Do organizations spend wisely on employees? Effects of training and development investments on learning and innovation in organizations

Journal of Organizational Behavior

Volumn 35, Issue 3, 2014, Pages 393-412

  Sung, Sun Young ^a   Choi, Jin Nam ^b  

^a NANJING UNIVERSITY   (China)

^b Seoul National University   (South Korea)

Author keywords

Innovative climate; Innovative performance; Learning practices; Training and development investments

Indexed keywords

EID: 84897045832     PISSN: 08943796     EISSN: 10991379     Source Type: Journal    
DOI: 10.1002/job.1897     Document Type: Article

References (70)

1. Ahuja, G. (2000). Collaboration networks, structural holes, and innovation: A longitudinal study. Administrative Science Quarterly, 45, 425-455.
2. Aiken, L. S., & West, S. G. (1991). Multiple regression: Testing and interpreting interactions. Newbury Park, CA: Sage.
3. Amabile, T. M. (1996). Creativity in context. Westview: Boulder Co.
4. Aragón-Sánchez, A., Barba-Aragón, I., & Sanz-Valle, R. (2003). Effects of training on business results. International Journal of Human Resource Management, 14, 956-980.
5. Arthur, J. B., & Aiman-Smith, L. (2002). Gain sharing and organizational learning: An analysis of employee suggestions over time. Academy of Management Journal, 44, 737-754.
6. Bandalos, D. L., & Finney, S. J. (2001). Item parceling issues in structural equation modeling. In G. A. Marcoulides, & R. E. Schumacker (Eds.), Advanced structural equation modeling: New developments and techniques. Mahwah, NJ: Lawrence Erlbaum Associates, Inc.
7. Barrett, A., & O'Connell, P. J. (2001). Does training generally work? The returns to in-company training. Industrial and Labor Relations Review, 54, 647-662.
8. Bassett-Jones, N. (2005). The paradox of diversity management: Creativity and innovation. Creativity and Innovation Management, 14, 169-175.
9. Bassi, L. J., & McMurrer, D. P. (1998) Training investment can mean financial performance. Training & Development, 52, 40-42.
10. Benamati, J., & Lederer, A. (2001). Rapid information technology change coping mechanisms and the emerging technologies group. Journal of Management Information Systems, 17, 183-202.
11. Benson, G. S., Finegold, D., & Mohrman, S. A. (2004). You paid for the skills, now keep them: Tuition reimbursement and voluntary turnover. Academy of Management Journal, 47, 315-331.
12. Beugelsdijk, S. (2008). Strategic human resource practices and product innovation. Organization Studies, 29, 821-847.
13. Birdi, K., Clegg, C., Patterson, M., Robinson, A., Stride, C. B., & Wall, T. (2008). The impact of human resource and operational management practices on company productivity: A longitudinal study. Personnel Psychology, 61, 467-501.
14. Birdi, K. S., Patterson, M. G., & Wood, S. J. (2007). Learning to perform? A comparison of learning practices and organizational performance in profit- and non-profit-making sectors in the UK. International Journal of Training and Development, 11, 265-281.
15. Bollinger, A. S., & Smith, R. D. (2001). Managing organizational knowledge as a strategic asset. Journal of Knowledge Management, 5, 8-18.
16. Bontis, N., Crossan, M., & Hulland, J. (2002). Managing an organizational learning system by aligning stocks and flows. Journal of Management Studies, 39, 437-469.
17. Bowen, D. E., & Ostroff, C. (2004). Understanding HRM-firm performance linkages: The role of the strength of the HRM system. Academy of Management Review, 29, 203-221.
18. Brown, S. R. (1986). Q technique and method: Principles and procedures. In W. E. Berry, & M. S. Lewis-Beck (Eds.), New tools for social scientists. Beverly Hills: Sage.
19. Cantner, U., Kristin, J., & Schmidt, T. (2008). The use of knowledge management by innovators: Empirical evidence for Germany. Jena Economic Research Papers.
20. Castellanos, R. M. M., & Martín, M. Y. S. (2011). Training as a source of competitive advantage: Performance impact and the role of firm strategy, the Spanish case. International Journal of Human Resource Management, 22, 574-594.
21. Chen, C. J., & Huang, J. W. (2009). Strategic human resource practices and innovation performance: The mediating role of knowledge management capacity. Journal of Business Research, 62, 104-114.
22. Chen, G., Mathieu, J. E., & Bliese, P. D. (2004). A framework for conducting multi-level construct validation. In F. J. Yammarino, & F. Dansereau (Eds.), Multi-level issues in organizational behavior and processes (pp. 273-303). Elsevier, UK: Emerald Group Publishing.
