WORKPLACE ADAPTATION AND TALENT DEVELOPMENT ENVIRONMENT
AMONG MALAYSIAN PROFESSIONAL RETURNEES: INSTITUTIONAL
SUPPORT AS MEDIATOR
Mageswari Kunasegaran, mag8515@yahoo.com
Maimunah Ismail, mismail379@gmail.com,
Roziah Mohd Rasdi, roziah_m@putra.upm.edu.my
Ismi Arif bin Ismail, ismilina@gmail.com
Department of Professional Development and Continuing Education,
Faculty of Educational Studies,
Universiti Putra Malaysia,
43400 UPM Serdang,
Selangor, Malaysia
Stream: Leadership, Management and Talent Development
Submission type: Refereed Paper
Keywords: Workplace Adaptation, Talent Development Environment, Person-Environment
Fit Theory, Institutional Support, Professional Returnees
1
WORKPLACE ADAPTATION AND TALENT DEVELOPMENT ENVIRONMENT
AMONG MALAYSIAN PROFESSIONAL RETURNEES: INSTITUTIONAL
SUPPORT AS MEDIATOR
Abstract
Purpose –The study examined the relationship between the talent development environment
and workplace adaptation (WA) among Malaysian professional returnees as mediated by
institutional support.
Design/methodology/approach – A total of 83 respondents in Malaysia participated in this
study and the hypotheses were tested using partial least square (PLS-SEM).
Findings – The results showed that institutional support (from other organisations) is
positively related to WA and institutional support (from Talent Corporation) is negatively
related to WA.
Research limitation/implication- The study was a cross-sectional in nature and involved a
small number of samples from National Key Economy Areas (NKEA) sectors in Malaysia.
Practical implication – The study findings highlight the integration between talent
development environment and workplace adaptation with institutional support. The evidence
that institutional support mediated WA should be capitalized on by HRD practitioners in
public and private sectors to develop returnees in their WA through talent development
approach.
Originality/value – The study findings extend the knowledge of WA in the context of
professional returnees in a developing country, Malaysia. The integration between talent
development environment and WA with the mediating function of institutional support
should shed more insights on the role of organization in WA of returnees.
Keywords – Workplace Adaptation, Talent Development Environment, Person-Environment
Fit Theory, Institutional Support and Professional Returnees.
.
Introduction
Exacerbating shortage of managerial talent and aggravating pressure of satisfying
professional returnees directly contribute to the nation's talent competitive edge in Human
Resource Development (HRD) (Kim, William, Rothwell and Penaloza, 2014; Siddiqui and
Tejada, 2014). Many developing countries are formulating talent returning strategies, such as
Returning Expert Program (REP) in Malaysia to attract returnees to homeland (Talent
Corporation Roadmap 2020, 2012). However, workplace adaptation (WA) remains an
2
undiscovered agenda throughout the transmission period between returning and sustaining
process in the homeland (Chimboza, 2012; Chiang and Liao, 2008). WA began to capture the
attention of HRD practitioners when HRD scholars penetrate the organisational socialisation
as a research focus (Reio, 1997) and extended to work adjustment among newcomers (Reio
and Sutton, 2006). Further, scholars highlighted that WA has the most impact on organisation
performance compare to other adaptation cycles that returnees experienced (i.e.
psychological, cross-culture, socio-politics, family and lifestyle) (Chan, 2014; Wang, 2012;
Reio and Sutton, 2006; Chung-Yan, 2005). Moreover, WA has influenced professional
returnees’ to sustain in multinational organisations (MNCs) (Chan, 2014). This relates to the
returnees phenomenology, that each of the returnees has to experience adaptation process
regardless of the duration they may take (Maideen and Aminun, 2015), adjusted to current
work socialisation process (Reio and Sutton, 2006) and new communication pattern that
changes the returnees’ expectation and performance in MNC’s (Chan, 2014; Siddiqui and
Tejada, 2014). Disappointment of professional returnees' in developing countries clearly
proven by previous studies such as little attention on suitable talent development program in
Jamaica has resulted by re-migration of their talent (Hope, 2002), lacks government support
in India (Kenny, Brezbitz and Murphee, 2012) and ignorance of cultural adjustment among
Malaysian returnees has weakened the communication process in the working environment
(Talib, Sofian, Mohamad, Senin and Kadir, 2012). Hence, addressing WA issues among
professional returnees have become an important agenda for HRD practitioners today.
Professional returnees are valuable capital resources as equal as talent migration to developed
countries (Siddiqui and Tejada, 2014). Returnees literature recognized professional returnees
as individuals who had completed minimum academic qualification like degree and worked
abroad (Maideen and Aminun, 2015), have superior knowledge about know-how
technologies, innovators (Li and Yang, 2012), highly skilled (Siddiqui and Tejada, 2014), and
3
opportunity creators (Kenny et al., 2012). In this study, professional returnees are individuals
who returned to Malaysia after worked at least a year abroad and have completed a minimum
qualification (degree, diploma or professional certificate).
