Creating Financial and Social Value by Improving Employee Well-Being: A PLS-SEM Application in SMEs
In the business world, the improvement of employee well-being in organizations is important, as there is empirical evidence that it brings social value and economic benefits to organizations. To advance in this line of research, we considered SMEs as the object of study due to their importance in Sp...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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MDPI AG
2022-11-01
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| Series: | Mathematics |
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| Online Access: | https://www.mdpi.com/2227-7390/10/23/4456 |
| _version_ | 1797462705136730112 |
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| author | Mercedes Rubio-Andrés Ma del Mar Ramos-González Santiago Gutiérrez-Broncano Miguel Ángel Sastre-Castillo |
| author_facet | Mercedes Rubio-Andrés Ma del Mar Ramos-González Santiago Gutiérrez-Broncano Miguel Ángel Sastre-Castillo |
| author_sort | Mercedes Rubio-Andrés |
| collection | DOAJ |
| description | In the business world, the improvement of employee well-being in organizations is important, as there is empirical evidence that it brings social value and economic benefits to organizations. To advance in this line of research, we considered SMEs as the object of study due to their importance in Spanish businesses and the scarcity of empirical studies on the subject. We use the partial least squares structural equation modeling (PLS-SEM) to analyse the measurement models and the structural model. Our research focuses on the importance of influential variables on well-being, but also considers how they affect financial performance. In the model that we present, there is a direct effect between the latent variables HPWS, well-being, reputation and financial performance, which represents how human resource management based on good practice in small and medium-sized enterprises (SMEs) positively affects well-being by creating a good reputation and generating more business wealth. Our findings confirm the direct relationships proposed in the model, as well as the relevance of well-being and reputation as mediating variables. |
| first_indexed | 2024-03-09T17:40:26Z |
| format | Article |
| id | doaj.art-274595106b5c4568a2a9511a189a87ea |
| institution | Directory Open Access Journal |
| issn | 2227-7390 |
| language | English |
| last_indexed | 2024-03-09T17:40:26Z |
| publishDate | 2022-11-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Mathematics |
| spelling | doaj.art-274595106b5c4568a2a9511a189a87ea2023-11-24T11:33:49ZengMDPI AGMathematics2227-73902022-11-011023445610.3390/math10234456Creating Financial and Social Value by Improving Employee Well-Being: A PLS-SEM Application in SMEsMercedes Rubio-Andrés0Ma del Mar Ramos-González1Santiago Gutiérrez-Broncano2Miguel Ángel Sastre-Castillo3Department of Business Administration, Faculty of Commerce and Tourism, Complutense University of Madrid, 28003 Madrid, SpainDepartment of Business Administration, CEU San Pablo University, 28003 Madrid, SpainDepartment of Business Administration, University of Castilla-La Mancha, Faculty of Social Sciences, 45600 Talavera de la Reina, SpainDepartment of Business Administration, Complutense University of Madrid, 28003 Madrid, SpainIn the business world, the improvement of employee well-being in organizations is important, as there is empirical evidence that it brings social value and economic benefits to organizations. To advance in this line of research, we considered SMEs as the object of study due to their importance in Spanish businesses and the scarcity of empirical studies on the subject. We use the partial least squares structural equation modeling (PLS-SEM) to analyse the measurement models and the structural model. Our research focuses on the importance of influential variables on well-being, but also considers how they affect financial performance. In the model that we present, there is a direct effect between the latent variables HPWS, well-being, reputation and financial performance, which represents how human resource management based on good practice in small and medium-sized enterprises (SMEs) positively affects well-being by creating a good reputation and generating more business wealth. Our findings confirm the direct relationships proposed in the model, as well as the relevance of well-being and reputation as mediating variables.https://www.mdpi.com/2227-7390/10/23/4456well-beingfinancial valuesocial valuereputationHPWSSMEs |
| spellingShingle | Mercedes Rubio-Andrés Ma del Mar Ramos-González Santiago Gutiérrez-Broncano Miguel Ángel Sastre-Castillo Creating Financial and Social Value by Improving Employee Well-Being: A PLS-SEM Application in SMEs Mathematics well-being financial value social value reputation HPWS SMEs |
| title | Creating Financial and Social Value by Improving Employee Well-Being: A PLS-SEM Application in SMEs |
| title_full | Creating Financial and Social Value by Improving Employee Well-Being: A PLS-SEM Application in SMEs |
| title_fullStr | Creating Financial and Social Value by Improving Employee Well-Being: A PLS-SEM Application in SMEs |
| title_full_unstemmed | Creating Financial and Social Value by Improving Employee Well-Being: A PLS-SEM Application in SMEs |
| title_short | Creating Financial and Social Value by Improving Employee Well-Being: A PLS-SEM Application in SMEs |
| title_sort | creating financial and social value by improving employee well being a pls sem application in smes |
| topic | well-being financial value social value reputation HPWS SMEs |
| url | https://www.mdpi.com/2227-7390/10/23/4456 |
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