Talent Management and the Financial Results of the Foreign Subsidiaries of Polish MNCs – Empirical Research Findings
DOI:
https://doi.org/10.15678/ZNUEK.2021.0993.0302Keywords:
talent management, human factor, competitive factor, financial results, multinational companyAbstract
Objective: To identify regularities between the overall advancement level of talent management and its constituent elements and company financial performance thanks to the significance of the human factor-based competitive advantage.
Research Design & Methods: The research sample covered 200 nonfinancial Multinational Corportations (MNCs) headquartered in Poland with an overwhelming percentage share of Polish capital. They engage in a variety of economic activities. CATI and CAWI were used, as was a benchmarking measurement method was applied. The general description and analysis of the research data were done using descriptive and correlational statistics.
Findings: The contributive significance of talent management to company’s performance falls between important and very important. The selected components of talent management exhibit positive and statistically significant internal relationships. This means that the higher the advancement levels of particular components of talent management, the higher its overall advancement level as an HRM subfunction. Moreover, the higher the overall advancement level of talent management, the better the company’s financial performance. This has led to the recognition that advancing the level of talent management results in better financial outcomes for companies.
Implications / Recommendations: The research findings confirm that human capital, in its two basic categories, can be successfully treated as a company competitive factor. Skills, knowledge and competencies developed in talent management programmes may enhance company performance, including financial results, both at the HQs of MNCs and at foreign subsidiaries. Additionally, the results make it possible to formulate some practical recommendations that may support the managerial staff in making decisions regarding talent management, e.g. in planning the number and type of talent management components and ensuring their most optimal coexistence.
Contribution: The research findings contribute to the development of management theory and practice, particularly to the development of talent management as a subfunction of HRM in MNCs. The authors have identified the regularities they theorised might exist between talent management and company financial performance due to the significance of human factor-based competitive advantage. Therefore, it can be assumed that research on the relationships between these variables in Polish MNCs helps fill in a research gap due to the object and subject of research.
Downloads
References
Al Aina R., Atan T. (2020), The Impact of Implementing Talent Management Practices on Sustainable Organisational Performance, “Sustainability” 2020, vol. 12, no 20, 8372, https://doi.org/10.3390/su12208372.
Armstrong M. (2007), Zarządzanie zasobami ludzkimi, Wolters Kluwer Polska, Warszawa.
Barney J. B. (1991), Firm Resources and Sustained Competitive Advantage, “Journal of Management”, vol. 17(1), https://doi.org/10.1177/014920639101700108.
Bethke-Langenegger P., Mahler P., Staffelbach B. (2011), Effectiveness of Talent Management Strategies, “European Journal of International Management”, vol. 5(5), https://doi.org/10.1504/ejim.2011.042177.
Bhatia R., Baruah P. (2020), Exclusive Talent Management and Its Consequences: A Review of Literature, “Asian Journal of Business Ethics”, vol. 9(2), https://doi.org/10.1007/s13520-020-00105-8.
Björkman I., Ehrnrooth M., Mäkelä K., Smale A., Sumelius J. (2013), Talent or Not? Employee Reactions to Talent Identification, “Human Resource Management”, vol. 52(2), https://doi.org/10.1002/hrm.21525.
Blass E., Knights A., Orbea A. (2008), Developing Future Leaders: The Contribution of Talent Management (in:) Leadership Learning, K. T. James, J. Collins (eds), Palgrave Macmillan, London.
Chen H. L. (2014), Innovation Stimulants, Innovation Capacity, and the Performance of Capital Projects, “Journal of Business Economics and Management”, vol. 15(2), https://doi.org/10.3846/16111699.2012.711361.
Cole G. (2016), Managing Talent Development Effectively: Why Outsiders Matter Too, “Human Resource Management International Digest”, vol. 24(3), https://doi.org/10.1108/hrmid-02-2016-0018.
Collings D. G., Mellahi K. (2009), Strategic Talent Management: A Review and Research Agenda, “Human Resource Management Review”, vol. 19(4), https://doi.org/10.1016/j.hrmr.2009.04.001.
Collings D. G., Mellahi K., Cascio W. F. (2018), Global Talent Management and Performance in Multinational Enterprises: A Multilevel Perspective, “Journal of Management”, vol. 45(2), https://doi.org/10.1177/0149206318757018.
Collings D. G., Scullion H., Vaiman V. (2011), European Perspectives on Talent Management, “European Journal of International Management”, vol. 5(5), https://doi.org/10.1504/ejim.2011.042173.
Competency-based Human Resources Management. The Lifelong learning Perspective (2014), Ł. Sienkiewicz (ed.), Instytut Badań Edukacyjnych, Warsaw.
Coulson-Thomas C. (2012), Talent Management and Building High Performance Organisations, “Industrial and Commercial Training”, vol. 44(7), https://doi.org/10.1108/00197851211268027.
