' characteristics and their strategy development in the UK SME sector. Journal of Management Development, v. 25 (4), pp. 316-324.
Karami, A., Jones, B. M., & Kakabadse, N. (2008). Does strategic human resource management matter in high-tech sector? Some learning points for SME managers. Corporate Governance: The International Journal of Business in Society, v. 8(1), pp. 7-17.
Khalili, A., &Khalili, A. (2016). Linking transformational leadership, creativity, innovation, and innovation-supportive climate. Management Decision, v. 54(9), pp. 2277-2293.
Lievens, F., & Highhouse, S. (2003). The relation of instrumental and symbolic attributes to a companys attractiveness as an employer. Personnel Psychology, v. 56 (1), pp. 75-102.
Lievens, F., & Slaughter, J. E. (2016). Employer image and employer branding: What we know and what we need to know. Annual Review of Organizational Psychology and Organizational Behavior, v. 30, pp. 407-440.
Ling, Y., Simsek, Z., Lubatkin, M. H., & Veiga, J. F. (2008). The impact of transformational CEOs on the performance of small-to medium-sized firms: does organizational context matter?. Journal of Applied Psychology, v. 93(4), 923.
Matzler, K., Schwarz, E., Deutinger, N., & Harms, R. (2008). The relationship between transformational leadership, product innovation and performance in SMEs. Journal of Small Business & Entrepreneurship, v. 21(2), pp. 139-151.
Mayson, S., & Barrett, R. (2006). The ‘science’ and ‘practice’ of HRM in small firms. Human Resource Management Review, v. 16(4), pp. 447-455.
Mesu, J., Riemsdijk, M. V., & Sanders, K. (2013). Labour flexibility in SMEs: the impact of leadership. Employee Relations, v. 35 (2), pp. 120-138.
Mesu, J., Sanders, K., & Riemsdijk, M. V., (2015). Transformational leadership and organisational commitment in manufacturing and service small to medium-sized enterprises. Personnel Review, v. 44 (6), pp. 970-990.
Mgeni, T. O., & Nayak, P. (2016). Impact of Transactional Leadership Style on Business Performance of SMEs in Tanzania. Amity Business Review, v. 17 (1), pp. 98-109.
Mittal, S., & Dhar, R. L. (2015). Transformational leadership and employee creativity. Management Decision, v. 53 (5), pp. 894-910.
Mittal, S., & Mittal, S. (2016). Effects of transformational leadership on turnover intentions in IT SMEs. International Journal of Manpower, v. 37(8), pp. 1322-1346.
Moser, K. J., Tumasjan, A., & Welpe, I. M. (2017). Small but attractive: Dimensions of new venture employer attractiveness and the moderating role of applicants' entrepreneurial behaviors. Journal of Business Venturing.
Ng, T. W. (2017). Transformational leadership and performance outcomes: Analyses of multiple mediation pathways. The Leadership Quarterly, v. 28 (3), pp. 385-417.
Patel, P. C., & Cardon, M. S. (2010). Adopting HRM practices and their effectiveness in small firms facing product‐market competition. human resource management, v. 49(2), pp. 265-290.
Pingle, S., & Sharma, A. (2013). External Employer Attractiveness: A Study of Management Students in India. Journal of Contemporary Management Research, v. 7 (1), pp. 78-95.
Podsakoff, P., & Organ, D. (1986). Self-reports in organizational research: problems and prospects. Journal of Management, v. 12(2), pp. 531-544.
Prasad, B., & Junni, P. (2016). CEO transformational and transactional leadership and organizational innovation. Management Decision, v. 54 (7), pp. 1542-1568.
Raj, R., & Srivastava, K. B. L. (2017). Transformational Leadership and Innovativeness: The Mediating Role of Organizational Learning. Journal of Management Research, v. 17 (1), pp. 201-219.
Rampl, L. V. (2014). How to become an employer of choice: transforming employer brand associations into employer first-choice brands. Journal of Marketing Management, v. 30 (13-14), pp. 1486-1504.
Reid, R., Morrow, T., Kelly, B., & McCartan, P. (2002). People management in SMEs: An analysis of human resource strategies in family and non-family businesses. Journal of Small Business and Enterprise Development, v. 9 (3), pp. 245-259.
Rogers, E. W. & Wright, P. M. (1998), Measuring organizational performance in strategic human resource management: Problems, prospects, and performance information markets. Human Resource Management Review, v. 8 (3), pp. 311-331.
Sarros, J. C., Cooper, B. K., & Santora, J. C. (2008). Building a climate for innovation through transformational leadership and organizational culture. Journal of Leadership & Organizational Studies, v. 15(2), pp. 145-158.
Sattayaraksa, T., & Boon-itt, S. (2016). CEO transformational leadership and the new product development process: The mediating roles of organizational learning and innovation culture. Leadership & Organization Development Journal, v. 37(6), pp. 730-749.
Schmelter, R., Mauer, R., Börsch, C., & Brettel, M. (2010). Boosting corporate entrepreneurship through HRM practices: Evidence from German SMEs. Human Resource Management, v. 49 (4), pp. 715-741.
Silva, L. F. A., & Scheffer, A. B. B. (2015). A Gestão de Pessoas nas Micro e Pequenas Empresas: Comparando Experiências. Revista de Empreendedorismo e Gestão de Pequenas Empresas, v. 4(3), pp. 87-115.
Szamosi, L. T., Duxbury, L., & Higgins, C. (2004). Toward an understanding of people management issues in SMEs: A south-eastern European perspective. Education + Training, v. 46(8), pp. 444-453.
Teo, S. T. T., Clerc, M. L., & Galang, C. M. (2011). Human capital enhancing HRM systems and frontline employees in Australian manufacturing SMEs. The International Journal of Human Resource Management, v. 22 (12), pp. 2522- 2538.
Theurer, C. P., Tumasjan, A., Welpe, I. M., & Lievens, F. (2016). Employer Branding: A Brand Equity‐based Literature Review and Research Agenda. International Journal of Management Reviews.
Yukl, G. (2002). Leadership in Organizations. Upper Saddle River, NJ: Prentice Hall.
Visser, D. J., De Coning, T. J., & Smit, E. V. D. M. (2005). The relationship between the characteristics of the transformational leader and the entrepreneur in South African SMEs. South African Journal of Business Management, v. 36 (3), pp. 51-63.
Wilcox, R. (1998). How many discoveries have been lost by ignoring modern statistical methods? American Psychologist, v. 53 (30), pp. 300–314.
Zhiqiang L., Zhenyao C., Ji, L., Shengping, S., & Yongqing, F. (2013). Leadership style and employee turnover intentions: a social identity perspective. Career Development International. v. 18 (3), pp. 305-234.
How to Cite
Authors who publish with this journal agree to the following terms:
• 1. The author(s) authorize the publication of the article in the journal.
• 2. The author(s) ensure that the contribution is original and unpublished and is not being evaluated in other journal(s).
• 3. The journal is not responsible for the opinions, ideas and concepts expressed in the texts because they are the sole responsibility of the author(s).
• 4. The publishers reserve the right to make adjustments and textual adaptation to the norms of APA.
• 5. Authors retain copyright and grant the journal right of first publication, with the work after publication simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
• 6. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
• 7. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access) at http://opcit.eprints.org/oacitation-biblio.html• 8. Authors are able to use ORCID is a system of identification for authors. An ORCID identifier is unique to an individual and acts as a persistent digital identifier to ensure that authors (particularly those with relatively common names) can be distinguished and their work properly attributed.