The relation of training practices and organizational performance in small and medium size enterprises

To determine whether training programs produce real benefits for small and medium‐size enterprises (SMEs), we must investigate the relationships between those programs and their effects on the business performance of SMEs. Although a number of previous studies have attempted to accomplish this task, serious inadequacies, such as inconsistent definitions of training and “rough” methods of training classification and measurement, have raised doubts about the validity of their findings. To remedy these inadequacies and more accurately assess the relationships between training and training effectiveness, this study employs a comprehensive measurement of training including training organization, expenditure, duration, process, and delivery methods. Its findings show that firms with sophisticated training systems and strong management support for training are most successful at maximizing the effectiveness of their training programs.