Int. J. Management Practice, Vol. 8, No. 4, 2015 311 Copyright © 2015 Inderscience Enterprises Ltd. The impact of talent management and employee engagement on organisational performance Seyed Abdorreza Payambarpour International Business School, Universiti Teknologi Malaysia, Jalan Iman, 81300 Skudai, Malaysia Email: apseyed2@live.utm.my Lai Wan Hooi* Nottingham University Business School, The University of Nottingham Malaysia Campus, Jalan Broga, 43500 Semenyih, Selangor Darul Ehsan, Malaysia Email: Carol.Hooi@nottingham.edu.my *Corresponding author Abstract: The paper studies the impact of talent management on organisational performance in multinational corporations through applying management development and strategic HR inputs, and to evaluate the mediating role of employee engagement in the strategic HR inputs and organisational performance relationship. An online survey was distributed among managers of the first ten global multinational corporations listed by Fortune magazine 2013 and 498 responses were collected. The respondents were selected through LinkedIn using stratified sampling. PLS-SEM was used to test the hypothesised relationships of the model. The result shows a positive relationship between (1) MD Index and organisational performance, (2) strategic HR and organisational performance, and (3) employee engagement and organisational performance. Utilising PLS path modelling to evaluate structural model including higher- order component (MD Index) is highly original. The paper emphasises the importance of engagement as a mediator of the relationship between strategic HR and organisational performance in the talent management context. Keywords: management development; organisational performance; talent management; employee engagement; multinational corporation; strategic HR inputs. Reference to this paper should be made as follows: Payambarpour, S.A. and Hooi, L.W. (2015) ‘The impact of talent management and employee engagement on organisational performance’, Int. J. Management Practice, Vol. 8, No. 4, pp.311–336. Biographical notes: Seyed Abdorreza Payambarpour received his postgraduate degree in Business Administration in 2013. His areas of research interest include HR function and product quality. He is now with the Industrial Management Institute (IMI), Arak, Iran. Lai Wan Hooi is an Associate Professor of Human Capital Management and Organisational Behaviour at the University of Nottingham, Malaysia. She obtained a professional degree in Company Secretarial from the Institute of