The Nexus between Human Resource Practices and Organizational Performance: The Moderating Role of Commitment in Small Enterprises

Human resource practices are a strategic mechanism pivotal for organizational success among small enterprises. This study aimed to determine the nexus between human resource practices and organizational performance and describe how commitment influences this relationship. Anchored on the Resource-Based View and the Three-Component Model of Commitment, the study employed a quantitative, descriptive-correlational with moderation analysis research design. Data were collected from employees of 108 small enterprises using Total Population Sampling (TPS) using researcher-constructed survey questionnaire. Statistical tools such as descriptive statistics, Pearson’s r, and multiple linear regressions were used to analyze the data. The findings identified that human resource practices like recruitment and selection, learning and development, rewards and recognition, and performance management present positive and significant correlations with financial and non-financial organizational performance. Further, organizational commitment significantly moderates the nexus between human resource practices and organizational performance. The study posited that well-implemented human resources practices, supported by a committed workforce, are key to improving the performance of small enterprises. The findings reinforce the strategic role of employee commitment in maximizing the effectiveness of human resource management systems. It is recommended that small enterprises may consider investing in strategic human resource initiatives that drive employee commitment, which can be leveraged to attain organizational performance and achieve sustainable competitive advantage.