Title: Stronger may not be better: organizational identity strength and performance of Indian SMEs

Author (s):: Batra S.; Sharma S.

Journal: Asia Pacific Journal of Human Resources

Month and Year: May 2016

Abstract: While some researchers argue that a strong organizational identity guides strategy and provides shared understanding among employees, others argue that it restricts change and makes it difficult for organizations to respond to external environment. In this study, we demonstrate that an organizational identity which is strong enough to foster shared purpose and clarity of vision but still fluid enough not to become restrictive to change is the optimal condition for small organizations. Data collected from 162 small and medium manufacturing businesses in India demonstrates a curvilinear relationship between identity strength and performance, and this relationship is significantly influenced by participatory decision-making. By utilizing data from a relatively underexplored context of Indian small and medium enterprises, this study attempts to fill a crucial gap in the HRM literature. Implications for theory and HRM practices are discussed. © 2016 Australian Human Resources Institute

Document Type: Article

DOI: https://doi.org/10.1111/1744-7941.12114