Determinants of Training Implementation and Intention in Lao Firms

Abstract

The present study aims to investigate determinants of training implementation and intention for firms in Lao PDR. In developing countries like Lao PDR in particular, enterprises are increasingly required to be internationally competitive through such efforts as developing human resources to deal with regionalization and globalization. Training is seen as a major way to develop human resources, but it has not yet been implemented intensively enough. Therefore, it is worth investigating the determinants of training in these firms. We utilize data from the Enterprise Survey 2013 by Deutsche Gesellschaft für Internationale Zusammenarbeit and analyze stratified random sample of 658 small and medium enterprises using ordinary least squares (OLS) and logistic regressions. The results are non-uniform among the different dependent variables, such as engagement in vocational training, the existence of training intention for entrepreneurs and employees, and skills variety of training premeditation for employers and employees. For instance, a gender of entrepreneur has a significantly positive effect on training implementation but an insignificant effect on training plan. Education of entrepreneur has an unconvincing effect on training execution but a significantly positive outcome on training will. Some other independent variables show more inconclusive but explainable results (e.g., firm size, competition problems, membership of a business organization, and age of entrepreneur). However, located in Vientiane Capital has a significant effect but firm-age and ethnicity of entrepreneur are insignificant. The results suggest to pay more careful attention to the potential differences among different training-related variables.