Talent retention challenges among non-family talented individuals: multiple case studies of family SMEs in Jordan
| Date | 27 September 2023 |
| Pages | 1415-1436 |
| DOI | https://doi.org/10.1108/ER-08-2022-0397 |
| Published date | 27 September 2023 |
| Subject Matter | HR & organizational behaviour,Industrial/labour relations,Employment law |
| Author | Mohammad Alzbaidi,Abdallah Abu Madi |
Talent retention challenges among
non-family talented individuals:
multiple case studies of family
SMEs in Jordan
Mohammad Alzbaidi and Abdallah Abu Madi
Business School, University of Wolverhampton, Wolverhampton, UK
Abstract
Purpose –This study explores the influence of Wasta, informal social network on the retention of non-family
talented employees in family-owned SMEs in Jordan. Despite the increased attention received by talent
management (TM) in the last decade, limited attention has focused on family-owned-SMEs. This study
demonstrates while resource-based view explains how human capital provides sustainable competitive
advantage the lack of strategic retention management may lead to losing this competitive advantage.
Design/methodology/approach –A multiple case study approach underpinned by a qualitative orientation
was utilizedto help explore the dynamics of TM practices in greater depth. The authors conducted a series of 18
semi-structured in-depth interviews with HR managers, non-family junior and middle managers from six
family-owned enterprises.
Findings –Evidence showed that family Wasta accelerate employee dissatisfaction among non-family
talented individuals and in turn enhances their intention to leave due to organizational injustice and lack of
organizational support.
Practical implications–This study could help managers in family-owned organizations enforce the concept
of organizational justice by implementing solid performance management systems and talent reviews to
strengthen the social exchange with non-family competent employees.
Originality/value –First, this study demonstrates how access to Wasta accelerate the mobility of non-family
talentedindividuals and in turn enhances their intention to leave. Second, this study provides a theoretical and contextual
framework to deepen the authors’understanding of the impact of social networks on strategic retention performance.
Keywords Talent management, Family-owned SMEs, RBV, Informal social networks, Wasta
Paper type Research paper
1. Introduction
Talent management (TM) has garnered considerable interest from practitioners and
academic scholars in the past decade. While contemporary published works primarily
focus on exploring the concept of TM and the approaches and strategies adopted by
organizations, limited attention has been given to talent retention (Tlaiss et al., 2017).
Family-owned SMEs can be distinguished from non-family firms by their dominant
ownership and management, which ultimately affects their management practices and
philosophies (Mustafa et al., 2018). As SMEs in the Middle East are characterized by family
management predominance, succession planning and TM may pose challenges, as senior
positions are often occupied by extended family members within these organizations
(Collings et al., 2018). Non-family talented individuals are characterized by high potential
and high performan ce, along with a strong motivation to co ntribute to the success and
growth of the family firm (Blumentritt et al., 2007;Harsch and Festing, 2019). This study
considers talent as individuals who demonstrate high performance and have the potential
to contribute to the firm’sgrowth.
Talent
retention
challenges
1415
Disclosure statement: No potential conflict of interest was reported by the author(s).
The current issue and full text archive of this journal is available on Emerald Insight at:
https://www.emerald.com/insight/0142-5455.htm
Received 19 August 2022
Revised 28 February 2023
14 June 2023
Accepted 8 August 2023
Employee Relations: The
International Journal
Vol. 45 No. 6, 2023
pp. 1415-1436
© Emerald Publishing Limited
0142-5455
DOI 10.1108/ER-08-2022-0397
Nonetheless, despite non-family talented employees being a significant source of human
capital and a competitive advantage for firms, in the Arab world, social networks based on
kinship or family, known as “Wasta,”provide social capital advantages to family members
compared to non-family members due to historical and social ties with a specific family group
(Soleimanof et al., 2017). Institutional research indicates that reliance on Wasta is associated
with the risk of rent-seeking and creates concentrated power pockets in society (Ali and
Weir, 2020).
Possessing access to Wasta can confer advantages on individuals with family
connections, granting them priority over organizational benefits and resources, as
highlighted by Budhwar et al. (2018). Consequently, individuals with weak connections but
high personal merit may be disadvantaged compared to those with strong connections but
low personal merit. As a result, employee succession practices in Arab societies often exhibit
lower prevalence in terms of allocating talented individuals to senior roles, leading to high
turnover rates within family-owned businesses (Collings et al., 2018).
