The Mediating Role of AI Adoption in Talent Management in the Relationship Between TOE Factors and Perceived Talent Management Effectiveness in Metro Manila Organizations

Abstract

This study explored how Artificial Intelligence (AI) adoption mediates the relationship between Technology–Organization–Environment (TOE) factors and perceived talent management effectiveness among HR professionals in Metro Manila organizations. Anchored on the TOE framework and supplemented by the Ability–Motivation–Opportunity (AMO) framework, the study explains both the adoption of AI and the capability stage through which AI may enhance talent management outcomes. A quantitative, cross-sectional research design was employed, with data collected from 137 HR professionals in Metro Manila using purposive and snowball sampling. Partial Least Squares Structural Equation Modeling (PLS-SEM) was used to analyze the relationships among constructs. The results indicated that technological and organizational contexts serve as the primary engines of AI adoption, whereas external environmental pressures did not drive any influence in AI adoption. The findings on mediation analysis suggested that while AI enhanced talent management effectiveness, it was not a prerequisite for achieving strong HR outcomes. Instead, AI functioned as an enabling capability that amplified organizational readiness through improved decision support, process efficiency, and more consistent talent management practices. Ultimately, this study contributes to the literature by clarifying the role of AI as a performance-enhancing mechanism and highlighting the importance of internal readiness over external pressure in driving adoption and providing insights to researchers, HR professionals, industry leaders, into leveraging AI for organizational success.