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RESEARCH ARTICLE
KEYWORDS
international business, talent, talent management
Thunderbird Int. Bus. Rev. 2019;1–16. wileyonlinelibrary.com/journal/tie © 2019 Wiley Periodicals, Inc. 1
2 KABWE AND OKORIE
Europe presents an interesting context for developing an under- Finally, we make a contribution by studying TM within interna-
standing of TM. In 2007, the Boston Consulting Group survey con- tional businesses in the context of Europe. Recent studies (Tansley
cluded the HR profession within the European context was least et al., 2013; Thunnissen et al., 2013) have called for consideration of
competent in managing talent although TM was regarded one of the relevance of context in TM. The study also builds on the work of Thu-
five key managerial challenges (Boston Consulting Group, 2007). nnissen et al. (2013, p. 1745) who noted the current concepts and
Despite this perturbing conclusion, the Boston Consulting Group assumptions in the TM literature are more related to U.S.-based
(2007) survey report argued over a five-year period, organizations MNCs, which renders a description of TM in another context inaccu-
with TM programs, which are aligned with the business strategy, rate. Therefore, industry-related and national-related characteristics
delivered a return on investment measured by return on common have to be taken into account to define and describe TM precisely
equity (ROE), 20% higher on average than those of rival companies (Boselie, 2010).
where strategies are not aligned. Where key elements of their TM
programs are aligned, ROE over a five-year period averages 38%
2 | WHAT IS TALENT MANAGEMENT?
higher than that of competitors without alignment (Collings et al.,
2010). Another report by Ernst and Young (2010, p. 4) argue “Superior
Before the introduction of the concept of TM, competence and skills
TM correlates strongly with enhanced business performance.” How-
development were the most commonly used terminology in the
ever, the academic literature shows there is little empirical evidence
Human Resources Management (HRM) literature (Boulter & Hill,
on TM and its contribution to organizational performance in the long-
1996; Hooghiemstra, 1992; Mansfield, 1999). There has been a more
term (Joyce & Slocum, 2012; McDonnell, 2011; Schuler, Jackson, &
generic emphasis on competence development within the HRM litera-
Tarique, 2011a, 2011b; Sparrow & Makram, 2015). This is a key
ture because of the focus on the development of all employees and
starting point for this study.
ensuring everyone performs to the required standard. Undoubtedly,
This article presents a more focused exploration of the effective-
TM as a management practice and academic field has emerged as an
ness of TM for international business to fill the highlighted gap earlier.
important and clearly novel practice that makes a departure from the
Although there have been valuable contributions to TM at a global
level (Collings & Mellahi, 2009; Farndale, Scullion, & Sparrow, 2010; HRM egalitarian approach, which focuses on the welfare of all
McDonnell et al., 2010; Tarique & Schuler, 2010), TM and expatriation employees. TM employs segmentation of the workforce as a key dif-
(Cerdin & Brewster, 2014; Vaiman, Haslberger, & Vance, 2015), and ferentiating characteristic, which enables concentration on the devel-
global TM (GTM) and competitiveness (Petkovic & Dordevic, 2013), opment of a selected few individuals who are capable of making a
an interest in MNCs (Cascio & Boudreau, 2016; Hartmann et al., disproportionate impact on organizational performance (Iles, Chuai, &
2010; McDonnell, 2009; Mellahi & Collings, 2010) and empirical stud- Preece, 2010). Two key points are presented below.
ies remain sparse (Tansley, Kirk, & Tietze, 2013; Thunnissen et al., First, TM presents an important managerial practice necessary for
2013). There are limited studies that address the extent to which TM, building an inimitable, rare, and sustainable source of competitive
as an identifiable international practice and its contribution, has to advantage. The practice of TM allows an organization to develop their
international business. For example, Cerdin and Brewster's (2014) identified talent internally using a variety of development activities
study highlights the gap between expatriation management and TM, (Iles et al., 2010; Collings et al., 2010). In this respect, TM is not only
which are undeniably closely related, but are hardly ever studied or important in creating inimitable intangible assets and cultivating an
managed together despite their contribution to international business. internal labor market but also plays a key role in retaining talent
In this vein, we build on knowledge in the field of TM in three (Sparrow & Makram, 2015). As noted by Sparrow and Makram (2015),
major ways. creation of value through TM at the organizational level is done
First, we explore the managerial practical experience of the effi- through exploiting the organization's internal resources and capabili-
cacy of TM by qualitatively examining these practices. Although there ties to implement strategies that enable them to respond to market
has been recent research examining the link between TM and organi- opportunities, for example, by creating economic value and enhancing
zational performance (Gelens, Hofmans, Dries, & Pepermans, 2014; an organization's performance in international operations.
