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Published in: Global Journal of Flexible Systems Management 3/2023

Open Access 21-06-2023 | ORIGINAL RESEARCH

Competitiveness Through Development of Strategic Talent Management and Agile Management Ecosystems

Authors: Maja Rožman, Polona Tominc, Tjaša Štrukelj

Published in: Global Journal of Flexible Systems Management | Issue 3/2023

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Abstract

Organizations thrive on attaining and sustaining competitiveness because of the turbulent, rapidly changing business environment. The research shows that it is possible to improve organizations’ competitiveness by considering the multidimensional model viewpoints, which include the strategic talent management ecosystem viewpoints and the strategic agile management ecosystem viewpoints. The multidimensional model includes the essential constructs for developing strategic talent management, i.e., acquiring talented employees, target development of talented employees, designing talent teams, and talent leadership, as well as the following essential constructs for developing strategic agile management, i.e., designing agile teams, agile leadership, and support agile management culture. The research was implemented on 532 owners/managers in organizations. Structural equation modeling was used to test the hypotheses. Results show that developing a strategic talent management ecosystem positively affects developing a strategic agile management ecosystem and leads to higher organization competitiveness. A developed multidimensional model will help owners and managers comprehensively embrace and implement agility in their organization to increase competitiveness.
Notes

Publisher's Note

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Introduction

Organizations operate in turbulent ecosystems full of uncertainty and competition (Binci et al., 2022) and face significant business challenges caused by the rapidly changing business environment. Today’s environment, characterized by global competition and the need for constant change, requires organizations to introduce innovations and changes that satisfy the needs of all stakeholders (Badakhshan et al., 2020). Fulfilling these requirements and ensuring the organization’s growth and development are difficult by many factors, including the differentiation of development possibilities in different areas of the organization’s operations (Kafetzopoulos and Gotzamani, 2022; Zakrzewska et al., 2022). In today’s business environment, creative employees with a lot of knowledge are key to the organization’s success (Kafetzopoulos, 2022). That is why organizations invest a lot of effort and resources in acquiring, recruiting, developing, and retaining employees who, with their creativity and talent, can significantly contribute to the success and competitiveness of the organization (Schreuder & Noorman, 2019a). With a comprehensive talent management approach, organizations attract, retain, and successfully develop employees, increasing the organization’s competitiveness (Schreuder & Noorman, 2019b). One of the main challenges facing organizations today is retaining key employees (Tafti et al., 2017). Losing experienced and skilled employees to competitors are a colossal waste of intellectual and human capital. It has dire consequences ranging from demoralizing employees who stay with the organization to reduced productivity (Latukha et al., 2022). Key employees possess specific knowledge, competences, and abilities essential for the organization’s success in the market. Thus, human capital becomes invaluable because it significantly impacts the organization’s current operations and development/future (Zakrzewska et al., 2022). To maintain a competitive edge, organizations must devise strategies to retain top-performing employees who are fully cognizant of their value (Kafetzopoulos & Gotzamani, 2022).
The Industry 4.0 is based on the rapid development of technology and digitization, affecting economic, social, and cultural changes (Cho et al., 2022; Höse et al., 2023; Kumar et al., 2022). The development of technology enables economic growth on the one hand. Still, on the other hand, it causes an unfavorable impact on the labor market, as new technologies change the nature of work in all work fields and professions (Pio et al., 2021). Industry 4.0, with all its changes, has created a large gap between the competencies of employees and the rapidly changing demands of their jobs (Whysall et al., 2019). Thus, organizations must become increasingly agile. The digital economy also increases the need for training and professional development in digitizing existing employees (Zakrzewska et al., 2022). The problem is that the work is becoming increasingly complex and requires highly qualified employees (Kahl et al., 2022; Latukha et al., 2022). Organizations that will take advantage of the new technologies and concepts that Industry 4.0 brings and thus, at the same time, create opportunities for their employed will be at a significant advantage (Binci et al., 2022). Experts in human resource development have emphasized the need for new and more effective human resource strategies. With the change in the nature of work, different knowledge and skills are increasingly required of the individual (Balog, 2020; Whysall et al., 2019). A significant number of the jobs that exist today are unlikely to exist in the future, so the creation of the future workforce must include not only attracting, recruiting, and developing the new needed talent but also reskilling the current employees through training programs (Carvalho et al., 2021; Mani & Mishra, 2020). Transforming work processes to reduce skills mismatches between jobs and employees will be an essential task for organizations in the future (Peeters et al., 2022), possible only if owners and (top) managers recognize this need and include it in organization’s vision, business policy, and strategies (Štrukelj et al., 2020).
In the era of Industry 4.0, innovation is a fundamental concept, where it is not only about development from a technological point of view, but it is also crucial for organizations to develop new strategic approaches for integrated personnel management. They must face the challenges of talent management (Kravariti & Johnston, 2020). Developing knowledge and competencies related to new technologies and processes of Industry 4.0 are crucial in formulating strategic talent management (Whysall et al., 2019). Organizations must focus on aligning human resources, strategies, and organizational business policy (mission, purpose, primary goals) (Kahl et al., 2022; Schreuder & Noorman, 2019a, 2019b; Štrukelj et al., 2020). Organizations often experience difficulty with change, and according to the McKinsey survey (Carr, 2019) of 1900 senior leaders, 83% tried to implement a significant change in their organizations, but only 23% were succ2essful.
The present-day business landscape is characterized by rapid and unpredictable changes stemming from factors such as globalization, technological and non-technological advancements, reduced product life cycles, and evolving customer needs (Pio et al., 2021; Zakrzewska et al., 2022). Being agile, which refers to the capacity to promptly and efficiently respond and adapt to unexpected alterations in the business environment, has become an indispensable competitive edge in the market (Cho et al., 2022). Moreover, the increasing complexity and pace of environmental changes have amplified the significance of agility. Thus, organizations must develop strategic talent management with key aspects that contribute to the successful development of strategic agile management, which will increase the organization’s competitiveness.
The present research is based on the fundamental research questions:
1.
How to increase competitiveness through the promotion of the development of strategic agile management and strategic talent management?
 
2.
What are the key aspects that organizations must consider to achieve greater competitive advantage through the prism of researched content of the development of strategic agile management and strategic talent management?
 
The paper’s main goal is to present the main aspects (constructs) of the strategic talent management ecosystem and strategic agile management ecosystem that are necessary to successfully develop strategic talent management and strategic agile management to increase the organization’s competitiveness. Also, the paper’s main goal is to combine two crucial researched branches of management, which are extremely important in today’s rapidly changing environment if organizations want to strengthen their competitive power and grow. Organizations nowadays need to go beyond adapting or responding to change; they must also proactively implement changes in their business models and capitalize on potential opportunities before they arise.
In the following, we research both primary constructs in the second chapter of the literature review, for which we determine their influence on competitiveness. First, we study talented employees; second, we develop strategic talent management; and third, we develop strategic agile management. The development of strategic talent management ecosystem is studied through the following contents: acquiring a talented employee and developing talented employees, talent leadership, and designing talent teams. The development of strategic agile management ecosystem is studied through the following contents: supporting the agile management culture of the organization, agile leadership, and designing agile teams. The literature review provides a basis for setting hypotheses and developing a research model. The third chapter is devoted to the methodology with the following content: data and sample, research instrument, and statistical analysis description. Chapters four (research results), five (discussion), and six (conclusion) follow.

