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Purpose

This study aims to examine the impact of smart talent management (STM) on the performance of small and medium-sized enterprises (SMEs), which is mediated by providing an adoption innovation climate, and to verify the moderate power of adoption motivational culture on STM and SMEs performance (SMEsP).

Design/methodology/approach

The quantitative methodology was adopted through an online survey questionnaire to collect data from SMEs listed in Chambers of Commerce and Industry located in Jordan, the United Arab of Emirates and Kind Saudi Arabia in the Middle East region. Responses were collected from 163 firms out of 568, representing a 28.7% response rate. The data were analyzed using the structural equation modeling technique to test the hypotheses.

Findings

The results of this study fail to support the view that STM has a positive and significant effect on SMEs’ performance, as well as the adoption of motivational culture strengthened the relationship between STM and SMEsP. In addition, the adoption of motivational culture strengthened the relationship between STM and SMEs’ performance.

Originality/value

This research extends the application of cognitive social theory, whereby STM functions as a value-adding activity within SMEs. This research extends the application of cognitive social theory, where STM functions as a value-adding activity within SMEs.

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