MSDM

Variabel yang
No Peneliti Anteseden Teori Keterangan

menarik
1 Spieß,Teresa;Nikel, PENGARUH DAYA TARIK  Bisnis keluarga Signifikan
Valerie;Faißt, SIFAT MAJIKAN BISNIS adalah salah satu
KEPRIBADIAN KELUARGA DI bentuk
Rebekka &
INDUSTRI perusahaan yang
Zehrer,Anita PERAN dominan di
MEMODERASI seluruh dunia.
KOMUNIKASI Peneliti
KEPEMILIKAN memperkirakan
bahwa sekitar
enam puluh
persen
perusahaan
berada di bawah
pengaruh
keluarga (Kahlert,
Botero, & Prügl,
2017).
 Perusahaan dan
keluarga adalah
dua sistem sosial
kompleks yang
tumpang tindih
dalam bisnis
keluarga dan
dengan demikian
mewakili
perbedaan yang
signifikan dengan
bisnis non-
keluarga
(Habbershon,
Williams, &
MacMillan, 2003
 auswald dkk.
(2016)
membedakan
bisnis keluarga
dengan
perusahaan lain
berdasarkan
empat
karakteristik: (1)
kepemilikan
(persentase
kepemilikan oleh
keluarga), (2)
manajemen
(keterlibatan
anggota keluarga
dalam pengelolaan
perusahaan), (3)
pengalaman
(jumlah generasi
yang terlibat
dalam perusahaan)
dan (4) budaya
(tingkat tumpang
tindih antara nilai-
nilai keluarga dan
perusahaan).
 Pencitraan dan
perekrutan
pemberi kerja
dalam bisnis
keluarga sejauh ini
hampir tidak
pernah diteliti
sehubungan
dengan nilai dan
ciri kepribadian
pelamar
(Hauswald et al.,
2016; Schweiger,
Zehrer & Spiess,
2021)
2 Hristova Snezhana PROSES PERSPEKTIF  Proses rekrutmen Signifikan
REKRUTMEN SDM DAN meliputi
MENCIPTAKAN pengadaan, iklan
SELEKSI DI KEUNGGULAN dan wawancara
BIDANG TIK karyawan masa
depan, diikuti
dengan
penempatan staf
dan pelatihan
karyawan baru
dalam peran baru
mereka.
Berdasarkan
Owusu’s-Ansah dan
Kwabena (2014)
 Menurut Boxall
dan Parcell (2011),
peran SDM telah
menjadi
konstruktif,
deskriptif, dan
eksekutif dalam
beberapa tahun
terakhir, sementara
sebelumnya reaktif,
preskriptif, dan
administratif.
 Menurut
Armstrong dan
Taylor (2014)
proses rekrutmen
dan seleksi terdiri
dari sepuluh tahap:
menentukan
persyaratan,
menarik kandidat,
menyaring
lamaran,
mewawancarai,
menguji, menilai
kandidat,
mendapatkan
referensi,
memeriksa lamaran
dan menawarkan
pekerjaan.
Menurut penulis
yang sama, kriteria
seleksi utama
adalah
pengetahuan,
keterampilan dan
kemampuan,
kompetensi
perilaku, kualifikasi
dan pelatihan,
pengalaman,
tuntutan khusus
dan persyaratan
khusus.
3. Vuong Khanh Tuan PERAN PERTUMBUHA  Pengembangan Signifikan
PRAKTIK N PERUSAHAAN sumber daya
SUMBER VIETNAM manusia banyak
DAYA dipelajari oleh
MANUSIA beberapa peneliti
internasional
EFEK MEDIASI (Pham & Pham,
KAPASITAS 2019).
INOVATIF  Menurut Nadler
(1984), Srivastava
(1997),
disebutkan
bahwa sumber
daya manusia
menggabungkan,
keterampilan
fisik,
keterampilan
intelektual dan
keterampilan
kerja individu.
 Menurut Anwar
& Abdullah,
(2021),
“Manajemen
sumber daya
manusia
mencakup tugas-
tugas seperti
persiapan SDM,
manajemen
sumber daya
manusia,
perekrutan
strategis,
pelatihan
karyawan,
manajemen
kompensasi
pertumbuhan,
efisiensi,
hubungan
pekerja,
perawatan
kesehatan,
kepuasan
karyawan serta
penyediaan
karyawan jasa
 Menurut
Mpando dan
Sandada, (2015),
peran mediasi
inovasi
berkontribusi
antara jaringan
bisnis dan
hubungan
kinerja. Inovasi
dipandang
sebagai elemen
kunci untuk
meningkatkan
daya saingnya,
yang akan
mengembangkan
pertumbuhan
jangka panjang
perusahaan
dalam
lingkungan bisnis
yang selalu
berubah saat ini
 Inovasi adalah
pengembangan
dan
implementasi
dari; produk baru
atau yang
ditingkatkan
secara signifikan
(barang atau
jasa), atau proses
sistem,
pendekatan baru
untuk
pemasarannya,
atau proses
manajerial baru
dalam praktik
bisnis, struktur
tempat kerja,
atau komunikasi
eksternal
(Mpando &
Sandada, 2015).
 Menurut
Tehseen dan
Sajilan, (2016),
berinvestasi
dalam inovasi
untuk
perusahaan akan
menentukan
hasil kinerja
bisnis secara
keseluruhan
 Menurut Ejim
(2021),
perbedaan
antara modal
manusia dan
sumber daya
manusia adalah
bahwa “Sumber
Daya Manusia
berfokus pada
pekerjaan yang
dilakukan oleh
orang, modal
manusia lebih
mementingkan
kemampuan dan
pelatihan yang
dimiliki orang”.
 Menurut
Mpando dan
Sandada, (2015),
perusahaan
inovatif dan
proses baru
penerapannya
relatif terhadap;
praktik bisnis,
hubungan
eksternal dan
tempat kerja
yang sebenarnya.
 peningkatan SDM
sangat penting
dalam mencapai
keunggulan
kompetitif yang
berkelanjutan
dan
mempromosikan
efektivitas
perusahaan
(Kareem &
Hussein, 2019)
Journal of HUMAN RESOURCE MANAGEMENT, vol. 25, 1/2022
Employer Attractiveness of Family Businesses in the IT-industry: the Effect of

Personality Traits and the Moderating Role of Ownership Communication
Spieß, Teresa; Nickel, Valerie; Faißt, Rebekka & Zehrer, Anita
ABSTRACT KEY WORDS

