Technology acquisition and the hair salon performance: The explanatory roles of human resources practices

Abstract

Orientation: The prominence of technology acquisition and transfer amongst small firms in entrepreneurial literature does not provide a compelling explanation for the processes and mechanisms through which such variables impact the performance of these firms.

Research purpose: The study investigates the extent to which specific human resource practices mediate the interaction between technology acquisition and performance of small cosmetology firms in the Central region of South Africa.

Motivation for the study: The extensive examination of technology acquisition and human resource practices fails to provide significant insights into the interaction of these factors in shaping the performance of small firms.

Research approach/design/method: From a population estimate of 500 hair salons situated in the Central region of South Africa, a survey was administered on randomly selected 150 hair salons. Statistical Package for Social Sciences (SPSS, Version 20) and Partial Least Squares Structural Equation Modelling (PLS-SEM) were used to analyse the 110 returned questionnaires that were complete and usable.

Main findings: The findings demonstrated a direct, positive and significant effect of technology acquisition on small, micro and medium enterprise (SMME) performance and confirmed the partial mediation of employee technical skills training on the interaction between technology acquisition and hair salon performance. Surprisingly, general business skills training partially but negatively mediated technology acquisition’s interaction with hair salon performance.

Practical/managerial implications: It is recommended that policymakers and entrepreneurs emphasise training technical skills development and acquisition of technology to improve the performance of their businesses.

Contribution/value-add: The main contribution of this study lies in its provision of mechanisms through which the acquisition of technology impacts small firms, business entities that are under theorised and less robustly studied in developing countries’ contexts.