Personnel Today
  • Home
    • All PT content
    • Advertise
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Equality, diversity and inclusion
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • XpertHR
    • Learn more
    • Products
    • Pricing
    • Free trial
    • Subscribe
    • XpertHR USA
  • Webinars
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
    • Advertise
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Equality, diversity and inclusion
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • XpertHR
    • Learn more
    • Products
    • Pricing
    • Free trial
    • Subscribe
    • XpertHR USA
  • Webinars
  • OHW+

HR transformationWorkplace cultureLatest NewsCorporate governanceHR strategy

Investors influence HR practice in small businesses

by Jo Faragher 21 Apr 2021
by Jo Faragher 21 Apr 2021 Angel investors tended to inspire an operational HR focus, researchers found
Shutterstock
Angel investors tended to inspire an operational HR focus, researchers found
Shutterstock

Small businesses that have received investment tend to adopt the HR and management practices of their external backers, according to research from Trinity Business School.

Companies that receive backing from angel investors with a high net worth, for example, might use HR to focus on improving efficiency of operations, the researchers said.

Those backed by private equity firms, meanwhile, might take a more strategic approach in a bid to accelerate growth and boost the return on investment for their backer over a short period. Researchers also found that those backed by government venture capital tended to share this approach.

The study, undertaken by Francesca Di Pietro, Sinéad Monaghan and Martha O’Hagan-Luff from Trinity Business School, looked closely at seven small, founder-led Irish firms operating in the agrifood industry.

The companies that received corporate venture capital, where a larger company takes a smaller stake in a growing business, tended to adopt either strategic HR practices or look towards “transformational practices”, which led them to change the direction of their business.

Sinéad Monaghan, associate professor of international business and global strategy, said that HR strategies were an “integral” part of attracting funding and achieving growth.

“Our study demonstrates the relationship between external financing and internal human resource management and provides insights for firms looking to further accelerate their growth trajectory,” she said.

Francesca Di Pietro, assistant professor in business strategy, added: “Firms should consider how the decision to take on investment will influence company’s internal dynamics, such as HR management, and find ways to maximise the value of their relationship with investors.”

  Organisational Development opportunities on Personnel Today

Browse more Organisational development jobs

Jo Faragher
Jo Faragher

Jo Faragher has been an employment and business journalist for 20 years. She regularly contributes to Personnel Today and writes features for a number of national business and membership magazines. Jo is also the author of 'Good Work, Great Technology', published in 2022 by Clink Street Publishing, charting the relationship between effective workplace technology and productive and happy employees. She won the Willis Towers Watson HR journalist of the year award in 2015 and has been highly commended twice.

previous post
Legislation must catch up with ‘huge shift in nature of work’
next post
Just Eat serves up ‘agency worker’ model in Liverpool

Leave a Comment Cancel Reply

Save my name, email, and website in this browser for the next time I comment.

You may also like

Introduce three-day week for over 50s, says former...

26 Sep 2023

Ralph Lauren stylist ‘traumatised’ by racial comments

26 Sep 2023

Government expands Youth Offer employment support

26 Sep 2023

Few dyslexic thinkers feel employer knows their strengths

26 Sep 2023

Sickness absence rates soar to 10-year high

26 Sep 2023

Personnel Today Awards 2023 shortlist: Family Friendly Employer...

26 Sep 2023

Three days in office is optimal hybrid working...

25 Sep 2023

Finance regulator consults on tougher conduct rules

25 Sep 2023

One in four over 50s working part-time

25 Sep 2023

Chris Kaba case: Officer federation hands in weapons...

25 Sep 2023

  • Discover the value of CIPD accreditation PROMOTED | See how the CIPD can increase your earning potential...Read more
  • What does it mean to be an HR professional in 2024? (survey) PROMOTED | The world of HR is changing rapidly...Read more
  • The Contractor Management Mastery Pack: Everything you need to manage and pay global contractors PROMOTED | Answers to cross-border...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits
Forum for Expatriate Management
OHW+
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2023

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2023 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
    • Advertise
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Equality, diversity and inclusion
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • XpertHR
    • Learn more
    • Products
    • Pricing
    • Free trial
    • Subscribe
    • XpertHR USA
  • Webinars
  • OHW+