JEFMS Journal

ABSTRACT:

With the Pandemic job economy and growing Chinese economy to compete with that of US, competition for talent is high. Small businesses may feel at a disadvantage when recruiting new employees. How can small businesses effectively acquire talent going forward? Small businesses are constantly in a fight for talent. In today’s job market, experienced and talented workers have many options to choose from. As a small business owner, how do you ensure that you get the best people to join your company when you can’t match the same salaries and benefits as larger companies? On top of that, because you are running a lean operation makes it even more vital for you to hire the right people who have the necessary skills to help your business grow [1].

The purpose of this research is to study factors influencing effective talent acquisition of SMEs in China. These factors include seven independent variables: Talent Identification (TI), Performance Appraisal Method for Talent (PA), Talent Management (TM), Job Characteristics (JC), Job Satisfaction (JS), Work Environment (WE), Boss/Leader (BL), and one dependent variable: Talent Acquisition (TA). 420 sample were collected using electronic questionnaire through social media. We used Structural Equation Models (SEM) for data analysis. The result shows that the RMSEA, which is an absolute fit index that assesses how far our hypothesized model is from a perfect model, for this model is .047 (<.05) which strongly indicates a “close fit”. Moreover, CFI, which is incremental fit indices that compare the fit of our hypothesized model with that of a baseline model (i.e., a model with the worst fit), its value equals .900 indicating an acceptable fit. More importantly, Talent Identification (TI), Talent Management (TM) and Boss/Leader (BL) seem to have significant impacts on effective Talent Acquisition (TA) of SMEs in China due to their p-values are all less than .05. That means if SMEs are able to identify the right talent and can manage them well enough especially under the right leadership of the organization, they should be able to attract the right-fit talent on demand.

KEYWORDS:

Talent Acquisition, Talent Identification, Talent Management, SMEs, China, SEM.

REFERENCES:

1) Ka Dijia. Research on Influencing Factors and Countermeasures of Brain Drain in China's Small and Medium-sized Enterprises [D]. Shenyang Normal University, 2020.

2) Chen Jie. The causes and countermeasures that affect the attraction of talents by small and medium-sized enterprises [J]. Decision and Information (Finance and Economics Observation), 2008(10):60.

3) Lu Biyong. Strategies of attracting talents for small and medium-sized enterprises [J]. Business Conditions (Educational Economic Research), 2008(03):133.

4) Liu Fang. Influencing factors and empirical research on the brain drain of small and medium-sized enterprises [D]. Southwestern University of Finance and Economics, 2009.

5) Guo Kuo. Discussion on the Influence of Enterprise Human Resource Management on Organizational Performance [J]. Enterprise Reform and Management, 2021(14):101-102.

6) Lv Chaolin, Peng Can, Li Ruixue, Yin Jiayi. The impact of organizational ambidextrous learning and its complementarity on enterprise sustainable development performance in a dynamic environment: the mediating role of sustainable innovation capabilities [J]. Technology Management Research, 2021, 41 (22): 135-144.

7) Zhao Nan. Research on the role and impact mechanism of human resource management on organizational performance [D]. Tsinghua University, 2014.

8) Zhang Haiying. Research on the Impact of Human Resource Management on Organizational Performance [D]. Northwest A&F University, 2016.

9) Zhang Xingshuang. Research on human resource performance development in resource-based cities [J]. Science and Technology Management Research, 2014,34(04):174-178.

10) Tan Zehong. Research on the impact of corporate organizational structure innovation on organizational performance [D]. Harbin Institute of Technology, 2008.

11) Liu Kun. Analysis and Countermeasures of Enterprise Brain Drain Based on Structural Equation Modeling (SEM) [D]. Xi'an University of Architecture and Technology, 2011.

12) Zhang Youyou. Research on the early warning of brain drain crisis in my country's small and medium-sized enterprises [D]. Shandong University of Technology, 2011.

13) Xu Kun. Research on the early warning model of brain drain in domestic and foreign enterprises [J]. Business Economics, 2010(02):102-103.