The next section of this paper continues with the background of the study, the research
problem, followed by theories underlying WA of professional returnees, and a literature
review. The methodological procedures undertaken are explained next, followed by
presentation of findings. The paper ends with a conclusion and practical implication to global
HRD.
Background of the Study and the Research Problem
WA has contributed numerous positive outcomes such as work competency (Reio and Sutton,
2005), job performance (Reio, 1997), reduced employees turnover (Ghosh, Reio and Bang,
2013), improved employees ethics (Reio and Ghosh, 2009) and organisation effectiveness
(Kelly, 2012). In relation to professional returnees, WA enabled them to retain longer in the
home country (Chan, 2014), specifically improved peers relationship (Chiang and Liao,
2008) and knowledge sharing (Wang, 2012), and reduced psychological stress (Maideen and
Aminun, 2015). In global contexts, it was hypothesised that the shorter the WA, the quicker
the professional returnees adventured into entrepreneurship (Wang, 2012; Robert, 2012).
Another study shows a positive outcome between cross-cultural flexibility and WA among
returnees in China (Li, Zhang, Zhou and Zhang, 2012). However, empirical evidence on
sociocultural behaviour showed that WA among Portuguese teenager returnees became
difficult due to discrimination in assimilation they faced in their initial work stage (Felix,
2010).
Scholars have studied WA research from different perspective such as physiological
adaptation in nursing (Roy and Andrews, 1999), cross-cultural and social adaptation among
4
returnees in New Zealand (Chaban, William, Holland, Boyce and Warner, 2011), physicalphysiological adaptation in sport science (MacNamara and Dollins, 2010) and problemsolving adaptation in information system (Kelly, 2012). It has been extended to various types
of returnees’ adaptation such as knowledge brokers (Wang, 2012), young returnees (Chaban
et al., 2011), entrepreneurs (Wei et al., 2012), medical practitioners (Holdway, Levitt, Fang
and Rajaram, 2015), biotechnologist (Siddiqui and Tejada, 2014), high school children
(Chiang and Liao, 2008) and postgraduate (Gill, 2012). Arguably, scholars focused on
returnees’ experiences on psychological and social-culture (Chaban et al., 2011; Holdway et
al., 2015), family and lifestyle changes perspective (Chiang and Liao, 2008; Gill, 2012;
Westwood et al., 2010) rather than integration of returnees with suitable retention programme
in the working environment.
In the context of Malaysia, returnees studies are related to Malaysian push and pull factors
(Jauhar and Yusof, 2011), leveraging Malaysian diaspora (Talib et al., 2012), career
aspiration of returnees (Ismail, Kamaruddin, Umar Baki and Rasdi, 2014) and reverse brain
drain (Ismail, Kunasegaran and Rasdi, 2014). WA is found as an under-researched area in the
country (Talib et al., 2012), despite several transformation programmes have been focused on
them (i.e. REP in Talent Corporation Roadmap 2020, 2012). For instance, Talent Corporation
established in 2011 and worked directly with Prime Minister Department, has offered REP
packages such as 15% flat tax rate, tax exemption on CDK cars, permanent residence status
for foreign spouse and children (Talent Corporation Roadmap 2020, 2012), however, WA
initiatives among Malaysian returnees are still unknown in terms of what factors affecting
them.
Statistics indicates that Malaysian returnees is low compared to the drastic increase in
Malaysian migration abroad that is more than 1.17 million (Lim, Krishnan and Yap, 2014).
Moreover, Malaysian government via Talent Corporation actively developed various
5
programmes to enhance professional returnees such as Malaysian Diaspora Network,
Overseas Outreach programme, Sectorial Outreach programme, MyWorkLife programme and
Global Malaysian Network (Talent Corporation Roadmap 2020, 2012). Lim et al. (2014)
further argued that some returnees failed to return due to unattractive returning packages and
lacks supporting system. However, other returnees have made a successful come back to the
countries. A pertinent question then arises “What predicts WA among Malaysian professional
returnees?”
The study examined the relationship between talent development environment factors and
WA among Malaysian professional returnees as mediated by institutional support. The study
contributed to the body of knowledge by focusing on returnees’ talent development factors
from a developing nation’s perspective. Secondly, knowledge on WA would narrow the gap
between the periods of ‘return and sustain’ in the country. Third, the framework would
enhance the needs and challenges of returnees in relation to National Key Economic Areas
(NKEA) sector and foster a positive talent development approach to support returnees’
adaptation in the country. Theoretically the present study further contributed to the
integration of the Person-Environment Fit Theory (French, Caplan and Harrison, 1982) and
Institutional Theory (DiMaggio and Powell, 1993) to WA.
