TY - JOUR
T1 - Coping with the Asian economic crisis
T2 - The rightsizing strategies of small- and medium-sized enterprises
AU - Chu, Priscilla
AU - Siu, Wai Sum
N1 - Copyright:
Copyright 2020 Elsevier B.V., All rights reserved.
PY - 2001/8
Y1 - 2001/8
N2 - Hong Kong has been, over the last two years, experiencing the worst economic downturn in decades. What small and medium-sized enterprises (SMEs) have done to overcome the setback, and how and to what extent, remains unknown. Given the apparent importance of retrenchment to the survival of small firms for success in economic turmoil, this paper examines the processes of the rightsizing strategies of Chinese-owned small and medium-sized firms in Hong Kong. The research results suggest that SMEs in Hong Kong follow different human resources practices at different stages. In the 'restricting stage', SMEs reduce or stop hiring new staff and restrict overtime for the existing staff to deal with decreases in sales and the oversupply of manpower. In the 'trimming stage', SMEs scale down or streamline their operations. In the 'proactive stage', SMEs employ existing staff in overtime work and start to hire new staff at lower pay but with higher technological competencies to prepare for recovery. A tentative model for rightsizing strategies of Chinese small and medium-sized firms in Hong Kong is proposed.
AB - Hong Kong has been, over the last two years, experiencing the worst economic downturn in decades. What small and medium-sized enterprises (SMEs) have done to overcome the setback, and how and to what extent, remains unknown. Given the apparent importance of retrenchment to the survival of small firms for success in economic turmoil, this paper examines the processes of the rightsizing strategies of Chinese-owned small and medium-sized firms in Hong Kong. The research results suggest that SMEs in Hong Kong follow different human resources practices at different stages. In the 'restricting stage', SMEs reduce or stop hiring new staff and restrict overtime for the existing staff to deal with decreases in sales and the oversupply of manpower. In the 'trimming stage', SMEs scale down or streamline their operations. In the 'proactive stage', SMEs employ existing staff in overtime work and start to hire new staff at lower pay but with higher technological competencies to prepare for recovery. A tentative model for rightsizing strategies of Chinese small and medium-sized firms in Hong Kong is proposed.
KW - Asian economic crisis
KW - Chinese owner-managers
KW - Human resources management practices
KW - Rightsizing strategies
KW - Small and medium-sized enterprises (SMEs)
UR - http://www.scopus.com/inward/record.url?scp=0344821125&partnerID=8YFLogxK
U2 - 10.1080/09585190110047866
DO - 10.1080/09585190110047866
M3 - Journal article
AN - SCOPUS:0344821125
SN - 0958-5192
VL - 12
SP - 845
EP - 858
JO - International Journal of Human Resource Management
JF - International Journal of Human Resource Management
IS - 5
ER -