Gaining a competitive advantage : employees' perceptions on the role of leadership and talent management factors in a small company in South Africa

Abstract

Purpose – This research paper falls within the interpretive research philosophy and considers talent management within the field of competitive advantage. It aims to explore the organisation members’ perceptions of talent, talent management, the factors perceived to facilitate competitive advantage and the role of leadership in the facilitation of talent management. It attempts to achieve a greater understanding of talent management as practically applied by organisations. Design/Methodology – A qualitative research approach in collecting and analysing data was implemented for this particular research study to address the research problem. The research design consists of a qualitative case study of one organisation. The organisation was purposively selected due to its superior performance in its particular industry. The data was collected by using in-depth interviews and observation and analysed using qualitative content analysis. Organisational documents supplemented the data collection process. Rationale – Current talent management literature shows a lack of understanding of talent and the role leadership plays in talent management. A number of authors have called for research which focuses on the perspectives of all stakeholders, especially at the individual level. It was also suggested that greater focus is allocated to small to medium enterprises, as multi-national corporations dominated the current literature. This research paper has the potential to increase levels of understanding at both organisation and individual level. This study examined TM from a range of perspectives, focused on a smaller organisation and is one of the few qualitative studies in the world within a developing country—research that is lacking in the literature. Findings – Participants held different views on talent and talent management, supporting the lack of consensus on these topics and the lack of a standardised understanding. The findings highlight that talent management was mostly perceived to involve the correct positioning of people within the organisation and that talent involved skills, knowledge and abilities to perform their roles well. Organisational structure, processes, and the lack of leadership ability were perceived as the dominant factors affecting the effective implementation of talent management practices. Talent management was perceived as important by the middle and lower-level participants of the study and was perceived as not important by higher-level participants—a contrasting finding due to the fact that the higher-level candidates felt that it was important to retain staff, understood the consequences of staff loss and that it was difficult to replace talent. Theoretical and managerial implications – The findings correspond with previous studies that the understanding of talent management is still lacking and thus potentially jeopardizes shaping a competitive advantage. The leadership cadre at the case organisation failed to see the importance of talent management and failed to link talent management to competitive advantage and ultimately failed to strategise potential talent management practices and effective talent management implementation. The modern business environment is changing and the realisation that talent management is of crucial importance to sustained competitive advantage is becoming evident. Limitations – The main source of error was a potential bias of results and a lack of rigorous data analysis, which was overcome by attending to the reliability of the research. Future research – There is potential for further empirical research to be conducted in other industries while maintaining focus on smaller businesses. The focus must also be maintained on the perspectives of all stakeholders in organisations.