The Effects of TM and CM on Organizational Leadership in Foreign Entities of MNCs

Abstract

Background Foreign direct investment (FDI) of multinational corporations (MNCs) from Central Europe have become more visible in the last decade, but many studies describing the role of talent management (TM), competency management (CM), and organizational leadership (OL) in MNCs have taken place in enterprises with headquarters in developed countries. The relationship between different variables in MNCs headquartered in less developed countries has not been satisfactorily explained in the scientific and professional literature. Research aims Hence, the main aim of this paper is based on the outcomes presentation of the relations between TM, CM, and the advancement level of OL practices in MNCs having their headquarters in less developed countries. Methodology The theoretical and empirical suppositions are based on two major concepts: resource-based views and a situational approach. The data were collected using the computer-assisted telephone interviewing (CATI) method in 200 nonfinancial enterprises with the domination of the Polish capital having foreign entities, inter alia, in Central and Western Europe. Findings The conducted research shows that there is a relationship among TM, CM, and OL practices. Also, there are significant differences between companies depending on the duration of the MNC’s operation on the market, the size of the organization, and the type of business profile. Whereas the assumptions have been based on a literature review, empirical research has not confirmed that there is a difference between foreign subsidiaries located in more and less developed countries (here, Central Europe and Western Europe).