Soft skills and employability in SMEs: an employer's perspective on organizational fit and university reputation

Abstract

Purpose: This study investigates how soft skills shape the employability of fresh graduates in the context of small and medium-sized enterprises (SMEs). Drawing on stakeholder theory and signaling theory, this study sets out to investigate the role of soft skills in the employability of fresh graduates, emphasizing the mediating role of organizational fit (OF) and the moderating role of university reputation. Design/methodology/approach: A mixed-methods approach was applied. Qualitative interviews with SME employers first identified priority soft skills and guided the survey design. Quantitative data from 167 firms were then analyzed to test the hypothesized relationships. Findings: The results indicate that soft skills (SK) do not directly affect employability (EMP); instead, they exert a strong indirect influence through OF. Moreover, the moderating role of university reputation (RE) offers a more nuanced, realistic understanding of how employers evaluate both institutional credibility and individual capabilities. Originality/value: This study contributes to a more consistent understanding among universities, graduates and employers, thereby strengthening alignment across key actors in the labor market