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Strategic Significance of Talent Management for Virtual Organizations

The primary objective of this study was to expound the strategic significance of talent management with the help of a review of relevant literature. Virtual organization is one of the most flexible organizational forms that emerged as a direct result of advancements in information and communication technologies. In this form of organization, independent parties collaborate with each other to bring together the best possible human, physical and financial resources for exploiting the available market opportunities. Hence, alongside the procurement of superior physical and financial resources, activities that emphasize on the development of talent related to current and future business needs are imperative to the effective functioning of a virtual organization. In this direction, this research explores how talent management could act as a strategy to secure valuable human resource by advancing mechanisms to bring talent under the umbrella of a single virtual organization and its active utilization. With the help of a review of relevant literature, we have suggested propositions for research on talent management as a strategy to enhance the effectiveness of virtual organizations. We further explain various elements and activities of virtual organizations that could be improved by talent management practices. We have concluded our argument with a discussion on the implications of current research and prospects for future research in this area.