Human resource practices and performance in small Spanish wineries, and their evolution with age and size

Abstract

This research aims to cover the existing gap in knowledge regarding human resource management practices in winery businesses. Three of the most important practices in this field - recruitment and selection, training and development, and remuneration - and their relationship with performance in small family and non-family wineries as well as the differences in those businesses’ behaviours according to their age and size were analysed. The analysis was based on a 2016 database containing 339 Spanish wine sector SMEs, and a multivariate Bayesian regression methodology was applied. The results demonstrate a lower level of human resource management practices in small family businesses and a stronger relationship with performance than in non-family businesses. The results also show that human resource management varies according to the age and size of the company, indicating an inverted U-shaped relationship with size. On the one hand, these results highlight the importance of human resource practices in the environment of a small winery. These practices have not usually been considered as drivers of performance in small family firms. On the other hand, the results can be useful for the managers of such firms, both in the wine industry and in general, as they highlight the human resource practices that could improve the performance of those entities. The paper contributes to filling the existing gap in the literature related to small family businesses.