Literature Review

Talent Employees

In the psychological sense, talent means a tremendous innate ability for a specific mental or physical activity or a mental or physical ability that makes an individual stand out from the crowd (Ahlin et al., 2014). In the modern business environment, the term “talent” or “talented employee” is used in a much broader sense (Schreuder & Noorman, 2019a, 2019b). The term ‘talented employee’ encompasses not only individuals with exceptional innate abilities but also those who hold crucial roles or occupy important positions within the organization and possess significant potential for growth and development (Collings & Mellahi, 2009). In the modern organizational context, talent is no longer limited to an individual’s innate and outstanding abilities (employee). Still, it encompasses and, to a certain extent, replaces the concept of creativity and the creative potential of an individual (Whysall et al., 2019). Utilizing "talent" in the direction of organizational goals and the need or possibility for its development also comes to the fore (Tavis, 2018). Talent management, in the broadest sense, refers to a way of thinking and an attempt to ensure that everyone at all levels of the organization performs to their full potential (Kafetzopoulos & Gotzamani, 2022). A talented employee brings a competitive advantage to organizations and is crucial in implementing Industry 4.0 (Kravariti & Johnston, 2020).

Development of Strategic Talent Management Ecosystem

Utilizing and nurturing the talents of all individuals are the primary prerequisite for talent management (Latukha et al., 2022). Nonetheless, this broad approach cannot serve as the foundation for implementing a particular organizational strategy (Schreuder & Noorman, 2019b). To effectively manage talent in modern, agile, and innovative organizations that rely on numerous self-managing teams for customer-related tasks, the second requirement is to attract top talents that are well-suited for such dynamic environments. (Kafetzopoulos et al., 2022; Schreuder & Noorman, 2019a).
In the following, we present the essential aspects of developing strategic talent management, which leads to the successful development of strategic agile management to achieve the organization’s competitiveness.

Acquiring a Talented Employee and Development of Talented Employees

Coordinating talent management practices and activities with the organization’s internal and external environment is vital in acquiring, attracting, and selecting talent (Mensah & Bawole, 2018). Employers must use appropriate methods of recruitment and selection of candidates to effectively acquire the staff they need for smooth operations and competitive advantage (Kraichy & Walsh, 2022). A manager is also focused on the organization’s employees, supports their development, and, at the same time, coordinates their work with the organization’s needs (Saddozai et al., 2017).
Many organizations face a talent shortage today, possibly due to inadequate talent attraction and selection (Walford-Wright & Scott-Jackson, 2018). On the other hand, the aging of the population and the consequent lack of labor also results in the fact that there is no longer a sufficiently diverse supply of labor on the market and, consequently, talents (Kraichy & Walsh, 2022). Organizations are involved in rapidly changing business environments and face challenges daily. Therefore, organizations must adopt appropriate strategies that affect their competitiveness (Shet & Nair, 2022).
Meanwhile, a poorly designed recruitment process can overlook key candidates and land a less competent and compatible individual in the job (Mensah & Bawole, 2018). An important area is also the long-term retention of talent in the organization. Organizations must motivate, develop, encourage, and keep employees because they strengthen their performance and development. Organizations try to retain talent differently (Birou & Hoek, 2021; Mujtaba & Mubarik, 2022). The leader plays an essential role in this. The leader strives to create a work environment where employees will be satisfied. Employees stay in an organization where interpersonal relations with the manager and colleagues are good, and they are enabled to participate in decision-making (Kafetzopoulos & Gotzamani, 2022; Shet & Nair, 2022). Therefore, organizations must create opportunities for career development, which will include mentoring, appropriate and varied remuneration, promotion, work on interesting projects, inter-departmental cooperation, etc. (Birou & Hoek, 2021; Kafetzopoulos & Gotzamani, 2022; Mensah & Bawole, 2018; Walford-Wright & Scott-Jackson, 2018). Therefore, the following hypotheses are proposed:
H1
Acquiring a talented employee has a positive effect on the development of strategic talent management.
H2
Target development of talented employees has a positive effect on the development of strategic talent management.

Talent Leadership

Exceptional employees who are valuable contributors to organizational success, often referred to as "talents," possess exceptional creativity and can innovate by discovering and developing novel ways of thinking, acting, and problem-solving, both in the present and future (Kafetzopoulos et al., 2022). On the other hand, the hierarchical distribution of power in an organization and rigid delegation-based management inhibits creativity (Jackson & Allen, 2022). In modern management models, autonomy, expertise, and professionalism are associated with managing creative individuals and function as substitutes for classical management (Longenecker & Insch, 2018). Practical experience has shown that many organizations invest considerable resources and time in selecting the most suitable employees (Newhall, 2015). But when new candidates are hired, no one systematically deals with them or deals with them incorrectly (Kafetzopoulos & Gotzamani, 2022). This is because organizations do not know how to properly lead, motivate, reward, and retain their talented individuals (Shulga & Busser, 2019). Thus, their greatest potentials and talents remain untapped despite proper selection procedures. Many excellent colleagues leave such a work environment quickly (Shet & Nair, 2022). Forward-thinking and successful organizations prioritize the systematic development of an organizational learning culture, recognizing that to achieve success in the future, it is essential to differentiate not only their products and services but also their workplaces and talented employees (Alqershi et al., 2022; Vecchi et al., 2021).
One of the modern manager’s main challenges is identifying talented employees and integrating them into the organization (Maheshwari & Yadav, 2019). Therefore, it is necessary to pay attention to good management, which means that the organization has solid and positive leadership (Alqershi et al., 2022; Kafetzopoulos et al., 2022; Mensah & Bawole, 2018; Shet & Nair, 2022). At the same time, the manager informs employees about future plans on time, treats them according to the principle of equality and consistency, and encourages the cooperation of all employees (Birou & Hoek, 2021). Based on this, the manager in the organization will create a pleasant and creative work environment (Mujtaba & Mubarik, 2022). According to this literature review, the following hypothesis is proposed:
H3
Talent leadership has a positive effect on the development of strategic talent management.

Designing Talent Teams

Each team must have different skills and knowledge because only in this way does the team become strong, creative, and innovative (McDonnell et al., 2017). Leadership can encounter a problem by neglecting or failing to acknowledge the capability of individuals within their teams to bridge the skills gap if provided with the necessary training (Wolf and Felger, 2019). Teams and their members possess extensive awareness of their competencies; however, the degree of their participation and freedom in utilizing their skills and abilities in a project depends significantly on management decisions (Wolf & Felger, 2020). Therefore, it is imperative for management to listen attentively to team members’ proposals and leverage the skills they are willing to apply (Oltra & Vivas-Lopez, 2013). To create an effective talent team, talented employees must be assigned appropriate roles and responsibilities, provided with clear guidance and direction, and instilled with a sense of urgency to drive organizational success (Kafetzopoulos & Gotzamani, 2022).
The optimal approach for aligning a team’s talents is through candid and sincere communication (Schreuder & Noorman, 2019a, 2019b). In this regard, the team leader must conduct a thorough assessment of internal processes and dynamics (Stadler, 2011). It is equally vital for the leader to be an attentive listener and actively solicit feedback from team members regarding what is and is not effective in achieving organizational objectives (McDonnell et al., 2017). By leveraging the strengths and preferences of talented employees within the team, the organization can realize its full potential (Jackson & Allen, 2022). To establish a high-performance team, the leader must ensure that each employee is assigned the appropriate roles and responsibilities based on their skills and interests (Longenecker & Insch, 2018). Determining employees’ preferences and motivators can aid in identifying their ideal job functions (Birou & Hoek, 2021). In essence, a talented team consists of individuals with distinct areas of expertise and complementary skills who collaborate, innovate, and consistently deliver exceptional outcomes (Walford-Wright & Scott-Jackson, 2018). The group strives for excellence in performance by sharing common objectives, practicing collective leadership, fostering collaboration, promoting open communication, establishing clear role expectations, adhering to group operating principles, proactively addressing conflicts, cultivating a strong sense of accountability, and building trust among its members (Alqershi et al., 2022; Kraichy & Walsh, 2022; Saddozai et al., 2017). Therefore, we hypothesize that:
H4
Designing talent teams have a positive effect on the development of strategic talent management.

