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The barriers to effective global talent management: The example of corporate élites in MNEs

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  • Mellahi, Kamel
  • Collings, David G.
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    Abstract

    This paper focuses on talent management failure by multinational enterprises (MNEs). It examines barriers to corporate advancement of talents located in subsidiaries and more specifically on promotion of talent already employed by the MNE to be part of the upper echelon management team at its centre. Drawing on agency and bounded rationality theories, we discuss the underlying causes of talent management failure in MNEs. At the subsidiary level, we draw on agency theory to delineate self-serving mechanisms displayed by subsidiary managers that might hinder effective talent management systems throughout the MNE. At the headquarter level, we use bounded rationality to explain how decision-making processes, and information top management teams use to make decisions about talent management results in overlooking talents at subsidiary level.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of World Business.

    Volume (Year): 45 (2010)
    Issue (Month): 2 (April)
    Pages: 143-149

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    Handle: RePEc:eee:worbus:v:45:y:2010:i:2:p:143-149

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    Related research

    Keywords: Global Talent management Failure Multinational enterprise Bounded rationality Agency theory;

    References

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    1. Clifford L. Staples, 2007. "Board Globalisation in the World's Largest TNCs 1993-2005," Corporate Governance: An International Review, Wiley Blackwell, vol. 15(2), pages 311-321, 03.
    2. Simon, Herbert A, 1979. "Rational Decision Making in Business Organizations," American Economic Review, American Economic Association, vol. 69(4), pages 493-513, September.
    3. James E. Smith & Robert L. Winkler, 2006. "The Optimizer's Curse: Skepticism and Postdecision Surprise in Decision Analysis," Management Science, INFORMS, vol. 52(3), pages 311-322, March.
    4. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
    5. Ron Boschma, 2005. "Proximity and Innovation: A Critical Assessment," Regional Studies, Taylor & Francis Journals, vol. 39(1), pages 61-74.
    6. Ingmar Bj�rkman & Carl F Fey & Hyeon Jeong Park, 2007. "Institutional theory and MNC subsidiary HRM practices: evidence from a three-country study," Journal of International Business Studies, Palgrave Macmillan, vol. 38(3), pages 430-446, May.
    7. Gilles Hilary & Lior Menzly, 2006. "Does Past Success Lead Analysts to Become Overconfident?," Management Science, INFORMS, vol. 52(4), pages 489-500, April.
    8. Pfeffer, Jeffrey, 2001. "Fighting the War for Talent is Hazardous to Your Organization's Health," Research Papers 1687, Stanford University, Graduate School of Business.
    9. Nancy J Adler & Susan Bartholomew, 1992. "Academic and Professional Communities of Discourse: Generating Knowledge on Transnational Human Resource Management," Journal of International Business Studies, Palgrave Macmillan, vol. 23(3), pages 551-569, September.
    10. Collings, David G. & Morley, Michael J. & Gunnigle, Patrick, 2008. "Composing the top management team in the international subsidiary: Qualitative evidence on international staffing in U.S. MNCs in the Republic of Ireland," Journal of World Business, Elsevier, vol. 43(2), pages 197-212, March.
    11. James G. March & Zur Shapira, 1987. "Managerial Perspectives on Risk and Risk Taking," Management Science, INFORMS, vol. 33(11), pages 1404-1418, November.
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    Citations

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    Cited by:
    1. Schmid, Stefan & Dauth, Tobias, 2014. "Does internationalization make a difference? Stock market reaction to announcements of international top executive appointments," Journal of World Business, Elsevier, vol. 49(1), pages 63-77.
    2. Raman, Revti & Chadee, Doren & Roxas, Banjo & Michailova, Snejina, 2013. "Effects of Partnership Quality, Talent Management, and Global Mindset on Performance of Offshore IT Service Providers in India," Journal of International Management, Elsevier, vol. 19(4), pages 333-346.
    3. Patriotta, Gerardo & Castellano, Anna & Wright, Mike, 2013. "Coordinating knowledge transfer: Global managers as higher-level intermediaries," Journal of World Business, Elsevier, vol. 48(4), pages 515-526.
    4. Sidani, Yusuf & Al Ariss, Akram, 2014. "Institutional and corporate drivers of global talent management: Evidence from the Arab Gulf region," Journal of World Business, Elsevier, vol. 49(2), pages 215-224.
    5. Tatli, Ahu & Vassilopoulou, Joana & Özbilgin, Mustafa, 2013. "An unrequited affinity between talent shortages and untapped female potential: The relevance of gender quotas for talent management in high growth potential economies of the Asia Pacific region," International Business Review, Elsevier, vol. 22(3), pages 539-553.
    6. Smale, Adam & Björkman, Ingmar & Sumelius, Jennie, 2013. "Examining the differential use of global integration mechanisms across HRM practices: Evidence from China," Journal of World Business, Elsevier, vol. 48(2), pages 232-240.
    7. Collings, David G., 2014. "Integrating global mobility and global talent management: Exploring the challenges and strategic opportunities," Journal of World Business, Elsevier, vol. 49(2), pages 253-261.
    8. Cerdin, Jean-Luc & Brewster, Chris, 2014. "Talent management and expatriation: Bridging two streams of research and practice," Journal of World Business, Elsevier, vol. 49(2), pages 245-252.
    9. Meyers, Maria Christina & van Woerkom, Marianne, 2014. "The influence of underlying philosophies on talent management: Theory, implications for practice, and research agenda," Journal of World Business, Elsevier, vol. 49(2), pages 192-203.
    10. Cooke, Fang Lee & Saini, Debi S. & Wang, Jue, 2014. "Talent management in China and India: A comparison of management perceptions and human resource practices," Journal of World Business, Elsevier, vol. 49(2), pages 225-235.
    11. Demirbag, Mehmet & Mellahi, Kamel & Sahadev, Sunil & Elliston, Joel, 2012. "Employee service abandonment in offshore operations: A case study of a US multinational in India," Journal of World Business, Elsevier, vol. 47(2), pages 178-185.

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