INTERNATIONAL JOURNAL OF ADVANCE RESEARCH
IN MULTIDISCIPLINARY

Small and Medium Enterprises (SMEs) are fundamental to the economic fabric of India, particularly within the textile sector, which is a significant contributor to employment, exports, and GDP (Ministry of Micro, Small & Medium Enterprises, 2020). The Indian textile industry, characterized by its diversity and scale, relies heavily on SMEs to maintain competitiveness and drive innovation. However, textile SMEs face multifaceted challenges, including global competition, technological advancements, and workforce skill gaps (Kumar & Rao, 2019). Strategic Human Resource Management (SHRM) emerges as a critical mechanism to align HR practices with business objectives, thereby enhancing organizational performance (Wright & McMahan, 2011). This study investigates the strategic HRM practices employed by Indian textile SMEs and their impact on organizational performance. Utilizing a mixed-methods approach, data were collected from 120 textile SMEs across major industrial hubs in India through surveys and in-depth interviews. The study focuses on key HRM practices such as recruitment, compensation, training and development, employee relations, and performance management. Results indicate that effective HRM practices in recruitment, performance management, and compensation significantly enhance SME performance. Additionally, contextual factors like company size, age, and ownership structure influence the implementation and effectiveness of HRM practices. The findings highlight the necessity for textile SMEs to adopt strategic HRM practices to navigate global competition and achieve sustainable growth. This research contributes to the existing literature by providing empirical evidence on the critical role of HRM in SME performance within the Indian textile sector and offers practical insights for managers aiming to optimize their HR strategies.