Abstract
AbstractDrawing on systems theory, we conducted a moderated meta‐analysis of the training and organisational performance relationship using 119 primary studies. We examined the moderating effects of quality versus quantity of training, time, institutional and organisational context factors in the relationship between training and organisational performance. Our findings reveal that training is positively and directly related to organisational performance with no statistically significant difference between measures of training quality and quantity. We found that the relationship was stronger over time and that country performance orientation and country labour cost moderate the training and organisational performance relationship. We found no evidence for the moderating effects of the three organisational context moderators we examined (i.e. industry sector, organisational size and technology intensity). Finally, our results reveal that training type (i.e. general or firm‐specific) does not moderate the training and organisational performance relationship.
Highlights
Training consists of formal on- and off-the-job structured activities focused on the development of knowledge, skills and abilities (KSAs) for current and future job roles (Kim & Ployhart, 2014; Tharenou, Saks, & Moore, 2007)
The objective of our paper is fourfold: (i) to examine how the relationship between training and organizational performance varies over time; (ii) to examine whether the relationship differs for the quantity versus the quality of training undertaken in organization; (iii) to examine to what extent the relationship is influenced by two institutional context variables and three organizational contextual factors; and (iv) to examine if type of training moderates the training and organizational performance relationship
Driven by the desire to address these gaps, and informed by systems theory, our motivation for this paper was to: (i) examine the relationship between training and organizational performance over time; (ii) examine the relationship between training and organizational performance accounting for potential differences in training quality and training quantity; (iii) examine to what extent the relationship is influenced by two institutional context variables and three organizational contextual factors; and (iv) examine if type of training moderates the training and organizational performance relationship
Summary
Training consists of formal on- and off-the-job structured activities focused on the development of knowledge, skills and abilities (KSAs) for current and future job roles (Kim & Ployhart, 2014; Tharenou, Saks, & Moore, 2007). While earlier research focused on investigating the direct relationship between training and organizational performance (e.g., Bartel, 1994; Beugelsdijk, 2008), more recent studies have started to take into account the role of moderators (e.g., Arunprasad, 2017; Sing, Darwish, Wood, & Mohamed, 2017). Much of this more recent research has focused on the role of internal organizational context moderators such as frim size (e.g., Lee, 2012), human capital levels (e.g., Sung & Choi, 2014) and organizational climate (e.g., Van Esch, Wei, & Chiang, 2018). The strength of the training and organizational performance relationship may depend on external institutional factors within which the organization operates (Budhwar, Pereira, Mellahi & Singh, 2018; Farndale & Paauwe, 2018)
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