Entrepreneurial Orientation on Talent Acquisition and Retention in Construction SMEs

Abstract

This study investigates how Entrepreneurial Orientation (EO) influences talent acquisition and retention strategies in Small and Medium Enterprises (SME). Construction SMEs often face limitations in attracting and retaining skilled employees. Therefore, this study examines the role of EO dimensions (innovativeness, autonomy, and proactiveness) in offering a strategic approach to address these challenges and enhance HR practices. The author adopted a mixed-method research approach for this study, collecting data through semi-structured interviews with SME managerial-level professionals and administering a questionnaire survey among professionals in the construction sector. The data were analysed using correlation techniques and thematic analysis to identify the strategic alignment between EO practices and talent management efforts. The findings revealed that internships and employee referrals are the most used and effective talent acquisition strategies. In terms of talent retention approaches, performance-based incentives and career development programs were identified as dominant approaches. Moreover, the study found that the EO dimensions of autonomy and proactiveness significantly impact the adoption and success of these talent retention and acquisition strategies. The results offer a framework for construction SMEs to improve talent-related outcomes by integrating EO into their HR planning.