Abstract
This paper set out to investigate the ways training and development impacts on firm innovative performance as well as the moderating role of knowledge transfer received on training and development and firm innovative performance, using a sample of 229 foreign subsidiaries of multinational enterprises (MNEs) operating in China. We adopt hierarchical linear modeling, and the results of the study reveal that both on-the-job training and development and off-the-job training and development have an influence on the firm innovative performance. Also, the empirical results of the study demonstrate that the moderating effect of tacit and explicit knowledge received on the relationship between both on-the-job training and development and off-the-job training and development and firm innovative performance are stronger. This paper shows that continues updating of skills, ability and knowledge of the workforce through on-the job training and development and off-the job training development programs might boost creativity and innovation of business organizations.
Highlights
The 21st century has presented a lot of dynamics to the business environment
We argue that knowledge transfer received enhances firm’s knowledge stock that can be imparted during on-the-job training and development programs
Since our variables for the study include variables at different organizational level, hierarchical linear modeling (HLM) is considered to be an appropriate estimation technique to test the effects of the various variables
Summary
The 21st century has presented a lot of dynamics to the business environment. With increasing globalization, business organizations are in a fierce turbulent market environment, battling for competitive advantage, sustainability and sustainable development [1]. One of the few studies related to training and development and innovative performance is one conducted by Sung and Choi [32] on Korean companies from various sectors They treated the investment of training and development and its impact on innovation performance and did not explicitly test which factors influence the two variables. Our empirical results demonstrate strong moderating effect of tacit and explicit knowledge received in the relationship between both on-the-job training and development and off-the-job training and development and firm innovative performance. This provides empirical support for the theoretical preposition that knowledge transfer serves as a catalyst for innovation performance [40]. The empirical result is captured in section five, while discussion, conclusion, limitations and future research opportunities are presented in the last three sections
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