| By: |
Omar Belkhodja (American University of Sharjah) |
| Abstract: |
Talent loss is a vexing yet underexplored issue in the hospitality industry.
This paper seeks to extend the existing literature through an exploratory
investigation of the risk of knowledge loss resulting from the possible
departure of talented employees in the purchasing function of hotels. Despite
the dynamic structure of the hospitality industry that limits the
attractiveness of the industry as a setting that is suitable for talent, the
purchasing function represents a pivotal position in hotels. The departure of
talented purchasing managers disrupts supply chain operations and leads to a
loss of valuable explicit, tacit, and relational knowledge. Strategic
purchasing managers possess critical skills and knowledge that are essential
for international hotels. Hence, proactive mitigation strategies are used to
counter the risk of knowledge loss before they leave. More reactive and
undocumented strategies are used by local hotels that consider the risk of
knowledge loss as low, and make limited investments to retain critical
knowledge. Strategic alliances with critical suppliers and small supplier
networks were thought to mitigate the loss of relational knowledge in case
hotels. Hotels interested in implementing a talent loss strategy would be well
advised to: treat the purchasing function as a strategic one; document risk
management and mitigation strategies; adopt proactive mitigation strategies;
match mitigation strategies with the type of knowledge at risk; and design and
implement mitigation strategies that reduce the share of personal contacts and
emotion-based trust in supplier relationships to retain relational knowledge
in case of talent loss. The findings of this exploratory investigation add to
our understanding of the talent loss issue in the hospitality industry. We
show that knowledge loss following the departure of talented employees in the
purchasing function of hotels is an important risk to manage by hoteliers. |
| Keywords: |
Talent management, Talent loss, Knowledge-based view, Knowledge loss, Hotels, Purchasing Function. |
| JEL: |
M10 |
| Date: |
2019–07 |
| URL: |
http://d.repec.org/n?u=RePEc:sek:iacpro:9111230&r=all |