Theorizing Workplace Adaptation
WA is coined from organisational socialization in HRD context, which means a process of
adapting in the forms of acculturation and knowledge sharing (Reio and Sutton, 2006),
capturing work competency technically and professionally (Reio, 1997) and continuous
training (Reio and Sutton, 2006). However, WA has been practiced in nursing industry longer
than HRD context. For example, Roy’s Adaptation Model was developed in 1970 and has
been exercised for more than four decades in various work adaptation perspectives (Roy,
6
1970). WA is defined as the “process and outcome whereby thinking and feeling of people as
individuals or in groups, use conscious awareness and choice to create human and
environment integration” (Roy and Andrews, 1999, p.54). In organisation behaviour, WA
viewed as the ability of a person to match between individual job and working environment
needs (Chung-Yan, 2005). Naga and Al-Atiyyat (2014) classified WA in two categories,
positive adaptation response means stimulus or coping skills, meanwhile negative adaptation
response as maladaptation.
We integrated the P-E Fit Theory (French et al., 1982) and the Institutional Theory
(DiMaggio and Powell, 1993) to explain the relationship between WA and its predictors.
Both theories shared similar assumption of the processes involved such as i) they explain the
relationship between individual and the working environment, ii) psychological reaction, and
iii) stimulation of environmental changes towards adaptation.
Person-Environment Fit Theory
Person-Environment Fit (P-E Fit) theory was developed by French et al. (1982) to investigate
employees stress level in the working environment. Generally, the P-E Fit theory is used to
describe the relationship between of the individual changes in the workplace such as stress,
conflict, adjusting and adapting to new changes (Caplan and Harrison, 1993). The P-E Fit
theory is a well-established theory and highly tested in the context of psychological
behaviour, job satisfaction, motivation, work stress, turnover, organisation socialisation, work
adjustment and cross-culture behaviour (Caplan and Harrison, 1993; Kristof-Brown,
Zimmerman, and Johnson, 2005; Reio and Sutton, 2006; Abdul Wahat, 2008). A metaanalysis of the P-E Fit Theory by Kristof-Brown et al. (2005) contributed two important
findings, i) it compares and matches between individual and work environment, ii) it
emphasizes integration between organizational behaviour and individual experiences.
7
Scholars have studied the P-E Fit Theory in the context of work adaptation and adjustment.
For instance, Chung-Yan’s (2005) has studied adaptability level of functional job analysis
with work stress, Ramalu, Wei and Rose (2011) has analysed the cross-cultural with work
adjustment among Malaysian expatriates and Abdul Wahat (2008) has investigated the work
adjustment of new academics in Malaysian public universities. There are seven subdimensions of P-E Fit Theory such as Person-Job fit (Kristof-Brown et al., 2005); PersonCulture fit (Delle, 2013); Person-Organisation fit (Kristof-Brown et al., 2005); Person-Person
fit (Boon and Hartog, 2011); Person-Group fit (Boon and Hartog, 2011); Person-Supervisor
fit (Kristof-Brown et al., 2005) and Person-Vocation fit (Caplan and Harrison, 1993). This
research adopted the first two sub-dimensions of the above to support the relationship
between long-term job focus and communication (P-J Fit theory), support network and longterm development (P-O Fit theory) and WA of professional returnees.
Institutional Theory
The Institutional Theory was used to identify the influence of institution support on WA. Past
studies have conceptualized WA using the Institutional Theory in returnees’ literature
(Siddiqui and Tejada, 2014; Bercovitz, Martens and Savage, 2013). Institution is a
combination of organisation culture, values and networks in term of organisation survival
(DiMaggio and Powell, 1993). Empirical evidence, demonstrate that lacks organisation’s
support in India, had created a gap that suppressed returnees’ knowledge sharing intention
(Siddiqui and Tejada, 2014). Similar finding was found by Bercovitz et al. (2013) that lack
institutional support in Mexico limited returnees’ entrepreneurs to succeed in homeland.
However, Roberts (2012) found a positive relationship between institutional support and
knowledge sharing of returnees’ entrepreneurs in South Korea. As a summary, institution
supports directly or indirectly influence returnees’ adaptation process in homeland.
8
Therefore, this study incorporates Institutional Theory to strengthen the mediating role of
institutional support in the relationship between predictors and WA.
Predictors of workplace adaptation
The concept of talent development was derived from literature of talent management,
especially when “War for Talent” was highlighted by McKinsey on talent shortage
phenomenology (Scullian and Collings, 2010). Talent management is a process of talent
identification, selection, development and retention. It has been extended to succession
planning (Rothwell, 2013; Kim et al., 2014), coaching-mentoring and high-potential
performance of employees (Rothwell, 2013). Empirical evidence proven that there was a
positive relationship between competitive talent development construct and workplace
environment among newcomers (Annakis, Dass and Isa, 2014). In Malaysian perspective,
talent management and development became a compulsory agenda for all GLCs to fulfil their
key performance index (Tenth Malaysian Plan, 2010-2015). An empirical finding in GLCuniversities linkages supports a positive result between talent management and performance
competency (Annakis et al., 2014).
