The small and medium-sized enterprises (SMEs) play an important role on the growth of the econ-omies of developing countries. In Pakistan, SMEs hold about 90 percent of the total businesses in-cluding the textile industry. The performance of SMEs in the textile industry is influenced by sev-eral factors including the internal capabilities of the firms. Hence the primary objective of the study is to examine the relationship between the internal capabilities namely Innovation Capability, Absorptive Capacity and SMEs Performance among textile firms in Pakistan. The study is conducted using quantitative research. There are 377 questionnaires distributed among textiles SMEs of Pakistan and they were analyzed using some statistical tests. The results reveal that innovation capability and absorptive capacity influenced the performance of SMEs, positively.

The purpose of this study is to identify the influence of innovative cultural processes (ICP) on SMEs performance in Punjab, Pakistan. Data was collected through survey method. 60 usable questionnaires were used for collecting the information from SMEs CEOs/owners/senior managers from Punjab, Pakistan. Research design was consisted on developing the hypothetical framework with innovative cultural processes set as an independent variable to test SMEs performance as a dependent variable. Validity and reliability of the scale were assessed by experts and also a small set of the data was used for analysis through SPSS version 20.0 and PLS-SEM 3.0 for analyzing the effect. The results of the research confirmed the validity and reliability of the instrument used in this study. The findings of this study also validate the empirical linkage between capturing ICP and SMEs performance in Punjab, Pakistan. This study has some practical implications especially for SMEs in Pakistan and recommendations to have ICP for enhancing the performance of SMEs.

Understanding that the measurement of HRM construct in Small and Medium Enterprises (SMEs) context is relatively critical, this study aims to assess the validity and reliability of HRM measure-ment based on the SME owner-managers’ perspective in the Malaysian context. Following a data collection from 95 SME owner-managers, a confirmatory factor analysis was performed to investigate the factorial validity and reliability of the HRM measurement. The finding indicates that the measurement model was acceptable in consideration of the evidences of adequate reliability, convergent validity and discriminant validity. This study will be beneficial for future researchers, entrepreneurs and policy makers in better understanding to the value of HRM practices towards boosting the SMEs performance.