Purpose - Employing a qualified workforce is a crucial topic for organizational success. employer attractiveness, family businesses,
Research on employer branding in family businesses has not come to a clear personality traits, ownership communication,
conclusion of which family business characteristics might be attractive for which employer branding
potential employees.
Aim(s) - This paper focuses on family businesses in the IT industry to analyze whether JEL Code: M5, M51, J24, L86
they might or might not profit from the communication of family involvement. DOI: 10.46287/jhrmad.2022.25.1.1
Design/methodology/approach - To answer the research question, an online survey
was conducted. The participants were divided into two groups, whereby one group
was manipulated by the communication of the ownership.
Findings - The results show that family businesses are associated with greater security
but fewer development opportunities. In addition, certain personality traits of job
applicants influence the perception of organizational attractiveness. However, the
communication of ownership had no significant influence on employer attractiveness.
Similarly, the varying importance of job security and development opportunities
among applicants cannot be clearly explained by personality traits.
Limitation of the Study - The final sample size was relatively small. In addition, in
reality the applicants would be provided with more and more detailed information
about the company. The representativeness and generalizability of the survey must
therefore be questioned.
Practical implications – As the results show a positive correlation between perceived
job security, opportunities for further development and attractiveness, it might be
valuable for family businesses to support and communicate job security and
opportunities for further development for raising increased attractiveness.
Originality/value - The attempt is made to give companies, especially family
businesses, a better understanding of the effect of communicating the ownership
relationship on potential applicants.
CONTACT INFORMATION:
Teresa Spieß / Family Business Center, MCI Management Center Innsbruck, Universitaetsstraße 15, 6020
Innsbruck, Austria, e-mail: teresa.spiess@mci.edu
Spieß, Teresa; Nickel, Valerie; Faißt, Rebekka & Zehrer, Anita /Journal of HRM, vol. 25, 1/2022, 01-13
Valerie Nickel / Family Business Center, MCI Management Center Innsbruck, Universitaetsstraße 15, 6020
Innsbruck, Austria, e-mail: valerie.nickel@mci.edu
Rebekka Faißt / Student Department Management, Communication & IT, MCI Management Center Innsbruck,
Universitaetsstraße 15, 6020 Innsbruck, Austriae-mail: office-mcit@mci.edu
Anita Zehrer / Family Business Center, MCI Management Center Innsbruck, Universitaetsstraße 15, 6020
Innsbruck, Austria, e-mail: anita.zehrer@mci.edu
INTRODUCTION
Finding qualified and talented employees is an ever-present issue for organizations. A shortage of employees
has been evident in many industries, especially in recent years (Dornmayr & Rechberger, 2019; Terwey, 2019).
Diekmann (2020) assumes that the struggle to find a suitable workforce will increase in the upcoming years.
The retirement of the Babyboomer generation in combination with the gradual economic growth are among other
reasons for this development (Dornmayr & Rechberger, 2019). In addition, the job market offers more
opportunities, and the tasks are becoming more complex and demanding. A total of 75 percent of companies in
Austria stated in a survey by the Institute for Educational Research of the Economy that they were already feeling
the shortage of skilled workers strongly or even very strongly (Dornmayr & Rechberger, 2019). Some industries
are also experiencing tremendous growth, which is multiplying the demand for qualified workers. This also applies
to the IT industry (Gillmann, 2019). The correct use of employer branding and guaranteeing additional services
and possibilities are becoming increasingly essential to remain attractive and competitive as an employer.
With Schneider’s Attraction-Selection-Attrition model (Schneider, 1987) and the Person-Organization fit
model (Chatman, 1991; Kristof, 1996) the importance of research on the topic of employer branding was
emphasized already over thirty years ago. Many companies deal intensively with the topic and try to convince
suitable applicants for a job with their employer brand (Ambler & Barrow, 1996; Lievens & Slaughter, 2016). In
particular, family businesses are strongly challenged by their unique value construct to present themselves as an
attractive employer, which. has been extensively researched (Binz Astrachan & Botero, 2018; Cassia, Massis, &
Pizzurno, 2012; Hauswald, Hack, Kellermanns, & Patzelt, 2016; Sageder, Mitter, & Feldbauer‐Durstmüller, 2018).
According to Hauswald et al. (2016) there are hardly any studies that determine which character traits job seekers
have when applying for family-run companies. Recruiting in family businesses is a topic of growing interest;
whether or not to communicate the ownership relationship in a recruitment process for example is a question,
which cannot easily be answered given the lack of research in the field.
Compared to previous studies on employer branding in family businesses (Astrachan, Botero, Astrachan, &
Prügl, 2018; Beck, 2016; Block, Fisch, Lau, Obschonka, & Presse, 2016; Lievens, 2007; Lievens & Highouse, 2003)
this work focuses on the impact of personality traits on the perceived attractiveness of companies in the
technology industry. It examines whether the ownership relationship has a direct or indirect effect on the
relationship between personality traits and corporate attractiveness. The instrumental and symbolic attributes of
an organization and the Person-Organization fit model also play a central role in the analysis of factors influencing
attractiveness from the applicant's point of view. This leads to the following research question: To what extent
does the communication of the ownership structure moderate the influence of personality traits on the
attractiveness of family businesses from the applicant's point of view? Within the following sections, the
respective theoretical background and the research model are described to then introduce the questionnaire
survey conducted with 186 potential applicants as well as the respective results and implications.
THEORETICAL BACKGROUND
8
Family businesses are one of the dominant corporate forms worldwide. Researchers estimate that around
sixty percent of companies are under family influence (Kahlert, Botero, & Prügl, 2017). In the literature, family
businesses are defined on the basis of innumerable combinations of properties and features. The company and
the family are two complex social systems that overlap in family business and thus represent the significant
difference to non-family businesses (Habbershon, Williams, & MacMillan, 2003). Hauswald et al. (2016)
distinguish family businesses from other companies by four characteristics: (1) ownership (the percentage of
ownership by the family), (2) management (the involvement of family members in the management of the
company), (3) experience (the number of generations, who are involved in the company) and (4) culture (the
degree of overlap between family and company values).
Research has been going on for multiple years as to how family businesses stand out from nonfamily
businesses both in terms of their organizational composition and their performance. The term familiness plays an
important role here. Familiness is described as a bundle of idiosyncratic internal resources that exist due to the
family's involvement in the company (Habbershon & Williams, 1999; Zellweger, Eddleston, & Kellermanns, 2010).
In other words, it is the sum of all resources and capabilities of the family business (Habbershon et al., 2003).
Familiness can be seen as a unique and inseparable resource and can create a competitive advantage for the
company (Habbershon & Williams, 1999; Lattuch, 2019). The fact that family-run companies can offer applicants a
special work environment with unique characteristics is called distinctive familiness, as it sets it apart from other
forms of companies (Spiess & Zehrer, 2020). If the valuable resource of familiness is not used for the benefit of
the company, this is called constrictive familiness (Habbershon & Williams, 1999). These two terms are not
opposed to each other but can even be used in combination. According to Habbershon and Williams (1999) family
resources and the family's influence on a company's performance or employer brand must be assessed
systematically and individually.
To decide for or against a job, applicants rely on various sources of information. Initially, the company has the
opportunity to strongly influence the opinion and attitude of potential applicants, as the job seekers still have little
information (Kahlert et al., 2017). If the company‘s characteristics meet the expectations and the personal values
largely agree with those of the company, the company appears attractive to the applicants. All of this happens in
the subconscious of the job seeker and can be influenced by a strong employer brand (Barber, 1998). As a result
of the perceived similarities (which is expressed, for example, in a positive gut feeling), the applicant makes the
decision to accept the job (Judge & Cable, 1997). Instrumental attributes are concrete characteristics of a
company or a workplace that are desirable for every person and that are objectively perceived (Lievens &
Highouse, 2003). They are comparable with the product-related characteristics in the consumer market and can
be clearly identified even before the start of an employment relationship. These include, for example, salary,
social benefits, health insurance, location, and working conditions (Jack Walker, Feild, Giles, Bernerth, & Short,
2011; Lievens & Highouse, 2003). Symbolic attributes, on the other hand, are subjectively perceived intangible
properties of a company, such as prestige, corporate culture, trustworthiness, or expected social benefits (Jack
Walker et al., 2011; Lievens & Highouse, 2003). Through subjective perception, the symbolic attributes can satisfy
individual needs for social recognition and self-expression (Wallace, Lings, Cameron, & Sheldon, 2014). The
combination of functional and symbolic attributes and the correct communication of them can influence the
organizational attractiveness and consequently the job decisions of the applicants (Lievens & Highouse, 2003;
Lievens, Hoye, & Schreurs, 2005). The more the applicants' functional needs are satisfied, the greater the
influence of the symbolic attributes becomes (Myrden & Kelloway, 2015). Furthermore, people with more
professional experience place more value on symbolic attributes than those with less experience. The significance
of symbolic features increases particularly when the functional properties hardly differ between the employers,
bring hardly any added value to the applicants and therefore do not constitute a basis for decision-making
(Lievens & Highouse, 2003; Myrden & Kelloway, 2015). It is all the more important that companies do not focus
exclusively on functional attributes in brand communication. The symbolic attributes are perceived subjectively.
This subjective perception depends on the values and personality traits of the respective person.
9
Employer branding and recruiting in family businesses has so far hardly been researched in connection with
the values and personality traits of the applicants (Hauswald et al., 2016; Schweiger, Zehrer & Spiess, 2021). It is
therefore difficult for companies and recruiters to assess whether the family influence should be communicated in
the employer brand or not. Although family businesses are characterized by special character traits - both
strengths and weaknesses – it is sometimes assumed that external stakeholders, e.g. applicants, would rate family
influence positively. And it seems likely that applicants who represent certain values would be more likely to apply
for a job advertisement if they perceive family influence (Arijs, Botero, Michiels, & Molly, 2018; Block et al., 2016).
To attribute the typical characteristics of a family business to a job or a job description, the family influence must
be communicated in the employer brand (Hauswald et al., 2016). Because especially at the beginning of the phase
of job decisions, the applicant has little information about the company other than the job advertisement (Kahlert
et al., 2017). The employer brand is an important tool for setting yourself apart from competitors on the labor
market on the basis of special characteristics (e.g. family influence) (Beck, 2016). Due to a lack of research,
however, there are different opinions as to how strongly family businesses should weigh the communication of
family influence in their employer brand (Barroso Martínez, Sanguino Galván, Botero, González-López, &
Buenadicha Mateos, 2019). On the one hand, family influence is often associated with stability, security and
trustworthiness (Arijs et al., 2018; Barroso Martínez et al., 2019). This is, along with family businesses‘ long-term
focus (Binz Astrachan & Botero, 2018) a reason why fewer employees are given notice or laid off (Bassini, Breda,
Caroli, & Rebérioux, 2013). In addition, family-run companies value the preservation of traditions and are very
loyal to stakeholders (Block et al., 2016). Solidarity and fairness are also very important in family businesses
(Krappe, Goutas, & Schlippe, 2011). On the other hand, inflexibility and resistance to change are also associated
with family businesses (Hauswald et al., 2016; Krappe et al., 2011). Especially in terms of globalization, these
properties are often seen as a disadvantage (Krappe et al., 2011). Characteristics such as lack of dynamism and
high potential for conflict due to the close ties to the owner family and family values (Block et al., 2016) can also
be seen as disadvantages. According to Bassini et al. (2013) family businesses pay lower wages on average
compared to companies with other ownership structures. Career opportunities are also rated lower due to the
family first principle (Binz Astrachan & Botero, 2018; Block et al., 2016). The occupation of management positions
mainly by people from within the family is a disadvantage according to Lattuch (2019), which might also be
another reason for the low level of innovation sometimes attributed to family businesses.
HYPOTHESES DEVELOPMENT
Research to date shows that communicating the family influence in employer branding can lead to different
attributions than for companies in which the ownership structure and the constellation of management are not
known. Furthermore the Person-Organization fit model has already shown that the personality traits of the
applicants influence perception. Hardly any study has however looked at the recommendation (Boswell,
Zimmerman, & Swider, 2012; Lievens et al., 2005; Zimmerman, Boswell, Shipp, Dunford, & Boudreau, 2012) to
explicitly include personality traits in research on the attractiveness of family businesses. As an exception
Hauswald et al. (2016) have made an important contribution on the attractiveness of family businesses and the
applicants' willingness to enter into a long-term employment relationship in connection with personality traits.
The abovementioned recommendation is now also addressed in the present work, with the focus on the
attractiveness of employers in the IT / STEM industry. This leads to the following hypotheses:
H0 1a: A high degree of openness to experience has no effect on the attractiveness of family businesses as
perceived by applicants.
10
HA 1a: A high degree of openness to experience has a negative effect on the attractiveness of family
businesses as perceived by applicants.
H0 1b: Low extraversion has no effect on the attractiveness of family businesses perceived by applicants.HA
1b: Low extraversion has a positive effect on the attractiveness of family businesses perceived by applicants.
Compared to the work of Block et al. (2016), two company characteristics which are based on the validated
scales from Lievens et al. (2005) are taken into account. Job security and opportunities for further development
are characteristics that increase the attractiveness of a company (Lievens et al., 2005). Since job security and
opportunities for further development do not affect every applicant to the same extent, the focus is specifically on
the traits of extraversion and openness to experience. Therefore, the following hypotheses are formed:
H0 2a: Higher job security has no effect on the attractiveness of a company for individuals low in
extraversion.
HA 2a: Higher job security has a positive effect on the attractiveness of a company for individuals low in
extraversion.
H0 2b: More opportunities for further development have no effect on the attractiveness of a company for
individuals high in openness to experience.
HA 2b: More opportunities for further development have a positive effect on the attractiveness of a company
for individuals high in openness to experience.
As a result of these hypotheses, in the course of the empirical work, the generally valid change in the
attractiveness of a company through the communication of family influence is examined. The third hypothesis is
as follows:
H0 3: There is no difference for potential applicants perceived attractivness of employer if the company is run
by a family and if this is communicated in the employer brand.
HA 3: Potential applicants see the company as a more attractive employer if the company is run by a family
and if this is communicated in the employer brand.
Figure 1 shows the hypothesized model resulting from the theoretical framework. Different influences on the
attractiveness of a company (dependent variable) are measured.
11
Fig 1. Hypothesized Model

