Talent Retention Practices in Global Business Services: Insights from Institutional Logic

The purpose of this paper is to provide insights on talent retention practices in global business services in Malaysia. Despite of the advantages gained in terms of world-class infrastructure, tax incentives and competitive ICT prices, global business services (GBS) is still struggling with talent problems. Drawing on institutional logics’ perspective, the author seeks to uncover the institutional reasons for observed talent retention practices in GBS to overcome talent problems. This study uses qualitative methodology with interpretive case study design (Ryan et al., 2002). Specifically, this study is based on two (2) GBS organizations operated in Malaysia. Data collections include interviews and focus groups. Findings suggest that the main challenge of GBS is retaining local talent. Findings illustrate how talent retention practices in the cases are influenced by Malaysian institutional orders. The cases responded differently towards particular influential institutional orders, hence indicate unalike results. This paper furthers the theoretical understanding on how local institutional orders constrain global business practices (Robertson, 1995). The paper focuses on the need for GBS to respond strategically to local institutional orders, thus gain legitimacy (Scott, 1991). It is found that the idiosyncrasy of Malaysian institutional orders, for example religion and community logics, should be recognized and understood by GBS players. By recognizing and understanding them, GBS could retain local talent and instill their global corporate logic.