Luna-Arocas & Morley, 2015) and studies investigating employee Second, in relation to the line of argument by Hamel and Prahalad
work attitudes as mediating variables in TM research (Chami-Malaeb & (1993, 1994), TM can be regarded as a means of building an organiza-
Garavan, 2013; Luna-Arocas & Morley, 2015), the practical explora- tion's core competences. These authors argue that, competitive
tion gap still remains (Sparrow & Makram, 2015). Second, we make a advantage in the long term stems from building core competences in a
theoretical contribution through the adoption of the human capital firm, which are superior to those of rivals. Sparrow and Makram
theory (HCT) and the Resource-based view (RBV). Although previous (2015) refer to what they call the TM architecture, which is the combi-
research has suggested linking TM to HCT (Crane & Hartwell, 2019; nation of systems, processes, and practices developed and
Tarique & Schuler, 2010) and using the framework as a conceptual implemented by an organization to ensure the management of talent
underpinning of TM (McDonnell, 2009). The theories appear not to is carried out effectually. By assuming the operation of these TM
have been applied as a dual interpretive framework for TM practices architectures, there is an implied reliance on human capital thinking to
in international organisations. make a series of value claims including the fact that value resides in
KABWE AND OKORIE 3
the unique set of knowledge, capabilities, contributions, commitment, higher productivity (Sparrow & Makram, 2015). Second, while IHRM
skills, competencies, and abilities possessed by an organization's talent addresses broader concerns as a result of broader stakeholders and
(Schiemann, 2014; Sparrow & Makram, 2015). Given this thinking, TM criteria, whereas GTM focuses on attracting, developing, and retaining
practices present a new way of building an organization's competitive- employees in multinational enterprise (MNE) (Tarique & Schuler, 2010).
ness, which may be regarded as inimitable. According to Iles et al. (2010), TM is integrated HRM with a selective
Discourses of TM at a global level have been sustained by the focus on a relatively small segment of the workforce, regarded as “tal-
assumed contribution to an organization's productivity and competi- ented” based on their current performance or future potential.
tive advantage (Beechler & Woodward, 2009; Björkman, Ehrnrooth, Third, IHRM encompasses more HR policies and practices while
Smale, & Sumelius, 2013; Collings & Mellahi, 2009; Joyce & Slocum, GTM tends to be primarily focused on the HR policy and practice
2012; McDonnell, 2011; Ready & Conger, 2007; Schuler et al., 2011a, activities of planning, staffing, appraising, compensating, and training
2011b; Son, Park, Bae, & Ok, 2018; Sparrow & Makram, 2015). Tal- (Collings & Mellahi, 2009). In addition, TM also includes strategy,
ented employees are considered as a firm's intangible resource; and a organizational culture, and change management (Iles et al., 2010). In
system of practices and systems to manage them are considered to be this respect, TM can be considered as a subdiscipline of IHRM (Iles
the most valuable (Dewhurst, Hancock, & Ellsworth, 2013; Scholz, et al., 2010). IHRM has a wide range of policies and practices including
2012). Therefore, the focus of TM is not only filling positions with the planning, staffing, compensating, training and developing, appraising,
right people but more so contributing to the strategic goals of a com- labor relations, and safety and health (Briscoe et al., 2009; Dowling,
pany (Farndale et al., 2010; Lewis & Heckman, 2006), and is seen as a Festing, & Engle, 2008).
set of tools to generate a firm's competitive advantage (Latukha, Finally, in many cases, TM adopts an exclusive approach focusing
2018,p. 69). Indeed, within an international context, organizations only on a few individuals regarded as having high potential and/or tal-
often find a strategic value from employees who possess forms of ent. IHRM has an egalitarian approach that focuses on the welfare of
human capital, which go beyond the firm-specific level (Morris, Snell all employees. TM, based on an exclusive approach, promotes the
& Björkman, 2016). Therefore, at an international level, TM is seen as identification and development of a selected few individuals who are
a means of facilitating the development of sustainable competitive capable of making a disproportionate impact on organizational perfor-
advantage through identifying, recruiting, developing, motivating, and mance. Indeed, in practice, there are two main approaches used by
retaining the best people to achieve strategic goals of a company with organizations—exclusive and inclusive. First, the exclusive approach
a focus on key positions (Collings & Mellahi, 2009; McDonnell & that promotes an elitist perspective holds that only about 20% of an
Collings, 2011; Scullion & Collings, 2010). organization differentially contributes to the performance of the orga-
Mindful of all these considerations, GTM is defined for the pur- nization and are, therefore, worthy of investment in development
pose of this article, as “the strategic integration of resourcing and (Dries, 2013; Gallardo-Gallardo, Dries, & González-Cruz, 2013;
development at the international level and involves the proactive Swailes, 2013; Tansley et al., 2007). Although GTM and its many
identification, development and strategic deployment of high per- potential challenges can be examined in the context of IHRM, there
forming and high-potential strategic employees on a global scale are significant differences between the two concepts.
(Collings, Scullion, & Morley, 2007, p. 102).” Identifying talent alone is
insufficient: of more importance is the development and retention of
4 | T M AN D I NT E R NAT I ON AL BUS I N E SS
talented employees who possess the key knowledge to sustain the
competitive position of the company.