Previously, returnees talent has been associated with the attraction strategy by the home
country (Jauhar and Yusof, 2011), but the consequences have prompted researchers to further
investigate the adaptability of professional returnees in homeland (Ismail et al., 2014).
Moreover, it is recommended in past studies (Hope, 2002; Chimboza, 2012) to further
examine the relationship between talent development and WA. In addition, the growth of
talent development directly contributed to HRD areas such as personal development, career
development, professional development and organisational development (Garavan, Carbery
and Rock, 2012). Therefore, talent development of professional returnees is seen as a new
9
attempt to close the duration between the periods of return, adaptation and sustenance in the
home country.
Against the above backdrop, we adopted talent development environment approach from
Martindale et al. (2010). Talent development environment model was initially used in sports
science management among young elite athletes in the United Kingdom. TDE model was
based on three important aspects such as individual needs (i.e. long term job focus,
communication and understanding of athletes’ profile), supporting elements (i.e. quality
preparation, support networks and long term development) and environmental changes (i.e.
challenges and supportive environment). The model has been chosen owing to its longestablished line of research in talent development, extended from Bloom’s Model of Talent
Development (Martindale et al, 2007). The model is recommended to explore to other talent
development literature such as professional returnees (Wang, Sproule, McNeil, Martindale
and Lee, 2011). In this study, we selected four predictors based on the highest reliability
values found in literature, namely long-term job focus (0.98), support network (0.90)
communication (0.87) and long-term development (0.88) (Martindale et al., 2010).
Long- term job focus and workplace adaptation
Long-term job focus refers to on-going opportunities, clear expectation, long term
progression attributes such as attitudes, responsibility, dedication, adaptive skills,
performance ability as perceived by the returnees (Martindale, Collins and Abraham, 2007;
Martindale et al., 2010). Work focus associates with returnees characteristics such as job
flexibility, job expectation (Gill, 2012), work dedication and commitment (Wang, 2012).
Scholars found that trust element played a role in Malaysian returnees’ view and has an
impact on working pattern, transparency, career development, performance evaluation and
10
adaptive skills (Talib et al., 2012). Generally, trust and transparency are two sub-items reflect
long-term job focus of the returnees (Martindale et al. 2010; Talib et al., 2012).
Communication and workplace adaptation
One of the most challenges for professional returnees to adapt in the home country is the
effective communication in the workplace (Gill, 2012; Portalla and Chen, 2010). Intercultural
communication enhances a good communication network and creates bonding between
returnees and local employees (Portalla and Chen, 2010). Communication network between
the host and home countries has a high impact on returnees’ adjustment process (Gill, 2012).
For instance, the social and business communication network facilitates work adaptation from
Silicon Valley model to the Taiwan Hsinchu Park among returnees in Taiwan (Chiang and
Liao, 2008). It further supports financial infrastructure and technology advancement as far as
the WA of the concerned returnees (Yu-Chung, 2007). Communication network builds
knowledge sharing among Chinese returnees in China (Wang, 2012). Furthermore, Portalla
and Chen (2014) agreed that communication has enhanced language proficiency and diversity
multi-language capability. A review of talent literature shows that formal and informal
communication found to be pertinent to maximising the effectiveness of talent development
programme in workplace (Martindale et al., 2007).
Support network and workplace adaptation
Networking behaviour is to maintain the relationship, build the relationship, engage with
others, and who have the potential to create values in their professional development (Forret
and Dougherty, 2004). Repatriation and re-migration literatures frequently indicate that
support network is one of the key factors for returnees to adapt and sustain in the home
country (Wang, 2012; Roberts, 2012). The process of retuning does not only involve human
as capital but also their networks, known as migration network or infrastructure network
11
(Xiang and Linquist, 2014). Support network refers to the collaborative connectivity between
returnees and the organisation, community (i.e. research community, social community, peers
community, family members) and professional associations (Wright, Liu and Filatotchev,
2008). Research community and research networks are more prominent with global
professional and entrepreneur returnees (Wang, 2012). Support network is divided into two,
internal support from home country and external support from host countries (Chimboza,
2012; Wright et al., 2008; Martindale et al., 2010). Empirical finding supported that the
higher the collaboration between the home and the host countries, the better chances for local
incubators grow (Wright et al., 2008). In recent studies, through qualitative and quantitative
approaches, support network is shown as a fundamental reason for returnees’ success in
Taiwan and China (Wang, 2012; Wright et al., 2008) due to their government commitment
towards hubs integration. Similar result gained from talent development in sport science
management, the internal network support such as good relationship between coach and
athlete has a strong impact on talent performance (Martindale et al., 2010; Wang et al., 2011).
