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Managers now view e‐learning as an important instrument for obtaining skill‐based organisational outcomes. Not all organisations are likely to implement this training strategy, however, because there are significant trade‐offs involved in terms of both costs and benefits. This article examines the organisational determinants of e‐learning: larger establishments, organisations which employ educated workforce and well established internal labour markets are more likely to adopt an e‐learning strategy. The influence of many such factors requires that a value‐based analysis is undertaken to help organisations make optimal decisions about the choice of e‐learning.

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