International business involves doing business across national borders,
which encompasses operating in different institutional and national
3 | D I F F ER E N C E S B E T W E E N T M A N D cultural contexts as well as dealing with clients, suppliers, advisors,
INTERNATIONAL HRM and employees from a variety of local contexts. Furthermore, the
global economic weight has shifted toward emerging markets
Although there are authors who define TM as a set of HR practices (Cascio & Boudreau, 2016). It is no longer the large organizations—
(Kesler, 2002; Schweyer, 2004; Sullivan, 2004), there are differences MNEs who are engaged in cross-border trade but also small and
between TM/International TM and International Human Resources medium enterprises (Cerrato & Piva, 2012; Co et al., 2018; Lazaris &
Management (IHRM). Four main differences are presented. The first Freeman, 2018). This kind of scenario presents a variety of unique
three refer to the work of Tarique and Schuler (2010) who identify sets of operational and managerial challenges, which require a high
three major differences between GTM and IHRM. First IHRM encom- level of managerial and leadership skill sets. Indeed, academic
passes a wider range of stakeholders (Briscoe, Schuler, & Claus, 2009). researchers have recognized the importance of talent, including all the
The stakeholders can include customers, investors, suppliers, human and organizational elements that are pivotal to enterprise suc-
employees, society, and the organization itself (Tarique & Schuler, cess within the global context (Cascio & Boudreau, 2016).
2010, p. 124). As regards GTM, the most immediate impact is on the TM as an identifiable practice emerged in the late 1990s after the
organization and the talented employees, for example, talent develop- publication of the influential work “War for talent” by McKinsey con-
ment practices will enhance the competences of individuals leading to sultants (Michaels, Handfield-Jones, & Axelrod, 2001). This report
4 KABWE AND OKORIE
highlighted shortage of talent owing to changing demographics and Ghoshal, 1989), which demanded disparate approaches to TM
the aging population in industrialized countries. In recent years, there (Collings et al., 2011). This paragraph was meant to highlight the
is wide recognition of the criticality of TM in a global context to the unique context of this article, an in-depth discussion of the variations
achievement of MNEs' strategic objectives (Collings, 2014; Scullion, in approaches is outside the boundaries of the present study. How-
Collings, & Caligiuri, 2010; Stahl et al., 2012; Tarique & Schuler, ever, it is worth noting that European MNCs as global economic
2010). For example, within the IHRM literature, there is empirical evi- players merit an evaluation of the effectiveness of their TM practices.
dence that highlights the significance of international employee mobil-
ity as a key element of MNE's global talent strategies (McDonnell
5 | L I N K I N G H U M A N CA P I T A L A ND T M TO
et al., 2010; Sparrow, 2007; Stahl et al., 2012). Indeed, these examples
I N T E R N A T I O N A L BU SI N E S S
point to significance of sourcing and utilizing high potential and/or tal-
ented employees within international organizations as a means of
HCT was developed as a contribution to theories on economic
profitably influencing the performance and strategic direction of their
growth. HCT states “the knowledge and skills that people acquire
firms.
through education and training is a form of capital, and this capital is a
TM has been fueled by changes in the international business envi-
product of deliberate investment that yields returns” (Becker, 1985;
ronment, such as international alliances, cross-border mergers and
Shultz, 1971). HCT as advanced by Becker (1976) helps in identifying
acquisitions, and internationalization of small-sized and medium-sized
the conditions under which investment in the development of human
businesses; all of which demand a more sophisticated skill set from
resources makes economic sense for the business enterprise. Exten-
the employees of firms operating internationally. In this respect, there
ding HCT to TM in international business entails viewing talent as
is a growing recognition that the success of international alliances
human capital necessary for developing and sustaining cross-border
depends most significantly on the quality of management in the com-
operations. It is argued that, TM as a practice focusing on the long-
bined venture and on learning (Russo & Cesarani, 2017; Scullion &
term development of human resources could be theoretically
Collings, 2006). This is also evident in the IHRM literature, where the-
explained by HCT (Brewster, Carey, Grobler, Holland, & Wärnich,
re's empirical evidence of the positive relationship between top-
2008; McDonnell, 2009; Tarique & Schuler, 2010). In a conceptual
management team international assignment experience and indicators
of firm performance (Carpenter, Sanders, & Gregersen, 2001; Collings, study conducted by Tarique and Schuler (2010, p. 129), they claim
2014). The rapid growth in these international joint ventures and “HCT can be used to explain the choices the MNE make in managing
cross-border mergers and acquisitions, combined with that of emerg- IHRM activities to meet the challenges of GTM.” The choices firms
ing markets and, in particular the emergence of India and China as make include investing in and developing the necessary skill set
global players in the international business environment, have led to among high-potential employees in order for MNCs to be equipped in
an increased demand for talented individuals with the competence dealing with issues of operating in different national contexts and
required to operate in the global environment (Collings et al., 2007; markets. Therefore, employing HCT entails viewing talent in terms of
Schuler, Jackson, & Luo, 2004). Therefore, identifying, developing, and capital and thus costs related to attracting, retaining, and developing
retaining skilled employees become crucial in order for international talent can be viewed as investments in the human capital of the firm
firms to compete favorably in different markets at home and abroad. (Tarique & Schuler, 2010).
