Creating value and innovation through human resource management in small business

The paper aims to underline the processes through which Human Resources Management will create competitive advantage and continuos innovation in small business. In order to reach the research goal, a sample of Italian companies, homogeneous for industry and size, has been chosen. All the companies are coupled with the Industry Association of Italian Machines Tools, named UCIMU. The characteristics of the sample, in term of size, turnover, place, export attitude and so on is well representatitve of the companies of this industry. Some figures can help in order to frame this industry in Italy: in 2008 (last available datas) 67,4% of the Italian Machine tools companies has a turnover under 12 million euros; 78 % has less than 100 employees and they are located, 80 % of the entire sample, in Lombardia, Veneto and Piemont. During the last two years, where crisis and recession were hard, these companies have been able to maintain their position in in international competition; according to international ranking Italy is the forth after China, Germany and Japan and the third, for export volume, after Germany and Japan. These figures show very well the wheight of ths industry in the “Made in Italy” environment. Ther core competences of the industry which are able to protect their position can be summerised as follow: - Quality of the product and post sale service - Continuos technology innovation - Ability to offer solution and integration tools - Customazation to specific needs of the clients On the base of these strenghts, it is clear that competitive advantage is based on quality of human resources, with a strong set of competencies and professional knowledge. This heritage is the results, over the years, of discrete policies on the entire clife cycle of Human resources and the results of a combination of entrepreneurial and management practices, elaborated in that context.