Development of Strategic Agile Management Ecosystem

The goal of an agile talent management strategy is to enhance workforce productivity and capabilities by quickly and seamlessly adjusting talent management approaches, tools, and resources in response to the changing needs of major business units, the evolving talent market, and the dynamic economy (see, e.g., Kapor, 2022; Malik et al., 2021; Mani & Mishra, 2020). Therefore, organizations must develop a strategic talent management approach that contributes to the development of strategic agile management (Zakrzewska et al., 2021; Zavyalova et al., 2020). The complexity of delivering strategic impact through talent management has heightened as the business environment has grown progressively turbulent and technology and consumer demand have reduced the lifespan of most products (Balog, 2020; Ciric Lalic et al., 2022). In contrast, an agile talent management strategy provides numerous talent management solutions that enable organizational flexibility in a time frame that aligns with evolving business life cycles (Badakhshan et al., 2020).
Strategic agility is distinguished from other forms of agility by its emphasis on both rapid response and a proactive approach to anticipating environmental changes before they occur (Alzoubi & Gill, 2022; Denning, 2017; Prabhu & Srivastava, 2023; Subramanian & Suresh, 2022). In today’s market, where customer behavior and preferences constantly evolve, and innovative and digitalized products and services are expected, organizations must be agile to keep up with the market (Kapor, 2022; Khoshnood & Nematizadeh, 2017). However, establishing a sustainable competitive advantage is challenging for organizations due to the rapidly changing market conditions.
In an ever-changing business environment, it is crucial for organizations to quickly and efficiently adapt to market changes and capitalize on them in a meaningful way (Mani & Mishra, 2020). Agility is a critical functional ability that emphasizes the need to act quickly when the goal is to capitalize on emerging business opportunities (Kapor, 2022). Therefore, the following hypotheses are proposed:
H5
Development of strategic talent management has a positive effect on the development of strategic agile management.
H6
Development of strategic agile management has a positive effect on competitiveness.
In the following, we present the essential aspects of developing strategic agile management, which leads to the organization’s competitiveness.

Support the Agile Management Culture of the Organization

Significant global economic changes in the world market create a complex business environment with many risks. Such a business environment rewards innovative organization (Badakhshan et al., 2020). There is no doubt that this volatility will continue in the future. Such a turbulent environment requires organizational agility (Garcia et al., 2021). Successful organizations shape this agility by transforming organizational culture and business practices primarily in three areas: (1) consistent change management for better adaptation to changing market conditions (Akkaya et al., 2022), (2) more consistent implementation of risk management, which includes the participation of all stakeholders (Peeters et al., 2022), and (3) improved and increased use of good project management practices and project and program portfolio management (Mani & Mishra, 2020).
Agile organizations are characterized by a new paradigm in an organizational culture based on team spirit (Peeters et al., 2022), trust, openness (Cho et al., 2022), commitment (Denning, 2016), and experimentation (Manurung & Kurniawan, 2022). For a successful transition to new ways of doing business in the organization, the organization’s culture must change so that the organization can strive to implement strategic agile management (Garcia et al., 2021). An agile work culture is characterized by a set of core values, behaviors, and practices that enable individuals at all levels of an organization to better adapt to cultural, strategic, and other changes (Carvalho et al., 2021). Given that each organization is unique, developing an agile culture requires a tailored approach that aligns with the organization’s aspirations (Tokel et al., 2019). Agile cultures are highly flexible and collaborative, empowering teams to solve problems collectively and find the best solutions in a dynamic and constantly evolving business environment (Carvalho et al., 2021). Agile work environments offer greater flexibility in terms of working conditions, including remote work options, flexible scheduling, and unlimited time off to help employees find their optimal working rhythm (Kumar et al., 2022). One of the primary benefits of an agile culture is that it allows organizations to outmaneuver their competitors, who may be trapped in traditional ways of thinking (Carvalho et al., 2021; Denning, 2016). While competitors focus on perfecting their processes and improving planning, agile organizations race through projects and generate profits (Binci et al., 2022; Ciric Lalic et al., 2022). Therefore, it is hypothesized:
H7
Support agile management culture of the organization has a positive effect on the development of strategic agile management.

Agile Leadership

In an agile work environment, leaders prioritize results over processes (Akkaya et al., 2022). Rather than dictating how work should be done, they support their teams in achieving the desired outcomes (Denning, 2017). Building trust within the team is a critical leadership trait that enables collaboration and independent problem-solving (Maheshwari & Yadav, 2019). While traditional managers may prescribe solutions to problems, agile leaders present challenges to their teams to solve (Kafetzopoulos et al., 2022). Agile leaders are effective change agents who promote collaboration, build high-performing teams, and consistently deliver results (Denning, 2016). Agile leaders possess remarkable adaptability and can skillfully manage competing demands, coordinate actions across different levels, and respond to rapidly changing circumstances (Attar & Abdul-Kareem, 2020).
It is necessary to create a working environment where employees can take responsibility, experiment, even make mistakes, and continuously learn and develop their competences (Naslund & Kale, 2020). This is especially important for talented employees (Kafetzopoulos, 2022). The agile leader recognizes that employees are most effective when trained and involved in all business processes (Zavyalova et al., 2020). Thus, agile leader invests in training and continuous development of employees. Agile leaders establish guiding principles centered around trust, respect, and collaborative relationships (Manurung & Kurniawan, 2022). An agile leader fosters a healthy work environment and prioritizes the psychological safety of employees to promote learning and development (Badakhshan et al., 2020; Carvalho et al., 2021; Garcia et al., 2021). Agile leadership removes obstacles and creates a system where employees can grow, develop, solve problems, and take responsibility, increasing employee productivity, engagement, and performance (Attar & Abdul-Kareem et al., 2020; Naslund & Kale, 2020). Building successful agile leaders ensures a clear path to sustainable success (Balog, 2020; Carvalho et al., 2021; Malik et al., 2021). Therefore, we hypothesize that:
H8
Agile leadership has a positive effect on talent leadership.
H9
Agile leadership has a positive effect on the development of strategic agile management.

Designing Agile Teams

Agile teams are small and self-organized, which means that no individual in the team makes all the decisions by himself, but this task is distributed among all team members (Grass et al., 2020). The members are autonomous in their decisions, the team is fully trusted to achieve the set goals in the best possible way, and the members will accept full responsibility for the efficient execution of work tasks (Edmondson & Gulati, 2021; Khanagha et al., 2021). Team members independently (and together) plan their work, choose their tasks, decide on the methods of implementation (Wolf & Felger, 2020), solve organizational problems, resolve mutual conflicts (Garcia et al., 2021), implement proposed changes that lead to better performance of work tasks (Kapor, 2022), and look for better and more efficient approaches to work tasks (Manurung & Kurniawan, 2022). Ensuring that an agile team comprises employees with suitable skills, knowledge, and experience is crucial (Mani & Mishra, 2020). Furthermore, providing the team with access to diverse knowledge sources, such as various education and training opportunities, is necessary for success (Ramirez-Mora & Oktaba, 2018). Agile teams are characterized by their ability to act swiftly, collaborate effectively, and work toward shared goals. Members of an agile teamwork in camaraderie, leveraging each other’s strengths and aligning toward a common objective (Mani & Mishra, 2020). These teams are typically small and cross-functional, allowing members to make collective decisions without the limitations of a rigid hierarchy (Peeters et al., 2022). Agile work practices have been touted as the reason behind the benefits of the agile way of working (Grass et al., 2020). It is therefore not surprising that many organizations aspire to build an engaged workforce (Peeters et al., 2022). Therefore, the following hypotheses are proposed:
H10
Designing talent teams have a positive effect on designing agile teams.
H11
Designing agile teams have a positive effect on the development of strategic agile management.
Figure 1 shows the multidimensional model with requisitely holistic aspects, which are essential (1) for the development of a strategic talent management ecosystem and (2) for the development of a strategic agile management ecosystem (3) to increase competitiveness.

