Abstract

This study examines the role of Human Resource Architecture (HRA) as a strategic framework for the sustainability of Micro, Small, and Medium Enterprises (MSMEs) in Nigeria. The research investigates how HR systems, employee competencies, and strategic alignment influence the economic performance of MSMEs. Using a quantitative research design, primary data were collected through a structured questionnaire administered to MSME owners and managers, while descriptive and inferential statistical analyses including correlation and multiple regression were employed. Results indicate that HR systems (β = 0.25, p = 0.002), employee competencies (β = 0.30, p = 0.000), and strategic alignment (β = 0.20, p = 0.015) all have significant positive effects on economic performance. Furthermore, correlation analysis reveals strong positive relationships between HR systems (r = 0.65), employee competencies (r = 0.72), and MSME performance, with moderate correlation for strategic alignment (r = 0.55). The reliability test produced Cronbach’s alpha values ranging from 0.80 to 0.87, confirming high internal consistency. The findings underscore that well-structured HR processes and skilled employees are critical to cost efficiency, innovation, and competitive advantage. The study concludes that strengthening HR architecture can significantly enhance MSME sustainability and recommends that enterprises align HR practices with business strategies to improve long-term growth and performance.