TM is advocated as a systematic approach to attract, develop, retain and deploy
individuals whose value to an organization contributes to sustainable growth and strategic
success (Gallardo-Gallardo et al., 2019). It is considered an effective means of capturing and
developing employees’skills and expertise. Therefore, in a Western context, TM is regarded
as an effective mechanism for SMEs to develop and retain talent successfully (Krishnan and
Scullion, 2016). The resource-based view (RBV) further explains how human capital can serve
as a source of competitive advantage if it possesses characteristics of value, rarity,
inimitability and non-substitutability, as previously described (Barney, 1991;Narayanan
et al., 2018).
Consideringthe limited research conducted onthe challenges faced by non-familytalented
individuals and the significance of Wasta in Arab networking, this paper aims to investigate
the factorsinfluencing TM andthe retention of non-familyemployees in family-ownedSMEs in
Jordan. Specifically, we examine the level of satisfaction among non-family employees
regardingorganizationalsupport withinJordanian family businesses.This studycontributes to
the existingliterature on family businessesby shedding light on theimpact of family Wasta on
managerialbehaviors in an Arab context.In the following sections,we present a theoreticaland
contextual framework that lays the foundation for understanding TM practices within the
context of family-owned SMEs, further augmented by the role of Wasta and its influence on
perceived organizational justice and perceived organizational support. Drawing upon this
theoretical foundation, we outline the methodology and design of this study. The paper
concludes with practical implicationsand suggestions for future research directions.
2. Theoretical and contextual framework
2.1 Talent management and family-owned SMEs
TM encompasses the processes and activities aimed at attracting, developing, retaining and
deploying individuals whose exceptional potential and value contribute to the success of their
organization (Beamond et al., 2016). While TM shares similarities with various components of
HRM, such as training and development and succession planning, it also incorporates
integrated activities that align the internal organizational system with external
environmental factors not fully addressed by traditional HRM approaches. Despite the
increasing attention and recognition of TM’s criticality, the analysis of TM remains limited,
primarily focusing on the organizational context of large multinational enterprises (MNEs)
while neglecting different types of organizations, including small- and medium-sized
enterprises (SMEs).
TM practices have made limited conceptual or empirical contributions within SMEs. Most
TM concepts and practices have been developed within and for large firms, and their
ER
45,6
1416
Get this document and AI-powered insights with a free trial of vLex and Vincent AI
Get Started for FreeStart Your Free Trial of vLex and Vincent AI, Your Precision-Engineered Legal Assistant
-
Access comprehensive legal content with no limitations across vLex's unparalleled global legal database
-
Build stronger arguments with verified citations and CERT citator that tracks case history and precedential strength
-
Transform your legal research from hours to minutes with Vincent AI's intelligent search and analysis capabilities
-
Elevate your practice by focusing your expertise where it matters most while Vincent handles the heavy lifting
Start Your Free Trial of vLex and Vincent AI, Your Precision-Engineered Legal Assistant
-
Access comprehensive legal content with no limitations across vLex's unparalleled global legal database
-
Build stronger arguments with verified citations and CERT citator that tracks case history and precedential strength
-
Transform your legal research from hours to minutes with Vincent AI's intelligent search and analysis capabilities
-
Elevate your practice by focusing your expertise where it matters most while Vincent handles the heavy lifting
Start Your Free Trial of vLex and Vincent AI, Your Precision-Engineered Legal Assistant
-
Access comprehensive legal content with no limitations across vLex's unparalleled global legal database
-
Build stronger arguments with verified citations and CERT citator that tracks case history and precedential strength
-
Transform your legal research from hours to minutes with Vincent AI's intelligent search and analysis capabilities
-
Elevate your practice by focusing your expertise where it matters most while Vincent handles the heavy lifting
Start Your Free Trial of vLex and Vincent AI, Your Precision-Engineered Legal Assistant
-
Access comprehensive legal content with no limitations across vLex's unparalleled global legal database
-
Build stronger arguments with verified citations and CERT citator that tracks case history and precedential strength
-
Transform your legal research from hours to minutes with Vincent AI's intelligent search and analysis capabilities
-
Elevate your practice by focusing your expertise where it matters most while Vincent handles the heavy lifting
Start Your Free Trial of vLex and Vincent AI, Your Precision-Engineered Legal Assistant
-
Access comprehensive legal content with no limitations across vLex's unparalleled global legal database
-
Build stronger arguments with verified citations and CERT citator that tracks case history and precedential strength
-
Transform your legal research from hours to minutes with Vincent AI's intelligent search and analysis capabilities
-
Elevate your practice by focusing your expertise where it matters most while Vincent handles the heavy lifting
