Training and organisational performance: A meta‐analysis of temporal, institutional and organisational context moderators

• Author: Kevin Murphy,Yanqing Lai,Maura Sheehan,Thomas Garavan,Alma McCarthy,Ronan Carbery
• Date: 01 January 2021
• DOI: http://doi.org/10.1111/1748-8583.12284
• Published date: 01 January 2021

ORIGINAL ARTICLE

Training and organisational performance:

A meta-analysis of temporal, institutional

and organisational context moderators

Thomas Garavan

1

| Alma McCarthy

2

| Yanqing Lai

3

|

Kevin Murphy

4

| Maura Sheehan

1

| Ronan Carbery

5

1

Edinburgh Napier Business School,

Craiglockhart, Edinburgh, Scotland, UK

2

Cairnes School of Business and Economics,

National University of Ireland Galway,

Galway, Ireland

3

Manchester Metropolitan University,

Manchester, UK

4

Kemmy Business School, University of

Limerick, Limerick, Ireland

5

Department of Management and Marketing,

University College Cork, Cork, Ireland

Correspondence

Alma McCarthy, Cairnes School of Business

and Economics, National University of Ireland

Galway, Galway, Ireland.

Email: alma.mccarthy@nuigalway.ie

Abstract

Drawing on systems theory, we conducted a moderated

meta-analysis of the training and organisational perfor-

mance relationship using 119 primary studies. We exam-

ined 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 train-

ing is positively and directly related to organisational per-

formance 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 perfor-

mance relationship. We found no evidence for the mod-

erating effects of the three organisational context

moderators we examined (i.e. industry sector, organi-

sational 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.

KEYWORDS

training, organisational performance, meta-analysis, moderators

[Corrections added on 7 September 2020 after first online publication: The wordovertime has been changed to over time and missing references have

been included in this version. The publisher apologises for these errors.]

Received: 14 January 2019 Revised: 10 December 2019 Accepted: 9 January 2020

DOI: 10.1111/1748-8583.12284

Hum Resour Manag J. 2021;31:93–119. wileyonlinelibrary.com/journal/hrmj © 2020 John Wiley & Sons Ltd 93

Practitioner Notes

What is currently known about training and organisational performance?

•Investment in training is associated with increased organisational performance.

•There is a lack of understanding of the moderating conditions that influence the relationship between

training and organisational performance.

•Systems theory suggests that a number of institutional and organisational context factors moderate the

relationship, which need further research.

•Investment in training has increased over the past two decades, but the link between training and

organisational performance over time is under-explored.

What does our paper add to the field?

•This study provides the most comprehensive meta-analysis in the field to date, including 119 primary

studies to synthesise the field.

•Drawing on systems theory, we identify and examine the role of important (a) institutional and

(b) organisational context moderators of the training and organisational performance relationship.

•We examine the impact of time as a moderator of the training and organisational performance

relationship.

•We use a technique to address issues of inter-dependency of effect sizes in previous meta-analyses.

Implications of study findings for practitioners

•Our findings confirm that investment in training is associated with increased organisational perfor-

mance, and we report a stronger relationship than previously reported in earlier meta-analyses.

•Organisations located in low performance-oriented countries and low labour cost economies can poten-

tially derive significantly greater benefits from training investment.

•The strength of the relationship between training and organisational performance has increased year on

year over time, suggesting that training has played an increasingly important role in how organisations

respond to the changing external environment.

•HR managers may use general or firm-specific training to achieve desirable performance outcomes.

1|INTRODUCTION

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). These

activities have become widespread HRM practices in organisations worldwide (Association of Talent Development

[ATD], 2018; Hughes, Zajac, Woods, & Salas, 2019). Through investment in structured training, organisations

enhance employee and organisational human capital, which in turn contribute to better organisational performance

(Jiang, Lepak, Hu, & Baer, 2012; Tharenou et al., 2007). While earlier research focused on investigating the direct

relationship between training and organisational performance (e.g. Bartel, 1994; Beugelsdijk, 2008), more recent

studies have started to take into account the role of moderators (e.g. Arunprasad, 2017; Singh, Darwish, Wood, &

94 GARAVAN ET AL.