Purpose – The purpose of this paper is to review the effect of a cluster approach on SMEs' competitiveness. The primary objective is to examine the use of a cluster approach among SMEs as a tool for meeting their challenges related to globalisation and trade liberalisation, as well as investigating its contributing factor in the process of increasing their competitiveness. Design/methodology/approach – The methodology used for this paper is a literature review of published materials. The literature analysis was performed based on research objectivity, coverage and authority. Findings – There is strong evidence to suggest that a cluster policy brings additional positive effect to existing SME policy in industrialised economies, but such effects have not been extensively researched in developing (transition) countries, particularly from the point of view of the SMEs, which are the main actors in the cluster development process, in relation to whether their performance has been improved as a result of cluster effects. Originality/value – The findings from this research will assist business managers in making more informed decisions regarding the adoption of a cluster approach and entering into cluster-based relations, as well as assisting policy makers in designing more efficient cluster policies. The academic value will be added in the context of expanding knowledge in relation to the impact of clusters on economic development in transition countries and as such contribute in filling gaps within the existing body of knowledge.

Purpose: – The purpose of this paper is to study particular structural and organisational factors affecting the formality of human resource management (HRM) practices in small and medium-sized enterprises (SMEs) in South-Eastern European (SEE) post-communist countries, in particular Serbia, Romania, Bulgaria and the Former Yugoslav Republic of Macedonia in order to understand the antecedents of formalization in such settings.Design/methodology/approach: – Adopting a quantitative approach, this study analyses data gathered through a survey of 168 managers of SMEs from throughout the region.Findings: – The results show that HRM in SMEs in the SEE region can be understood through a threefold framework which includes: degree of internationalisation of SMEs, sector of SMEs and organisational size of SMEs. These three factors positively affect the level of HRM formalisation in SEE SMEs. These findings are further attributed to the particular political and economic context of the post-communist SEE region.Research limitations/implications: – Although specific criteria were set for SME selection, the authors do not suggest that the study reflects a representative picture of the SEE region because the authors used a purposive sampling methodology.Practical implications: – This paper provides useful insights into the factors which influence HRM in SMEs in a particular context. The findings can help business owners and managers understand how HRM can be applied in smaller organisations, particularly in post-communist SEE business contexts.Originality/value: – HRM in SMEs in this region has hardly been studied at all despite their importance. Therefore, this exploratory research seeks to expand knowledge relating to the application of HRM in SMEs in SEE countries which have their business environments dominated by different dynamics in comparison to Western European ones.

Discusses the use of the act frequency approach methodology to develop and validate a measure of organizational support of revolutionary change. A total of nine unique behaviors, describing three constructs, were viewed by employees as supportive of revolutionary change; and 12 unique behaviors, describing two constructs, were perceived as being non‐supportive of revolutionary change. The measures developed were found to have high internal reliability. The measures were also found to be highly correlated with relevant individual and organizational outcome measures. These results provide empirical support for the idea that how an organization supports revolutionary change can have an impact on both the organization and its employees and that contextual variable may not influence perceptions.

What is the relationship between adverse working conditions and employees’ organizational citizenship behaviour (OCB) in small and medium‐sized enterprises (SMEs) operating under a severe economic crisis? To address this question, a survey of 312 front‐line workers was undertaken in 62 Greek SMEs − an instrumental setting where the current deterioration of working conditions is acute. Our contribution is twofold. First, we develop and test a scale for measuring adverse working conditions. Second, we decipher the extent to which such conditions relate to organizational and individual aspects of OCB, considering job satisfaction's mediating role. Through this research we extend the OCB literature within the context of SMEs operating under severe economic crisis and highlight the implications for managing human resources in SMEs, a sector conspicuous for its socio‐economic significance and its vulnerability during economic downturns.

Solidarity behaviour (SB) among employees is important in building a sense of community in organizations, particularly within a crisis context where adverse working conditions prevail. However, we have limited knowledge concerning how SB develops. Using the lens of social exchange theory, this study examines how top‐down communication and employee voice relate to horizontal (employee to emplCoyee) SB. We conducted two comprehensive studies during the Greek economic crisis and found that the relationship between top‐down employee communication and horizontal SB is mediated by employee voice. The paper extends our existing knowledge in the fields of management and human resource management by advancing our understanding of horizontal SB, highlighting the role of top‐down employee communication as an effective human resource practice and delineating the role of employee voice in fostering workplace camaraderie in small and medium‐sized enterprises under crisis.

Purpose – The paper seeks to determine what tomorrow's employees (i.e. graduates) are seeking from SMEs in terms of organizational satisfaction and value characteristics. Design/methodology/approach – A survey of 55 university students who identified SMEs as their best opportunity for their career goals is shown. The survey utilized tested measures of organizational satisfaction and values. Findings – The paper finds that Generations X and Y are seeking equivalent values and satisfaction outcomes from SMEs. It is seeking very caring, environmentally concerned, and sensitive SMEs. Tangible and intangible benefits, empowerment and respect, workplace involvement, concern for employee welfare and supportive management are critical. Research limitations/implications – The paper shows that when researching one can differentiate between what graduates are looking for from their SMEs as opposed to organizations in general. Future research could analyze SME versus MNC or other organizational forms. Practical implications – The paper implies that in the recruiting process SMEs need to focus on various outcomes that graduates seek in order to attract and retain the best potential employees. There appears to be little need to tailor the workplace for Generations X versus Y. Originality/value – A series of outcome variables has been specifically identified for graduates who want to work in SMEs.