14) Shen Xiaopu. Empirical Research on Enterprise Virtual Human Resource Management Based on Structural Equation [J]. Journal of Xi'an University of Posts and Telecommunications, 2010,15(02):102-106.

15) Li Xin, Fan Mingjie, Yang Zaoli, Guo Lifeng. Environmental factors influencing the development of scientific and technological talents based on structural equation model [J]. China Science and Technology Forum, 2018(08):147-154.

16) Mahmood A. Leadership Behavior, Employee Engagement, Knowledge Management Practice and Organizational Performance. China University of Geosciences, 2019.

17) Yang Ruitong. On how to attract and retain talents in small and medium-sized enterprises in my country [J]. Modern Commerce and Industry, 2019, 40(08): 64-65.

18) Chen Mengyuan, Wu Longzeng. Research on the relationship between organizational political climate and organizational performance [J]. Nankai Management Review, 2019,22(01):55-65.

19) Cui Zheng. Problems and countermeasures of the loss of key talents in enterprises [J]. Development of Human Resources, 2022(01):91-92.

20) Dong Bo. Research on China's talent development governance and its system construction [D]. Jilin University, 2019.

21) Li Peixiang. A Review of Talent Management in Private Enterprises [J]. Development of Human Resources, 2013(01):74-76.

22) Liu Feng. Analysis of the current situation and problems of urban human resource performance management in my country [J]. Knowledge Economy, 2013(04):67.

23) Ma Jun. An empirical study on the relationship between corporate social responsibility, human resource management and organizational performance from the perspective of employees [D]. Nankai University, 2014.

24) Yang Chenguang. The Economic Impact of Human Resource Management on Organizational Performance [J]. Human Resource Development, 2022(06):82-83.

25) Yang Dongtao, Cao Guonian. An Empirical Study on the Impact of Human Resource Management Practice on Organizational Performance [J]. NTU Business Review, 2006(04):25-41.

26) Yang Dongtao, Cao Guonian. An Empirical Study on the Impact of Human Resource Management Practice on Organizational Performance [J]. NTU Business Review, 2006(04):25-41.

27) Zhu Tianyi. Research on the relationship between entrepreneurial orientation, market orientation and organizational performance [D]. Soochow University, 2013.

28) Shi Tao, Zeng Lingfeng. Organizational learning and organizational performance: the mediating role of job well-being [J]. Chinese Journal of Management Engineering, 2015,29(03):39-50.

29) Sun Shiyu. Research on the relationship between organizational culture, organizational learning and organizational performance [D]. Jilin University, 2018.

30) Ke Ying. Research on the relationship between organizational commitment, employee loyalty and organizational performance in private enterprises [D]. Chongqing University, 2013.

31) Li Huanrong, Su Fusheng. An Empirical Study on the Relationship between Human Resource Management and Enterprise Performance——Based on Structural Equation Model Theory [J]. East China Economic Management, 2009,23(04):102-108.

32) Hou Xiaona, Wang Wei. Analysis of the influence, factors and countermeasures of the brain drain of modern SMEs [J]. Modern Economic Information, 2017(02):83.

33) Cheng Jie. Analysis of the influencing factors and countermeasures of the loss of knowledge-based employees in CL companies [D]. Northwest A&F University, 2020.

34) Gefen, D.; Rigdon, E.; Straub, D. An update and extension to SEM guidelines for administrative and social

35) science research. Mis Q. 2011, 35, iii–xiv. [CrossRef]

36) Rukunga, Y.M.; Nzulwa, J. The role of talent management strategies on organizational performance: A case

37) of telecommunication fifirms in Kenya. Int. Acad. J. Hum. Resour. Bus. Adm. 2018, 3, 263–288.

