Abstract
Talent management (TM) has become a critical driver of organisational competitiveness, yet the mechanisms through which Perceived Talent Management Practices (PTMP) translate into Innovative Performance (IP) remain insufficiently understood. This study examines the relationship between PTMP and IP, with a particular focus on the mediating role of Employee Wellbeing (EWB) and the moderating role of Organisational Justice (OJ). Drawing on Social Exchange Theory (SET) and the Resource-Based View, a moderated mediation model is proposed and empirically tested in the context of employees in the Saudi banking sector.
The study addresses three core research questions: the direct effect of PTMP on IP; the mediating role of EWB — comprising Life Wellbeing (LWB), Workplace Wellbeing (WWB), and Psychological Wellbeing (PWB) — in the PTMP–IP relationship; and the moderating role of OJ — encompassing Procedural Justice (PJ), Distributive Justice (DJ), Interpersonal Justice (IntJ), and Informational Justice (InfJ) — in the relationship between PTMP and EWB. Data were collected using a longitudinal two-phase design to mitigate common method bias, yielding 390 responses in the first phase (T1) and 102 in the second phase (T2). Given measurement model fit issues with the T2 data, all primary hypothesis testing was conducted using T1 data, while T2 results were treated as exploratory.
Confirmatory Factor Analysis (CFA) confirmed adequate model fit for the T1 measurement model. Structural equation modelling results supported all primary hypotheses. Specifically, PTMP demonstrated a significant positive effect on both IP (H1) and all three dimensions of EWB (H2a–H2c). In turn, all three EWB dimensions positively predicted IP (H3a–H3c), and EWB fully mediated the PTMP–IP relationship across all three dimensions (H4a–H4c). Regarding the moderating role of OJ, findings revealed a more nuanced picture: while several justice dimensions did not significantly moderate the PTMP–EWB relationship for LWB and WWB, PJ, DJ, IntJ, and InfJ each demonstrated significant moderation for PWB. IntJ also showed a significant, albeit negative, moderating effect on WWB.
These findings contribute to the TM and HRM literatures by providing empirical evidence of the mediating pathway through which PTMP influences IP via EWB, and by highlighting the boundary conditions imposed by OJ perceptions. The study also offers practical implications for HR managers in the Saudi banking sector, underscoring the importance of implementing fair and transparent talent management practices to foster employee well-being and drive organisational innovation