Source: own illustration
METHODOLOGY
The hypotheses described in the previous section are examined using an online questionnaire. The
questionnaire is distributed via e-mail and via various social media platforms. Participation in the survey is
voluntary and takes between five and ten minutes. Since the scales that relate to the assessment of the company
are only available in English, the individual items were translated by the authors and back-translated by a
professional translator. A five-point Likert scale is used throughout, which ranges from “fully agree” to “strongly
disagree”. The measures used for the survey are decribed in the following sections.
Big Five Personality. Traits Due to its economic applicability, a shortened version of the NEO
Revised Personality Inventory by Costa and McCrae (1992) is used. This Mini IPIP Scale (Donnellan, Oswald, Baird,
& Lucas, 2006) summarizes the original 60 items to 20. The measurement of personality is carried out on the basis
of subscales, consisting of neuroticism, extraversion, agreeableness, conscientiousness and openness to
experience. The expression of these characteristics is ascertained through 20 randomized questions about
personality. Due to the standardization of the Big Five Personality Traits model, reliability can be assumed (Costa
& McCrae, 1992). The shortened version contains all subscales of the original scale, which indicates content
validity.
Job Advertisement. The survey part related to the personality traits is followed by a job advertisement from a
hypothetical company, which serves as a stimulus. The description is based on the company description in the
survey of Turban (2001). The test subjects are automatically divided into two groups. Group A sees the job
description with the note that the company is owned and run by the family. As a result, this group is manipulated
in the subsequent evaluation of the company. Group B sees the same job description with no ownership
communication. The automated A / B testing guarantees groups of similar size.
Job Security & Opportunities for Further Development. To measure job security and opportunities for further
development, the scale by Lievens et al. (2005) was used. The reliability and validity of the scale for determining
job security and opportunities for further development were confirmed by Lievens et al. (2005).
Employer Attractiveness. The attractiveness of the company described is determined using the attractiveness
scale of Highhouse, Lievens, and Sinar (2016) including five items. The attractiveness of the company is the
dependent variable of the study.
12
Control Variables. The last section contains demographic information, namely gender, age, country of origin
and level of education. In addition, job-specific data (employment relationship, field of study / field of activity and
professional experience) are collected.
A convenience sample with the entire DACH region as a target group, and the majority of those surveyed
coming from Austria, was formed. In addition, apart from a command of the German language, no previous
knowledge is required. Care is taken to ensure that as many diverse answers as possible are collected and to
especially include people coming from IT / STEM areas to be able to answer the research question in the context
of the IT industry.
The data obtained from the survey were evaluated with the statistics software SPSS from IBM. After the
answers is cleaned up by the manipulation check, the authors adhered to the previously created evaluation plan.
After the analysis of the demographic characteristics, the personality characteristics and the company
characteristics are compared and analyzed with demographic information as well as with the groups A and B
created by the targeted manipulation. After the connection between the variables are tested using Pearson's
correlation, the hypotheses, were checked using regressions and moderation analyzes. The PROCESS macro from
Andrew Hayes was used to carry out the moderation analyzes, as it offers several advantages in the calculations
compared to conventional moderated regression analyzes. The interaction terms are automatically calculated by
the tool, the values are mean-centered and the effect strengths are displayed immediately in the event of
significant moderation (Hayes, 2013).
RESULTS
Of the 195 completely completed questionnaires, eight were eliminated because they failed in a
manipulation check. This results in a sample size of N = 186. The answers were filtered according to areas of
activity or training, as the study focuses on potential applicants in the IT / STEM industry. 114 test subjects are
employed or in training in the sectors of business and law, engineering and technology, media and
communication, or information technology and IT.
To test for reliability, Cronbach's alpha of the Big Five personality traits is calculated. With values higher than
0.7 it can be ensured that the items are related to one another. All values of the reliability analysis are above 0.7,
with the exception of openness to experience. Since this value is also above the value of 0.6 and since the scale
has also been used in various sources (Donnellan et al., 2006; McCrae & Costa, 2004), the minimum requirement
will be waived. Table 1 shows the internal consistency of the constructs.
Table 1. Internal Consistency

Cronbach’s Alpha Mean Standard Deviation
Neuroticism 0.707 2.892 0.835
Extraversion 0.815 3.358 0.912
Openness 0.643 3.636 0.844
Agreeableness 0.783 4.185 0.680
Conscientiousness 0.722 3.633 0.801
Job Security 0.848 3.608 0.913
Opportunities Further Development 0.878 2.683 0.894
Employer Attractiveness 0.883 3.434 0.953
An exploratory factor analysis (EFA) is carried out to check whether the present results fit the theoretical
structure. The results (see Table 2) confirm the relationships between the factors. One item from each the
13
constructs of neuroticism and openness to experience shows little commonality. However, these only describe the
portion of the total variance that is explained by all variables. Since the value is still over 30%, the two factors are
not excluded. Furthermore, one item of the construct neuroticism has a factor loadings of only 55%. While this is
acceptable, higher values would be desirable. Since the test subjects' neuroticism values will not used in the
further analyses, this will be accepted. The contextual relationships of the individual items with which the
company characteristics are also confirmed by the unambiguous results of the EFA in Table 2. Thus, variables are
formed from the mean values of all constructs.
Table 2. EFA results

KMO Communalities Factor Loadings
Neuroticism 0.662 >0.57* >0.55
Extraversion 0.72 >0.57 >0.76
Openness 0.72 >0.52* >0.61
Agreeableness 0.783 >0.51 >0.61
Conscientiousness 0.675 >0.52 >0.71
Job Security 0.793 >0.57 >0.75
Opportunities Further Development 0.821 >0.66 >0.81
Employer Attractiveness 0.867 >0.57 >0.76
*Exception for one item
With the hypotheses H1 the effect of personality traits on the perceived attractiveness of companies and the
moderating effect of the ownership relationship communication is to be examined. Using a scatter diagrams the
linearity and the homoscedasticity of the residuals are graphically demonstrated. Furthermore, the normal
distribution of the residuals is checked with the aid of a histogram, the Kolmogorov-Smirnov test and the Shapiro-
Wilk test. Since it is only a recommended requirement (Hayes, 2018), the regression and moderation is carried out
despite the missing normal distribution of the residuals. To test the hypotheses, a simple moderation is used. The
focus of the analysis is on the interaction term of personality traits and ownership. In addition to the regression
analysis of the entire model, a separate linear regression is carried out to test hypothesis H1, where Openness is
used as independent variable and attractiveness as dependent variable (H1a). The results show significant
relationship between openness (0.031**) as well as extraversion (0.032**) and employer attractiveness. The
perceived attractiveness is thus influenced by the personality traits of the potential applicant.
To test whether the communication of ownership moderates the relationship between the variables, a
moderation analysis is carried out. To carry out this analysis, the values are z-standardized around the mean
value, which leads to better comparability and interpretability of the individual values. The individual coefficients
show that the personality traits openness and extraversion have a significant influence on perceived
attractiveness. However, the coefficient is not significant, and the two interaction terms also have no significant
influence on attractiveness. The personality traits openness and extraversion thus have a positive influence on the
perceived attractiveness, but these relationships are not moderated by the communication of the ownership
status. Therefore, H1a and H1b must be rejected.
The hypotheses H2 are used to measure whether job security and further development opportunities for
people with different personality traits have a different impact on the attractiveness of the company. To be able
to carry out the moderation, the influences of the independent variable on the attractiveness of the company
must first be measured using a linear regression. In addition to the regression analysis of the entire model,
separate regression is carried out for the hypotheses H2a and H2b. These show significant results for job security
(0.14***) and opportunities for further development (0.141***). Both company characteristics are positively
14
related to the perceived attractiveness. The personality traits extraversion and openness, which serve as
moderators in this calculation, are also significant and thus influence the perceived attractiveness. However, the
significance value of the two interaction terms is above 0.05. Thus, the positive effect of job security and
opportunities for further development on higher perceived attractiveness are highly significant, but these effects
are not clearly moderated by the personality traits. Therefore, both H2a and H2b must be rejected.
With the hypothesis H3, the differently perceived attractiveness of companies is examined on the basis of the
hypothetical job description. Potential applicants see the company as a more attractive employer if the company
is run by a family and this is communicated in the employer brand. To check H3, the mean values are compared
and a T-Test for independent samples is carried out. The reason for this is the nominal data level of the dependent
variable and the comparison of two control groups. The mean values of group A and group B in the entire sample
M = 3.51 (SD 1.03) and M = 3.35 (SD 0.84) show that companies that position the family influence in their
company brand / job advertisement are perceived as a little more attractive by potential applicants. The result of
the Levene test (p = 0.82) confirms the equality of variance. The T-Test shows with T = 1.122 that the mean value
of group A is higher than that of group B. The Cohen effect size r = 0.165 corresponds to a very weak effect that is
not large enough to clearly attribute the perceived attractiveness to the communication of ownership. The H3
must therefore be rejected in the entire sample. To be able to compare the perceived attractiveness of family
businesses by industry, the hypothesis is also checked using data from the STEM industry. The mean values differ
slightly (M = 3.44 group A and M = 3.36 group B) and the Levene test confirms the equality of variance with p =
0.082. The T-Test with independent samples, however, gives a two-sided significance of p = 0.68, whereupon the
null hypothesis is accepted and no connection can be proven. H3 must therefore also be discarded in the STEM
industry. The effect size of r = 0.079, however, indicates that the communication of the ownership structure in the
STEM branch has a weaker influence on the perceived attractiveness than in other branches.
DISCUSSION
The present study followed the recommendation by Boswell et al. (2012) and deals with the communication
of family influence in combination with the individual personality traits of potential applicants and the
attractiveness of the employer. The study by Hauswald et al. (2016) states that communicating family influence in
the employer brand can increase the likelihood of entering into a longterm employment relationship, which can
also increase the attractiveness of the organization. However, these relationships cannot be confirmed in the
present work. The vast majority of the respondents assume that the job description presented was from a family
business. This also applies to those for whom the ownership relationship was not communicated in the job
description. This might be led back to the high number of family businesses in Austria, where the majority of the
test subjects live. Since the job description in the questionnaire contains the text passage "The company has its
headquarters very close to you" and the survey was largely carried out in Austria, it can be assumed that the job
description is subconsciously linked to family businesses. The regional restriction could therefore, among other
things, be a reason for the results. The evaluations could also show that the influence of ownership in the STEM
industries is even less than in other industries. The fact that this group makes up over 60 percent of the test
persons could be a further factor that contributes to the non-significant result of the total sample. However, it is
also important to realize that the communication of ownership seems to play a less important role in the IT
industry.
Taking the personality traits into account, the strong correlation between these traits and the perceived
attractiveness of family businesses is demonstrated, but no clear differences could be found between job
descriptions with communication of family influence and those without. Since Highhouse et al. (2016) already
assumed effects in this direction, this might be traced back to the sample size. To achieve a meaningful result and
15
to be able to draw conclusions from it about the general public, a population of at least 500 people should be
aimed for. On the other hand, the onesided perception of the type of company just described and the regional
restrictions could also play an important role.
With regard to company characteristics, it was examined whether the participants in this study associate
family businesses with higher job security or fewer opportunities for further development, as has already been
confirmed in the literature (Arijs et al., 2018; Hauswald et al., 2016). The study results show a link between family
businesses and more job security across the sample, and even more so in the STEM sector than in the other
sectors. However, the subconscious connection of family businesses with fewer opportunities for further
development could only be found in test subjects from the STEM areas as well.
Finally, the results will be summarized to answer the question to what extent the communication of the
ownership structure moderates the influence of personality traits on the attractiveness of family businesses from
the applicant's point of view. The results of the regressions show a positive relationship between perceived job
security, opportunities for further development and attractiveness. The essential influence of personality traits
(especially extraversion and openness to experience) on the employer attractiveness could also be demonstrated.
Extroverts, as well as people who are very open to experience, are more critical of their potential employer and
therefore tend to rate the company as less attractive. As these results are obtained by evaluating the responses
from group A (manipulated by communicating family influence) and group B (no communication of ownership
structure, but strong reference to family businesses), they apply in particular to family businesses. However, the
moderating effect of the communication of ownership or family influence in these relationships could not be
proven.
CONCLUDING REMARKS
This paper deals with the relationship between ownership, personality traits and employer attractiveness.
Research in the field of human resources, in particular recruiting and employer branding, will continue to be a
central topic in small and large companies in the years to come. The reason for this is the large labor shortage in
the DACH region, which is exacerbated by the increasing need for highly qualified IT specialists. With this study,
the authors stimulate research into employer branding in the IT industry and create a basis for it. The attempt is
made to give companies, especially family businesses, a better understanding of the effect of communicating the
ownership relationship on potential applicants.
In future research in this area, the focus on the IT / STEM industry is particularly important, as there is a gap
in research in this regard. The proven influence of personality traits should also not be disregarded when
increasing the sample size and carrying out similar studies again. Since the present study only deals with the
influence of the characteristics extraversion and openness to experience, it would be exciting to include the other
personality characteristics in further studies. The analysis of differences in perception in rural and urban regions
would also be important for further research. Differences between large and small companies or known and
unknown organizations could also be worked out in the future.
Another field of research is the combination of employer branding in family businesses with communication
channels that employers use to communicate with the public, especially potential applicants. These have changed
significantly in recent years and have become increasingly digitized. Coupled with the forms of communication, it
would be exciting to find out whether there are differences in perception depending on age or professional
experience. A comparative study in the generations X and Y would be particularly suitable for this, as the values
and preferences of these generations are changing rapidly. The study at hand found that the respondents were,
firstly, relatively young and, secondly, often had little or no work experience. The perception and prioritization of
16
job security and opportunities for further development could change with increasing professional experience
(Hauswald et al., 2016). Since these features influence the attractiveness of the company, a target group with a
lower proportion of young professionals could change the result. It would also be interesting to follow the
development of the applicants' perception even after they have joined the company, because matching
characteristics and values also lead to more positive work results in day-to-day work (Cable & Judge, 1996).
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20
Journal of HUMAN RESOURCE MANAGEMENT, vol. 25, 1/2022
A Study of the Recruitment and Selection Process in the ICT