Long-term development and workplace adaptation
Long-term development refers to one’s continual professional development such as on-going
development, training and motivation (Martindale et al., 2010). Training diversification,
development and leadership programme have increased the retention rate among professional
and entrepreneur returnees in China (Zhu et al., 2013). Succession planning is a long term
career and professional development that creates strong values for talent to adapt and retain in
an organisation (Kim et al., 2012). Rothwell (2013) view succession planning as a process of
identifying a critical position in the organisation, developing talent skills from lower
managerial level to top management and helps an individual realizes their potential.
Succession planning is an integrated talent development program that reflects the dynamic
business environment and ability to compete in-real time (Rothwell, 2013; Kim et al., 2012).
12
Further, mentoring and coaching are another form of continues talent development
programme (Kim et al., 2012).
Institutional support as a mediating variable
In this paper, we established institutional support as a mediating variable between predictors
and the criterion variable. Institutional support acts as an agent, purposefully working
towards changing existing or creating novel institutions (IIes, Preece and Chuai, 2010; Kenny
et al., 2012). Basically, institutional support is divided into three categories namely public,
private and civil (Agrawal, 2008). Public institutions consist of local agencies (local agencies
at higher levels of government operating) and local governments (organisations accountable
to a local constituency); private institutions referred to as service organisations (nongovernment organisations) and private businesses. Meanwhile, civil institutions contain
membership organisations (general interest) and cooperatives (partnership) (Argawal, 2008).
In this study, we selected Talent Corporation and other organisations then Talent Corporation
(i.e. GLCs and MNCs) as institutional support to integrate the relationship between talent
development and WA. For instance, China government provides integration hub facilities
between high institutions, industries and incubator projects or technology parks (i.e. Hundred
Top Talent Programme, 1998; Incubators projects, 2001) (Zweig et al., 2008; Wei et al.,
2012). It has stimulates more returnees to return and retain in China. Kustnetsov (2008) found
that Scotland government support returnees’ with GlobalScot programme that linked diaspora
networks with government institutions to develop research and development. In Malaysian
perspectives, Talent Corporation acts an agent between government agencies, industries, and
returnees. Meanwhile, GLCs and MNCs support professional returnees through returnees’
satisfaction, commitment, good relationship, motivation and objective oriented (Hutchison
and Sowa, 1986). Therefore, institutional support plays an important role between talent
development and WA of returnees in Malaysia. It is aligned with Kuznetsov’s (2008)
13
recommendation that institutions in developing country like Malaysia should act as an
important agent to stimulate knowledge-intensive ventures for
returnees and local
employees.
Based on the above evidences, we therefore developed the following hypotheses:
H1: Institutional support (Talent Corporation) positively mediates the relationship between
long-term job focus with WA of professional returnees.
H2: Institutional support (Talent Corporation) positively mediates the relationship between
communication with WA of professional returnees.
H3: Institutional support (Talent Corporation) positively mediates the relationship between
support network with WA of professional returnees.
H4: Institutional support (Talent Corporation) positively mediates the relationship between
long-term development with WA of professional returnees.
H5: Institutional support (other organisations) positively mediates the relationship between
long-term job focus with WA of professional returnees.
H6: Institutional support (other organisations) positively mediates the relationship between
communication with WA of professional returnees.
H7: Institutional support (other organisations) positively mediates the relationship between
support network with WA of professional returnees.
H8: Institutional support (other organisations) positively mediates the relationship between
long-term development with WA of professional returnees.
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Independent Variables
Long-term job
focus
Communication
Mediator
Talent
Corporation
Dependent
Variable
Workplace
Adaptation
Support network
Other
organisations
Long-term
development
Figure 1: Conceptual Framework showing the Independent, Dependent and Mediating
Variables.
Methodology
Research Instruments
Independent Variables
Long-term job focus: We measured long term job focus using the Talent Development
Environment Questionnaire (TDEQ) scale designed by Martindale et al. (2010) with α=0.98.
There are 6 sub-items used under this variable namely expectation, flexibility and constant
supports.
Communication: Communication construct is measured by TDEQ (Martindale et al., 2010)
and the reliability analysis is 0.88. It blended with Intercultural Effective Measure (Portalla
and Chen, 2010) and internal consistency was α=.87. There are 7 sub-items tested under this
construct.
Support Network: We adopted the networking measurement behaviour using 28 items
adapted from Forret and Dougherty’s (2001) Networking Behaviour Scale. The scale includes
maintaining contact, socializing, engaging professional activities and community. The
15
reliability values are 0.79, 0.77, 73 and 0.75, respectively. There are 8 sub-items tested that
include 6 sub-items from Networking Behaviour Scale (Forret and Dougherty, 2001) and 2
sub-items from TDEQ (Martindale et al., 2010), namely coach support and network with
reliability value 0.90, respectively.
Long-term development: We measured long term development based on TDEQ (Martindale
et al., 2010), with α=.87 and talent management (Kim et al., 2014). There are 6 sub-items
tested for long term development construct.
