Abstract
The purpose of this study is to investigate the effects of capacity building and managers’ support on employee performance in the textile industry. Moreover, this article also investigates the moderating effect exerted by employee retention on the effects of capacity building and managers’ support on employee performance. Data were collected through a convenience sampling technique. A self-administered questionnaire survey was conducted for data collection. Two hundred copies of questionnaires were distributed, and data were collected from the lower to middle-level employees who are working in the textile sector of Pakistan. SPSS 23 and SmartPLS-3 software were used for analysis. The results indicate that capacity building has a positive and significant impact on employee performance. In contrast, managerial support has an insignificant impact on employees’ performance. However, the impact of capacity building and managerial support on employee performance is positive and significantly moderated by employee retention. The results of this study will motivate owners/policymakers to invest in capacity building to enhance their organizational performance/productivity.
Highlights
Capacity building is referred as the development of knowledge, attitude, and skills of the workforce for enhancing the abilities to achieve the short-term and long-term goals on organizational as well as personal levels (Groot & van der Molen, 2000; Millar & Doherty, 2016)
The main objective of this study is to predict the relationship between the dependent variable and independent variables, so partial least squares structural equation modeling (PLS-SEM) is used (Henseler, Ringle, & Sinkovics, 2009)
All hypotheses were tested by using SmartPLS-SEM
Summary
Capacity building is referred as the development of knowledge, attitude, and skills of the workforce for enhancing the abilities to achieve the short-term and long-term goals on organizational as well as personal levels (Groot & van der Molen, 2000; Millar & Doherty, 2016). Capacity building broadly covers the inabilities of all employees and develops the desirable skills and attitude, which enable them to accomplish suitable tasks efficiently (Yamoah & Maiyo, 2013). The managers are involved in designing the different training programs for enhancing employees’ learning, aptitudes, and capacities for the accomplishment of organizational goals. These efforts enhance the employees’ performance and develops a better organizational image (Fang et al, 2010). The capacity building can enhance the socioeconomic benefits for the employees as well as for the local industry (Hu, Rao, & Sun, 2006)
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