Sector: the HR Perspective and Creating Advantages
study will be especially important for IT
managers to gain additional knowledge on job
Hristova Snezhana
redesigning, integrating information on job
design in recruitment and selection processes
and executing them to ensure that good HR
policies are developed. It also provides the
readers with an understanding of how HR has a
ABSTRACT
significant role in the overall performance in
Purpose - The purpose of the research was to identify the methods and techniques the organization. through introducing up-
relating to IT workforces when they search for new career opportunities, and the ways todate scientific research in the same field.
in which HR departments can create advantages through IT workforces.
Aim(s) - This paper is based on a study of the relevant facts that IT personnel deal with
when trying to find their desired workplace.
Design/methodology/approach - The research was conducted via a structured 1 INTRODUCTION
questionnaire sent to 100 ICT professionals in IT companies of different sizes (small,
medium and large companies) registered in North Macedonia.
Practical implications – This research provides possible answers to questions such as KEY WORDS
the extent of use of social media by ICT professionals as compared to headhunting in
the process of job searching; preferred recruitment methods; information availability as recruitment, selection, management, ICT
a challenge through the recruitment process; and the importance of organizational
culture and learning opportunities within the company versus the importance of salary. JEL Code: M12, M51, O15
In this way it contributes to the scientific body of knowledge in the context of Human DOI: 10.46287/jhrmad.2022.25.1.4
Resource (HR) practices and perspectives.
Findings - Recruitment and selection are of high importance for competitive advantage
in the dynamic and growing ICT sector. Digital platforms and social media play an
important role in attracting ICT talents etc. Originality/value - The implications of this
The recruitment and selection process is of invaluable importance to the prolonged success of any company. In
order to confirm the significance of this process, the first section will focus on an analysis of the related academic
literature detailing this. According to Argue (2015), the importance of strategic recruitment and the selection
process on meeting an organisation’s objectives’ recruitment and selection process lies at the heart of the way
the business perceives the human resources needed to maintain a competitive advantage over its rivals.
Hristova Snezhana /Journal of HRM, vol. 25, 1/2022, 42-51
Assoc. Prof. Snezhana Hristova, School of Business Economics and Management, University American College
Skopje, Skopje, North Macedonia, e-mail: shristova@uacs.edu.mk
The recruitment process includes the procurement, advertisement and interviewing of future employees,
followed by staffing and training new employees in their new role. Based on Owusu’sAnsah and Kwabena (2014),
recruitment is any process for which an organisation seeks applicants and recruits potential employees, while
selection refers to the process by which an organisation selects applicants with the expertise, abilities, skills and
other features that will help it achieve its objectives.
This paper is an investigative study of the impact of the process of recruitment and selection and the most
important factors ICT professionals look for when searching for new job opportunities Additionally, it details
which recruitment approaches are more suitable for ICT professionals and what makes individuals leave their
current workplace based on insights of the ICT sector in North Macedonia. For a company to develop and achieve
its goals, it is significant to hire qualified individuals for the appropriate position. In fact, recruitment and selection
are becoming increasingly relevant, as companies become more aware of the need for its process in order to
target relevant objectives, as well as to encourage competitive advantage.
The main objective of the research is to determine the most important factors in ICT professionals’ search for a
new job opportunity, which recruitment approach is more suitable and the reasons for them leaving their current
company. The purpose of this research is to provide answers to the following questions: 1) to what extent is the
use of social media by ICT professionals compared to headhunting in the process of job searching a viable
alternative; 2) is recruitment via social media and e-recruitment more preferred than recruitment through hiring
agencies; 3) is lack of information perceived as the most important challenge through the recruitment process by
the candidates; and 4) do ICT professionals in North Macedonia consider that the organisational culture and
learning opportunities within the company are more important than the position’s salary?
2 LITERATURE REVIEW
According to Boxall and Parcell (2011), the HR role has become constructive, descriptive, and executive in recent
years, while it had been reactive, prescriptive, and administrative in the past. The essential mission of human
resources will always be to attract, grow and retain talent, to align the staff with the company and to be an
outstanding asset to the business (Gubman, 1996). Authors like Stroh and Caligiuri (1998) argue that any company
should have a future-oriented strategic human resources department, especially considering that employment
patterns in the last few years have changed drastically. Teague et al (2015) argue that certain individuals have
accepted a lifelong workplace in the past, whereas job seekers of today have career goals and are eager to change
workplaces in order to achieve them. Armstrong (2012) claims that the overall objective of the recruitment and
selection process is to achieve the number and quality of workers required to meet the organisation's human
resource needs while maintaining a minimum cost. Additionally, one could argue that hiring and keeping a
dedicated workforce is the hardest component in every industry or sector, since job seekers gather information
about organisations and current job offers by relying on incomplete signals, given that they cannot obtain a
complete knowledge of all alternatives and their possible characteristics (Owusus-Ansah, Kwabena, 2014).
Therefore, to maintain a competitive advantage for a company, each step in the recruiting and selection process
requires careful consideration and time. Decisions taken during the recruitment and selection stage will have a
potentially-significant impact on the company. This is especially true for ICT professionals (software developers,
QA engineers, ICT consultants), who are currently among the most important and abundant workers to consider.
The ICT Industry in North Macedonia is growing mainly due to comparatively lower workforce costs, European
culture and English language literacy, young but skilled workers, knowledge of various technologies and the
43
capacity of operating emerging technologies. ICT workers are also the most fluctuating employees on the market,
and this is one of the key challenges for ICT organisations (Privacy Shield Framework, n.d.).
According to Armstrong and Taylor (2014) recruitment and selection process comprises ten stages: defining
requirements, attracting candidates, sifting applications, interviewing, testing, assessing candidates, obtaining
references, checking applications and offering employment. According to the same authors, the key selection
criteria are knowledge, skills and abilities, behavioural competence, qualifications and training, experience,
specific demands and special requirements. However, with the rise of ICT and the application of integrated
management systems in business operations, the HR function has also shifted to e-solutions. According to Jones
et al (2002), e-recruitment is not simply about adding another medium to the recruitment process; instead,
recruitment is taken to a different level when matching employees and employers. The advantages of online
recruitment are that it can 1) reach a wider range of possible applicants; 2) it is faster and cheaper than traditional
advertising approaches; 3) it allows for more work descriptions and companies to be presented on the web; and
4) it allows for the ability for CVs to be matched and applications to be submitted electronically. Social media at
the same time also changes recruitment, and is likely to become one of the most significant new ways of
recruiting employees. The companies that manage to integrate their eHRM with social media will ultimately be
able to obtain a competitive edge in the industry.
As stated earlier in the paper, ICT is one of the sectors with the highest employee turnover rate, thus stressing the
importance of employee retention. The research of Gaylard and Sutherland (2005) establishes that the three
factors perceived to most affect the retention of ICT workers are, in order of importance: 1) equity and
enablement for high performance; 2) a liberated and empowered culture; and 3) an effective and interactive
communication channel between management and employees. The 2018 Global Developer Insights Report by the
Stack Overflow online developer community shows that compensation was at the top of the men's list; yet,
internationally, women found the office environment and corporate culture to be more important to them than
salaries when considering a new career. To businesses looking to boost their demographic diversity, this is
especially worthy of note.
Technology expertise drives innovation and market growth in the twenty-first century, making competition for top
talent intense. In reality, IT pros are getting twice as many LinkedIn messages versus the average LinkedIn user,
and software engineers are getting more than twice as many (Zdravevski et al, 2016). By 2030, the shortage of
workforce skills would hit 4.3 million jobs, or 59 times the number of employees of Alphabet, Google's parent
company. According to a recent research by Korn Ferry's all-important technology sectors, The Global Talent
Crunch, India is projected to have a skilled labour surplus of around 245.3 million workers by 2030, making it the
only country expected to have a surplus, owing primarily to its vast supply of working-age citizens and
government programmes which boost workers’ skills (Korn Ferry, 2018).
3 ICT SECTOR IN NORTH MACEDONIA