Mediators: There are two mediators used under institutional support constructs which are
government (Talent Corporation) and other organisations. The former was measured using 9
sub-items in which 5 sub-items tested through POS (Hutchison and Sowa, 1986) and 4 subitems tested through Dai and Liu (2009) with reliability score 0.83, and 0.80, respectively.
Dependent Variable
Workplace Adaptation: We measured WA using two combined measurement scales of
Workplace Adaptation Questionnaire (WAQ) (Reio and Sutton, 2006) and Work Adaptation
Measurement scale (Chung-Yan, 2005). Three sub-scales items were adapted from WAQ
(job knowledge, acculturation and establishing relationship). The reliability values are 0.94,
0.88 and 0.91, respectively. Another component of sub-item measured Work Adaptation
Measurement (Chung-Yan, 2005) with α=0.75, to understand three dimensions such as easy
to adjust, positive feeling and acceptance. A total 6 questions were tested in formative
measurement approach and one question tested based on general perspective of WA.
Sample and procedures
Talent Corporation reported about 3,750 returnees available in Malaysia through REP
program (Talent Corporation Roadmap 2020, 2012). The sample size was estimated based on
16
‘10 times rule’ that means a minimum sample should be 10 times the maximum number of
arrowheads pointing at the latent variable in PLS-SEM (Hair, Hult, Ringle and Sarstedt,
2014). In this this study there are seven variables (4 independent variables, 2 mediators and 1
dependent variable), which shows the minimum sample size is 70. The data were collected
from the GLCs (i.e. Petronas, Shell Malaysia, Toyota Motor, PROTON, Honda Malaysia),
MNCs (i.e. Samsung, IBM, HCL-Axon, HSBC bank, OCBC bank, Maybank, KPJ
Healthcare) and higher learning institutions (Taylor University, Sunway University, UPM,
UKM, USM). Specifically, the study covered 7 out of 12 sectors of NKEAs in Malaysia (i.e.
Oil, gas and energy; financial service; education; communication and infrastructure; electrical
and electronic; healthcare; business service), (Talent Corporation Roadmap 2020, 2012). The
returnees consist of professionals such as scientists, medical practitioners, academics,
managers, and information technologists. To have a better response rate we made contacts
with the HR specialists within each GLC and MNC, and a replacement questionnaire was
sent to respondents who had not responded to the initial survey.
Data Analysis and Findings
Demographic Profile
A total of 83 Malaysian professional returnees responded to the questionnaire. The SPSS
software was used to obtain the frequencies of the demographic profile. The average age of
respondents are 38 years old (SD = 7.1), with age range from 24 to 54 years. Most of them
have worked abroad with average of three years (SD = 5.3), with minimum one year and
maximum 35 years. Male respondents constituted 64%, meanwhile female respondents
represented by 36%, indicating that male professionals had a greater tendency than female
returned from abroad. This group of returnees consists of top management personnel, senior
managers/managing directors (22%), engineers (17%), IT consultants (16%), information
17
technologist (13%) and academic (7%). A total of 70% of them perceived that they have no
difficulty in WA in Malaysia while 80% of them perceived that Talent Corporation did not
help much returnee’s in their WA.
Long-term job
focus
0.22
0.05
Communication
Talent
Corporation
-0.22
0.189
-0.05
Support
Network
Workplace
Adaptation
0.05
R2=0.14
0.19
Other
organisations
0.393
0.24
Long-term
development
0.645
Figure 2: Hypotheses Testing Results
Assessment of the Measurement Model
Data analysis was conducted using PLS-SEM. PLS is a structural equation modelling (SEM)
technique that allows for the simultaneous analysis of both the measurement model
(relationships between latent constructs and their measurement items) and the structural
model (relationships between latent constructs). PLS-SEM was chosen due to few reasons.
First, this study was focused on predictive relationships of the independent variables on a
dependent variable. Second, the conceptual model in this study was derived from previous
18
studies that add new measures and structural paths. Third, this study uses a Type II reflectiveformative measurement model in measuring the dependent variable of WA, which is a
condition in using PLS-SEM. Fourth, professional returnees in this study are considered elite
human resources and our accessibility to this group is constrained by the limited information
about their referrals as they are dispersed in their employment.
Measurement model was used to test the construct reliability and validity. To assess
convergent validity, the factor loadings and the average variance extracted (AVE) were
examined. The individual measurement items loading factors cut-off value is 0.70 (Hair et al.,
2014). As shown in Table 1, all the loading factors are above 0.70 as well as AVE values are
above 0.5, followed by composite reliability (CR) above 0.7. Thus, the measurement used for
each variable in this study is valid. Based on these measurement model results the data meet
the requirement of the analysis.
