Exploring the Role of Succession Planning and Talent Development in Enhancing Organizational Agility: The Case of Saudi Banking

Abstract

The study assesses how effectively succession planning and talent management facilitate the establishment of organizational agility, as well as the moderating influence of organizational learning in the context of Saudi-based banking and finance sectors. Based on the Resource-Based View theory, the study indicates that learning culture and human capital are very important as primary sources of competitiveness in turbulent environments. A stratified sampling was used in the data gathering of 400 respondents and the partial least squares structural equation modeling (PLS-SEM). The result shows that there is a positive and statistically significant relationship between succession planning and organizational agility, and, therefore, a consistent stream of leadership makes an organization more adaptable and resilient. On the other hand, talent development was negatively correlated with agility, which implies that the existing training practices do not match agility needs. Representatives of organizational learning moderated the succession planning–agility, leadership readiness, and adaptability relationship in a positive manner, but moderated the talent development–agility relationship in a negative manner, which implies that the organization has a disconnection between learning and talent strategies. It highlights the necessity to redesign HR practices to make them agile, promote the development of adaptive leadership and a culture of learning, and introduce flexible talent policies. This knowledge adds to the theoretical discussion of the dual nature of organizational learning as a facilitator and constraint as well as providing practical ways to enhance competitiveness in dynamic financial markets.