The interplay effects of skill-enhancing human resources practices, customer orientation and tourism SMEs performance

The purpose of this paper is to examine the interplay of skill-enhancing human resources practices, customer orientation (CO) and tourism small- and medium-sized enterprises (SMEs) performance indicators.

Data for 194 valid cases are gathered through face-to-face techniques in Albanian tourism SMEs. Structural equation modeling is implemented to analyze data and test the hypothesis proposed.

Overall, both skill-enhancing human resources (HR) practices (i.e. recruitment/selection and training) are not associated with SMEs performance. Results suggest that using HR selection/recruitment practices are not associated to SME’s CO. Contrary, implementing skill-enhancing HR training practices is significant for SMEs strategy to focus and address customers’ wants and needs. Finally, it was found that the CO mediates the relationship between skill-enhancing HR training practices and performance, but this was not true on the skill-enhancing HR recruitment/selection practices-performance relationship.

This study makes contributions by further informing the debate about the direct and indirect link between skill-enhancing HR practices and performance. Additionally, it examines the precise role of the skill-enhancing HR practice on SMEs’ culture and or strategy to create value for customers.