Methodology

Data and Sample

The survey involved randomly selected 532 medium-sized and large Slovenian (European Union) organizations. From each organization, an owner or manager participated in our research. The owners or managers filled out the closed questionnaire, as we wanted to find out to what extent they are aware of the importance of the development of strategic talent management and the development of strategic agile management for their company to increase their competitive advantage. According to the standard classification of organization activities, organizations were operating in manufacturing (27.8%), wholesale and retail trade, repair of motor, vehicles, and motorcycles (22.4%), information and communication activities (16.7%), financial and insurance activities (14.8%), real estate activities (8.5%), professional, scientific, and technical activities (6.8%), administrative and support service activities (2.4%) and other business activities (0.6%). The sample comprises 53.6% of large organizations, while medium-sized organizations comprise 46.4%. Several people from the same organization could answer the survey question.

Research Instrument

We used a 5-point Likert-type scale. Claims for acquiring talented employees were adopted from Liu and Pearson (2014); claims for target development of talented employees were adopted from Kaleem (2019); claims for talent leadership were adopted from Kafetzopoulos et al. (2022); claims for designing talent teams were adopted from Wolf and Felger (2020); claims for development of strategic talent management were adopted from Yener et al. (2017); claims for designing agile teams were adopted from Peeters et al. (2022); claims for agile leadership were adopted from Akkaya et al. (2022); claims for support agile management culture of the organization were adopted from McKinsey and Company (2020); claims for development of strategic agile management were adopted from Mani and Mishra (2020); and claims for competitiveness were adopted from Balog (2020).

Statistical Analysis

Researchers prefer a multivariate analysis approach because it can estimate multiple and interrelated dependencies in a single analysis (Kock, 2019). This method utilizes two types of variables: endogenous and exogenous. Endogenous variables are equivalent to dependent variables and can be influenced by other variables in the model. In contrast, exogenous variables are treated as independent variables and can directly affect endogenous variables (Stein et al., 2012). We assessed the sampling adequacy using the KMO measure (Kaiser, 1974), with a minimum value of 0.5 considered acceptable, and checked the sphericity using Bartlett’s test (p < 0.05) (Kaiser, 1974). Additionally, we evaluated the factor loadings (≥ 0.5), commonalities of variables (> 0.4), and eigenvalues of factors (≥ 1.0) to ensure that the data met the relevant criteria (Tabachnick & Fidell, 2013). We examined the reliability and convergent validity of the measurements using the AVE and CR, with thresholds of AVE > 0.5 and CR > 0.7, and ensured that CR > AVE (Garson, 2016; Hair et al., 2010). We tested for multicollinearity using variance inflation factors (VIF < 5.0) (Hair et al., 2010). The quality of the measurement model was assessed using R2 and the Stone-Geisser Q-squared coefficients (Garson, 2016). To test our hypotheses, we used the path coefficient (β), t-value, significance level (p < 0.05), and Cohen’s effect size indicator (f2). (Kock, 2019).

Results

In addition to the results in Table 1, the total variance explained for acquiring talented employees is 72.667%, for target development of talented employees is 73.492%, for talent leadership is 79,859%, for designing talent teams is 83,814%, for development of strategic talent management is 84,916%, for development of strategic agile management is 85,643%, for agile leadership is 77,151%, for designing agile teams is 72,521%, for support agile management culture of the organization is 83,276%, and for competitiveness is 85,745%.
Table 1
Factor analysis results
Construct
Item
Communalities
Loadings
Cronbach’s alpha
Acquiring talented employees (ATE)
ATE1
0.785
0.886
0.942
ATE2
0.751
0.867
ATE3
0.776
0.881
ATE4
0.733
0.854
ATE5
0.689
0.838
ATE6
0.773
0.879
ATE7
0.746
0.862
Target development of talented employees (TDTE)
TDTE1
0.902
0.950
0.916
TDTE2
0.897
0.947
TDTE3
0.896
0.946
TDTE4
0.872
0.735
TDTE5
0.885
0.941
TDTE6
0.858
0.726
Talent leadership (T)
T1
0.688
0.829
0.896
T2
0.543
0.737
T3
0.833
0.912
T4
0.859
0.927
T5
0.857
0.926
T6
0.817
0.904
T7
0.854
0.923
T8
0.791
0.889
Designing talent teams (DTT)
DTT1
0.893
0.945
0.923
DTT2
0.869
0.932
DTT3
0.854
0.924
DTT4
0.832
0.912
DTT5
0.837
0.915
DTT6
0.832
0.809
Development of strategic talent management (DSTM)
DSTM1
0.888
0.943
0.939
DSTM2
0.879
0.938
DSTM3
0.797
0.893
DSTM4
0.750
0.866
DSTM5
0.782
0.884
DSTM6
0.861
0.928
DSTM7
0.885
0.941
DSTM8
0.863
0.929
Development of strategic agile management (DSAM)
DSAM1
0.886
0.941
0.927
DSAM2
0.817
0.904
DSAM3
0.870
0.934
DSAM4
0.832
0.912
DSAM5
0.836
0.918
DSAM6
0.851
0.922
DSAM7
0.826
0.910
DSAM8
0.852
0.923
DSAM9
0.864
0.929
DSAM10
0.855
0.924
Agile leadership (AL)
AL1
0.823
0.907
0.947
AL2
0.877
0.938
AL3
0.826
0.909
AL4
0.623
0.789
AL5
0.818
0.905
AL6
0.781
0.884
AL7
0.746
0.864
AL8
0.785
0.886
AL9
0.779
0.881
AL10
0.769
0.872
Designing agile teams (DAT)
DAT1
0.854
0.924
0.876
DAT2
0.761
0.873
DAT3
0.835
0.914
DAT4
0.712
0.843
DAT5
0.684
0.827
DAT6
0.850
0.921
DAT7
0.853
0.923
Support agile management culture of the organization (SAMO)
SAMO1
0.816
0.907
0.954
SAMO2
0.886
0.941
SAMO3
0.867
0.933
SAMO4
0.712
0.844
SAMO5
0.884
0.940
Competitiveness (C)
C1
0.841
0.917
0.938
C2
0.834
0.913
C3
0.871
0.933
C4
0.860
0.928
C5
0.853
0.924
C6
0.799
0.894
C7
0.780
0.883
C8
0.757
0.870
Table 2 shows that all indicators are suitable. Table 3 presents indicators of the quality of the structural model.
Table 2
Model fit and quality indicators
The quality indicators
Calculated values of indicators of model
APC
0.415, p < 0.001
ARS
0.504, p < 0.001
AARS
0.502, p < 0.001
AVIF
2.487
AFVIF
3.614
GoF
0.636
SPR
1.000
RSCR
1.000
SSR
1.000
NLBCD
1.000
Table 3
Indicators of quality of the structural model
Constructs
CR
AVE
R2
Adj. R2
Q2
VIF
Acquiring talented employees
0.947
0.719
(–)
(–)
(–)
2.110
Target development of talented employees
0.892
0.633
(–)
(–)
(–)
3.091
Talent leadership
0.965
0.775
0.569
0.569
0.570
2.863
Designing talent teams
0.973
0.856
(–)
(–)
(–)
2.675
Development of strategic talent management
0.972
0.876
0.736
0.735
0.692
3.294
Development of strategic agile management
0.968
0.865
0.758
0.756
0.684
2.985
Agile leadership
0.965
0.775
(–)
(–)
(–)
2.076
Designing agile teams
0.971
0.868
0.569
0.568
0.427
1.743
Support agile management culture of the organization
0.964
0.843
(–)
(–)
(–)
1.692
Competitiveness
0.910
0.721
0.784
0.784
0.684
3.156
(–) values cannot be calculated because the construct is a baseline
Table 3 shows that the R2, adjusted R2, and Q2 coefficients of the latent variables are all statistically significant. Additionally, the AVE values for all constructs exceed 0.5. Table 4 and Fig. 2 presents the SEM results.
Table 4
Standardized path coefficients for the proposed model
Hypothesized path
Path coefficient (γ)
Sig.
Effect size (f2)
Standard error
Link direction
Shape of link
ATE → DSTM
0.369
p < 0.001
0.357
0.043
Positive
Nonlinear
TDTE → DSTM
0.382
p < 0.001
0.360
0.043
TL → DSTM
0.567
p < 0.01
0.421
0.043
DTT → DSTM
0.391
p < 0.001
0.369
0.039
AL → TL
0.418
p < 0.01
0.372
0.040
DTT → DAT
0.378
p < 0.01
0.365
0.042
AL → DSAM
0.617
p < 0.05
0.467
0.040
DAT → DSAM
0.402
p < 0.05
0.398
0.039
SAMO → DSAM
0.586
p < 0.05
0.436
0.039
DSTM → DSAM
0.645
p < 0.05
0.452
0.042
DSAM → CO
0.698
p < 0.01
0.479
0.040
ATE Acquiring talented employees; TDTE target development of talented employees; T talent leadership; DTT designing talent management; DSTM development of strategic talent management; DSAM development of strategic agile management; DAT designing agile team; AL agile leadership; SAMO support agile management culture of the organization; C competitiveness
The results in Table 4 and Fig. 2 show that acquiring a talented employee (ATE → DSTM = 0.369, p < 0.001), target development of talented employees (TDTE → DSTM = 0.382, p < 0.001), talent leadership (T → DSTM = 0.567, p < 0.01), designing talent teams (DTT → DSTM = 0.391, p < 0.001) have a positive effect on the development of strategic talent management. Moreover, agile leadership has a positive effect on talent leadership (AL → T = 0.418, p < 0.01), and designing talent teams have a positive effect on designing agile teams (DTT → DAT = 0.378, p < 0.01). Thus, agile leadership (AL → DSAM = 0.617, p < 0.05), designing agile teams (DAT → DSAM = 0.402, p < 0.05), and supporting agile management culture of the organization (SAMO → DSAM = 0.586, p < 0.05) have a positive effect on the development of strategic agile management. Moreover, the results in Table 4 and Fig. 2 show that the development of strategic talent management has a positive effect on the development of strategic agile management (DSTM → DSAM = 0.645, p < 0.05), and the development of strategic agile management has a positive effect on the competitiveness (DSAM → C = 0.698, p < 0.01). Based on the results, we confirmed hypotheses H1–H11.