Europe presents a unique landscape for international business In exploring the efficacy of TM to international business, it is
worthy of consideration. First, the European region presents a signifi- important to establish the link between human capital and TM; three
cant player in the global economy with 60 of the 100 largest non- points are advanced in this regard. First, the TM literature has indi-
financial MNEs being headquartered in Europe (United Nations rectly relied upon human capital thinking to make a series of “value
Conference on Trade and Development, 2010). It is considered as one claims” (Sparrow & Makram, 2015; Lepak & Snell, 1999, 2002).
of the triad of regions that drive the global economy (the others being According to Sparrow and Makram (2015), talented employees are
NAFTA and Asia) (Rugman & Verbeke, 2004). Second, within Europe, distinguished from other employees owing to the capital they possess,
multinationals tend to internationalize early due to the relatively small which empowers them to make considerable difference and add value
size of their domestic markets (Collings, Scullion, & Vaiman, 2011). to their organizations. High-potential employees are seen as both an
Early internationalization implies a higher percentage of revenues organization's strategic asset and a manipulable resource that has the
comes from outside the home country (Scullion & Brewster, 2001). potential to contribute to value creation (Sparrow & Makram, 2015).
Numerous European Multinational Corporation or Company (MNCs) For example, in the context of international business, high-potential
built up overseas subsidiaries, which enjoyed a large degree of auton- employees become invaluable as regards the implementation of a
omy, thus making it difficult to switch from the direction of local firm's international strategy as they have the knowledge and compe-
autonomy toward global integration (Collings et al., 2011, p. 456). tences that would help an organization to attain competitive
Indeed, studies have suggested variations in organizational structure advantage.
between North American and European MNCs, with the former plac- Second, TM as a practice can help organizations, particularly inter-
ing more emphasis on formalization of structure and process, while national businesses, to identify critical roles worth investing in and are
the latter places greater importance on socialization (Bartlett & central to the organizations success. For example, in a theoretical
KABWE AND OKORIE 5
model of strategic TM developed by Collings and Mellahi (2009), the in retaining talent (Sparrow & Makram, 2015). As noted by Sparrow
identification of pivotal talent positions is regarded as the first stage and Makram (2015), creation of value through TM at the organiza-
in any TM system. Boudreau and Ramstad (2005, 2007) also advocate tional level is done through exploiting the organization's internal
the identification of key positions that have the potential to differen- resources and capabilities to implement strategies that enable them to
tially impact on sustainable competitive advantage. Identification of respond to market opportunities, for example, by creating economic
pivotal roles can in turn lead to identifying and developing high- value and enhancing an organization's performance.
potential employees capable of substantially contributing to the Therefore, the process of TM accentuates the importance of
attainment of a firm's international strategic objectives. This is particu- developing the most valuable source of competitive advantage—peo-
larly important for international businesses because of the high costs ple. Huselid, Becker, and Beatty (2005) argue that, there are often lim-
of failure. ited financial and managerial resources available to attract, identify,
Third, Mellahi and Collings (2010) contend that effective imple- develop, and retain top performers. As there are different groups of
mentation of GTM, should facilitate the promotion of talent from employees whose value to the organization differs, there may be need
around the global network (both subsidiary and home country talent) for these groups to be treated differently, as they differ in their poten-
to take key positions within the MNEs including being part of the tial to add value or risk the corporate brand; different HR/employee
upper echelon management team at the center. Within MNEs, there resourcing practices may be required for each talent segment (Iles,
are issues regarding the development and ownership of talent 2007, p. 111). Although this should not be at the expense or neglect
between the headquarters and subsidiary, which may hinder the of other employees, it is argued that, it is both reasonable and essen-
development of talent. Owing to the fact that the performance of tial to invest in scarce developmental assignments and spend
subsidiaries is evaluated on the revenue they generate, anecdotal evi- resources on the most promising talent (Walker, 2002, in Iles et al.,
dence shows subsidiaries often veil or put forward less-talented 2010). Similarly, McDonnell (2009) contends that, resources are more
employees (Cappelli, 2008). This is because subsidiary managers may appropriately utilized if MNEs focus on those designated as the key
derive some benefits from the performance of their highly performing talent (high-potential). Certainly, it makes economic sense for an orga-
staff; but derive little or no benefit from their performance in other nization to attract and identify only the high-performing and high-
subsidiaries and/or headquarters should they move on (Mellahi & potential individuals and in turn provide them with further develop-
Collings, 2010, p. 146). As noted by Mellahi & Collings (2010), talent ment opportunities. This should be the ultimate aim of TM practices
ownership issues may impact the effectiveness of TM across globally rather than pursuing the egalitarian approach of HRM.
dispersed subsidiaries. This presents a challenge for senior managers in The effective management of human resources is progressively
MNEs as it may affect their ability to gain a competitive advantage. recognized as a major determinant of success or failure in interna-
tional business (Scullion & Collings, 2006; Stroh & Caligiuri, 1998).
