Nexus of Training and Development, Organizational Learning Capability, and Organizational Performance in the Service Sector

Abstract

This article investigates the expansion of organizational learning capabilities (OLC) and its growing utilization in the organization in order to identify whether OLC affects the relationship between training and development and organizational performance. This study further explores the correlation between organizational learning capabilities and organizational performance, offering insight into the different understandings of organizational triumph related to OLC. This research was conducted via survey method and data were collected from five service industries in Khyber Pakhtunkhwa (KP), Pakistan. A data sample of 300 employees was analyzed using quantitative approaches, such as descriptive statistics and partial least squares structural equation modeling (PLS-SEM). The results of the article addressed issues that are related to human capital regarding OLC, including training and development aspects which were not discussed by the literature in the past. The main findings of this paper are the formulation of an empirically and theoretically supported model related to the effect of OLC on the relationship between training and development and organizational performance. On the other hand, this study signifies that OLC is a better instrument for enhancing organizational performance, as well as in dealing with today’s indeterminate and continuously challenging economic atmosphere. This study is the first of its nature to shed light on training and development, organizational learning capabilities, and organizational performance in the service sector of KP, Pakistan.