The Impact of Talent Management and Organizational Culture on Organizational Performance in Small and Medium Enterprises in Lebanon

Abstract

This study aims to examine the effects of talent management and organizational culture on firm performance in SMEs in Lebanon, where external uncertainty, especially at economic or political levels, amplifies the pressure for more efficient strategies to last and grow. The research uses a quantitative analytical methodology. The tool was designed by distributing the validated questionnaire to 500 subjects from different sectors. We tested the main hypotheses of this study in data analysis through multiple linear regression. Results indicate that talent management impacts organizational performance across four of its various dimensions: recruitment, training, succession planning, and retention. Organizational culture also had an independent impact, with a lesser magnitude. In addition, findings suggested a conditional mediating effect of organizational culture that validates the positive impact of the talent management–performance relationship by supporting human capital building strategy. Equally, the study findings indicate that organizational culture plays a role in facilitating the operationalization of talent management practices, implying a symbiotic relationship between these two variables among Lebanese organizations. Multiple theoretical frameworks, including Human Capital Theory, Organizational Culture Theory, and the Interaction Model, were used to interpret the findings of this analysis. The study thus suggests the need for talent management strategies to be congruent with organizational strategic vision and that a supportive organizational culture be established to enable these strategies, hence effective and enduring capabilities determined by organizational performance.