Discussion

General Discussion

Industry 4.0, automation, and robotization are changing the way of work. As a result, there is an increasing need to develop appropriate strategic talent management and strategic agile management. Industry 4.0 has created an enormous gap between employees’ current skills and future job demands. To succeed in the workplace, new employees must change their thinking and have enough different and relevant competences. These competencies are creativity, critical thinking, networking, communication, and goal orientation. Organizations no longer need narrowly focused engineers but must have a combination of several competencies. Thus, it is crucial that, according to Balog (2020), Industry 4.0 enables the analysis of large amounts of personnel data, which enables organizations to adapt to changes faster and take a more analytical approach to recruitment or discovering talents within the organization. Identifying, developing, and retaining talent is of key importance in management practice (Pio et al., 2021). To succeed in the current VUCA environment, numerous organizations are striving to enhance their agility (Attar & Abdul-Kareem, 2020). In contrast to traditional organizations that may appear rigid, hierarchical, and linear, agile organizations are more organic in nature, striking a balance between stability and dynamism, and are capable of adapting to an ever-evolving and unpredictable future (Zavyalova et al., 2020), which is also confirmed by our research.
The results in Table 4 indicate that acquiring a talented employee has a positive effect on the development of strategic talent management, and the development of talented employees has a positive effect on the development of strategic talent management. Table 1 shows that the key factor in acquiring a skilled employee is the recruitment of candidates possessing the appropriate skills necessary to accomplish their work successfully. This is followed by the importance of the candidate’s competencies, the candidate’s ability to think creatively, the candidate’s work experience, and the candidate’s ability to connect/network with others. Thus, in the era of Industry 4.0, organizations must develop new talent management approaches that must be more dynamic and future-oriented. The identification of talents must be carried out objectively and according to a standardized procedure, and no longer according to one’s judgment, as was the practice in the past. When developing talents within organizations, organizations must use various variants of training. Organizations need talented employees who will know how to work with technology in lean production and big data, which are characteristics of Industry 4.0. Even though technology can replace human work, it cannot replace human knowledge, critical thinking, and creativity. In today’s technological era, organizations cannot rely on producing the same products repeatedly. Employers seek individuals who can devise new approaches and generate innovative ideas. Workers who can anticipate and solve problems creatively are highly valued. Effective communication skills, including negotiation, discussion, and clear writing, are also essential. Employers seek employees who can distinguish between reliable and false information. With increasing responsibility, employees must confidently evaluate situations and make decisions, despite gaps in available information. As technological advancements accelerate, workers’ demand for creativity grows. They must become more creative to leverage the benefits of new products, technologies, and work processes.
Table 1 shows that the most critical role in the target development of talented employees is taking care of retaining suitable candidates with help to acquire the necessary skills for their career plans. This is followed by employee training, which focuses on developing specific competencies and skills per the organization’s needs. The third important role in the target development of talented employees is enabling employees to attend education and training regularly. The fourth is to provide opportunities for the growth of talented employees and the opportunity to develop employees’ careers further in the organization.
To reduce the probability that talented employees leave the organization, their attitude toward the organization should be considered when selecting colleagues. Candidates who are ready to accept and work following the values and culture of the organization are the most suitable. In candidate selection procedures, communication, appropriately asked behavioral questions, colleagues’ involvement, and combining different selection methods, which contribute to creating a synthetic assessment of candidates, are essential. To attract and employ talented employees, the organization must have its strategic plan containing the appropriate resources and strategies. By acquiring and retaining talented employees, the organization will operate successfully in a competitive environment, as talented employees are more efficient in performing their work. In addition to employment and motivation, strategies for attracting and developing talented employees and keeping them in an organization are vital to acquiring and retaining them, regardless of any necessary changes to the organization’s system, structure or policy.
According to Birou and Hoek (2021), Kafetzopoulos (2022), Kravariti and Johnston (2020), Latukha et al. (2022), and Mujtaba and Mubarik (2022), it is vital that talents in the organization have the possibility of continuous education and development. Talent acquisition consists of attracting, finding, and selecting highly talented individuals, which differs from organization to organization. In general, Birou and Hoek (2021), Shet and Nair (2022), and Vecchi et al. (2021) emphasize that talent acquisition decisions are made through various analyses that organizations create based on employee data and comparative information from other sources. They use such analysis in recruiting talented colleagues inside and outside the organization. When acquiring talented employees, the organization should ask the candidate about his work-related skills and experiences, which might be helpful to the organization in possible future challenges or when transferring the candidate to another workplace.
McKinsey Company’s 2017 study, which surveyed 600,000 employees, found that talented employees are 400% more productive than their average counterparts. Similar findings from business studies indicate that this productivity gap widens in jobs with greater complexity. Specifically, in highly complex occupations such as information and interaction-intensive work and software development, talented employees are 800% more productive (McKinsey Company, 2017). Therefore, we propose developing strategic talent management with crucial aspects that contribute to the successful development of strategic agile management, which will increase the organization’s competitiveness. With our proposed model, employers will be able to find appropriate solutions to retain their talented employees in the organization successfully and thus, strive for a competitive advantage (Kafetzopoulos, 2022; Latukha et al., 2022; Mujtaba & Mubarik, 2022; Shet & Nair, 2022; Vecchi et al., 2021).
Based on the results in Table 4, we found that talent leadership has a positive effect on the development of strategic talent management, and agile leadership has a positive effect on talent leadership. Results indicate that agile leadership positively affects the development of strategic agile management. Table 1 shows that the most important role in talent leadership is ensuring that every talented employee is adequately qualified or educated. This recommendation is followed by recommendations concerning keeping talented employees with the highest potential in the organization, seeking an opportunity to improve the working and cooperation between talented employees, and paying attention to talented employees at the individual level. The following two essential roles (the fifth and the sixth important) in talent leadership are continuous improvement in the organization and striving to ensure that each talented employee is engaged in their work performance. In an ever-changing market, businesses are continually searching for ways to gain a competitive advantage. The measures taken by an organization to set itself apart from its rivals are crucial. However, whether a company achieves this by creating innovative products or lead-generating marketing campaigns, one crucial element is necessary—a proficient workforce. The workforce is the most critical asset of any company. The fundamental purpose of talent management is to establish a motivated workforce that grows within the organization and contributes to its ongoing progress. If executed effectively and tailored to the company, talent management can result in a sustainable competitive advantage over the competition for many years.
Moreover, Table 1 shows that the foremost factor in effective agile leadership is an organization’s adoption of an agile management style, which encompasses meaningful participation of subordinates in decision-making processes and implementation of innovative management techniques, which is followed by agile leaders act as visionaries and coaches, not as planners or controllers, and employees understand how their individual objectives support the organization’s strategic objectives.
Based on the results of talent leadership and agile leadership, we can observe that both types of leadership complement each other. According to the findings of the authors Adhiatma et al. (2022), Jackson and Allen (2022), Kafetzopoulos et al. (2022), and Maheshwari and Yadav (2019) with agile leadership approaches, organizations successfully impact the productivity of talented employees. The objective of agility is to achieve a particular outcome, and its implementation is flexible, considering the internal and external factors of the organization. Individuals who adopt an agile mindset hold the belief that they can enhance and refine their skills and capabilities continuously through learning, perseverance, and enthusiasm. Problems often arise when employees do not know exactly what their tasks are, what the organization’s goals are, and what is expected of them (Attar & Abdul-Kareem, 2020). Leaders do not care about their careers, development, and organizational advancement. They are also not involved in planning the tasks and goals of the organization (Adhiatma et al., 2022; Attar & Abdul-Kareem, 2020). Both current and future markets reward organizations with the capability and willingness to adapt. Market leaders have established cultures and management styles that foster innovation and creativity, commonly known as agile approaches. These approaches enable leaders to quickly change direction in response to our world’s volatile, uncertain, complex, and ambiguous nature. The challenges brought about by COVID-19 have only heightened the need for agility, particularly as remote and hybrid work arrangements require even greater flexibility. Through literature review and research, we found that agile leadership employs situational, transformational, and servant leadership philosophies, promoting adaptability rather than rigid systems that stifle new ideas. By encouraging flexibility in the workplace, teams are empowered to experiment and generate new, creative ideas supported through effective communication, leading to greater team satisfaction and involvement.
