Human Resource Management Problems over the Life Cycle of Small to Medium-sized Firms

It is widely held that new ventures experience different kinds of problems as they grow and mature. This so-called life cycle or stage model of organizational growth has received considerable empirical support (Dodge & Robbins, 1992; Hanks & Chandler, 1994; Kazanjian, 1988; Kazanjian & Drazin, 1989). Most previous studies of the life-cycle model have identified or examined different types of problems based on the size, age, and/or growth rate of the firm. Examples of these problems include the following: strategic positioning, sales/marketing, product development, production, accounting/financial management, external relations, people/human resource management, organization, general management, and regulation. It is the general “people” or “human resource” (HR) problems facing firms in various stages that we intend to examine. However, the specific types of people problems or issues are not well defined or well documented in previous research. This article adds to the literature by examining specific HR problems across the life cycle of small and medium-sized enterprises (SMEs). Another important feature of this work is based on the fact that we address a primary weakness of other life-cycle studies. Researchers often decide upon a number of stages and then “force” firms into a predetermined stage. The problem with this is that there has been no agreement upon the correct number of stages in a life-cycle HUMAN RESOURCE MANAGEMENT PROBLEMS OVER THE LIFE CYCLE OF SMALL TO MEDIUM-SIZED FIRMS