The nexus between selective staffing practices, intellectual capital, and organizational performance: evidence from the Oromia regional public sector in Ethiopia

The main objective of this study is to examine the nexus between selective staffing practices, intellectual capital, and the performance of Oromia regional public service organizations in Ethiopia. The authors employ a quantitative approach and a cross-sectional research design. The study utilizes a sample of Oromia regional public service organizations, directorates, team leaders, and employees (n = 402), and tests the hypotheses using structural equation modeling and AMOS. The study’s findings demonstrate that selective staffing practices have a significant and positive effect on three types of intellectual capital (human, social, and organizational), and these intellectual capital components in turn affect the performance of public service organizations. The study also reveals that intellectual capital, human capital, and social and organizational capital fully mediate the relationship between selective staffing practices and the performance of regional public sectors. The results imply that the public service organizations should invest in selective staffing practices (recruitment, selection, and placement) of the right person at the right position and at the right time to create and store the main components of intellectual capital, which in turn helps the public sector achieve its mission.