Delery J. E., Roumpi D. (2017), Strategic Human Resource Management, Human Capital and Competitive Advantage: Is the Field Going in Circles?, “Human Resource Management Journal”, vol. 27(1), https://doi.org/10.1111/1748-8583.12137.
Esho E., Verhoef G. (2020), A Holistic Model of Human Capital for Value Creation and Superior Firm Performance: The Strategic Factor Market Model, “Cogent Business & Management”, vol. 7(1), https://doi.org/10.1080/23311975.2020.1728998.
Farndale E., Scullion H., Sparrow P. (2010), The Role of the Corporate HR Function in Global Talent Management, “Journal of World Business”, vol. 45(2), https://doi.org/10.1016/j.jwb.2009.09.012.
Garavan T. N., Morley M. J., Cross C., Carbery R., Darcy C. (2021), Tensions in Talent: A Micro Practice Perspective on the Implementation of High Potential Talent Development Programs in Multinational Corporations, “Human Resources Management”, vol. 60(2), https://doi.org/10.1002/hrm.22048.
Haromszeki Ł. (2014), Expected Features and the Behavior of Talented Leaders in the Three Sectors of the Polish Economy in Context with Other Central-Eastern European Countries, “Journal of Intercultural Management”, vol. 6(4), https://doi.org/10.2478/joim-2014-0037.
Höglund M. (2012), Quid pro Quo? Examining Talent Management through the Lens of Psychological Contracts, “Personnel Review”, vol. 41(2), doi.org/10.1108/00483481211199991.
Huselid M. A., Becker B. E. (2011), Bridging Micro and Macro Domains: Workforce Differentiation and Strategic Human Resources Management, “Journal of Management”, vol. 37(2), https://doi.org/10.1177/0149206310373400.
Iles P., Chuai X., Preece D. (2010), Talent Management and HRM in Multinational Companies in Beijing: Definitions, Differences and Drivers, “Journal of World Business”, vol. 45(2), https://doi.org/10.1016/j.jwb.2009.09.014.
Ishiyama N. (2021), The Impact of the Talent Management Mechanism and Self-perceived Talent Status on Work Engagement: The Case of Japan, “Asia Pacific Business Review”, https://doi.org/10.1080/13602381.2021.1905410.
Juchnowicz M. (2014), Satysfakcja zawodowa pracowników. Kreator kapitału ludzkiego, PWE, Warszawa.
Kabwe C., Tripathi S. (2020), My Talent or Yours? A Labour Process Analysis of Talent Management in Practice, “Competition & Change”, vol. 24(2), https://doi.org/10.1177/1024529419848647.
Katou A. A., Budhwar P. S. (2010), Causal Relationship between HRM Policies and Organisational Performance: Evidence from the Greek Manufacturing Sector, “European Management Journal”, vol. 28(1), https://doi.org/10.1016/j.emj.2009.06.001.
Kearns P. (2010), HR Strategy. Creating Business Strategy with Human Capital, Elsevier/Butterworth-Heinemann, Amsterdam–London.
Lacey M. Y., Groves K. (2014), Talent Management Collides with Corporate Social Responsibility: Creation of Inadvertent Hypocrisy, “Journal of Management Development”, vol. 33(4), https://doi.org/10.1108/jmd-06-2012-0073.
Lepak D. P., Snell S. A. (1999), The Human Resource Architecture: Toward a Theory of Human Capital Allocation and Development, “Academy of Management Review”, vol. 24(1), https://doi.org/10.5465/amr.1999.1580439.
Lewis R. E., Heckman R. J. (2006), Talent Management: A Critical Review, “Human Resource Management Review”, vol. 16(2), http://doi.org/10.1016/j.hrmr.2006.03.001.
McDonnell A., Hickey C., Gunnigle P. (2011), Global Talent Management: Exploring Talent Identification in the Multinational Enterprise, “European Journal of International Management”, vol. 5(2), https://doi.org/10.1504/ejim.2011.038816.
Mensah J. K. (2018), Talent Management and Employee Outcomes: A Psychological Contract Fulfilment Perspective, “Public Organization Review”, vol. 19(3), https://doi.org/10.1007/s11115-018-0407-9.
Michaels E., Axelrod B., Handfield-Jones H. (2001), The War for Talent, Harvard Business School Press, Boston, MA.
Mondal S., Samaddar K. (2021), Reinforcing the Significance of Human Factor in Achieving Quality Performance in Data-driven Supply Chain Management, “The TQM Journal”, vol. ahead-of-print, no ahead-of-print, https://doi.org/10.1108/TQM-12-2020-0303.
Nasab S. M. T., Farhangnejad M. A., Naysary B. (2013), Casting a Resource-based View on Intangible Assets and Export Behaviour, “Business, Management and Economics Engineering”, vol. 11(2), https://doi.org/10.3846/bme.2013.18.
