Resumen
Prior research suggests that small firms often struggle with human resource management, and limited research indicates that high performance work systems may assist firms in boosting their level of performance via the construction of intellectual resources for the firm. However, exploration of these phenomena in the small firm context is limited. We examine the mediating role of intellectual capital on the relationship between HPWS implementation levels and firm performance and find that a mediating impact is present for sales growth, profit growth, and perceived performance. Results suggest that HPWS implementation enhances small firm performance via intellectual capital building.