Table 1: Measurement Model
Model
Construct
Long-term job
focus
Communication
Support network
Long-term
development
Measurement
Items
Expectation
Loading
factor
0.747
Management
Support
Management
understand
Communication
Network
Knowledge
sharing
Research
participation
Research work
continues
Research
Connectivity
Training and
Development
continues
Training add
values
0.782
AVE
CR
0.647
0.845
0.688
0.815
0.691
0.869
0.811
0.945
0.879
0.722
0.913
0.778
0.902
0.810
0.939
0.898
19
R
Square
Other
organisations
Talent
Corporation
Workplace
Adaptation
Succession
planning
Organisation
Caring
Employees
Wellbeing
Organisation
interest
Incentive
0.874
Government
Events
Easy
0.895
Acceptance
Adjusted
0.866
0.907
0.856
0.759
0.926
0.481
0.746
0.898
0.12
0.777
0.912
0.14
0.920
0.873
0.814
0.871
Assessment of the Structural Model
A structural model was used to assess the collinearity, path coefficient (β), coefficient of
determination (R2) and predictive relevance in this study. All the exogenous variables
(independent variables and mediators) were tested using tolerance and variance inflation
factor (VIF) to identify collinearity in selected constructs. The VIF values are communication
(1.642), support network (1.017), long-term job focus (1.88), long-term development (1.89),
Talent Corporation (1.10) and other organisations (1.74), which are not above the value of
5.00, the cut-off value (Hair et al., 2014). Therefore, there is no collinearity issue in this
study. Based on analysis in Table 2, it was found that communication has a negative
relationship with WA (β= -0.035, p<0.05), as well as with institutional support such as Talent
Corporation (β=-0.22, p<0.05) and other organisations (β=-0.05; p<0.05). However, the other
constructs have positive relationship with WA and with mediators. For instance, support
network has a positive relationship with WA (β=0.064; p<0.05) and had improved the
relationship value after mediation by Talent Corporation (β=0.05, p<0.05) but not with other
organizations (β=0.188, p<0.05). Meanwhile, long-term job focus has a positive relationship
with WA (β= 0.51, p<0.05), but has reduced the impact after mediation by Talent
20
Corporation (β= 0.211, p<0.05) and other organisations (β= 0.06, p<0.05). Finally, the longterm development construct has a positive relationship with WA (β= 0.3, p<0.05) and slightly
drop after mediation by Talent Corporation (β= 0.26), but has a strong impact on institutional
support from other organisations (β=0.65, p<0.05) (refer to Table 2).
Thus, only two
hypotheses, H6 and H8 are supported.
Table 2: Results of Hypotheses testing for Institutional Supports as a Mediator
Hypotheses
Relationship
Direct
Effect
Indirect
Effect
SE
TStatistics
P value Decision
Not
supported
H1: JF-TC
0.511
0.041
0.033
1.262
0.34
H2: Com-TC
-0.035
-0.043
0.032
-1.318
-0.211
H3: SN-TC
0.064
0.009
0.027
0.346
0.488
H4: LTD-TC
H5: JF-OO
0.300
0.511
0.047
0.022
0.033
0.038
1.422
0.576
0.30
0.28
H6: Com- OO
-0.035
0.042
-0.466
-0.25
Not
supported
Not
supported
Not
supported
Not
supported
Not
supported
H7: SN- OO
0.064
0.072
0.041
1.780**
0.04**
Supported
H8: LTD- OO
0.300
0.253
0.112
2.265**
0.02**
Supported
-0.020
Note: **p<0.05, JF-TC=Long-term job focus-Talent Corporation, Com-TC=Communication-Talent Corporation;
SN-TC=Support Network-Talent Corporation; LTD-TC=Long-term development-Talent Corporation; JF OO
=long-term job focus-Other organisations; Com-OO=Communication-Other organisations; SN-OO=Support
Network-Other organisations; LTD-OO =Long-term development-Other organisations.
The coefficients of determination (R2) are 0.481 for WA, 0.12 for Talent Corporation and
0.136 for other organisations. Therefore, talent development environment constructs, Talent
Corporation and other organisations explain 48.1% of variance in WA. It means that 51.9%
of the variance in WA is explained by the other factors which are not covered in this study.
Another component that we measured in structural model was predictive capability. The
predictive capability of the model is assessed by calculating the predictive relevance (Q2) of
21
the model. It was done through cross-validity redundancy to calculate Q2. According to Hair
et al. (2014), Q2 must show a value greater than (0) when exogenous variables predictive
relevance on the particular endogenous variable. If Q2 with zero value or below than zero, it
indicates a lack of predictive relevance. Q2 value is determined using blindfolding procedures
in SmartPLS 2.0 (Hair et al., 2014). Blindfolding is a sample reuse technique that omits every
dth data point in the construct’s indicators of the endogenous variable and uses the resulting
estimates to predict the omitted part (Hair et al., 2014).
In this study, institutional support from other organisations and WA has a medium effect with
Q2, 0.32. In contrast, the 0.038 is the Q2 effect size for the predictive relevance of institutional
support from Talent Corporation on WA. The 0.04 indicates that the latter has a small effect
in producing Q2 for WA (Table 3). According to Cohen (1998), the rule of thumb is that the
values of 0.02, 0.15, and 0.35 represent small, medium, and large effect size, respectively.
