When and How Training Programs Influence Organizational Performance? A Meta-Analytic Investigation

Abstract

Despite the proliferation of research on the relationship between human resource (HR) systems and organizational performance, our understanding of the impact of training programs on organizational performance is rather limited. In this article, we conducted a meta-analysis of the relationship between training and organizational performance to (a) determine the magnitude of the relationship, (b) test a set of moderators of the relationship, and (c) suggest future research directions. The results from 613 correlations (N = 328,635) show that the relationship between training and organizational performance is positive and significant (rho = .12). More importantly, the effect size differs significantly across several moderators (e.g., training dimensions, inclusion of training, outcome dimensions, outcome measures, causal orders, industry, and region). Also, in a meta-analytic path analysis, we found support for the serial mediation model where the direct effect of training is stronger for more proximal outcomes than for more distal outcomes. Finally, in a post-hoc analysis, we found moderating effects of national culture in the relationship between training and organizational performance. Implications of these findings and directions for future research are discussed.