Exploring Terra Incognita
Exploring Terra Incognita:
Rethinking HRD in SMEs: Context, Complexity, and Contribution
Activity Details
In an increasingly knowledge-driven economy, the development of human capital is critical to the achievement of sustainable competitive advantage. Human resource development (HRD) plays a key role in this process, and while it has received significant attention in large organisations, its role within small and medium-sized enterprises (SMEs) remains underexplored and often misunderstood. This is despite the fact that SMEs represent approximately 90% of businesses and 50% of employment worldwide (The World Bank, 2022) and are widely recognised as central to economic competitiveness, innovation, and sustainability (OECD, 2021).
Much of the existing literature continues to characterise HRD in SMEs through a deficiency model, emphasising what is lacking when compared to the formalised practices of large firms. Such a perspective not only overlooks the contextual realities of SMEs but also fails to account for the informal, adaptive, and often highly effective ways in which HRD is carried out in these settings. Narrow definitions of HRD, coupled with quantitative methods that prioritise the easily measurable, contribute to a distorted view that SMEs are disengaged from development activity.
This research seeks to challenge these assumptions by examining HRD as it is actually practiced in SMEs, recognising the importance of context, informality, and lived experience. It aims to provide a more balanced and nuanced understanding of HRD, one that reflects the diversity of SMEs and the manner in which they support learning, growth, and capability development, which often lies outside formal structures.
By reclaiming the significance of SMEs in HRD discourse, this work not only expands existing theory but also creates space for new theoretical developments that are grounded in the realities of smaller enterprises. The findings have direct relevance for academics, educators, policymakers, and practitioners working to foster effective HRD strategies across diverse organisational contexts.
As TU Dublin continues to prioritise enterprise-focused research, this work provides a timely and strategic contribution to the evolving conversation around how we cultivate human capital across all sectors of the economy.
Further information: Human Resource Development in SMEs
Contact: Dr. Ciara Nolan, ciara.nolan@tudulin.ie