Training and its Implications on the Performance of Organizations – A Literature Review

Abstract

Although there are many thinkers of training and its important role in improving firm performance, it has been criticized as a trend, or too costly and not transmitting the contents to the job. In fact, some studies have failed to find the impacts of training on firm performance. This paper intends to advance understanding of the effects of training on firm performance by reviewing theory and previous empirical studies on the relationship between training and firm performance. The paper aims to describe the important theoretical approaches and proposes a framework for analyzing training and firm performance concerns. Data from previous studies are used to review the effects of training on firm performance. The paper discusses and identifies the limitations of previous studies and directions for future research on this topic.