Talent philosophies and institutional factors as determinants of talent management in SMEs: a French country-specific empirical investigation
| Date | 15 November 2024 |
| Pages | 309-333 |
| DOI | https://doi.org/10.1108/PR-08-2023-0700 |
| Published date | 15 November 2024 |
| Author | Kousay Abid |
Talent philosophies and institutional
factors as determinants of talent
management in SMEs: a French
country-specific
empirical investigation
Kousay Abid
College of Business, University of Doha for Science and Technology, Doha, Qatar
Abstract
Purpose –Talent management (TM) is a crucial strategic issue for global organizations, extending beyond
multinationals and big companies to encompass small and medium-sized enterprises (SMEs) and contexts
outside the Anglo-Saxon sphere. However, TM in SMEs is still under-researched, with a lack of studies and
evidence on TM determinants and TM in practice. This study explores, using the lens of institutional theory, how
talent philosophies and a combination of institutional factors shape TM in French SMEs, highlighting the
interplay between these elements within the specific context of French SMEs.
Design/methodology/approach –Given the limited knowledge about TM determinants in SMEs and the need
to uncover and understand the phenomenon investigated, this study is exploratory in nature and lends itself to a
qualitative research approach. In-depth semi-structured interviews with 27 CEOs, managers, TM and HR
managers across 15 SMEs in France provided a comprehensive cross-industry perspective.
Findings –The study reveals that talent philosophies in French SMEs are predominantly inclusive and
development-oriented, influenced by institutional factors such as the cultural logic of proximity and
personalization, state support mechanisms like the Fonds Unique Interminist
eriel (FUI) and legal frameworks
that emphasize equal opportunity.Organizational elements like size and proximity foster a community-focused,
egalitarian TM approach, while ownership and vulnerability lead to a reactive and informal TM strategy. The
study presents a model that links these determinants to the specific TM approaches observed in French SMEs,
illustrating how institutional factors like centralized control and egalitarianism shape TM practices.
Research limitations/implications –This paper highlights the need for more empirical studies on talent
philosophies, institutional and organizational factors not only in SMEs but also in comparison with
multinational enterprises (MNEs), through institutional theory. Particular attention should be paid to the
homogenization of SME sizes based on their level of establishment.
Originality/value –This study extends studies on TM determinants in SMEs, from the perspective of talent
philosophies, utilizing insights from French institutional theory. It is also among the few and new studies to
highlight contextual issues of TM as well as how TM is practiced depending on internal and external factors.
Keywords Talent management, SMEs, Talent philosophies, Institutional theory,Organizational factors
Paper type Research paper
Introduction
Talent management (TM) stands out as a critical function within human resource (HR)
management, that leads to business success (Bolander et al., 2017;Cooke et al., 2021). TM,
commonly defined as the systematic attraction, identification, development, engagement/
retention and deployment of talents (Gallardo-Gallardo et al., 2020), is theoretically discussed
as varying not only between the inclusive or exclusive approach (Meyers et al., 2020), but also
among different perspectives, philosophies and practices (Kwon and Jang, 2022;Lewis and
Heckman, 2006;Thunnissen, 2016). Most TM research has primarily centered on
multinational corporations (MNCs), with recent attention shifting toward small and
medium-sized enterprises (SMEs) (Lawless et al., 2019). Studies indicate notable
distinctions in the conceptualization and determinants of TM between SMEs and MNCs
(Krishnan and Scullion, 2017). Although TM research spans a wide variety of contexts
(countries and organizations), TM determinants, particularly in SMEs, are often overlooked
(Aljbour et al., 2022;Thunnissen, 2016;Thunnissen and Gallardo-Gallardo, 2019).
