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

M�kel�, Kristiina; Bj�rkman, Ingmar; Ehrnrooth, Mats
April 2010
Journal of World Business;Apr2010, Vol. 45 Issue 2, p134
Academic Journal
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.


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