Strategic HRD and Planning in Small Businesses: A Review

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).