The ICT sector in North Macedonia is growing rapidly, as is the global industry. In 2019, the number of registered
ICT companies in North Macedonia grew 8% compared to 2018. The number of employees in ICT companies in
2019 was 7% higher than in 2018. In 2019, the total contributions paid by the ICT industry for 15.514 employees
for pensions, health insurance, and insurance in unemployment would settle the contributions for 49.709
employees in industries receiving minimum wage (Epicentar Study, 2020). Additionally, according to official data
published by the State Statistical Office, employers in the ICT industry paid 97.781 MKD average gross salaries per
employee in February, 2020, compared to 85.380 MKD for the same period in 2019, with a continuous increase
reaching 14%. Overall, ICT is an important sector for driving economic growth in North Macedonia. ICT personnel
demand is increasing across all industries, and finding and retaining appropriate personnel impacts the
competitive advantage of companies.
44
From the perspective of HR management, the study reported in IT.mk, namely “Mapping the IT industry in North
Macedonia 2019”, is of importance. It details that developers seem to be mostly bothered during the recruitment
process by lack of information about a certain role, as well as by the long and slow process of interviewing.
Additionally, the primary aspect they consider when choosing an employer seems not to be the salary, but the
likelihood of learning, increasing, enhancing and improving their skills. Furthermore, developers in the workplace
are mostly affected by weak internal structure; a frustration they communicate mainly through direct
conversation with superiors. Lastly, many developers search social media for information on job offers (it.mk,
2019).
4 RESEARCH METHODOLOGY
The research was conducted in September 2019, via a structured questionnaire conducted on 100 ICT
professionals in IT companies of different sizes (small, medium and large companies). The questionnaire was sent
to 100 persons, 62 of whom responded online via LinkedIn and by using google forms. According to a study done
by JobVite, a recruitment software corporation, 87% of recruiters use this professional network every day as their
main communication tool (Jobvite , 2015). The questionnaire is organised in two blocks:
- The first part consists of demographic data questions (gender, age, type of organisation, job position, size
of the organisation). The questions were answered by choosing one or more possible answers provided;
- The second part concerns the recruitment process and how ICT professionals prefer to be approached
and communicated with during the process. The answers were on a 5-degree scale, with 1 representing the
lowest and 5 representing the highest degree.
Before starting the data analysis, several preliminary data processing steps were undertaken to ensure their
accuracy and completeness. These were: 1) data checking to see if the feedback from the respondents was in
function of the survey; 2) data editing to detect and correct illogical and irrelevant data, as well as assigning a
number of responses to the participants so that the data was ready for statistical data entry; and 3) data
processing and data presentation.
5 RESEARCH RESULTS
The demographic data of the respondents is presented below. Firstly, figure 1 shows that 65% of the respondents
are male and 35% are female:
35%
Male Female
65%
Fig 1. Gender of respondents
Continuing, figure 2 shows the age of respondents, where 83.9% or 52 respondents are aged 20 to 30 years, and
16.1% or 10 respondents are aged 31 to 40 years. There are no respondents from 40 or above, which further
reflects on the younger-age pattern of the ICT industry.
45
Fig 2. Age of respondents
Regarding the type of company from the aspect of ownership structure that the individuals are employed at,
46.8% of the respondents work in a company which is a partnership between a Macedonian and a foreign
company, 43.5% work in a company of a foreign ownership, and 9.7% work in a company of Macedonian
ownership. This reflects on the internationalisation of the ICT sector and the numerous career opportunities for
employees within the sector.
Fig 3. Type of company based on ownership structure
Figure 4 presents the companies based on their size. 17.7% of the respondents work in a company with up to 10
employees, 30.6% work in a company with 11 to 100 employees, 45.2% work in a company with 101 to 500
employees and 6.5% work in a company with more than 500 employees. This shows that ICT companies are
growing organically, presumably due to foreign investments and access to foreign clients.
Fig 4. Size of companies based on number of employees
The respondents included in the research are employed in different job positions, which is shown in Figure 5.
45.2% of the respondents are fullstack developers, 11.3% are QA developers, 11.3% are backend developers, 4.8%
are system administrators, which is the same percentage as frontend developers, 8.1% are DevOps engineers and
14.5% have job positions different than the options offered. This shows the dominance of full-stack developers
and a somewhat equal distribution among other job positions.
46
Fig 5. Job positions
The second block of research questions is related to the recruitment process and the ways in which ICT
professionals prefer to be approached and communicated with during the process. Various tools and
communication channels are available to ICT professionals when searching for a position. The research, as
presented in Figure 6, shows that 30.6% of the respondents were approached by the internal recruiter and they
started to work in their current company. The second approach is by referral and forms 22.6% of the respondents.
Following that is social media with 14.5%, and then by way of a career website follows with 12.9%. Lastly, 3.2% of
the respondents indicate recruitment through the company’s website, through an external recruiter or through a
recruitment agency. Some of the respondents indicated other approaches such as a job fair, a referral from a
friend or a professor, etc.
Fig 6. How respondents found out about the company they work in
Continuing, the following table presents the approaches for searching for a new job opportunity by ICT
professionals:
Table 1. Where ICT professionals search for new job opportunities.

1 (low) 2 (lower) 3 (neutral) 4 (higher) 5 (highest)
Social media 7 9 16 14 16
Approaching recruiters 12 12 14 5 9
Wait for a recruiter to approach me 13 14 16 11 8
Companies' sites 3 6 16 21 16
Employees to be referred 1 8 13 21 19
Career website 8 2 18 12 22
47
The highest scores of respondents are on career websites, referrals, social media and corporate websites, which
clearly show that companies have to be proactive and digitized in the HR field if they aim to recruit the best
candidates.
Furthermore, maintaining a focused recruitment process is of high importance for keeping candidates’ attention
and involvement in the process. Table 2 presents the factors that would cause job seekers to withdraw from the
recruiting process.
Table 2. Reasons would cause ICT professionals to stop the recruitment process,
even if they believe that the role is the right one
Lack of information regarding the role
0 3 14 27 18
Lack of information regarding the salary

0 3 17 16 26
Lack of information regarding the

0 10 19 16 17
company
Lack of information regarding the
3 12 30 11 6
reinforcement system
Unprofessional attitude of the
1 4 8 12 37
interviewers
Unprofessional attitude of the recruiter
0 5 12 13 32
Complicate way of applying – to much

7 13 18 11 13
documents
No user-friendly system to send an
7 18 20 12 7
application and attach CV
Lack of immediate feedback between the
2 10 22 16 12
application and 1st interview
Waiting too long for feedback between the
2 8 15 15 22
interviews
An unprofessional attitude of recruiters and interviewers, along with a lack of fundamental information, are
identified as key factors for withdrawing from the recruitment process. If companies want to excel the
recruitment process, they have to focus on staff professionalism, information flow and proper information
packages and simple user-friendly platforms. These were the key factors identified by respondents. Additionally,
the length of the recruitment process, from application until the final offer, is another factor that may cause
candidates to withdraw from the recruitment process. Figure 7 shows that the current employment environment
is dynamic, and companies have to adapt their internal procedure if they aim to attract and employ the most
qualified candidates. The expected length of the recruitment process, as answered by the respondents, is
predominantly between 2 and 4 weeks.
48
Fig 7. Expected length of the recruitment process by the candidates
The high employee turnover rate in the ICT industry is additionally related to the factors that can cause employees
to leave their current company and to join another. Table 3 shows the answers to a significant question: if you
were to look for a job at another company, what would be the most important factor for you in making the
decision?
Table 3. Factors influencing personnel to leave their current company and join another.
Company's reputation 1 5 9 29 18
Salary 0 2 10 21 29
Clear vision of how I would
0 1 14 19 28
develop in the company
To be working on challenging
0 0 6 24 32
projects
To be working with latest
0 2 11 26 23
technologies
Friendly working atmosphere
0 0 9 17 36
Fun activities at the workplace