In addition, the successful achievement of employee results can also be negatively affected by the fact that colleagues do not feel valued or do not trust the leader, which is reflected in bad relations in the organization and leads to the departure of talented employees. Various research (Adhiatma et al., 2022; Attar & Abdul-Kareem, 2020; Garcia et al., 2021; Kafetzopoulos et al., 2022; Maheshwari & Yadav, 2019) show that a good relationship with colleagues and managers in the organization is significant to employees. Many organizations have a terrible climate, and the leader does not change or solve it, so talented employees leave. Often the reason for the departure of talents is also a lack of understanding with the leaders. They feel disrespected and unappreciated, so they decide to leave. Additional training should be offered to employees. Most want to be educated, acquire knowledge, and grow with the organization. In this way, the organization will gain the trust and professionalism of all employees. It is also necessary to constantly discuss with employees what they want and plan their careers, ascents, and promotions. In this way, employees will feel valued, and their loyalty to the organization will also increase. Thus, agile leadership significantly impacts successful talent leadership, which further leads to the successful development of strategic talent management and the successful development of strategic agile management to achieve higher competitiveness.
The research of the State of Agile cultural survey (JCURV, 2022) on 1.392 respondents from America (17%), Europe (62%), Africa (4%), Asia (5%), and Australia/New Zealand (12%) shows that employee satisfaction was 160% higher from employees in organizations that introduced agile leadership compared to those that were not agile.
Based on the results in Table 4, we found that designing talent teams have a positive effect on the development of strategic talent management and designing talent teams have a positive effect on designing agile teams. Furthermore, results in Table 4 and Fig. 2 show that designing agile teams positively affect strategic agile management development. Table 1 shows that the most critical role in designing talent teams is that the talent team understands the organization’s overall strategy and second, that the talent team has the necessary resources and information to achieve the organization’s goals. The third important role in designing talent teams is that the employer or leader gives frequent, actionable feedback to the talent team, which is followed by regularly organized meetings where talented employees or talent teams exchange their ideas and solutions and recognize the outstanding work of the talented team.
According to Table 1, the most significant aspect of designing agile teams is to ensure that all team members possess an understanding of the organization’s operations, business environment, and future priorities. This is closely followed by the importance of fostering a strong sense of team spirit within the organization to promote agility. The key roles in designing agile teams include team members striving toward common organizational goals, possessing a positive attitude toward change, new ideas, and technology, being capable of making quick decisions, and resolving issues related to change quickly. Organizations must develop increasingly innovative products and services to operate and survive in today’s VUCA world. Complex problem-solving is best left to small, cross-functional, autonomous, and self-organized teams that take full responsibility for their work and prioritize delivering value over merely performing tasks. They perform their work very quickly and efficiently and regularly adapt and improve their working methods based on the feedback they receive from users and other stakeholders. Such teams also do not have a leader who makes all the decisions alone, but the leadership task is distributed among all team members.
Edmondson and Gulati (2021), Grass et al. (2020), Khanagha et al. (2021), and Peeters (2022) highlight that agile teams are recognized for their flexibility and superior performance, allowing them to release new products quickly and remain competitive. Nevertheless, merely labeling a team as agile does not guarantee success. Peeters (2022) stresses that achieving agility in organizations requires specific skill sets, and effective communication is crucial for successful talent and agile teams (Edmondson & Gulati, 2021). It is vital to maintain open communication channels through regular team meetings, email correspondence, and other methods. Team members and management should provide and receive constructive feedback frequently, not just during traditional annual reviews. Additionally, setting clear project expectations and keeping team members informed of any changes that may arise is essential for effective communication. Clear project expectations should be established by leaders, and team members should be encouraged to ask questions throughout the project process. Additionally, there should be a plan in place to automatically update team members about any changes that may need to be made to the project.
According to empirical research conducted by Ramirez-Mora and Oktaba (2018), adopting the agile way of working improves team performance. It is essential that all team members understand their roles in fulfilling the business objectives and approach stakeholders with a single voice. In this regard, the team leader should take the responsibility to unite the team and align them with the principles of agility.
Based on the results in Table 4, we can conclude that the development of strategic agile management is positively influenced by supporting an agile management culture within the organization. As indicated in Table 1, creating a work culture that values agile employees and is based on agile team spirit, trust, openness, dedication, and experimentation plays a crucial role in fostering an agile management culture within the organization. This aspect is followed by the assertion that an organization should foster a culture where agile employees have a strong sense of purpose and passion for their work and where the culture motivates them to stay with the organization.
The State of Agile cultural survey (JCURV, 2022) on 1.392 respondents from around the world shows that building a robust and agile culture in the organization will result in an increased commercial performance of 237%. Organizations using small-scale agile deployments in individual teams or projects report a significant increase in commercial performance compared to pre-agile results. This shows that a significant initial impact can occur when basic agile mechanisms are applied, such as focusing on your customer, being more collaborative, and empowering teams (JCURV, 2022). Thus, supporting agile management culture impacts the organization’s successful implementation of strategic agile management.
Balog (2020), Carvalho et al. (2021), Kapor (2022), Malik et al. (2021), and Mani and Mishra (2020) argue that traditional organizational cultures, while suitable in the past, are no longer sufficient for today’s challenging environment. To improve organizational agility, it is essential to understand the unique cultural characteristics of each organization, which can be modified and enhanced (Adhiatma et al., 2022; Badakhshan et al., 2020; Kahl et al., 2022). The variety of organizational cultures is vast, and rethinking operations and cultures are critical for organizations to tackle new challenges. First, the importance of the safety of employees in the organization must be emphasized. An agile culture must support changing requirements, trust and empowerment of teams, technical excellence, self-organizing teams, and continuous improvement. Incorporating the agile mindset into the organization’s culture is an ongoing process that requires consistent understanding and implementation. To fully adopt daily agile practices and development goals, the agile shift must be synchronized with the organization’s culture. This comprehensive and iterative approach involves understanding the organization’s objectives, improving the process to achieve them, and continuously testing, learning, and adjusting practices.
Based on the results in Table 4, we found that the development of strategic talent management positively affects the development of strategic agile management. The role that plays the most critical part in developing strategic talent management is demonstrated in Table 1, which involves implementing various recruitment strategies to attract skilled individuals and creating an environment that values and listens to the ideas of talented employees. Developing strategic talent management requires a set of key actions, such as providing employee training in mentoring and coaching, aligning talented employees with the organization’s mission and vision, creating a stimulating work environment, establishing programs to retain high-potential employees, implementing policies that foster career growth and developmental opportunities, and engaging individuals who possess creative thinking abilities. Alqershi et al. (2022) and Kafetzopoulos et al. (2022) argue that a talent management strategy involves implementing innovative recruitment and performance management initiatives to nurture an organization’s human assets. By improving standard talent management processes, the organization can leverage its human capital to drive growth and success (Birou & Hoek, 2021; Kraichy & Walsh, 2022; Vecchi, 2021). Talent management ensures that employees are assigned appropriate work and are motivated and challenged, resulting in higher morale, growth, and retention rates. In a competitive job market with a shortage of skilled employees, a well-defined talent management strategy provides a significant advantage.
Table 4 demonstrates a positive relationship between the implementation of strategic agile management and an organization’s competitiveness. According to Table 1, the most crucial factor in the development of strategic agile management is providing adequate training to employees to perform their tasks effectively. The next critical aspect is offering training programs aimed at enhancing the potential of high-performing employees. Additionally, organizations must encourage fast learning, decision-making, and action cycles. Finally, businesses must strive to incorporate new digital technologies to create products and services that meet the evolving demands of business partners. To develop a strategic agile management approach, it is crucial to foster small, high-performance teams with a high level of autonomy, enable quick adaptation to environmental changes, conduct regular evaluations of employee performance and provide recognition for good work, offer rewards to top-performing employees, and continually monitor changes in the business environment while seeking feedback from various business partners.
According to Table 1, the most critical factor for competitiveness is the organization’s ability to outperform its key competitors in terms of growth, profitability, and innovation. This is closely followed by meeting customer expectations for products or services and timely delivery. Other significant roles in competitiveness include the organization’s superior ability to anticipate future customer needs, close collaboration and support among business and functional units, and exceptional alignment of resources and capabilities that complement those of major competitors. Agile business practices, which involve optimizing workflow, developing employee skills, and providing mentorship, are known to generate significant value for organizations of all sizes. In fact, research has shown that 55% of agile organizations achieve top-quartile financial performance, compared to just 25% of average organizations (Marymount University, 2022).

