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Journal Critique Paper

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RICHARD C. ABANGAN, JR.

JOURNAL CRITIQUE PAPER

Effects of training and development (T&D) on employee outcomes and firm innovative

performance: Moderating roles of voluntary participation and evaluation by Sun Young

Sung and Jin Nam Choi (2019)

SUMMARY and FINDINGS

As the title suggests, this study involves the determination of the effects of

training and development on employee outcomes and firm innovative performance,

moderated by voluntary participation and evaluation. The main objective of this study is

to explicate the reasons for the inconsistent findings of each of the two dimensions of

T&D, firm investment in T&D and employee positive perceptions of T&D, in relation to

firm innovative performance through employee outcomes. The study also proposes that

employee outcomes, employee competence and employee commitment, mediate the

relationship between the two dimensions of T&D and the firm innovative performance.

The research framework of this study is empirically validated using multisource time-

lagged data collected from 325 Korean companies at three time points over a 5-year

period.

The findings of the study are the following:

1. The direct effect of T&D on firm innovative performance is significant only for

firm investment in T&D, but not for employee positive perceptions;

2. The two said dimensions of T&D are significantly related to employee

outcomes, which are employee competence and employee commitment.

Notably, firm investment in T&D showed a larger effect on employee

commitment than on employee competence. By contrast, employees’ positive

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experiences and perceptions of T&D exhibited a larger effect on employee

competence than on commitment. The study further showed that the effect of

employee competence on firm innovative performance is larger than that of

employee commitment;

3. With respect to the moderators, employees’ voluntary participation in T&D is a

positive moderator to channel the effects of the two dimensions on employee

and firm outcomes. Indirect effects of T&D on firm innovation via employee

outcomes are significant and positive only when employees are allowed to

volunteer in T&D activities. The negative moderating effect of T&D evaluation

is clearly observed in the firm investment dimension of T&D. The indirect

effect of employee positive perceptions of T&D on firm innovation also

supports the negative effect of T&D evaluation in the context of learning. The

effects of employee positive perceptions of T&D on employee commitment

and its accompanying indirect effects on firm innovation, however, are

unexpectedly positive in firms that implemented T&D evaluation.

THE CRITIQUE

As regards to the first findings, while I agree with the authors of the study in

question that the result may have something to do with the five-year gap between T&D

measures and firm innovation, it is plausible that these dimensions are misplaced in

T&D. According to Raymond A. Noe, the author of Employee Training and

Development, 7th edition, the overall goal of training and development is learning and

how such learning contributes to the company’s competitive advantage through

improving employee performance, which eventually becomes part of human capital.

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Moreover, learning of employees may be processed and acquired through different

factors, such as, but not limited to, motivation, trainee’s characteristics, training design,

training strategies, and factors influencing employee’s behavior. (Werner & DeSimone,

authors of Human Resource development, 6 th edition). Hence, positive perception of

T&D as defined by the author of the study in question constitutes as a sweeping

generalization that may exclude factors that contribute firm innovation. Logically

speaking, positive perception may be ephemeral and may not last up to 5 years as

conducted by this study as the training styles and methods implemented in the course

of T&D may vary. In order to be specific, I espouse more with the study of Debra L.

Truitt, the effect of training and development on employee attitude as it relates to

training and work proficiency, that positive training attitude is perceived to improve job

proficiency. Perhaps, this is what the study tries to portray. On the other hand, I

consider firm investment in T&D as a sweeping generalization as well as it only

measures the amount of firm’s monetary investment in T&D, without considering or

even mentioning other factors or resources which the company invested in to maintain

or enhance the quality of T&D.

As regards to the second findings, the results support the theories surrounding

Organizational Citizenship Behavior, particularly social exchange theory. According to

that theory, if the organization chooses to invest for the employee’s training, the latter,

on the other hand, invests his skills and knowledge into the organization. The results

likewise support the correlation between perceived employability and counterproductive

work behavior. In the study conducted by Hassan Imam regarding Employees’ behavior

in employability paradox, perceived employability is positively associated with

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counterproductive behavior. Therefore, such findings put an organization in an absurd

situation wherein it would invest heavily in T&D but would not employ the bottom-up

process as to prevent unnecessary turnover. As a result, the performance outcome

would not be what the organization expected it to be. In other words, the performance

becomes substandard.

As regards to the last findings, the result with respect to T&D evaluation is

seemingly counterintuitive as it indirectly contradicts the purpose of T&D evaluation.

While the main purpose of T&D evaluation is to make an effective training decisions,

one of the reasons of making an effective training decision is to enhance firm

innovation. Such result, however, must be corroborated with the positive perception of

T&D dimension. The plausible reason why there is no negative moderating effect of

T&D evaluation on positive perception of T&D dimension is the expectancy theory,

which states that “people will perform behaviors that they perceive will bring valued

outcomes.”

In fine, while I do not totally dismiss the possibility that the aforesaid dimensions,

firm investment and positive perception of T&D, are indeed dimensions of T&D, I do not

support the idea that they are exclusive. There may be other dimensions that need to be

explored, particularly under the concept of learning and other theories relating and

relevant thereto. Nonetheless, this study shows the dichotomy between employee

commitment and employee competence in connection with the objective of a particular

T&D. Lastly, the study also shows the organization or practitioners of T&D the

importance of informing employees the benefits of T&D for the T&D evaluation not to

impede firm innovation.

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