This study aims to examine the relationship between training and development investment (TDI), organisational learning (OL) activities and organisational performance (OP) using longitudinal data from Korean firms. It explores how TDI influences OL at different levels and its impact on financial and innovation performance.
The study analyses data from 368 Korean firms collected between 2020 and 2023, using cohort data and using multilevel autoregressive cross-lagged modelling (ARCLM) for analysis.
The research results indicate the existence of autoregressive and cross-lagged effects between OL activities. The study provides evidence that OL activities have a consistently positive impact on OP, including return on assets (ROA) and innovation performance. The study also identifies a relationship between TDI and OP, and between TDI and OL activities, but the results are inconsistent.
This study longitudinally examines how Korean firms’ training investments during COVID-19 translate into performance through OL activities. However, the use of observed variables for model simplicity presents a limitation that may reduce validity.
As informal group learning plays a key role in strengthening OL, companies should create opportunities for learning communities, mentoring, coaching and knowledge-sharing platforms.
To the best of the authors’ knowledge, this study is the first to explore the relationship between TDI and OL activities in a longitudinal context. It also provides empirical evidence of the stepwise transfer of TDI to OP, offering valuable insights into strategic decision-making.