38) El Dahshan, M.; Keshk, L.; Dorgham, L. Talent Management and Its Effffect on Organization Performance

39) among Nurses at Shebin El-Kom Hospitals. Int. J. Nurs. 2018, 5, 108–123. [CrossRef]

40) Wilkinson, A. Employment relations in SMEs. Empl. Relat. 1999, 21, 206–217. [CrossRef]

41) Auranzeb, B.; Bhutto, S. Inflfluence of Talent Management in Enhancing Organization Performance (Evidence from Service Sector Companies in Pakistan). Ind. Eng. Lett. 2016, 6, 49–55.

42) Arif, A.; Uddin, R. Talent Management and Organizational Performance: An Empirical Study in Retail Sector

43) in Sylhet City, Banglades. IOSR J. Bus. Manag. 2016, 18, 11–18. [CrossRef]

44) Abbasi, M.U.; Sohail, M.; Cheema, F.; Syed, N. Talent Management as Success Factor for Organizational Performance: A Case of Pharmaceutical Industry in Pakistan. J. Manag. Soc. Sci. 2013, 9, 14–23.

45) Poorhosseinzadeh, M.; Subramaniam, I.D. Determinants of successful talent management in MNCs in

46) Malaysia. J. Basic Appl. Sci. Res. 2012, 2, 12.

47) Devi, S. Impact of Talent Management on Organizational Performance: Role of Employee Engagement. Int. J.

48) Manag. Stud. 2017, 4, 2231–2528.

49) Mohammad, A. The Impact of Talent Management on Employee Engagement, Retention and Value Addition

50) in Achieving Organizational Performance. Int. J. Core Eng. Manag. 2015, 1, 142–152.

51) Wang Y . Study on the effect factor of organizational performance based on knowledge:A meta-analysis and SEM research[J]. Journal of Chongqing University(Social Science Edition), 2015.

52) Jerónimo, García-Fernández, Silvia, et al. An explanatory and predictive PLS-SEM approach to the relationship between organizational culture,organizational performance and customer loyalty: The case of health clubs[J]. Journal of Hospitality & Tourism Technology, 2018.

53) Joiceswarnalatha, Krishna V M . emotional intelligence and its impact on the organizational performance-using sem emotional intelligence and its impact on the organizational performance-using sem emotional intelligence and its impact on the organizational performance-using sem.

54) Yongmei Liu, James G. Combs, David J. Ketchen, R. Duane Ireland,

55) The value of human resource management for organizational performance,Business Horizons,Volume 50, Issue 6,2007,Pages 503-511

56) Parvaneh Saeidi, Lorenzo Adalid Armijos Robles, Sayedeh Parastoo Saeidi, María Isabel Vera Zamora,

57) How does organizational leadership contribute to the firm performance through social responsibility strategies?,

58) Heliyon,Volume 7, Issue 7,2021

59) Hou G W . Evaluation of Innovation and Entrepreneurship in Enterprise Talents Based on Structural Equation Model Analysis[J]. Journal of Physics Conference Series, 2020, 1533:042026.

60) Hou G W . Evaluation of Innovation and Entrepreneurship in Enterprise Talents Based on Structural Equation Model Analysis[J]. Journal of Physics Conference Series, 2020, 1533:042026.

61) Devibala, V. B, Anbuoli, P, Jothimurugan, T. A Study on the Importance of Retention Strategies Influencing Employee Retention at IT Industry Using Structural Equation Model (SEM). 2015.

62) Evaluation of Innovation and Entrepreneurship in Enterprise Talents Based on Structural Equation Model Analysis[J].

63) [1] Wan X . Research on the Relationship Among of Attraction,Satisfaction and Loyalty of Returned Talents Entrepreneurial Policy[J]. Science of Science and Management of S.& T. 2013.

64) [22] Liu Nan. Influencing factors and countermeasures of employee turnover in small and medium-sized enterprises [J]. Modern Marketing (Management Edition), 2020(02):2.

65) [23] Liu Fadang. Research on the turnover problem and countermeasures of knowledge-based employees in small and medium-sized technology-based small and medium-sized enterprises [D]. Xi'an University of Architecture and Technology, 2019.