Human Resource Practices Implemented in Vietnamese SMEs: A Second Order Confirmatory Factor Analysis

Abstract

Le Thai Phong*, Giang Thi Huong Vu, Duong Thi Hoai Nhung, Emmanuel (Manos) Kalargiros This paper reports the findings of an empirical study examining the determinants of human resource (HR) practices based on High performance work system (HPWS) in small and medium sized enterprises (SMEs) in Vietnam. It uses structural equation modeling to analyze data collecte1d from 159 samples of line managers working in limited and joint stock companies. It specifically focuses on a system of HR practices implemented in Vietnam, including job description and appraisal, extensive training, employee security, internal mobility, selective staffing and incentive reward. Research findings suggest that there is considerable diversity among SMEs in relation to their use of HR practices. Research implications and suggestions for future research are also discussed.