4 15 17 15 11
Clear system for bonuses and

1 5 14 27 15
recognition
As shown, salary is among the highest, but still not the highest ranked factor by respondents when deciding to
leave their current workplace and to join another company. Aspects such as work atmosphere, challenging tasks,
remaining in touch with new technologies and a vision for personal development are among the key factors.
6 DISCUSSION OF RESULTS
From the research results, we can draw the following findings:
- Recruitment and selection are of high importance for competitive advantage in the dynamic and growing
ICT sector;
- Digital platforms and social media play an important role in attracting ICT talents;
- Lack of advancement potential (sources of training for new technologies) and looking for new challenges,
alongside professional growth, are key factors in an ICT employee leaving their workplace;
- Companies should create a flexible and pleasant-working atmosphere, as well as starting challenging
projects utilizing the latest technology if they want to retain ICT employees longer in their company;
- Salary also plays a crucial role, because it is nevertheless a huge motivator;
49
- Career websites and referral from another employee are the best channels where individuals in the IT
sector from North Macedonia search when they need a new career opportunity;
- Unprofessional attitude from interviewers and lack of information will make IT employees leave the
recruitment process;
- The recruitment process should take around 2 weeks;
- Recruiters and referral by an employee from their current company are top recruitment tools;
- Most appropriate methods for attracting and hiring the best ITC professionals are LinkedIn, social
networking events related to the sector, employee branding through product development, referrals as
well as maintaining a positive reputation of the company;
- Companies can create a competitive advantage through the process of recruitment if they focus on time
management, as well as a fast recruitment and selection process for filling in positions;
- If the company is international, it will need to create a cultural recruitment strategy by maintaining
different strategies for different roles and locations.
7 CONCLUSION
Strategic management requires organisations to adapt their business processes and resources over the long run
to adapt to the changing environment of new technologies and human behaviour. According to Johnson and
Scholes (1999), managers need to recognize their organisations’ rapidlypaced and versatile environment.
In this sense, recruitment and selection, as well as training and development, are important and significant
elements, and keeping up to date with new technologies and developments in any industry is invaluable, but this
is especially true in high-tech industries such as the ICT industry. It is necessary to devote a sufficient amount of
resources, both in terms of time and finances, to the recruitment, selection and retention of high profile and
scarce human resources, which are a prerequisite to building and maintaining a competitive advantage.
Furthermore, a strategic approach to human resource management and commitment to a suitable corporate
culture which promotes core values dedicated to high performance is of high importance to attract, grow and
retain talent; to align the staff with the company and to be an outstanding asset to the business.
Finally, human resource management must be able to assist the company in putting the qualified individual in the
appropriate position in order to become and remain a high-performing organization. The methods in human
resource management include recruiting, selection, deployment, assessment, training and development,
compensation and benefits, and ultimately the retention of an organisation's employees.
The research findings can contribute toward two objectives: to provide a better understanding of the HR process
and to help IT managers to design better recruitment and selection policies and practices and as well to utilize the
results in their managerial practice. Overall, the study is limited to analysis in the IT industry build upon the
literature review and survey based analysis. The framework can be conducted in other industries or countries by
adding some statistical analysis to be able to compare data and offer deeper insights of the relevant topic.
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51
Journal of HUMAN RESOURCE MANAGEMENT, vol. XXIV, 2/2021
The role of human resources practices and the mediating effect of innovative
capacity on the growth of Vietnamese enterprises motivation factor, etc., to develop and enrich the
study model. Practical implications – The role of
HR management and innovative capacity are the
crucial factors that affect the enterprise growth.
Vuong Khanh Tuan Therefore, Vietnamese enterprises should
reference, practise and apply this valued knowledge
to support their overall change to survive, adapt
and develop within the new era.
ABSTRACT Originality/value – The results have also indicated
Purpose – In today’s competitive global market, Vietnamese enterprises are faced with highly that the administrators of Vietnamese enterprises
competitive rivals, including not only domestic corporations but now multinational corporations as in Ho Chi Minh City have good perception in
well. The role of human resources and their constant innovation are considered significant factors in applying HR practices and improving innovative
supporting the survival and continued growth of Vietnamese enterprises. In this new era, HR capacity, which will support enterprise growth. The
management is required to promote and strive for innovative development and disseminate its outcome of the study will contribute valuable
implementation within enterprises. knowledge to the field of human resources and
Aim(s) – This empirical study examined the role of human resources practices (training and contribute to further research.
development (TD), leadership skills (LS), compensation and benefits (CB) and talent acquisition (TA))
and the mediating effect of innovative capacity (IC) that leads to the improvement of the growth of
Vietnamese enterprises (EG).
Design/methodology/approach – The empirical research study used questionnaires for data collection INTRODUCTION
and the rest of the study was conducted using quantitative analysis on 398 suitable samples utilizing
the convenience technique and the findings and conclusions of the outcome study using exploratory
factor analysis (EFA), confirmatory factor analysis (CFA), and structural equation modelling (SEM).
Findings – The findings showed that the mediating role of IC greatly and positively impacted enterprise
growth (EG). Meanwhile, TA strongly impacted on IC towards EG. The second strongest factor affecting KEY WORDS
IC towards EG was CB. The third strongest factor affecting IC towards EG was LS. The fourth strongest
compensation & benefits, leadership skills, talent
factor affecting IC was TD. Additionally, the supporting factors in human resources practices (TD, LS, CB,
acquisition, training & development, innovative
TA) and the mediating role of IC have a great positive influence on EG. Limitations of the Study and
capacity, enterprise growth
Future Research- Due to the time and the financial term, the research has many limitations in this
study. Firstly, the researcher only collected data from around HCMC, meaning that there is a need to
widen the collection in Vietnam to have a full snapshot of the HR knowledge and innovation capacity
for enterprise development. Secondly, there is a lack of comparison. In the future, further studies
should study individual industries to reference and compare the different outcomes of research. From JEL Code: J2, J20, J24
these outcomes, the solutions will be relevant for HR strategies for Vietnamese enterprises. Lastly,
there is a limitation in the factors studied. Future research could study additional factors such as salary,
Human resources (HR) today plays a critical role in all organizations. Constantly increasing numbers of organizations
are focusing on human resources as a means of enhancing its competitiveness (kareem and hussein, 2019).
According to Bakator et al., (2019) have noted a tangible relationship between suitable human resource
management (HRM) and the enhancement of its business performance. The HRM literature suggests that the
higherperforming organizations are related to the effectiveness of its implemented HR policies (Le et al., 2019).
Additionally, when entering international integration, there is stronger competition applied to the local enterprises
by its rival
Vuong Khanh Tuan / HUTECH University, Binh Thanh District, Ho Chi Minh City, vk.tuan@hutech.edu.vn
international enterprises. To adapt with the fast ever-changing global environment, there is a need to change the
mindset for attracting and acquiring new talent in any business organization.
53 Vuong Khanh Tuan/Journal of HRM, vol. XXIV, 2/2021, 01-47
According to Nguyen and Dinh, (2019), developing high-quality human resources is a significant factor in
determining the suitable process of socio-economic growth and development. People need to be at the center of
the development strategy whilst concurrently be the subject of development itself. According to Le et al., (2019),
Continued Empirical research and studies on HRM is noted, and the recent era of the adoption and development of
people management processes in Vietnam. The current studies provide a logical comprehension of the development
of the HRM/ HR process and its research in Vietnam over 30 years. Additionally, it is seen as a requirement for
organizations to implement suitable human resource development strategies to enhance its workforce
competencies, assisting with functional effectiveness (kareem and hussein, 2019). Innovative and developed human
resources will provide a conduit in delivering the overall key-values to any organization. Human resource
development is critical in achieving a sustainable competitive advantage over its rivals and improving the internal
efficiencies of enterprises (kareem and hussein, 2019). Therefore, enterprises are required to focus, develop and
provide innovation to the critical areas of the workforce to strive for greater achievements in its management of; the
business, operations and manufacturing sectors.
There are a significant number of earlier published results of classic economic theory, that identify the beneficial
relationship of human resources (HR) has impacted the enterprises growth (Vlachos, 2009). Recent analysis on
enterprises revealed the relationship of human capital and growth which has attracted the focus of researchers
(Vlachos, 2009). An enterprises growth is often seen as the validity of market acceptance and the enterprises success
(Vlachos, 2009). Therefore, to realize success in a competitive market, human resources and its innovation capacity
is a significant contributor in assisting the enterprises development and sustainability. With the advent of
globalization and its inherent rapid-changes within the business environment, effective and efficient employment is
becoming one of the key-objectives and goals of any organization (kareem and hussein, 2019). In today’s
competitive business climate there are many issues relative to its employee; finding a method of attracting the most
suitable and competent people, developing overall strategies, employee retention, and sustained motivation. This
will assist the enterprises development and enhance its success.
Research has noted that 84% of senior management conclude the businesses future success is dependent on the
level of innovation applied (Kylliäinen, 2019). When applying innovation, it provides additional benefits to the
enterprises to maintain its the competitiveness in the markets, and is a significant contributor to economic growth.
Its ability to resolve critical problems is dependent on adopting new positive innovations, it has a significant impact
on developing countries (Kylliäinen, 2019). According to Nguyen and Dinh, (2019), it is noted that the current level of
trained workers is very low, the quality of the training is not suitable, given this status the effective use of its human
resources is still not suitably productive, imposing a significant negative effect on Vietnam's economy. Additionally,
according to Le et al., (2019), currently there is significant interest in the strategic investment in HR and its HRM
within Vietnamese enterprises. New personnel management (PM) and human resource management (HRM)
processes have been implemented to replace the former HR strategies and processes to assist the Vietnamese
enterprises achieve higher-levels of competitive advantage utilizing enterprise-level management reform strategies
(Le et al., 2019). Therefore, Vietnamese enterprises need to strive for improvement in its human resource processes
and implement an innovation approach to adapt with the current market and achieve its competitive advantages.
There is a need to research and review “actual” implemented HR practices, this research can provide positive
information to enhance its sustainable performance within Vietnamese enterprises (Le et al., 2019). Based on the
synthesis information above, this article will analyze the role of human resource practice and adopt the innovation
capacity as a mediating on the Vietnamese enterprise growth. This study will provide the valuable knowledge to
assist the Vietnamese enterprises that require the enhancement of its human resource structure to adopt the
benefits, develop sustainably and added success into the new era.
53
LITERATURE REVIEW
2.1THE ROLE OF HUMAN RESOURCE PRACTICE RELATIVE TO THE
DEVELOPMENT OF VIETNAMESE ENTERPRISES
Human resources development is commonly studied by several international researchers (Pham & Pham, 2019).
According to Nadler (1984), Srivastava (1997), it is noted that human resources incorporate, physical skills,
intellectual skills and the occupational skills of individuals. According to Anwar & Abdullah, (2021), “Human resource
management includes tasks like HR preparation, human resources management, strategic recruiting, employee
training, growth compensation management, efficiency, worker relations, health care, employee satisfaction as well
as provision of employee services”. Human resources are referred to as the most significant factor for impacting and
enhancing the overall processes within enterprises. Therefore, to develop and achieve the benefits for the
enterprises, there it is critical to improve the quality of its human resources.
According to Ejim (2021), the difference between human capital and human resources is that “Human Resources are
focused on the job performed by people, human capital is more concerned with the abilities and training people
possess”. He also indicated that “Human capital is the measure of capabilities and skills the human resource
department requires from prospective employees”. Additionally, according to Le et al. (2019), the key elements of
HR processes are: continuous training and development, performance-based pay systems, the internal
decentralization of recruitment and staffing, and the utilization of line managers, which have been implemented in
many organizations, including both foreign and state-owned enterprises and local private enterprises. A few notable
exceptions still retained traditional people management processes that focused on harmony, hierarchy and
relationalbased commitments.
According to Navigos, (2018), it is noted that Vietnam has been recognized as a country-rich in valuable labor
resources with a predominately young population. However, it is witnessed by many larger international enterprises
in Vietnam are currently faced with difficult issues in the recruitment of a suitable volume of skilled and competent
staff. The Vietnamese enterprise need to improve its competitive advantages, its branding and to provide its HR
strategies incorporating an array of quality benefits and compensations.
2.2THE REVIEW OF THE ENTERPRISES GROWTH
Tehseen and Sajilan, (2016), it has become apparent over many years that an enterprises progressive is an active
topic of discussion and research study. The resulting impact of the enterprises strategic strategies contribute heavily
to the its future growth, enhancing its abilities as a superior business, realizing increased profits and increased
volume of employees and the opportunity for the expansion of business operations (Tehseen and Sajilan, 2016).
Additionally, HR is a significant core-factor in supporting the enterprises continued development and growth.
According to Vlachos, (2009), an enterprises growth as compared with the industry’s average in the nominated
elements; perceived sales growth, perceived market share growth, perceived overall improvement and perceived
firm growth. In this empirical study, it applied to measure the enterprises growth include; perceived sales growth,
perceived market-share growth, perceived overall improvement and perceived firm growth, and a growth the
workforce within the firm.
2.3THE KEY-FACTORS OF HUMAN RESOURCE PRACTICE
2.3.1 COMPENSATION AND BENEFITS (C&B)

