Strategic Human Resource Management Implementation and Organizational Performance of Small and Medium-Sized Enterprises in Bayelsa State, Nigeria

Abstract

Small and medium-sized enterprises (SMEs) are the backbone of most developing economies, yet they are frequently held back not by lack of ambition but by inadequate people management. This study examined the impact of strategic human resource management (SHRM) implementation on the organisational performance of SMEs in Bayelsa State, Nigeria. Three SHRM practices were investigated: talent acquisition and retention strategies, training and development programmes, and performance management systems. Anchored in the Resource-Based View of the Firm and the High-Performance Work Systems framework, the study adopted a cross-sectional survey design. Structured questionnaires were administered to 234 owner-managers, HR practitioners, and senior employees purposively and randomly selected from registered SMEs across three dominant sectors in Bayelsa State. Three separate simple linear regression analyses were used to test the hypotheses. Results showed that each SHRM practice exerted a significant positive effect on organisational performance. The study concluded that deliberate SHRM implementation even within resource-constrained SME settings, measurably improves business outcomes and that the widely held assumption that SHRM is the exclusive preserve of large corporations deserves to be firmly challenged. Actionable recommendations are offered for SME owners, HR practitioners, and policymakers in Bayelsa State.