23. Choi, J. N. (2007). Change-oriented organizational citizenship behavior: Effects of work environment characteristics and intervening psychological processes. Journal of Organizational Behavior, 28, 467-484.
24. Cohen, W. M., Goto, A., Nagta, A., Nelson, R. R., & Walsh, J. P. (2002). R&D spillovers, patents, and the incentives to innovative in Japan and the United States. Research Policy, 31, 1349-1367.
25. Collins, C. J., & Smith, K. (2006). Knowledge exchange and combination: The role of human resource practices in the performance of high-technology firms. Academy of Management Journal, 49, 544-560.
26. Crossan, M., Lane, H., & White, R. (1999). An organizational learning framework: From intuition to institution. Academy of Management Review, 24, 522-537.
27. Di Milia, L. D., & Birdi, K. (2010). The relationship between multiple levels of learning practices and objective and subjective organizational financial performance. Journal of Organizational Behavior, 31, 481-498.
28. Du, J., & Choi, J. N. (2010). Pay for performance in emerging markets: Insights from China. Journal of International Business Studies, 41, 671-689.
29. Ekström, M., & Sjöstedt-de Luna, S. (2004). Subsampling methods to estimate the variance of sample means based on nonstationary spatial data with varying expected values. Journal of the American Statistical Association, 99, 82-95.
30. Glaveli, N., & Karassavidou, E. (2011). Exploring a possible route through which training affects organizational performance: The case of a Greek bank. International Journal of Human Resource Management, 22, 2892-2923.
31. Gómez, P. J., Lorente, J. J. C., & Cabrera, R. V. (2004). Training practices and organisational learning capability. Journal of European Industrial Training, 28, 234-256.
32. González-Romá, V., Fortes-Ferreira, L., & Peiró, J. M. (2009). Team climate, climate strength and team performance: A longitudinal study. Journal of Occupational and Organizational Psychology, 82, 511-536.
33. Hagedoorn, J., & Cloodt, M. (2003). Measuring innovative performance: Is there an advantage in using multiple indicators? Research Policy, 32, 1365-1379.
34. Hancock, G. R., & Nevitt, J. (1999) Bootstrapping and the identification of exogenous latent variables within structural equation models. Structural Equation Modeling, 6, 394-399.
35. Hatch, N. W., & Dyer, J. (2004) Human capital and learning as a source of sustainable competitive advantage. Strategic Management Journal, 25, 1155-1178.
36. Hu, L. T., & Bentler P. M. (1999). Cutoff criteria for fit indexes in covariance structure analysis: Conventional criteria versus new alternatives. Structural Equation Modeling, 6, 1-55.
37. Huerta, M. E., Audet, X. L., & Peregort, O. P. (2006). In-company training in Catalonia: Organizational structure, funding, evaluation and economic impact. International Journal of Training & Development, 10, 140-163.
38. Jacobs, R. L., & Washington, C. (2003). Employee development and organizational performance: A review of literature and directions for future research. Human Resource Development International, 6, 343-354.
39. Jacobs, R., Skillings, M., & Yu, H. (2000). An evaluation of the workforce development programs jointly sponsored by the state of Ohio and Ohio civil service employees association. Final report, Columbus, OH: Workforce development and education graduate program, The Ohio State University.
40. Kang, S. C., Morris, S. S., & Snell, S. A. (2007). Relational archetypes organizational learning, value creation: Extending the human resource architecture. Academy of Management Review, 32, 236-256.
41. Katou, A. A. (2009). The impact of human resource development on organisational performance: Test of a causal model. Journal of Behavioral & Applied Management, 10, 335-356.
42. Katrichis, J. (1993). The conceptual implications of data centering in interactive regression models. Journal of the Market Research Society, 35, 183-192.
43. Langerak, F., Hultink, E., & Robben, H. (2007). The mediating role of new product development in the link between market orientation and organizational performance. Journal of Strategic Marketing, 15, 281-305.
44. Lau, C. M., & Ngo, H. Y. (2004). The HR system organizational culture and product innovation. International Business Review, 13, 685-703.
45. Laursen, K., & Foss, N. (2003). New human resource management practices complementarities and the impact on innovation performance. Cambridge Journal of Economics, 27, 243-263.
46. Laursen, K., & Mahnke, V. (2001). Knowledge strategies, firm types and complementarity in human-resource practices. Journal of Management and Governance, 5, 1-27.
