Determinants of employee training: impact on organizational legitimacy and organizational performance

Employee training is one of the most studied human resource practices, as it is considered critical for organizational success. However, employee training and its impact on organizational performance have usually been studied from an economic-rational perspective, in terms of the economic and competitive advantages that companies can achieve by training employees. This study goes beyond the economic-rational approach and draws on institutional theory. We introduce contextual factors in the analysis of the determinants of employee training to complement the variables of competitive advantage and explain the relationship between employee training and organizational outcomes. Data were collected from 374 organizations using a questionnaire administered in Spain. The findings support the idea that both economic-rational and institutional determinants influence employee training. There are also two different kinds of outcome from training employees: organizational legitimacy improves at the same time as organizational performance.