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

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

Content Provider	PubMed Central
Author	Sung, Sun Young Choi, Jin Nam
Copyright Year	2013
Abstract	The present study examines the effects of training and development on organizational innovation. We specifically suggest that the training and development investments of an organization affect its innovative performance by promoting various learning practices. We empirically tested our hypothesis by using time-lagged, multi-source data collected from 260 Korean companies that represent diverse industries. Our analysis showed that corporate expenditure for internal training predicts interpersonal and organizational learning practices, which, in turn, increase innovative performance. The data also revealed that the positive relationship between interpersonal and organizational learning practices and innovative performance is stronger within organizations that have stronger innovative climates. By contrast, investment in employee development through financial support for education outside an organization poses a significant negative effect on its innovative performance and no significant effect on learning practices. The present study provides a plausible explanation for a mechanism through which the investment of an organization in employees enhances its innovative performance. Copyright © 2013 The Authors.
Related Links	http://dx.doi.org/10.1002/job.1897
Ending Page	412
Page Count	20
Starting Page	393
File Format	PDF
ISSN	08943796
e-ISSN	10991379
Journal	Journal of Organizational Behavior
Issue Number	3
Volume Number	35
Language	English
Publisher	BlackWell Publishing Ltd
Publisher Date	2014-04-01
Access Restriction	Open
Rights Holder	BlackWell Publishing Ltd
Subject Keyword	Applied Psychology Organizational Behavior and Human Resource Management Sociology and Political Science Psychology(all) Research in Higher Education
Content Type	Text
Resource Type	Article
Subject	Sociology and Political Science Applied Psychology Organizational Behavior and Human Resource Management

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