Why SMEs in emerging economies are reluctant to provide employee training: Evidence from China

Abstract

In this article, we investigate CEO motivations, intentions and actions in providing training to their employees in Chinese small and medium-sized enterprises (SMEs), exploring the gap between training intentions and actual provision. Drawing on the theory of planned behaviour and using a sample of 533 SMEs, we find training intention mediates the effects of motivations on training provision; CEOs are more concerned with returns to the firm from training rather than employee benefits. In addition, external constraints negatively moderate the training intention–provision relationship in China, whereas internal constraints have been shown to be more important in other countries. Our findings suggest a number of theoretical and managerial implications.