Additionally, Preacher and Kelley (2011), effect size serves as a practical guide to interpret
the practical importance of a specific relationship. Thus, it can be interpreted that institutional
support from other organisations than Talent Corporation has a medium effect on WA
amounting to 32% and it has a small effect on that from Talent Corporation amounting to
3.8% (Table 3). As summary, Q2 value is smaller than R2; and Q2 value is considerably
greater than zero, it means the model used in this study is predictive relevance.
Table 3: Effect size for Q2
Relationship
R2
Talent
Corporation- 0.117
WA
Other
organisations- 0.481
WA
Effect Size (Q2)
0.038*
Magnitude
Small
0.32**
Medium
Note: Effect size of Q2 (0.02-small*; 0.15-medium**; 0.35-large)
22
Discussion
This study has revealed that WA among Malaysian professional returnees is important to
establish long term commitment in organisation development. It also positively correlates
with institutional support, thus corroborating prior studies relating to WA (Siddiqui and
Tejada, 2014; Bercovitz el al., 2013). In addition, this study showed the impact of two
institutional supports has resulted two differences impact on WA. Institutional support from
Talent Corporation has less effect compared to other form of organisations. This is clearly
found in our findings (Table 2) none of the hypotheses testing are supporting to Talent
Corporation. The long-term development and support network constructs significantly
influenced WA, with institutional support (other organisations). This finding is consistent
with previous studies such as training diversification for returnees by Zhu et al. (2013) and
support network sustain returnees in homeland (Roberts, 2012). This study contributes to the
body of knowledge by adding the value to WA in term of adjustment. We also found that
long-term development and support network were significantly correlated with WA. These
results provide support to H6 and H8. Communication has negative relationship with
institutional support and WA. Our finding contradicted with previous study among
professional returnees in China, Taiwan, and Scotland (Portalla and Chen, 2010; Gill, 2012;
Chiang and Liao, 2008; Kuznetsov, 2008). However, long-term job focus has positive
relationship with institutional support (from Talent Corporation and other organisations) and
WA.
Implication to HRD Theory and Practice
This study has a number of theoretical and practical implications to HRD. From the
theoretical perspective, it highlights the role of institutional support in mediating the
relationship between talent development predictors and working environment which lends
support to P-E Fit Theory (Caplan and Harrison, 1993) and Institutional Theory (DiMaggio
23
and Powell, 1993). The integration of those two theories has results better value compared to
explain WA of returnees. The independent variables were themes by P-J Fit theory (longterm job focus and communication) and P-O Fit theory (support network and
communication).
From practical perspectives, our study findings also reveal that the integration between
institutional support (Talent Corporation) and WA has a small effect size. It means
institutional support from Talent Corporation was not found to correlate well with WA of
returnees. Moreover, the findings proved that only 20% agreed that Talent Corporation has
helped in their WA. Hence, policy makers and HRD practitioners in government
organisations should be cautious in developing and implementing suitable strategies for
returned professional in Malaysia. Institutional support from other organisations (GLCs and
MNCs) should be further intensified.
Conclusion and Future Research
In conclusion, it has been empirically shown that talent development environment constructs
are positively related to WA with institutional support (from other organisations) and
negatively related to WA with institutional support (from Talent Corporation). Institutional
support from talent development environment model also has an indirect effect on WA via
the mediating role of institutional support using P-E Fit and Institutional theories. We used
PLS-SEM procedures to arrive at our research objectives.
We have reasons to conclude that institutional support (from Talent Corporation) did not
mediate the relationship between selected constructs such as long-term job focus,
communication, support network and long-term development. Findings highlighted that
Talent Corporation still has a long way to show its effective role in managing professional
returnees in Malaysia. We also conclude that institutional support (from other organisations)
24
has better influences on WA compared to Talent Corporation. Specially, long-term
development and institutional support (from other organisations) have shown strong impact
on WA, in terms of continuous training, succession planning, mentoring and coaching.
Our study has a number of limitations that should be noted. First, our study sample focused
on elite group that accessibility to them is quite limited. Thus, generalization of the results to
population of returnees is limited. Second, the respondents are generated from several
professions that they were not able to represent a bigger employment sector. Third, this study
was limited to four independent variables in the investigation.
Based on the limitations of the study we recommend several areas for future research. First,
future research should consider other independent variables such as organisation culture
factors. Second, future investigation should also cover organization networking as the
mediator owing to reason that returnees have connections with prior employers which this
aspect of social capital should be deployed in their professions. Third, should conduct indepth study on the role of Talent Corporation among professional returnees, to mix-match
between skills and their employment opportunities. Fourth, qualitative approach would
provide further insights of the returnees’ experiences the various employment sectors as each
of the GLCs or MNCs is unique in terms of organisation structure and talent development
planning. This would help to bridge the gap between HRD practitioners and to develop a
suitable talent development approach.
25
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