Natacha Golik M., Rita Blanco M. (2014), Talent Identification and Development Tools: Two to Tango?, “Management Research”, vol. 12(1), https://doi.org/10.1108/MRJIAM-01-2013-0498.
Neumann W. P., Winkelhaus S., Grosse E. H., Glock C. H. (2021), Industry 4.0 and the Human Factor – a Systems Framework and Analysis Methodology for Successful Development, “International Journal of Production Economics”, vol. 233, https://doi.org/10.1016/j.ijpe.2020.107992.
Pauli U., Pocztowski A. (2019), Talent Management in SMEs: An Exploratory Study of Polish Companies, “Entrepreneurial Business and Economics Review”, vol. 7(4), https://doi.org/10.15678/EBER.2019.070412.
Ruël H., Bondarouk T., Dresselhaus L. (2014), Global Talent Management in Multinational Corporations and the Role of Social Networks, “Social Media in Strategic Management” (Advanced Series in Management, vol. 11), Emerald Group Publishing Limited, Bingley, https://doi.org/10.1108/S1877-6361(2013)0000011015.
Schmidt C., Mansson S., Dolles H. (2014), The New Face of Talent Management in Multinational Corporations: Responding to the Challenges of Searching and Developing Talent in Emerging Economies. New Challenges in the Global Economy (in:) Asian Inward and Outward FDI, C. G. Alvstam, H. Dolles, P. Ström (eds), Palgrave Macmillan Asian Business Series, Palgrave Macmillan, London.
Scullion H., Vaiman V., Collings D. G. (2016), Guest Editorial, “Employee Relations”, vol. 38(1), https://doi.org/10.1108/ER-11-2015-0203.
Son J., Park O., Bae J., Ok C. (2020), Double-edged Effect of Talent Management on Organizational Performance: The Moderating Role of HRM Investments, “The International Journal of Human Resource Management”, vol. 31(17), https://doi.org/10.1080/09585192.2018.1443955.
Stor M. (2014), Reconceptualizing Strategic International Human Resource Management in the Pursuit of MNC Sustainable Competitive Advantage, “Human Resource Management”, vol. 6(101).
Stor M., Haromszeki Ł. (2019), Organizational Leadership Practices in MNCs: The Effect of the HRs Value as a Competitive Factor and the FDI Structure, “Journal of Transnational Management”, vol. 24(2), http://doi.org/10.1080/15475778.2019.1608748.
Stor M., Haromszeki Ł. (2020a), The Logic of Internal HRM Consistency: The Synergic Effect of the Subfunctions’ Advancement Levels on the Financial Performance Results of MNCs, “Journal of Human Resources Management Research”, vol. 2020, article ID 671987, https://doi.org/10.5171/2020.671987.
Stor M., Haromszeki Ł. (2020b), The Role of Human Factor and HRM Practices in MNCs’ Performance in Eastern and Western Europe – a Comparative Analysis of the Research Findings (in:) 11th International Scientific Conference “Business and Management 2020” May 7–8, 2020, Vilnius, Lithuania, Selected Papers, ed. J. Stankeviciene et al. (ed.), Vilnius Gediminas Technical University, https://doi.org/10.3846/bm.2020.540.
Stor M., Haromszeki Ł. (2021), The Central European Perspective on Managerial Staff Development Practices in Local Subsidiaries of MNCs Operating in Eastern and Western Europe (in:) Eurasian Business and Economics Perspectives. Proceedings of the 31st Eurasia Business and Economics Society Conference, eds M. H. Bilgin, H. Danis, E. Demir, Springer.
Tabor J. A. (2013), Zarządzanie talentami w przedsiębiorstwie. Koncepcje, strategie, praktyka, Wydawnictwo Poltext, Warszawa.
Vaiman V., Nigel H. (2010), Talent Management’s Perplexing Landscape in Central and Eastern Europe (in:) Global Talent Management, D. Collings, H. Scullion (eds), Routledge, New York.
Waters-Sobkowiak M., Kowalski T., Smits S. J. (2018), The Evolving Potential of Talent Management in Poland, “Entrepreneurial Business and Economics Review”, vol. 6(3), https://doi.org/10.15678/EBER.2018.060310.
Wilska E. (2014), Determinants of Effective Talent Management, “Journal of Positive Management”, vol. 5(4), https://doi.org/10.12775/JPM.2014.025.
Witek-Hajduk M. K. (2010), Strategie internacjonalizacji polskich przedsiębiorstw w warunkach akcesji Polski do Unii Europejskiej, Szkoła Główna Handlowa – Oficyna Wydawnicza, Warszawa.
Włodarczyk K. (2017), Zarządzanie talentami – praktyki w polskich firmach, „Prace Naukowe Uniwersytetu Ekonomicznego we Wrocławiu”, nr 489.
Zarządzanie talentami w polskich organizacjach. Architektura systemu (2020), A. Miś (ed.), Wolters Kluwer, Warszawa.