Personnel Review
309
The current issue and full text archive of this journal is available on Emerald Insight at:
https://www.emerald.com/insight/0048-3486.htm
Received 20 August 2023
Revised 20 January 2024
28 August 2024
10 October 2024
Accepted 23 October 2024
PersonnelReview
Vol.54 No. 1, 2025
pp.309-333
©Emerald Publishing Limited
0048-3486
DOI10.1108/PR-08-2023-0700
TM determinants in SMEs are crucial, because they shape TM with the aim of advancing
decision-making in organizations (Gallardo-Gallardo et al., 2020). This shortage could be
explained by the rational and instrumental process of TM, disconnected from its organizational
context and actors (Thunnissen, 2016), or by the quality of empirical research (Thunnissen and
Gallardo-Gallardo, 2019). However, recent efforts have highlighted that TM determinants
could be mostly related to SMEs’ unique characteristics, organizational and institutional
factors (Aljbour et al., 2022;Bolander et al., 2017;Meyers et al., 2020), and talent
philosophies (Tlaiss, 2020;Vardi and Collings, 2023).
First, very often, TM definitions and concepts developed in large corporations, are applied
uncritically within SMEs (Kravariti et al., 2021). This bias arises, as SMEs differ significantly
from multinational enterprises (MNEs) (Krishnan and Scullion, 2017) and their organizational
configurations and institutional contexts shape TM differently (Harney et al., 2022;Vardi and
Collings, 2023). SMEs exhibit specific characteristics, and unique challenges, considered as
organizational factors shaping TM, including size, proximity management (Torr
es and Jaouen,
2008), manager omnipresence and vulnerability to external changes (Adla and Gallego-
Roquelaure, 2022). Size plays a crucial role in resource orchestration, making it a critical
variable for SMEs (Guerrero et al., 2022). Proximity management encourages reliance on
informal working methods and TM practices, helping to maintain consistency in HRM
implementation. Additionally, ownership often concentrates decision-making power within a
small group, referred to as the dominant coalition. Finally, SMEs’ vulnerability is tied to their
limited capacity to withstand external disruptions, making them more susceptible to
environmental changes and shocks (Harney et al., 2022). However, the current literature often
fails to address these specific differences, applying one-size-fits-all TM frameworks that may
not fully capture the nuances of SME environments (Jooss et al., 2019;Abid and
Loufrani, 2024).
Second, studying TM in SMEs is of utmost importance, due to the crucial role they play in
economies, despite the little recognition of the unique institutional and resource contexts faced
by firms in this sector (Kravariti et al., 2021). SMEs dominate private sector employment
globally and in the European Union (EU), constituting over 95% of EU firms and holding a
strategic role in economic development, by accounting for over 60% of private-sector
employment (Harney and Alkhalaf, 2021;OECD, 2019). In France, SMEs account for 99.9%
of all businesses with over four million such enterprises. They play a vital role in innovation,
knowledge diffusion and social cohesion, and generating seven out of ten new jobs (World
Bank, 2021). Thus, the organizational and institutional contexts have important implications
for such SMEs, and for TM. More empirical research that considers the internal context of
SMEs, and in doing so incorporating an awareness of institutional factors (e.g. legal, cultural,
etc.), is thus needed, to enhance our understanding of talent and TM in SMEs (Krishnan and
Scullion, 2017;Kravariti et al., 2021). However, there is a significant research gap in
understanding how these specific contexts influence TM in SMEs, highlighting the need for
more empirical studies that consider the internal dynamics of SMEs (Harney and Alkhalaf,
2021;Kroon and Paauwe, 2022).
Third, talent philosophies can be defined as the “fundamental assumptions and beliefs
about the nature, value, and instrumentality of talent that are held by a firm’s key decision
makers” (Meyers and van Woerkom, 2014, p. 192). They have been proposed to vary along
four distinct philosophies that have different implications for the nature of TM: exclusive/
innate, exclusive/developable, inclusive/innate and inclusive/developable talent philosophy
(Meyers et al., 2020). Literature on strategic HR management has already identified
underlying philosophies about the nature of HR as key determinants of the specific shape of
HR practices (Becker and Gerhart, 1996). Also, it was advanced that talent definitions and
philosophies serve as the foundation for TM (Wiblen and McDonnell, 2020), through which
organizations seek to capitalize on talent to execute operational requirements and to realize
strategic ambitions. However, talent philosophies vary based on the context and nature of
organizations, yet little is known about how these philosophies manifest specifically within
PR
54,1
310
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