Unpacking Talent Management Effectiveness in State-Owned Enterprises: The Roles of Process Quality and Support Capabilities in Enhancing Organizational Performance

Abstract

This study examines the determinants and outcomes of talent management (TM) effectiveness within Indonesian state-owned enterprises (BUMN), an institutional context that remains underexplored in TM research. Grounded in the Resource-Based View and Dynamic Capabilities Theory, the study proposes an integrated model linking TM process quality and TM support capabilities to TM effectiveness, which subsequently influences organizational performance. Survey data were collected from employees and leaders across multiple BUMN entities and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results show that talent management has a positive influence on organizational performance. The findings suggest that improving talent management practices can help BUMN enhance their performance. This study contributes to human resource management literature by providing empirical evidence from the Indonesian context. The study provides practical implications for strengthening TM infrastructures, standardizing TM processes, and positioning TM as a strategic driver of organizational transformation within BUMN.