Impact of contextual factors on organisational performance mediated by talent management

Abstract

Orientation: Talent management has become a significant concept in human resource management because of the potential influence thereof on organisational performance in a competitive business environment.

Research purpose: This study investigated the impact of contextual factors on talent management and organisational performance of small, medium and micro enterprises (SMMEs) in the Gauteng manufacturing sector.

Motivation for the study: There is a paucity of research on how organisational context influences the implementation of talent management and related organisational performance.

Research approach/design and method: A quantitative cross-sectional research design was adopted. The target population included proprietors, general managers and human resource practitioners employed at manufacturing SMMEs in the Gauteng province. A self-designed survey was utilised to gather data from 395 participants. Statistical analysis included structural equation (direct effect) and mediation modelling (indirect effect).

Main findings: Exogenous and endogenous contextual factors and specifically perceived importance of talent management and SMME size, statistically significantly predicted talent management and subsequently organisational performance. Coronavirus disease 2019 (COVID-19) impact, perceived talent management importance, SMME size and enterprise age statistically significantly influenced talent management directly. Similarly, competition perception, COVID-19 and talent management importance impacted organisational performance.

Practical/managerial implications: To promote strategic human resource management and significantly contribute to organisational performance, SMMEs in the manufacturing sector should comprehend the strategic role of talent management, as well as the influence of exogenous and endogenous contextual factors.

Contribution/value-add: This study extends the corpus of knowledge regarding talent management and organisational performance in SMMEs, underscoring exogenous and endogenous contextual factors.