Title: The impact of talent management and employee engagement on organisational performance

Authors: Seyed Abdorreza Payambarpour; Lai Wan Hooi

Addresses: International Business School, Universiti Teknologi Malaysia, Jalan Iman, 81300 Skudai, Malaysia ' Nottingham University Business School, The University of Nottingham Malaysia Campus, Jalan Broga, 43500 Semenyih, Selangor Darul Ehsan, Malaysia

Abstract: The paper studies the impact of talent management on organisational performance in multinational corporations through applying management development and strategic HR inputs, and to evaluate the mediating role of employee engagement in the strategic HR inputs and organisational performance relationship. An online survey was distributed among managers of the first ten global multinational corporations listed by Fortune magazine 2013 and 498 responses were collected. The respondents were selected through LinkedIn using stratified sampling. PLS-SEM was used to test the hypothesised relationships of the model. The result shows a positive relationship between (1) MD Index and organisational performance, (2) strategic HR and organisational performance, and (3) employee engagement and organisational performance. Utilising PLS path modelling to evaluate structural model including higher-order component (MD Index) is highly original. The paper emphasises the importance of engagement as a mediator of the relationship between strategic HR and organisational performance in the talent management context.

Keywords: management development; organisational performance; talent management; employee engagement; multinational corporations; MNCs; strategic HR inputs; PLS; partial least squares; SEM; structural equation modelling; human resource management; strategic HRM; SHRM.

DOI: 10.1504/IJMP.2015.073483

International Journal of Management Practice, 2015 Vol.8 No.4, pp.311 - 336

Received: 24 Dec 2014
Accepted: 21 Sep 2015
Published online: 09 Dec 2015 *

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