Indeed, the costs of failure in the global business environment are
6 | L I N K I N G R B V A N D TM T O potentially higher than in domestic operations (Dowling et al., 2008).
I N T E R N A T I ON A L B U S I N E S S This makes it imperative for internationally operating businesses to
engage in TM initiatives so as to enable them to identify and develop
In a recent study, McDonnell (2009) contends that, the concept of high-potential employees who are capable of sustaining their interna-
TM may be soundly grounded in the RBV of the firm. The four key tional operations with less risk of failure.
features of RBV are inimitability rare, valuable, nonsubstitutable, and Business survival depends on speed and continuous self-renewal
valuable. Inimitability implies the knowledge, skills, ability, and posses- of knowledge, and developing talent is central to the operations of
sion of unique social relations cannot be easily duplicated by competi- companies in general (Stahl et al., 2007) and in particular to those of
tors. Human talent as a source of competitive advantage may be MNEs. Undeniably, recognizing the impact of a complex economy that
inimitable due to the uniqueness of the human capital and the social demands more sophisticated talent, new expertise at all levels of the
capital it embodies. In reference to Hamel and Prahalad (1993, 1994), organization and fundamental changes in how companies respond to
TM can be regarded as a means of building an organization's core the imperatives of new technology and globalization, all of which pose
competences. These authors argue that, competitive advantage in the major challenges to the effective management of talent (Cappelli,
long term stems from building core competences in a firm, which are 2005; Stahl et al., 2007).
superior to those of rivals. Hamel and Prahalad (1994) define core TM in international business operations is seen as a means of pro-
competences as competitively unique activities and processes through viding a degree of consistency for the firm's people management prac-
which resources are deployed in such a way as to achieve competitive tices (Brewster, Sparrow, & Vernon, 2007). Brewster et al further note
advantage. TM practices present a new way of building an MNE's that a strong corporate culture can make the use of TM approaches
competitiveness, which may be regarded as inimitable. and harmonized company's activities easier across country borders.
The practice of TM allows an organization to develop their identi- TM provides a means of bringing uniformity to the approaches used
fied talent internally using a variety of development activities. In this to manage high-potential employees dispersed around the world.
respect, TM is not only important in creating inimitable intangible Scullion and Collings (2006) note that, numerous TM systems have an
assets and cultivating an internal labor market but also plays a key role underlying focus on a series of core values that are strongly reflective
6 KABWE AND OKORIE
of corporate values and even the wider industry culture, and therefore institute of personnel and development annual human resources
more easily perceived as universal. For example, companies with a development held in London (United Kingdom).
strong value of equality may reflect this in their TM policies by using a The respondents represented companies from eight different indus-
transparent and inclusive approach to managing talented employees. try sectors: energy, pharmaceuticals, paper manufacturing, financial ser-
In summary, conceptually, HCT as a framework explains the vices, construction, engineering, beverage, and motor manufacturing.
investment that MNCs make in sourcing and developing talent. The Not only are there eight distinct business sectors, but there is also vari-
development of talent within an MNC can be grounded in the RBV as ety in terms of size of the organizations based on the number of
this explains the development of internal sources of competitive employees. The biggest company employs 200,000 people, while the
advantage, which are rare, inimitable, nonsubstitutable, and valuable. smallest has 800. Furthermore, the titles of the respondents were var-
This is important for the success of MNCs because international busi- ied including HR Vice-Presidents, HR Directors, Talent Development
nesses have unique challenges owing to cross-border operations in Consultants, Talent Development Managers, and HR Business Partners.
The differences in the titles and the relative position of the respondents
different national and institutional contexts. This results in the need
in their companies' hierarchies are significant for this study. Notably,
for a different skill-set required to operate in the global business envi-
some respondents even have the word “talent” in the titles. Indeed, the
ronment, which is more sophisticated and demanding than that
very distinctions in the job titles suggest the sample has enormous
required in a national context (Guthridge & Komm, 2008; McDonnell
potential to uncover key facets of TM from, admittedly, a managerial
et al., 2010). Thus, the ever-increasing complexity and uncertainty in
perspective. Table A2 shows a summary of the respondents.
which MNCs operate is said to create a unique set of organizational,
co-ordination, and managerial issues (Morley & Collings, 2004). This is
primarily because international business operations are conducted in 8 | DATA ANALYSIS
different countries and employ workers from different national back-
grounds (Scullion & Linehan, 2005). As a result, TM presents a means An adapted version of Crewswell's (2007), Spiral was used to analyze
of building the necessary human capital leading to rare, unique, non- data. At the very bottom of the iceberg is the data collection and tran-
substitutable, and inimitable skill set required by international firms to scription of the recorded interviews. The sources of data were mainly
maintain their competitiveness. semistructured interviews with senior managers complimented by com-
pany documents and websites. Given these various sources, field notes
and interview transcripts yielded a very large database. For example,
7 | METHODOLOGY each interview transcript was at least 3,000 words. As understanding
these data would be crucial in achieving the study's objectives, the next
An interpretivist philosophy is adopted because the researchers con- stage was to read through the information, identifying themes and
sider the concept of TM to be socially constructed by senior manage- areas for further clarification from respondents. This aim was achieved
ment, mainly for the purpose of enhancing individual performance via subsequent e-mail exchanges and telephone calls. An iterative pro-
with the expected end being improved productivity of the business. In cess of reading through the data and seeking clarification from infor-
this context, several authors note that, talent has an indisputable mants was pursued during this stage of the process.
