Formalising human resource practices in family-owned accommodation Small and Medium-sized Enterprises (SMEs): Integrating owner-manager’s personal characteristics with aspects of the UTAUT model

Abstract

Orientation: The decision to formalise human resource (HR) practices by family-owned small and medium-sized enterprises (SME) is regarded as one of the key managerial practices that the owner-manager may institute to unlock firm value. Given this owner manager’s overarching role in the decision-making processes, the extent to which his or her personal attributes manifest themselves in deciding to formalise human resource management practices within a specific decision-making model is still a grey area in studies of family businesses.

Research purpose: This study aims to use aspects of the Unified Theory of Acceptance and Use of Technology (UTAUT) model to explain how owner-manager’s personal characteristics that influences the decision to formalise HR practices in family-owned SMEs.

Motivations for the study: Previous studies have failed to use recent decision-making models to explain HR formalisation in family businesses and therefore there is dearth of empirical evidence on how owner-managers’ personal characteristic influence their decision to formalise HR practices.

Research approach/design and method: Data was collected using convenience sampling method and the data was analysed using Structural Equation Modelling (SEM) to test the veracity of the proposed structural model.

Main findings: The owner-manager’s personal attributes have a strong bearing on the decision-making processes in family-owned SMEs.

Practical/managerial implications: The study identifies some personal considerations that are important in the decision to formalise HR practices in family-owned SMEs.

Contribution/value-add: The study contributes to literature on formalising HR practices in family businesses by integrating aspects of an existing decision-making model and demographic characteristics.