۱- Introduction

۲- Organizational size and its theoretical implications

۳- Organizational size and notion of talent management

۴- Dynamic view of talent in SMEs

۵- Limitations and future research

۶- Conclusions

References

Abstract

Talent Management (TM) has become one of the key strategic issues for leaders in global organizations and the majority of research on TM focuses on the large multinational enterprise (MNE) context. Despite the importance of small and medium-sized enterprises (SMEs), research in the area of talent management in this context is scarce, particularly conceptual research. This paper tries to address this gap by a) providing a theoretical rationale for the difference between large and SME firms in their talent management and human resource practices; b) exploring the applicability of the notion of talent management conceptualised in large firms to the SME context. c) Proposing a framework that helps identify the characteristics of talent in SMEs. We are critical of the best practices approach and we argue that the notion of talent management is likely to be different in SMEs compared with large firms mainly due to distinct institutional and structural factors.

Introduction

Small and medium enterprises (SMEs) have emerged from a rather peripheral role in earlier business literature to the more central focus that the sector enjoys today in both government policy and academic research (Lind, 2012). They are increasingly viewed as important contributors to the global economy and are big employment generators. Amongst developing nations, SMEs represent over 90% of businesses, and account for 50–۶۰% of national employment on an average (Survey of SMEs in the global compact, 2004). A recent OECD study highlighted that over 99% of the companies in OECD and G20 countries are SMEs, making a decisive contribution to growth (OECD, 2015). SME is not a homogeneous concept and there is no common worldwide accepted definition. The definition varies from country to country and can be defined by qualitative or quantitative criteria which create problems when making comparisons between countries as to the number of SMEs and the number of employees within these firms. We begin by examining definitions of SMEs and we briefly highlight the strategic importance of these organizations in various regions of the world. The employee size limits for an organization to be considered an SME does vary with some countries having a limit of as few as 200 employees (Australia), while in Europe the limit is commonly 250 employees. In Canada and in the US the employee size limit for SMEs could be as high as 500 or more employees. In the Indian context SMEs are defined in relation to the level of investment in plant and machinery. However, while there is no consensus on definitions of SMEs, researchers have generally used a size limit of 250 or 500 employees to define this type of organization. Major international organizations (such as the EU, World Bank and United Nations) have usefully suggested a definition of SMEs that is primarily based on employment size and it is now the main measure used to identify this sector (Lind, 2012).