value as a competitive weapon (Lewis & Heckman, 2006; Mellahi & The field notes and transcripts were read again to tease out any hid-
Collings, 2009; Tarique & Schuler, 2010). Given this background, it is den meanings, an example being that, in responding to the interview
undoubtedly clear that TM is a concept that cannot be regarded as questions, most respondents had reflected on their experiences. This
being independent of the involved social actors. The themes and/or brought TM practices to life and opened up new doors of exploration.
questions explored are in the table: Accordingly, data coding started at the literature review stage, after which
Owing to the need for an in-depth understanding of TM, the quali- the themes, represented in Table A1, were identified. Data analysis
tative method of research was considered to be appropriate in collect- involves guiding principles that assist the researcher (Creswell, 2007). By
ing the data from respondents. Saunders et al. (2016, p. 177) note organizing field notes in files and coding them, the researcher was able to
“your choice of sampling techniques is dependent on the feasibility cope with a vast amount of information. Creswell's (2007, p. 151) spiral
and sensibility of collecting data to answer your research question(s) was adapted to include the computer-based data analysis package –
and to address your objectives from the entire population.” In this NVIVO. Because NVIVO allowed all the necessary field notes, transcripts
respect, purposive sampling was adopted. This is a “non-probability and documents created in Microsoft Word to be uploaded, it enabled the
sampling method where the researcher has a clear idea of what sam- researcher to read through the interview transcripts. This provided
another opportunity to search for hidden meanings.
ple units are needed and then approaches potential sample members
to assess whether they meet eligibility criteria” (Easterby-Smith, Tho-
rpe, & Jackson, 2008, p. 218). Semistructured telephone interviews 9 | FINDINGS
were conducted with 19 senior managers representing 16 companies.
The respondents were identified mainly through the researcher's This study aimed at exploring the efficacy of TM practices to international
attendance at HRM practitioner conferences such as the chatered business. To achieve this aim, three main themes were identified,
KABWE AND OKORIE 7
interview questions were developed in alignment with these themes: points will be discussed further. First, the findings reveal international
(a) Understanding the meaning of TM (Definitions); (b) The expansion, joint ventures, entering new markets, and getting new
role/significance of TM in international operations, and (b) Understanding business (extending the business portfolio) are some of the kinds of
TM as a (potential) way of developing human capital (refer to Table A1). business operations that may determine the required categories of tal-
The findings are organized according to these themes. ented employees. For example, as the market for paper has been
shrinking in some parts of the world, the Finnish paper manufacturing
company from the sample needs people who can drive change. The
10 | THE UNDERSTANDING OF TM
firm has a great need for new capabilities and competences such as
All participants were asked to explain their organizational understand- business development and innovativeness, as can be deduced from
ing of talent and TM, key themes in the definitions were then collated. the statement of their HR Director:
Refer to the Table A3. So, our business strategy at the moment consists of three races:
skills… (Director, Learning and Development, beverage energy and pharmaceutical companies who tend to have long-term
company, Germany) projects. For example, the German Energy Company usually has pro-
jects lasting 15–17 years. The Vice-President of Employer Branding
In all cases, respondents acknowledged the development of distinctive for this firm noted:
competences through TM practices among their high potential was nec-
essary for sustaining their international operations. Therefore, the evi- 15-17 years is an average length of time we expect
dence suggests TM equips the MNCs to be more effective in the markets employees to stay in our company. So, we're talking
in which international firms operate. Furthermore, the various markets about long-term things. If you are building a power
also determine the characteristics and competences that the organiza- plant, if you're talking about coal you need six to eight
tions seek in their talented employees. Thus, it can be concluded that the years… if you are talking about nuclear, eight to
context in which these businesses operate determines the criteria 12 years from the first meeting until the power plant is
deployed in identifying talented employees who can work abroad in joint delivering energy. So, we are always talking about
ventures and the specific competences they seek to develop. long-term strategies and long-term development.
Finally, the data suggest that TM is a means of creating global align-
ment. This was evident in five organizations that had undergone The aforementioned example demonstrates sample firms make deliber-
mergers and acquisitions. In particular, the German Energy Sector Com- ate investment in TM practices, developing high-potential employees,
pany was founded after a merger and a series of acquisitions; given this which brings forth benefits in terms of strengthening the organization's
background, the major challenge faced by this organization was esta- rare, inimitable, and nonsubstitutable competences resulting in
blishing a uniform mindset for facing challenges in their business envi- accomplishing long-term projects of building power plants and deliver-
ronment, including identifying and developing high-potential ing energy to their end customers. High-potential employees in turn feel
employees. The Vice-President of Employer Branding (Germany) stated: valued as the company shows interest in not only helping them acquire
skills and capabilities but enabling them to develop a career.
