Title:
Investigating the Effect of HRM Practices on Work Engagement Among SMEs in Malaysia

Authors:
Emmanuel Abugu, Emmanuel Ogundare, UK

Abstract:

The important of employees to any organisation cannot be overemphasised. Human resource management (HRM) practices can either positively or negatively impact the employee’ behaviour and motivation. This study investigates the effect of HRM practices among Malaysian SMEs on the work engagement of their employees. The study is based on two underlying theories - Job demands-resources theory and social exchange theory. The study’s conceptual framework developed using the theories was tested quantitatively. The main focus of the study is SMEs in Malaysia and the unit of analysis is at the level of individual employee working with the SMEs. There are five dimensions of HRM practices utilised in the study namely: Training & Development, Performance Appraisal, Compensation & Benefits, Career Development and Recruitment & Selection. The three constructs - Vigour, Absorption and Dedication were used to measure work engagement. The total number of questionnaires distributed were 755 and usable questionnaires were 481 representing 62% response rate. Confirmatory factor analysis (CFA) and structural equation modeling (PLS-SEM) were used to analyse the data and both SPSS and SmartPLS software were used. The findings show that four variables of HRM practices significantly affect work engagement in a positive direction. This study advances the literature on work engagement HRM practices as well as expands the SET and JD- R theories.

DOI: https://doi.org/10.51505/IJEBMR.2025.9604