Managerial Implications

The present business environment is marked by swift changes in customer and supplier needs, investor pressures, competitor actions, and market trends. Responding promptly to these pressures is crucial for successful competition. Additionally, technology is advancing rapidly, creating new products and processes that can disrupt existing businesses and provide a significant advantage to those who can effectively adopt them. Hence, incorporating and adapting to technology changes have become strategically critical for organizations. Moreover, information challenges have become more complex due to the increasing number of communication channels, data sources, and higher volumes of data, demanding employees who can work effectively in this new environment. Organizations are faced with challenges in recruiting and managing talent employees who are in high demand. Agile methodology and agile organizations are considered more suitable for the present-day environment due to their ability to change quickly through their processes, culture, and organizational structure. With the increasing complexity of digital opportunities and the unpredictability of customers and competitors, anticipating future business needs have become more challenging. This is where Agile comes in as a crucial factor in enhancing organizational responsiveness toward volatility. If companies can anticipate and respond to social trends influencing consumer and employee behavior, they can gain a competitive edge. As a result, organizations should prioritize their commitment to addressing social and environmental concerns through a strategy that promotes ethical practices when interacting with important stakeholders such as customers, employees, suppliers, regulatory agencies, and the community. Collaborating with customers or the government can lead to innovative solutions for pressing social issues in product and service offerings. By integrating the vision for social responsibility into all levels of management and employee practices, businesses can align their activities toward achieving social and environmental goals. Implementing sustainable business practices that consider social influences can reduce risks of regulation and litigation, enhance efficiency, and create economic and social value for customers, thereby increasing revenues.
The findings demonstrate that selected factors of strategic agile management can significantly enhance a company’s competitiveness, which is especially crucial in today’s fast-changing business environment. The development of strategic talent management, along with talent leadership, acquiring talented employees, target development of talented employees, designing talent teams and its impact on the development of strategic agile management (together with agile leadership, designing agile teams and supporting agile management culture), can have significant managerial implications for organizations seeking to improve their competitiveness. Here are some of how these practices can benefit organizations:
1.
Improved employee engagement and retention: employees are more likely to feel valued and engaged when organizations invest in talent leadership and development. This, in turn, can lead to improved retention rates and reduced turnover costs.
 
2.
Enhanced innovation and creativity: talent teams and agile leadership practices can foster an organization’s culture of innovation and creativity. This can lead to the development of new products, services, and processes that give the organization a competitive edge.
 
3.
Increased adaptability and responsiveness: agile teams and culture can help organizations become more adaptable and responsive to changing market conditions. This can allow them to quickly adjust their strategies and operations in response to new challenges and opportunities.
 