The term of compensation and benefit (C&B) are widely used in the HR industry. Performance-based compensation
is predominately the accepted practice that enterprises use when evaluating and rewarding its employee’s
successful efforts in their assigned tasks (Vlachos, 2009). The use if compensation is attractive in differing ways to
54
each employee (Lyria, Namusonge and Karanja, 2017). C&B has a significant effect on an employee’s satisfaction and
their retention with its enterprises.
C&B translates work values into actual values, converting them into salaries and other benefits applying the
appropriate calculation scale for its employees. Additionally, fixed salaries such as contractual agreements,
allowances, insurance, business bonuses, etc. will also be aggregated, ensuring employee benefits are fully
implemented in accordance with company regulations and legal policies, etc.
When considering effective compensation strategies and processes they must be aligned with the enterprises
objectives (Vlachos, 2009). C&B is a significant contributor enabling the enterprises activities to align with the
current market objectives. They are analytical, measuring of the value of its enterprises, proportionally converting
them into practical a value. At the same time, C&B provides the Board of Directors an interim period in which
analysis and review of its status for each period to implement solutions to enhance its; productivity, promote
employee morale for completing the assigned tasks successfully. Therefore, based on the synthesis information,
there is a significant relationship between Compensation and Benefits and enterprise growth.
2.3.2 LEADERSHIP SKILLS

According to Tran and Le, (2019), leadership skills are considered the highly significant for enterprises, leadership
skills are key-elements when evaluating a leaders’ abilities. Leadership is the most influential element in the
relationship between leaders and followers when considering implementing change, Leadership is the ability to;
influence, motivate, and empower others to actively contribute toward the effectiveness and success of its
enterprise (House et al., 1999), leadership is the process when influencing others to comprehend the defined
process and collectively focus on completing the tasks to be implemented, whilst facilitating individual and collective
efforts in the accomplishment of the collaborative objectives (Yukl, 2013).
According to Tran and Le, (2019), skills are the ability to activity perform and contributes to the overall effectiveness
and higher-performance of an assigned task. Additionally, the definition of a skill refers to its ability to complete
something in an effective manner, with predetermined levels of its skills, ranging from general, broadly defined
abilities with more limited or specific abilities. Leadership skills in this paper mean leaders’ skills and they are the
abilities to do something in an effective manner to perform the leadership role.
Katz (1955) has identified three skill factors required by leaders; technical skills, human skills, and conceptual skills.
Technical skills include the overall knowledge about systems, methods, processes, procedures. Additionally,
techniques for conducting a specialized activity and the ability to use tools and relevant equipment. Human skills
include knowledge about; human behaviors and interpersonal processes, the ability to understand feelings and
emotions, attitudes, and interprets motives from others in what they say and do, the ability to communicate clearly
and effectively, and the ability to establish effective and cooperative relationships. Conceptual skills involve; general
analytical abilities, logical thinking, proficiency in concept formation and conceptualization of both complex and
ambiguous relationships, creativity the generation of ideas and problem solving, ability to analysis occurrences and
perceived trends, forecast changes and review opportunities and potential issues.
2.3.3 TRAINING AND DEVELOPMENT

Training and development has a significant impact on an enterprises performance (Vlachos, 2009). The training will
provide current skills levels to fill the knowledge gap of employees and contribute support for its enterprises
progressive innovation and future development. Realizing the significance of developing its employees, providing
significant investment in up-skilling to a higher-quality of its human resources, not only to cater for the domestic
market demands but also displays to the international markets its targeted position it is striving for in the constant
advancement of global economic integration process (Nguyen & Dinh, 2019). Therefore, the role of human resource
training and development and its strategies to implement, is a vital to contribute support for the enterprises to
develop and enhance its growth.
55
According to Nguyen and Dinh, (2019), Training and the development of a highly-skilled and professional workforce
will significantly improve the overall efficiency of its human resources. The process of promoting knowledge and
development of new and current up-skilling, improving the quality of its employees, promoting innovation in its
scientific and technical achievements, adopting new technology, ensuring positive progress of different industries
and sectors.
Training and Development provides enterprises with higher-level of quality human capital assets and providing
improved contributions to its competitiveness. Training is considered to be a strategic asset of enterprises,
enhancing its competitiveness against market rivals. Currently, training and development are considered an
investment in the enterprises human value. The effectiveness of newly trained employees is required to be on
similar levels with that of other long-term and experienced employees. Concurrently, employee training creates
benefits that are an investment in both its current and future capacity. Compounding economic research is providing
similar outcomes verifying that the investment in training will provide long-term benefits and sustainable
profitability for the organization. Therefore, based on the synthesis analysis, there is a significant relationship
between Training and Development and enterprise growth.
2.3.4 TALENT ACQUISITION

The management of its talent requires ensuring the right people are in the right jobs. This allows employees to
maximize their talent providing optimal success of the enterprise (Lyria, Namusonge & Karanja, 2017). The
recruitment and selection process requires enterprises to utilize several innovative processes or techniques in the
selection of the most suitable talent that reflects the culture and value of its enterprise (Armstrong, 2006). The
increased probability factor of attracting and securing the suitable candidate, is dependent on the how the
enterprises values are perceived by the candidate (Lyria, Namusonge & Karanja, 2017).
Determining factors of talent management include; talent attraction, talent retention, learning and development
and career management. These factors within the overall processes must be designed and suitably developed to
meet the standards and strategic requirements of the enterprise. To be successful the talent strategy must be
aligned with the organizations business strategy. The alignment of its talent strategy with business strategy is
applied in many enterprises (Lyria, Namusonge and Karanja, 2017).
Highly effective elements relating to talent attraction are; recruitment and selection, employer branding, employee
value proposition and employer of choice (Armstrong, 2006). Acquiring talent is defined as the process for
identifying and acquiring suitably skilled workers to meet the requirements of its enterprise. The talent acquisition
team is purposed in identifying, acquiring, assessing, and hiring candidates to fill the relevant open roles within an
enterprise. Employer branding, future resource planning, diversifying a company’s labor force, and developing a
robust candidate pipeline are the cornerstones of talent acquisition.
INNOVATION CAPACITY
According to Mpando and Sandada, (2015), the mediating role that innovation contributes between the business
networking and performance relationship. Innovation is seen a key-element for enhancing its competitiveness,
which will develop the long-term growth of the enterprises in the current ever-changing business environment.
Enterprises are required to constantly strive for enhancing its capacity of innovation and creativity to survive and
develop.
Innovation is the development and the implementation of a; new or significantly improved product (good or
service), or system process, a new approach to its marketing, or a new managerial process in business practices,
workplace structure or external communications (Mpando & Sandada, 2015). Additionally, considering its internal
56
factors, concepts, new ideas, and review to innovate all originate from the transfer of knowledge among its
employees at all levels throughout the enterprise (Distanont et al., 2012). According to Kerr, (2015), Innovation and
striving for new beneficial business opportunities is vital for the enterprises continued growth. Moreover, it provides
a base for the economy to achieve enhanced-levels of technological achievements, productivity, and ultimately its
overall prosperity. Innovation is definition as the implementation of something new. If there is no innovation, there
isn’t any new developments, and without anything new, there is no enhancement of progress. If an enterprise isn’t
making any positive progress, it is not maintaining is status in the current competitive markets (Kylliäinen, 2019).
According to Tehseen and Sajilan, (2016), investing in innovation for the enterprise will determine the outcomes of
its overall business performance. Innovation is evident as a key-reason for survival in the current environment.
Although innovation has some adverse side-effects, but change is inevitable and in the majority, innovation
generates positive enhancements (Kylliäinen, 2019). Innovation capacity provides, development, and enables the
implementation of new, beneficial and unique ideas including; launching of newly enhanced products, processes and
strategies for the enterprises continued success in business and gain market share. As well as enhanced leadership,
generate higher-levels of value for stakeholders, contribute to economic growth and improved living standards.
According to Ionescu and Dumitru (2015), innovation is a significant contributor generating enhanced
competitiveness relative to; growth, profitability and of the creation of enduring and beneficial values. Therefore, its
innovative capacity acts as a mediating role to support the enterprises in its development and overall success. The
enterprises that have achieved success and gained the quickest overall growth are those that have applied
innovative solutions in their daily activity. Additionally, significantly greater income and profitability has been
generated by new or quality enhanced products and services. They shall have to prove their ability to adapt to the
changes within the current business environment to maintain its current position (Ionescu & Dumitru (2015).
Therefore, the innovation capacity takes a mediating role to assist the firm development and growth.
2.4THE RELATIONSHIP BETWEEN HUMAN RESOURCES AND INNOVATION

CAPACITY TOWARDS ENTERPRISES GROWTH
Relevant literature has noted the significance of innovative practices promoting positive growth of businesses
(Tehseen and Sajilan, 2016). Various studies have revealed the contribution that innovation provides in achieving a
competitive advantage retrospectively with superior business growth performance (Tehseen & Sajilan, 2016). The
human factor is a significant contributor in innovation and the overall growth of its enterprise. A competent and
innovative workforce will assist enterprises to adopt and adapt with the changing environment.
According to Mpando and Sandada, (2015), innovative enterprises and the new processes of their implemention
relative to; business practices, external relations and the actual workplace. Additionally, HR enhancement is pivotal
in achieving a sustainable competitive advantages and promote the effectiveness of the enterprises (Kareem &
Hussein, 2019). Therefore, the role of HR and applying innovation will assist enterprises to; survive, adapt and
develop its overall business.
The employees that possess high-levels of innovation can assist in implementing new practices relative to;
conducting business, workplace process methods, decision making systems and provide new ways of managing
external relations. HR management is a systematic method that focuses at improving the overall competences of an
individual and or group via; personal or group training and development, career development, and systems
development processes to target and achieve superior performance (Garavan, 2007; Nadler, 2012; Kareem &
Hussein, 2019). Innovation can be defined as the creation of something new and implementing it successfully into
the market (Mpando & Sandada, 2015). Therefore, the human resource assets that possess the required innovation
capacity will have a positive impact on the enterprises growth.
57
METHODOLOGY
In this study, I have investigated the key factors of HR, compensation and benefits, leadership skills, talent
acquisition, training and development, as the independent variables, while adopting innovative capacity as the
mediating factor that predicts these variables and will affect enterprise growth in Ho Chi Minh City (HCMC).
A technique using data collected by convenience technique was applied to provide the data samples for the study.
The research was studied for all enterprise types in HCMC. The following data table will illustrate the number of valid
samples:
Table 1: Number of valid samples
The software SPSS 20.0 and AMOS 20.0 have been used to process the data sample for this research. Due to the
scales of measurement was developed by the previous studies and adapted to suitability with the research market,
as well as developed by researcher’s experience. Therefore, there is a need to check the reliability of scales of
measure by the Cronbach's alpha, Exploratory Factor Analysis (EFA), confirmatory factor analysis (CFA) to ensure the
valid observed variables to provide the conclusions and suggestions for this study.
The standard of the process of the Cronbach's alpha, the researcher has removed the co-efficient of Cronbach's
alpha with the corrected item – the total correlation was less than (0.5). The stage of EFA, the researcher has
removed the factor loading that was less than (0.3). Confirmatory factor analysis (CFA) will test the coefficient of
Composite Reliability (CR) and Average variance extracted (AVE).
The structural equation modeling (SEM) was applied to test the research model. Preceding this, the researcher
provided relevant conclusions as well as suggestions for the Vietnames enterprises based on the outcomes of the
study.
3.1THE CONCEPTUAL FRAMEWORK AND HYPOTHESIS OF THIS STUDY
Hypothesis
H1: There is a significant relationship between compensation & benefits and innovative capacity towards enterprise
growth.
58
H2: There is a significant relationship between leadership skills and innovative capacity towards enterprise growth.
H3: There is a significant relationship between talent acquisition and innovative capacity towards enterprise growth.
H4: There is a significant relationship between training & development and innovative capacity towards enterprise
growth.
H5: There is a significant relationship between and innovative capacity and enterprise growth.
Table 2: The observed variables for all factors
59
60
3.2QUESTIONNAIRES DEVELOPMENT
The data sample was collected from the enterprises in Ho Chi Minh City (HCMC). The initial stage was done by
referring to the previous studies to have the scales of measurement for the study as well as the self-scales of
measurement was developed by experience.
Items included in the measurement scale

