Abstract

This paper provides a theoretical rationale for the applicability of talent management in SMEs context. Specifically, the study offers a framework examining the effect of talent management on organizational performance mediated by a synergized innovative climate and moderated by organizational culture. The study employs a broad cross-sectional sample of 295 owners of small and medium-sized family businesses engaged in culinary, printing, fashion, and handicrafts in Central Java Province, Indonesia. Data were analyzed quantitatively using Structural Equation Model. The results of the analysis showed that four out of five hypotheses were supported. Only the first hypothesis stating that talent management positively influences organizational performance was not supported. This study serves as a foundation for future talent management research, particularly those aimed at uncovering the factors that influence talent management's unique position in organizational outcomes.