Decision-Making on Selection of Talent Management Methods in the Era of Digitalization

Abstract

The application of digital technologies has a significant impact on organizational performance by way of different talent management methods, thereby enabling the maintenance of the organization’s continuous competitive advantage. Therefore, this paper studied the four key factors that influence organizational performance: digital technology application (DTA), inclusive talent management (ITM), exclusive talent management (ETM), and non-equilibrium investment (NET), aiming to investigate how digital technology application and talent management methods positively affect organizational performance, explore how this relationship is regulated by NET, and provides suggestions for selecting appropriate talent management methods. To conduct quantitative analysis, questionnaires were used with a sample size of 534 middle and senior managers as well as human resources practitioners from different enterprises. The structural equation model (SEM) was employed along with 5000 iterations to test the research hypotheses. The results indicate a positive correlation between digital technology application and organizational performance. Furthermore, ITM and ETM act as intermediaries between digital technology application and organizational performance, whereas NET plays a regulatory role in relation to ITM and organizational performance. This paper offers comprehensive insights into the factors influencing organizational performance and sheds light on how organizations make decisions regarding data-driven talent management methods at different stages of development.