The scales of measurement were applied by a sliding five-point Likert scales, (1= strongly disagree) and (5 = strongly
agree) for the factors of Compensation and Benefits, Leadership skills, Talent acquisition, Training and Development
and the mediating factor- Innovation capacity. The dependent variable was measured by a sliding five-point Likert
scales, from (1= the least growth) to (5 the most growth). The following data table will illustrate the observed
variables for all factors:
DATA ANALYSIS AND FINDINGS

4.1TESTING THE CRONBACH'S ALPHA
Table 3: Testing the Cronbach's Alpha
As noted in the data in Table 3, it is evident that, the co-efficient of the Cronbach’s alpha of all factors are greater
than (0.8). There is no factor with the corrected Item-Total Correlation with the co-efficient less than (0.5).
Therefore, the scales of measurement meet standard, the researcher has applied to the process for EFA.
4.2EXPLORATORY FACTOR ANALYSIS (EFA)
The concluding results from testing EFA, it is indicated that, Kaiser-Meyer-Olkin (KMO) with the coefficient is (0.914
>0.5). Additionally, the Bartlett's Test of Sphericity produced the statistical meaning with a sig. of (0.000< 0.05); All
the observed variables have the mutual correlations overall with the data. The result of data analysis shows that, the
average variance extracted was (66.366 >50%). Additionally, there are the separated factor that shows in the
Rotated Component Matrix. All the factor loadings with the coefficients are greater than (0.5). The individual factor
has the different meaning and there has no correlations with other independent factors. Therefore, the process of
EFA meet the standard requirement.
4.3CONFIRMATORY FACTOR ANALYSIS (CFA)
Table 4: The result of indicators for CFA
61
The result of CFA shows that, CMIN/DF = 1.621 (< 2), TLI and CFI are greater than (0.9), and RMSEA = 0.040 (< 0.05),
P= 0.000 < 0.05 meaning the model was significant. Therefore, the model has validity with the empirical review and
research data. In order to achieve significant results, the researcher considered additional factors relative to the
reliability of the scales of measurement (Cronbach’s alpha, CR, and AVE), convergent validity, and discriminant
validity.
Table 5: CR, EVE, and Cronbach’s alpha coefficients
The reliability of the scales of measurement was evaluated using three indicators: composite reliability (CR), average
variance extracted (AVE), and Cronbach’s alpha coefficients. The scale was considered to be reliable when the
synthesis reliability was > 0.5, and the total AVE had the meaning when validity was > 0.5 The results in Table 5 have
indicated that, the coefficients of CR are greater than 0.7, AVE were > 0.5, there is only the factor TA with the
coefficients is 0.496, it is less than 0.5; however, the researcher utilizing this factor and apply for the next stage, it is
also satisfaction and has meaning with the statistics standard. Therefore, all the scales are reliable. All the results of
the CFA meet the requirement standard, since all the models of the CFA were valid for the market data.
4.3ANALYZING THE STRUCTURAL EQUATION MODELLING (SEM)
Figure 2. The result of SEM analysis
62
The results in the Figure 2 has indicated that, CMIN/DF = 1.712 (< 2), TLI and CFI are greater than 0.9, and RMSEA =
0.042 (< 0.05), P= 0.000 < 0.05, it is indicated that the model of study was significant.
Table 6: Regression Weights
Table 7: Standardized Regression Weights
4.4VERIFYING THE HYPOTHESIS
The P-values of the estimated parameters in Table 6 has indicated that, All P- P-values <0.05. Therefore, the
hypotheses H1, H2, H3, H4, and H5 were all supported (P-values< 0.05). The cause and effect relationship from Table
6 indicated that Compensation & Benefits (CB), Leadership skills (LS), Talent acquisition (TA), Training &
Development (TD), are all great positive influences on Innovative capacity (IC), and the mediating role of IC has a
great positive influence on Enterprise growth (EG).
63
RECOMMENDATIONS
The study shows that innovation capacity takes a mediating role in assisting firm development and growth.
Therefore, HR practices and the role of innovation capacity are significant contributors in supporting Vietnamese
enterprises. A study by Canh and Bui (2019) also showed that innovation capability is positively influential on the
business performance of firms. Added to the outcomes of this study, this provides relevant evidence to practitioners
that they can reference, consider, and use to restructure and improve their HR practice and innovative capacity to
achieve enterprise development.
Talent acquisition was the strongest factor affecting innovative capacity towards enterprise growth. The study by
Zadeh and Ahmadi (2017) also noted that there is a positive and significant relationship between talent acquisition
and workforce productivity. Therefore, talent acquisition is a vital factor that supports enterprise growth and needs
focus and development. Enterprises value the talent search matrix during selection in order to gain experienced,
qualified, expertise, potential and qualified employees; enterprises need to support employee training and career
progression. Work-life balance as well as social networking facilities should be developed to motivate employees
and enterprises should ensure the presence of a good organizational climate in order to attract the right talents.
The second strongest factor affecting innovative capacity towards enterprise growth was the compensation and
benefits. The study by Kadir et al. (2010) also indicated that compensation and benefits have a positive effect on
employee performance, playing a vital role in supporting employee satisfaction and improving enterprise growth.
There are many issues on which Vietnamese enterprises need to focus, a good policy being to encourage, benefit
and reward personnel who are team players. Enterprises need to use incentives to boost individual performance. It
is important to select and pay employees based on their contribution to encourage their innovation. Vietnamese
enterprises need to create good policies for compensation and benefits towards their employees. When they are
satisfied, they will provide a great contribution to supporting enterprise growth.
Leadership skills are the third important factor that affects innovative capacity in terms of enterprise growth.
Therefore, the management of Vietnamese enterprises need to focus and develop this skill to motivate their team to
complete their tasks. The result of a study by Ibrahim and Daniel (2019) also indicates that there is a positive
relationship between leadership and organizational performance. The leadership and management encourage their
employees to be creative with their tasks. The workforce is delivered to each division within the enterprise. The
leadership and management must invest in personnel development and risk taking and encouragement for each
manager to support their development in creating skills
The fourth factor affecting innovative capacity towards enterprise growth was training and development. Focusing
on training and developing the personal skills of employees is a must. Sandamali et al. (2018) also indicated that
training and development is positively related to the employee performance of executive-level employees. Training
and development ensure that employees can update their skills to adapt to a competitive environment to support
enterprise development and growth.
CONCLUSION
The findings showed that the mediating role of IC greatly and positively impacted enterprise growth (EG).
Meanwhile, TA strongly impacted on IC towards EG. The second strongest factor affecting IC towards EG was CB. The
third strongest factor affecting IC towards EG was LS. The fourth strongest factor affecting IC was TD. Additionally,
the supporting factors in human resources practices (TD, LS, CB, TA) and the mediating role of IC have a great
positive influence on EG. When Vietnamese enterprises change these factors, it will affect the growth of the
enterprises. In general, the role of HR management and innovative capacity are the crucial factors that affect the
enterprise growth. The results also have indicated that, the administrators of Vietnamese enterprises in HCMC have
64
a good perception and apply the HR practices and improving the innovative capacity, this will support to improve the
enterprise growth.
65
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No Peneliti Anteseden Teori Keterangan

Employer Attractiveness of Family Businesses in the IT-industry: the Effect of

Spieß, Teresa; Nickel, Valerie; Faißt, Rebekka & Zehrer, Anita

ABSTRACT KEY WORDS

Fig 1. Hypothesized Model

Table 1. Internal Consistency

Table 2. EFA results

Advantages of Family Firms. Family Business Review, 12(1), 1–25.

Factor Inventory. Personality and Individual Differences, 36(3), 587–596.

Turban, D. B. (2001). Organizational Attractiveness as an Employer on College Campuses: An Examination of

19–36). Singapore: Springer Singapore. https://doi.org/10.1007/978-981-4560-58-0_2

A Study of the Recruitment and Selection Process in the ICT

3 ICT SECTOR IN NORTH MACEDONIA

Fig 1. Gender of respondents

Fig 2. Age of respondents

Fig 3. Type of company based on ownership structure

Fig 4. Size of companies based on number of employees

Fig 5. Job positions

Table 1. Where ICT professionals search for new job opportunities.

Lack of information regarding the salary

Lack of information regarding the

Complicate way of applying – to much

Fig 7. Expected length of the recruitment process by the candidates

Fun activities at the workplace

Clear system for bonuses and

Mapping of IT industry in .mk 2019. Retrieved from: https://www.it.mk/mapiranje-na-it-industrijata-vo-mk/?

The Global Talent Crunch (2018). Korn Ferry. Retrieved from:

The Recruiter Nation Survey 2015. Retrieved from:

2.2THE REVIEW OF THE ENTERPRISES GROWTH

2.3THE KEY-FACTORS OF HUMAN RESOURCE PRACTICE

2.3.1 COMPENSATION AND BENEFITS (C&B)

2.3.2 LEADERSHIP SKILLS

2.3.3 TRAINING AND DEVELOPMENT

2.3.4 TALENT ACQUISITION

2.4THE RELATIONSHIP BETWEEN HUMAN RESOURCES AND INNOVATION

3.1THE CONCEPTUAL FRAMEWORK AND HYPOTHESIS OF THIS STUDY

Table 2: The observed variables for all factors

Items included in the measurement scale

DATA ANALYSIS AND FINDINGS

4.2EXPLORATORY FACTOR ANALYSIS (EFA)

4.3CONFIRMATORY FACTOR ANALYSIS (CFA)

Table 4: The result of indicators for CFA

4.3ANALYZING THE STRUCTURAL EQUATION MODELLING (SEM)

Figure 2. The result of SEM analysis

Table 6: Regression Weights

Table 7: Standardized Regression Weights

4.4VERIFYING THE HYPOTHESIS

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