Competitive Advantage and Human Resource Management in SMEs in a Transitional Economy

The article is based on data of the study of 151 small companies in Slovenia by J. Prašnikar and others. The study is the first investigation of small firms in slovenia with a sufficiently large number of cases to enable conclusions about the ways in which SMEs are managing to cope with new opportunities and problems. The aim of this article is to investigate a link between competitive advantage and human resource management in SMEs in a transitional economy. Results indicate that a link indeed exists in that human resource efforts in SMEs to a certain degree contribute to the competitive advantage of companies.