TALENT MANAGEMENT AND FDI INTENTIONS: THE MEDIATING ROLES OF KNOWLEDGE AND INNOVATION CAPABILITIES IN AN EMERGING ECONOMY

This study investigates how talent management influences foreign direct investment (FDI) intentions through the mediating roles of knowledge acquisition and innovation capabilities in an emerging economy. Using survey data from 383 managers operating in high-tech parks and applying partial least squares structural equation modeling (PLS-SEM), the findings indicate that talent management significantly enhances firms’ knowledge acquisition, which in turn strengthens innovation capabilities. Innovation capabilities subsequently exert a positive effect on FDI intentions. The results support a sequential mediation mechanism linking talent management to FDI intentions via capability development. This study contributes to international business research by clarifying how internal capability-building processes shape firms’ international investment orientations in emerging economies. The findings also provide practical implications for managers and policymakers seeking to foster innovation-driven investment environments through strategic talent management.