47. López, S. P., Peón, J. M. M., & Ordás, C. J. V. (2006). Human resource management as a determining factor in organizational learning. Management Learning, 37, 215-239.
48. MacKinnon, D. P., Fairchild, A. J., & Fritz, M. S. (2007). Mediation analysis. Annual Review of Psychology, 58, 593-614.
49. MacKinnon, D. P., Krull, J. L., & Lockwood, C. M. (2000). Equivalence of the mediation, confounding and suppression effect. Prevention Science, 1, 173-181.
50. Mellahi, K., & Wilkinson, A. (2008). A study of the association between downsizing and innovation determinants. International Journal of Innovation Management, 12, 677-698.
51. Nguyen, T. N., Truong, Q., & Buyens, D. (2010). The relationship between training and firm performance: A literature review. Research & Practice in Human Resource Management, 18, 36-45.
52. Nidumolu, S. R., Subramani, M., & Aldrich, A. (2001). Situated learning the situated knowledge web: Exploring the ground beneath knowledge management. Journal of Management Information Systems, 18, 115-150.
53. Noe, R. A., Tews, M. J., & Dachner, A. M. (2010). Learner engagement: A new perspective for enhancing our understanding of learner motivation and workplace learning. Academy of Management Annals, 4, 279-315.
54. Noe, R., Wilk, S., Mullen, E., & Wanek, J. (1997). Employee development: Issues in construct definition and investigation of antecedents. In J. Ford (Ed.), Improving training effectiveness in work organizations (pp. 153-189). Mahwah, NJ: Lawrence Erlbaum.
55. Nonaka, I., & Takeuchi, H. (1995). The knowledge-creating company: How Japanese companies create the dynamics of innovation. USA: Oxford University Press.
56. Patterson, M. G., West, M. A., Shackleton, V. J., Dawson, J. F., Lawthom, R., Maitlis, S., & Robinson, D. L. (2005). Validating the organizational climate measure: Links to managerial practices, productivity and innovation. Journal of Organizational Behavior, 26, 379-408.
57. Pattie, M., Benson, G. S., & Baruch, Y. (2006). Tuition reimbursement, perceived organizational support, and turnover intention among graduate business school students. Human Resource Development Quarterly, 17, 423-442.
58. Popescu, L., Popescu, V., & Iancu, A. (2010). The economic impact of employer investment in training. Economics, Management & Financial Markets, 5, 170-175.
59. Quick, B. L., & Kim, D. K. (2009). Examining reactance and reactance restoration with South Korean adolescents: A test of psychological reactance within a collectivist culture. Communication Research, 36, 765-782.
60. Rhoades, L., & Eisenberger, R. (2002). Perceived organizational support: A review of the literature. Journal of Applied Psychology, 87, 698-714.
61. Sels, L. (2002). More is not necessarily better: The relationship between the quantity and quality of training efforts. International Journal of Human Resource Management, 13, 1279-1298.
62. Shalley, C., Zhou, J., & Oldham, G. (2004). The effects of personal and contextual characteristics on creativity: Where should we go from here? Journal of Management, 30, 933-958.
63. Shimizu, S., & Kano, Y. (2008). Use of non-normality in structural equation modeling: Application to direction of causation. Journal of Statistical Planning and Inference, 138, 3483-3491.
64. Shipton, H., Fay, D., West, M., Patterson, M., & Birdi, K. (2005). Managing people to promote innovation. Creativity and Innovation Management, 14, 118-128.
65. Shipton, H., West, M., Dawson, J., Birdi, K., & Patterson, M. (2006). HRM as a predictor of innovation. Human Resource Management Journal, 16, 3-27.
66. Stelzer, I. (2002). Innovation price competition and the tilt of competition policy. Economic Affairs, 22, 25-31.
67. Subramony, M., Krause, N., Norton, J., & Burns, G. (2008). The relationship between human resource investments and organizational performance: A firm-level examination of equilibrium theory. Journal of Applied Psychology, 93, 778-788.
68. Sung, S. Y., & Choi, J. N. (2012). Effects of team knowledge management on the creativity and financial performance of organizational teams. Organizational Behavior and Human Decision Processes, 118, 4-13.
69. Tharenou, P., Saks, A. M., & Moore, C. (2007). A review and critique of research on training and organizational-level outcomes. Human Resource Management Review, 17, 251-273.
70. West, M. A., & Richter, A. W. (2008). Climates and cultures for innovation and creativity at work. In J. Zhou, & E. C. E. Shalley (Eds.), Handbook of organizational creativity (pp. 211-236). New York: Lawrence Erlbaum Associates.