Small and Medium-sized enterprises (SMEs) are pivotal to Pakistan's economic development, significantly contributing to GDP and employment. Despite their importance, SMEs face persistent challenges in acquiring, managing, and retaining talent, which undermines their competitiveness. This study investigates the relationship between talent management practices and the performance and innovative capabilities of Pakistani SMEs, using data from a sample of 200 firms. The analysis, conducted using SmartPLS, reveals a significant positive impact of talent management practices on SME performance and innovation. By examining key frameworks and strategies, the research emphasizes the tailored implementation of HR practices to enhance productivity and foster innovation. The findings underscore the vital role of effective talent management in improving SME performance and strengthening their market position. Practical insights are offered for business leaders and policymakers to implement strategies that maximize human capital potential. This study contributes to the understanding of how talent management practices can drive organizational success in emerging economies, particularly within resource-constrained contexts.
Ishaq et al. (Sat,) studied this question.