Strategic HRD and Planning in Small Businesses: A Review
This paper reviews Fox's (2013) literature review on strategic human resource development (HRD) and strategic planning in small businesses in the United States. Drawing on Fox's analysis of prior studies sourced from multiple academic databases, the review examines how strategic planning affects small business performance, the role of the resource-based theory in understanding workforce value, and the frequency with which small businesses engage in formal planning. The paper also addresses methodological limitations identified in the reviewed studies, considers the contributions of human resource professionals to business planning, and calls for future empirical research to better capture the current state of strategic HRD in American small businesses.
- Introduction: Overview of Fox's scope and review objectives
- Literature Search Strategy and Methodology: Database sources and article selection criteria used
- Resource-Based Theory and Defining Small Businesses: Workforce as competitive asset; defining small firms
- Strategic Planning and Small Business Performance: Planning's impact on sales, profits, and growth
- Frequency of Strategic Planning and Methodological Limitations: How often firms plan and study design flaws
- Role of HR Professionals and Future Business Implications: HR roles in planning and workforce development needs
- Conclusion and Recommendations for Future Research: Gaps identified and empirical research recommended
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What makes this paper effective
- The paper closely tracks the source material, accurately summarizing Fox's (2013) key findings, search strategy, and identified gaps without over-claiming or distorting the original argument.
- It integrates multiple supporting citations (Kraus, Reiche & Reschke, 2007; Walker, 2005) to corroborate or qualify Fox's conclusions, demonstrating engagement with the broader literature.
- The paper maintains a clear critical stance by identifying methodological flaws — such as selection bias and use of open questionnaires — while still acknowledging the overall value of the reviewed work.
Key academic technique demonstrated
This paper demonstrates source-driven critical summarization: the writer consistently attributes claims to specific authors and page numbers, evaluates methodological strengths and weaknesses, and closes with forward-looking recommendations grounded in the reviewed evidence. This is a hallmark of effective academic book/article review writing at the undergraduate level.
Structure breakdown
The paper opens by introducing Fox's (2013) scope and objectives, then explains the search methodology used. It moves through theoretical grounding (resource-based theory), empirical findings on small business performance, and frequency-of-planning data, before addressing HR professional roles and future business needs. The conclusion synthesizes limitations and recommends a descriptive empirical approach for future research, producing a clear funnel structure from summary to critique to recommendation.
Introduction
Fox's (2013) article, "Strategic Human Resource Development in Small Businesses in the United States," explores prior studies that investigated the frequency and impact of strategic human resource development and strategic planning in small businesses in America (Fox, 2013, pp. 77–115). To achieve this objective, the paper draws on studies from countries such as Canada and the United Kingdom, primarily because those countries share several economic and cultural attributes with the United States (Fox, 2013, p. 79). Beyond summarizing existing research, the paper also aims to explore the role of human resource professionals in the strategic business planning process (Fox, 2013, p. 99).
Literature Search Strategy and Methodology
Fox presents a literature review built on a systematic examination of relevant prior works. The study relies heavily on existing literature, which is reflected in the online search strategy the author employed. Fox searched for prior studies using popular academic databases including Scopus, Business Source Complete, ABI Inform Complete, Academic Search Premier Plus (EBSCO), PsychInfo, and Engineering Village (Fox, 2013, pp. 78–79). Notably, the author applied a restricted selection criterion by excluding articles published before 1980, citing the dynamic nature of business and the significant growth of human resource development during that period (Fox, 2013, p. 80). An important limitation of the review, however, is that the author identified only firms that had already conducted strategic planning, which introduces a selection bias (Kraus, Reiche, & Reschke, 2007; Fox, 2013).
Resource-Based Theory and Defining Small Businesses
Fox (2013, pp. 80–83) found that many prior studies employed the Resource-Based Theory, which identifies the workforce as a company's primary asset. Employees possess skills and competencies through which a company can realize a competitive advantage, and they also help clarify the connection between strategic business planning and human resource development. Due to the varying approaches taken by different authors, Fox (2013) found that researchers lacked a shared definition of "small business" (pp. 86, 111). Nevertheless, the studies commonly identified factors such as the age of the business, annual fiscal figures, number of employees, and membership in a small business association or chamber of commerce as important criteria for defining a small business (p. 86).
Conclusion and Recommendations for Future Research
Fox's review is comprehensive; however, there is a need for future research to identify the current situation of strategic HRD in American small businesses. New studies will help offer more insights and determine whether prior studies were correct in agreeing that planning is influential for business success. Some of the studies included in Fox's review followed methodologies that could potentially bias the findings. For this reason, future research should seek empirical evidence by adopting a descriptive research design, which is well-suited to business studies and tends to produce more accurate data (Walker, 2005).
Additionally, the studies reviewed reveal a tendency toward industry and geographic confinement, which limits the generalizability of their results (Kraus, Reiche, & Reschke, 2007), and most focus exclusively on small businesses within the United States. Future research that broadens its scope will provide stronger empirical evidence and a more comprehensive understanding of the current state of strategic human resource development in American small businesses.
References
Fox, L. H. (2013). Strategic human resource development in small businesses in the United States. Academy of Entrepreneurship Journal, 19(1), 77–118.
Kraus, S., Reiche, S., & Reschke, H. C. (2007). Implications of strategic planning in SMEs for international entrepreneurship research and practice. In M. Terziovski (Ed.), Energizing management through innovation and entrepreneurship: European research and practice (pp. 110–127). Routledge.
Walker, W. (2005). The strengths and weaknesses of research designs involving quantitative methods. Journal of Research in Nursing, 10(5), 571–582.
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