4.
Better talent alignment with organizational goals: strategic talent management can help organizations ensure their talent is aligned with their overall strategy and business strategy. This can lead to improved performance and a stronger competitive position.
 
5.
Improved reputation and brand image: organizations that invest in talent leadership and development, as well as agile teams and culture, can develop a reputation as innovative, forward-thinking employers. This can help attract top talent and improve the organization’s brand image in the eyes of customers and other stakeholders.
 

Academic Implications

Empirical research and literary studies demonstrate a connection between the development of strategic talent management and the development of strategic agile management. The inherent flexibility of the agile approach fosters sustainable project management and enables organizations to consider their projects’ economic, social, and environmental aspects. Moreover, the findings of this study offer significant insights that can be utilized in educational settings to enhance their development. These research outcomes can be utilized as informative data for creating novel or improving existing guidelines and standards and developing training materials for organizations and managers. The theoretical and empirical analysis presented in this article enhances academic knowledge by detailing the interconnections between various factors of strategic talent management and agile management. Academics can contribute to developing theoretical frameworks that can help organizations better understand the link between strategic talent management, strategic agile management, and competitiveness. This could involve exploring how these practices can help organizations to achieve more significant innovation, efficiency, and responsiveness and how this can translate into improved financial performance and market share. The literature can benefit from studies that examine the best practices for implementing strategic agile management in different organizational contexts. This could involve exploring how strategic agile management can be adapted to different sectors and identifying the key success factors and challenges associated with its implementation.
In conclusion, developing strategic agile management practices can have significant theoretical implications for future research, researchers, academics, and literature. By addressing these implications, researchers can help to advance understanding of how organizations can develop the agility they need to succeed in today’s highly dynamic and competitive business environment.

Policy Implications

To promote competitive transformation and facilitate the implementation of strategic agile management, the government should consider supporting organizations operating in industries that face challenges in accessing sufficient capital. Furthermore, such support can also promote the development of specific industries and ecosystems. The upcoming years are anticipated to witness an increase in government intervention. While the government’s rationale for supporting individual companies may remain unchanged, the global environment constantly evolves. A new form of globalization is emerging, which is leading to the emergence of new political, economic, and business models. These three factors collectively drive the government to support individual organizations.

Conclusion

Leaders use various methods and tools to plan development and implement operating methods that will ensure their competitiveness and, thus, the long-term success of their organizations. The need for speed and flexibility is increasing, and the world of work is changing. Modern agile challenges require leaders to adopt a different and more advanced way of working, including changed processes, structures, competencies, instruments, and a new way of strategic thinking and behaving. Organizations must be agile and flexible in responding appropriately in small steps or incrementally. Such an approach is intended to support changes in leadership and culture, acquire and develop talented employees, and design appropriate teams, enabling organizations to survive and thrive in a changing environment.
In the article, we started with two research questions. The first research question requested research on how to increase competitiveness by promoting the development of strategic agile management and strategic talent management. The second research question requested research on the key aspects that organizations must consider to achieve greater competitive advantage through the prism of researched content on the development of strategic agile management and strategic talent management. We answered these research questions by researching and confirmation of eleven hypotheses. In the article, we highlighted the importance of implementing a strategic talent management ecosystem, which successfully leads to a strategic agile management ecosystem with certain essential aspects that the organization must consider when achieving a competitive advantage in today’s turbulent environment. Especially during the (post) COVID-19 pandemic, organizations have realized that too stable, strict, and formal business operations no longer work. Of course, the drastic development of technology and the need for digitization also contributed to this. All this has put traditional business systems at a great challenge and forced them to change their way of working.
The research results show that strategic talent management ecosystem influences the strategic agile management ecosystem, and the latter influences an organization’s competitiveness. Also, the research results show that the essential aspects of developing strategic talent management are talent leadership (which is influenced by agile leadership), talent teams designing, target development of talented employees, and acquiring talented employees. Further, the research results show that the development of strategic agile management is influenced by agile leadership, support of agile management culture, and designing agile teams (which impacts talent team designing). Organizations that have incorporated strategic talent management into their operations have been able to develop agile management strategies, enabling them to compete effectively in a rapidly changing environment. That is why owners and (top) managers of organizations must pay special attention to (1) the development of a strategic talent management ecosystem and (2) the development of a strategic agile management ecosystem to (3) achieve competitiveness, with which they realize the vision, (responsible) business policy, and set overall corporate strategy and business strategies of the organization.

Limitations and Recommendations for Future Research

The paper is limited to research on the development of strategic talent management ecosystem and strategic agile management ecosystem. In each of the mentioned ecosystems, we study sufficiently comprehensive yet subjectively selected aspects that could be expanded or changed in some other way in further research. Competitiveness is taken as the final desired outcome of the economic behavior of organizations, which is directly influenced by the studied development of strategic agile management and indirectly by the development of strategic talent management (through the development of strategic agile management) and is not studied separately.
Our study is limited to certain aspects related to the development of strategic talent management ecosystem: acquiring a talented employee, target development of talented employees, talent leadership, and designing talent teams. Also, the study is limited to certain aspects related to developing a strategic agile management ecosystem: agile leadership, support agile management culture of the organization, and designing agile teams. In our research, we limited to Slovenian organizations. Thus, as a possibility for future research, we recommend upgrading the measurement instrument with new aspects related to developing a strategic talent management ecosystem and a strategic agile management ecosystem.
Development implementations are carried out at the tactical level of executive (middle) management as part of the governance-managerial process. These implementations aim to implement the strategies determined by the (top) management and the business policies set at the level of business policy, where the owners make the final decisions. We do not deal with the information and fundamental implementation business process.
All the limitations mentioned so far represent the possibility of further research. Since the research was conducted on a sample of organizations from one developed country of the European Union, it is possible to compare the research results with a sample of another or other developed countries of the European Union. Therefore, as a possibility for future research, we see the same research conducted on other countries and analyze the differences in researched aspects of the strategic talent management ecosystem and strategic agile management ecosystem between different countries and Slovenia. Comparing the obtained results with less developed or underdeveloped countries outside the European Union is also possible.
In the research, we did not pay special attention to distinguishing development decisions between different size classes of the organizations included in the research. The analyzed sample is based on the answers of owners or managers of medium-sized or large organizations. It would make sense to investigate the difference in decisions made in micro- and small organizations, of which there is the largest number.
The differences between for-profit and non-profit organizations or family and non-family organizations, organizations in various stages of the life cycle (e.g., newly formed organizations, growing organizations, or organizations in crisis) or organizations with different shares of private or public ownership were not examined. All of these are open possibilities for further research.

Key Questions

1.
How to increase competitiveness by promoting the development of strategic agile management in today’s VUCA environment?
 
2.
How to increase competitiveness by promoting the development of strategic talent management in digital age?
 
3.
What are the key aspects that organizations must consider to achieve greater competitiveness in today’s VUCA environment through the prism of developing strategic agile management and strategic talent management?
 

Declarations

Conflicts of interest

The authors declare no conflict of interest.

Ethical Approval

Not Applicable (The research is based on an anonymous survey).
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Metadata
Title
Competitiveness Through Development of Strategic Talent Management and Agile Management Ecosystems
Authors
Maja Rožman
Polona Tominc
Tjaša Štrukelj
Publication date
21-06-2023
Publisher
Springer India
Published in
Global Journal of Flexible Systems Management / Issue 3/2023
Print ISSN: 0972-2696
Electronic ISSN: 0974-0198
DOI
https://doi.org/10.1007/s40171-023-00344-1

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