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How do MNCs establish their talent pools? Influences on individuals' likelihood of being labeled as talent

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  • Mäkelä, Kristiina
  • Björkman, Ingmar
  • Ehrnrooth, Mats

Abstract

Addressing the research question of what influences the likelihood of an individual being labeled as 'talent' in MNCs, this paper seeks to understand the decision processes involved in the identification of MNC-internal talent. We develop a framework suggesting that the decision to include an employee in a corporate talent pool is a two-stage decision process in which mostly experience-based (on-line) performance appraisal evaluations are used as an input in largely cognition-based (off-line) managerial decision making. Consequently, talent pool inclusion is determined not only by performance appraisal evaluations, but also a number of factors that influence the decision making in the second stage of the talent identification process. Using empirical insights from an in-depth case study as illustrations, we identify three such factors--cultural and institutional distance between the locations of a potential member of the talent pool and the decision makers; homophily between the individual and the decision makers; and the network position of the person in question.

Suggested Citation

  • Mäkelä, Kristiina & Björkman, Ingmar & Ehrnrooth, Mats, 2010. "How do MNCs establish their talent pools? Influences on individuals' likelihood of being labeled as talent," Journal of World Business, Elsevier, vol. 45(2), pages 134-142, April.
  • Handle: RePEc:eee:worbus:v:45:y:2010:i:2:p:134-142
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    References listed on IDEAS

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    1. Marschan-Piekkari, Rebecca & Welch, Denice & Welch, Lawrence, 1999. "In the shadow: the impact of language on structure, power and communication in the multinational," International Business Review, Elsevier, vol. 8(4), pages 421-440, August.
    2. Lori Rosenkopf & Paul Almeida, 2003. "Overcoming Local Search Through Alliances and Mobility," Management Science, INFORMS, vol. 49(6), pages 751-766, June.
    3. Makela, Kristiina & Kalla, Hanna K. & Piekkari, Rebecca, 2007. "Interpersonal similarity as a driver of knowledge sharing within multinational corporations," International Business Review, Elsevier, vol. 16(1), pages 1-22, February.
    4. Björkman, Ingmar & Smale, Adam & Sumelius, Jennie & Suutari, Vesa & Lu, Yuan, 2008. "Changes in institutional context and MNC operations in China: Subsidiary HRM practices in 1996 versus 2006," International Business Review, Elsevier, vol. 17(2), pages 146-158, April.
    5. Collings, David G. & Scullion, Hugh & Morley, Michael J., 2007. "Changing patterns of global staffing in the multinational enterprise: Challenges to the conventional expatriate assignment and emerging alternatives," Journal of World Business, Elsevier, vol. 42(2), pages 198-213, June.
    6. Srilata Zaheer & Akbar Zaheer, 2006. "Trust across borders," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 37(1), pages 21-29, January.
    7. Nes, Erik B. & Solberg, Carl Arthur & Silkoset, Ragnhild, 2007. "The impact of national culture and communication on exporter-distributor relations and on export performance," International Business Review, Elsevier, vol. 16(4), pages 405-424, August.
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    Citations

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    Cited by:

    1. Cristina López-Duarte & Marta M. Vidal-Suárez & Belén González-Díaz & Nuno Rosa Reis, 2016. "Understanding the relevance of national culture in international business research: a quantitative analysis," Scientometrics, Springer;Akadémiai Kiadó, vol. 108(3), pages 1553-1590, September.
    2. Tatoglu, Ekrem & Glaister, Alison J. & Demirbag, Mehmet, 2016. "Talent management motives and practices in an emerging market: A comparison between MNEs and local firms," Journal of World Business, Elsevier, vol. 51(2), pages 278-293.
    3. 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.
    4. 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.
    5. 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.
    6. 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.
    7. Latukha, M. & Veselova, A. & Selivanovskikh, L. & Artukh, E. & Mitskevich, E., 2016. "Re-thinking the role of talent management in a firm’s performance: Talent management practices and absorptive capacity," Working Papers 6442, Graduate School of Management, St. Petersburg State University.
    8. repec:spr:manint:v:55:y:2015:i:3:d:10.1007_s11575-014-0226-3 is not listed on IDEAS
    9. 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.
    10. Latukha, M. & Veselova, A. & Selivanovskikh, L., 2015. "Talent management practices in emerging market firms: Research agenda," Working Papers 6428, Graduate School of Management, St. Petersburg State University.

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