…a very big obstacle we had until today was ourselves, In developing human capital, considerable importance was placed on
because we are coming from different cultures in our facilitating a fit between TM practices and strategic plans as there was
company, from different programmes and we lost a lot need to harness TM's potential contributions in the attempt to deliver the
of time in talking to all talent managers and HR in our goals of the international businesses. In this light, eight of the sample
company, until we defined this corporate management organizations noted developing human capital to enable international
This organization started out as a German-based company and has these gaps to support the organization's strategy. Accordingly, talented
since expanded into foreign markets, resulting in management and individuals constitute one of the most important organizational capabili-
employees with different priorities, values and ways of thinking. The ties and this asset needs to be developed to match the changes taking
introduction of a global corporate TM program with uniform assess- place in the internal as well as the external environment.
ment tools can be seen as a way of building consistency and a com- Furthermore, a major multinational European subsidiary of a global
mon commitment to the values and goals of the firm. The fact that energy company noted that developing human capital through TM
there is only one centralized TM program is evidence that the com- places them in an advantageous position for joint ventures and strate-
pany uses this program as a means of creating unity and aligning its gic alliances. The HR Director for the United Kingdom stated:
In all cases, the respondents acknowledged TM activities are a means Consequently, TM programs are a means of building up and leveraging
of developing employees' human capital for the benefit of both the the competences of employees to develop the strategic capability of
individuals and the organization. The managerial view was the focus the international firms, which make them more attractive for strategic
of this research. Developing high-potential human capital was consid- partnerships. Indeed, of considerable value to the performance of busi-
ered essential for the sustainability of international operations. One of nesses operating internationally is the necessity to build the human
the key determinants in making long-term investments in developing capital- the core competences among their high-potential employees.
employees' competences was the nature of the business. There was However, developing human capital in MNCs is not without chal-
an indication of needing efficiency and continuity especially among lenges. In this regard, the respondent from a Swiss financial services
KABWE AND OKORIE 9
company noted it was difficult to identify and develop talent as human ambitions. As noted by Gratton & Ghoshal, (2003, p. 3), talented indi-
capital in the subsidiaries owing to retention issues and cultural factors. viduals' social networks become capital because “they provide access to
For example, if high-potential employees from Asia are taken to Switzer- the resources members of the network possess or have access to.” Five
land for development for a period of 2 years, repatriating them back to of the companies in the sample send their senior managers to INSEAD
Asia is a problem. Talented employees in this case have the power to as a means of making external contacts that are significant in getting
influence resourcing decisions owing to the scarce skills and compe- information about problems in the wider business environment and
tences they possess. Thus, when they are repatriated, if they are not how to solve these. The practice of increasing senior managers' social
happy with the conditions, they may decide to leave the company and networks is also recognized in the work of Adler and Kwon (2002) as a
invest their human capital in another firm. Given this situation, the Swiss form of investment in building the network of external relations which
financial services company reported losing a considerable amount of have the potential to augment both individual and collective actors'
resources because an appreciable number of talented employees decided social capital, which gives them superior access to information, power,
not to return to their home country and hence left the organization. and solidarity. The managerial emphasis is on creating social capital nec-
essary for employees to deal with their daily challenges in their roles as
well as sharing and acquiring knowledge to improve business opera-
13 | DISCUSSION OF THE FINDINGS tions. In this context, the management expects to create social capital
for the purpose of enhancing organizational capital (Adler &
The study explores the efficacy of TM for international business. Mak-
Kwon, 2002).
ing reference to HCT and RBV, the study adds to the TM literature fill-
Furthermore, the value of TM practices for international businesses
ing gaps that have hitherto existed, both theoretically and empirically.
is realized through the development of leadership competences and
Regarding the value of TM to international business, we find TM to be
other significant competences of strategic importance to the business,
a means of identifying, developing, and retaining high-potential individ-
hence organizations can meet both short-term and long-term goals. As
uals who have the human capital necessary to lead the operations and
highlighted in the literature, there is recognition among the respondent
ensure sustainability of their businesses (Beechler & Woodward, 2009;
firms that internationally competent managers represent a key compo-
Björkman, Stahl & Vaara, 2007; Björkman et al., 2013; Collings & nent of success among organizations operating in different geographical
Mellahi, 2009; Joyce & Slocum, 2012; Makram & Sparrow, 2014; Pet- locations (Scullion, 1994, 2001; Stroh & Caligiuri, 1998). Indeed, within
kovic & Dordevic, 2013; Ready & Conger, 2007; Schuler et al., 2011a, an international context, it has been argued “there is a growing recogni-
2011b; Son et al., 2018). Indeed, TM within MNCs is motivated by a tion that the success of international business depends most impor-
variety of organizational goals, including business control and client tantly on the quality and contributions of top executive talents and how
demands, moderated by cost considerations (Li & Scullion, 2010; effectively these critical resources are managed and developed”
Suutari & Brewster, 2001). (Brewster et al., 2007, p. 309). This is because developing managerial
The long-term development of human capital through TM prac- competences is seen as a means of improving the effectiveness of
tices leads to developing the knowledge and competences that are implementing international strategies.
