Talent Management in a Competitive Market

This study investigates the effect of competition intensity on the quality of talent management. This talent management is divided in several components: attracting, retaining, developing and recognizing talent. I expect that organizations in more competitive markets pay more attention to talent management, since they have to distinguish themselves from other organizations in order to attract and retain talent. To study this effect, I make use of the World Management Survey of Bloom & Van Reenen (2012), which contains interviews at 5881 organizations; from which 96% are operating in manufacturing. I found that organizations in more competitive markets pay more attention to all talent management components. As a consequence, a higher quality of talent management is related to a higher level of sales