How does perceived global talent management shape host-country national retention in foreign subsidiaries?
Abstract
Retaining talented host-country nationals (HCNs) in foreign subsidiaries is a key success factor for multinational enterprises. The purpose of this study is to shed light on whether and how HCNs’ perceived global talent management (GTM) contribute to their retention. This study developed a multilevel model based on social identity theory to examine how perceived GTM diminishes host-country nationals’ turnover intentions by enhancing their organizational identification, and how this relationship is moderated by the level of internal consistency. Using survey data from 786 HCNs working for 30 foreign subsidiaries in China, results showed that HCNs’ perceived GTM and their turnover intention have a negative relationship and organizational identification mediates this relationship. In addition, the positive influence of host-country nationals’ perceptions of GTM on their organizational identification becomes stronger when these practices exhibit a high degree of internal consistency.
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