unique and nonsubstitutable. Development of human capital is aligned Through TM, the talent pipeline contributes to the process of
to a firm's long-term international strategy by showing considerable maintaining the supply and demand of staff in international opera-
interest in developing and retaining (engaging) high-potential tions. Indeed, the shortage of employees with the necessary compe-
employees to sustain international operations. Indeed, this is what tences and motivation has been described as one of the greatest
Scullion and Collings (2006) regard as the main purpose of TM in barriers to success for firms around the world today (Schuler et al.,
international operations. In this regard, there is recognition of securing 2011a, 2011b). Yet, highly skilled individuals' competences and moti-
the commitment of high-potential employees among the respondent vation are crucial to achieving organizational goals and in particular
organizations. The management in these organizations has made achieving success in international operations. Indeed, a key result of
efforts as regards securing the commitment of high-potential successfully addressing the challenges of GTM is having the right tal-
employees through career development in TM practices. While there ents at the right place at the right time with the needed competencies
is agreement among researchers that the effectiveness of TM prac- (Guthridge & Komm, 2008; Tarique & Schuler, 2010).
tices is likely to be associated with positive high-potential employees' Several studies show that until very recently, it was becoming
attitudes (Chang, 2005), the causal chain between high-potential com- increasingly difficult to locate and retain suitable managerial talent to
mitment and development through TM has been found to be more manage an organization's international operations (Gregersen, Morri-
complex than previously thought (Khoreva & Vaiman, 2015). Mean- son, & Black, 1998; Scullion, 1994; Scullion & Collings, 2006; Suutari,
while, high-potential employees are likely to perceive, value, and react 2002). Clearly, empirical evidence shows that in embracing the notion
to TM practices differently (Khoreva & Vaiman, 2015). of TM, organizations are responding to changes in the external labor
Another value-adding aspect of TM for international business is market, increased competition and skills shortages, recruitment and
developing capital through networking. Networking is not only a means retention difficulties, and the challenges of undertaking succession plan-
of acquiring knowledge and skills but also to enhance the know-how to ning for senior leadership roles (Holden & Tansley, 2007). The idea of
use their human capital to fulfil both organizational and personal TM as a process of maintaining the supply and demand of staff for
10 KABWE AND OKORIE
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ment. Journal of World Business, 45(2), 105–108.
Scullion, H., & Collings, D., (Eds.). (2010). Global talent management.
London, England: Routledge. Dr Chitalu Kabwe (cbkabwe@yahoo.com) completed her PhD at
Scullion, H., & Linehan, M. (Eds.). (2005). International human resource man- the University of Central Lancashire in the United Kingdom, she
agement: A critical text. Basingstoke, England: Palgrave McMillan. also has an MBA from Strathclyde Graduate School in Glasgow,
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UK and an MA in HRM from the University of the West of
Macmillan.
Son, J., Park, O., Bae, J., & Ok, C. (2018). Double–edged effect of TM on England in Bristol, UK. She is a Fellow of the Higher Education
organizational performance: The moderating role of HRM investments. Academy and a Chartered Member of the Chartered Institute of
The International Journal of Human Resource Management, 29(8), Personnel and Development. Her research interest is in the area
1446–4399.
of Talent Management, Critical Management Studies, Interna-
Sparrow, P. (2007). Globalization of HR at function level: Four UK-based
tional HRM, Human Sustainability, and Leadership Development.
case studies of the international recruitment and selection process.
International Journal of Human Resource Management, 18(5), 845–867. She has taught HRM courses at four levels: Doctoral, Graduate
Sparrow, P., & Makram, H. (2015). What is the value of TM? Building (Executive MBA, MBA, and MSc in HRM), and Undergraduate.
value–driven processes with–in a TM architecture. Human Resource Previous appointments include; Associate Lecturer of Human
Management Review, 25(3), 249–263.
Resources Management at the University of Central Lancashire;
Stahl, G. K., Björkman, I., Farndale, E., Morris, S. S., Paauwe, J., Stiles, P., …
Wright, P. (2012). Six principles of effective global talent management. Senior Lecturer in Management at Huddersfield Business School,
Sloan Management Review, 53(2), 25–42. and Lecturer in Human Resource Studies at Plymouth Business
Stahl, G. K., Bjorkman, I., Farndale, E., Morris, S. S., Stiles, P., Trevor, J., & School where she was also the Program Leader for the MSc in
Wright, P. M. (2007). Global TM: How leading multinationals build and
Management and currently serving as a Visiting Specialist.
sustain their talent pipeline (Faculty and Research Working Paper:
2007/34/OB). Fontainebleau, France: INSEAD.
KABWE AND OKORIE 13
APPENDIX
The meaning of talent management
How do you define talent in your organization?
How do you understand the meaning of talent management used in your organization? /How do you define talent management in your
organization?
Do employees within your organization share the same understanding of this definition of talent management?
TABLE A2 (Continued)
TABLE A3 (Continued)