Impact of Effective Training and Develop
Impact of Effective Training and Develop
Impact of Effective Training and Develop
Abstract
E-commerce plays an important role for the economic development of the development countries of
the world. But in the developing country like Bangladesh is not very far behind in this regard. The
effectiveness of the e-commerce business depends on the IT skills of the employees who are
associated with it which is in turn dependent on the effectiveness of Training and Development
programs of the company. As such, this paper has been aimed to identify the impact of the training
and development programs on e-commerce firms and its impact on the competitiveness and
competitive advantages. Both descriptive and inferential statistics were used in analyzing data
collected through direct interview of one hundred one respondents. Results show that the effective
design of training and development creates competitive advantage for e-commerce business in
Bangladesh. All the independent variables like effective design of training and development, skills
and knowledge enhancement through training and development, increased efficiency and
effectiveness of the employees through training and development have found positive correlations
with the dependent variable in terms of the development of competitive advantages for e-commerce
business. Therefore, this study suggests that e-commerce industry of Bangladesh has huge
potentials to create long term and sustainable competitive advantage for itself through effectively
designing of training and development programs of the companies.
1
Associate Professor, Department of Management Studies, Faculty of Business Studies, Bangladesh University of Professionals,
Dhaka, Bangladesh. Email: rassel_mgtt@yahoo.com
2
Dean, School of Business, Uttara University, Dhaka, Bangladesh, Email: nazrulku@gmail.com
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Impact of Effective Training and Development Programs on Competitive
Advantage of E-Commerce Industry in Bangladesh
1. Background
Training and development have paramount importance in building competitive advantage for a
business organization. The concept of training and development is more importantly applicable in
technology-based industry like e-commerce industry which is comparatively a new business in
Bangladesh. Generally, e-commerce refers to buying, selling, and renting of products or services by
using electronic systems mostly through internet and computer networks. Though, the people of
Bangladesh are almost in a dark about e-business, millennium goal of the Bangladesh Government
encouraged the young entrepreneurs to start up the new businesses using computer and internet
technology. But the entrepreneurs in this sector have realized within a very short period of time that
the competitive sustainability of this business is highly dependent on the process of how the
employees are being informed and trained about state-of-the-art technology and how their attitudes
are being groomed in order to maintain sensitivity towards the environmental changes. These
companies aimed at gaining the competitive advantage realizing the importance of training in
improving the employees’ performance. Past researches provide the evidence regarding the positive
effect of training programs on both employee and organizational performance and, in turn,
competitive advantage. In spite of the large number of research studies on the relationships between
training and employee and organization performance, there appears to a big gap concerning the
effect of training and development programs on building competitive advantage for the business
organizations. Hence, this paper aimed at identifying the impact of effective training and
development on the competitive advantage of the e-commerce industry in Bangladesh.
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3. Literature Review
The term ‘training’ indicates the process involved in improving the aptitudes, skills and abilities of
the employees to perform specific jobs. Training helps in updating old talents and developing new
ones. ‘Successful candidates placed on the jobs need training to perform their duties effectively’.
(Aswathappa, 2000). “Training is systematic development of the knowledge, skills and attitudes
required by an individual to perform adequately a given task or job” (Michel Armstrong, 2001 and
Olaniyan & Ojo, 2008). According to the Edwin B Flippo (1984), “Training is the act of increasing
knowledge and skills of an employee for doing a particular job.” Training and Developments try to
improve employee’s Knowledge and Skills so that employees are better equipped to do his/her
present job or to prepare him/herself for a higher position with increased responsibilities
(Karuppannan, 2012). Effective design of Training and Development can provide an essential link
between an organization’s human resource strategy and overall business strategy by ensuring that
the organization’s employees have the relevant skills and knowledge needed to be able to execute
the HR strategy (Mabey, 1998).
Adeniyi (1995) observed that staff training and development is a work activity that can make a very
significant contribution to the overall effectiveness and profitability of an organization. He
therefore, provides a systematic approach to training which encases the main elements of training.
The effectiveness and success of an organization therefore lies on the people who form and work
within the organization. It follows therefore that the employees in an organization to be able to
perform their duties and make meaningful contributions to the success of the organizational goals
need to acquire the relevant skills and knowledge.
Oribabor (2000) commented that training and development aim at developing competences such as
technical, human, conceptual and managerial for the furtherance of individual and organization
growth, also Isyaku (2000) stated that the process of training and development is a continuous one.
Pitfield (1982) opined that the objectives of training are to provide the skills, knowledge and
aptitudes which is necessary to undertake required job efficiently. Chris Obisi (1996) observed that
training and development aim at developing competences such as technical, human, conceptual and
managerial for the furtherance of individual and organization growth. Bashir and Ramay (2008)
investigated the effect both training and workplace learning programs. The study encompassed an
examination of several factors that may be accomplished through training. The study realized that
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training and development does not have only positive effects on productivity, motivation;
satisfaction, absenteeism but it has effect on employee performance as well.
Palo and Padhi (2003) described that training practices as the exercise of bestowing workers with
skills and strengthening their capabilities in their performance. However, Karia (1999) has stated
that availability of suitable training enhance productivity and consequently employee efficiency
which is important for improving employee performance. To chase the complex and fast changing
organizational environment, developing human resources is of utmost importance and training has
now become one of the important segments of Human Resource Development process. That is why
the efficiency of any organization depends directly on how well its employees are trained. Training
motivates employees to work efficiently and it is widely accepted as a problem solving tool
(Karuppannan, 2012).
In today’s Business World, model organizations are recognizing that a workforce with superior
skills is one of the primary key factors for sustainable competitive advantage. For any organization,
appropriate selection is one of traditional means to accomplish this advantage where at the same
time strategically focused training and development offers a more flexible and long-term
advantage. Organization can buy skills through hiring new personnel or can develop skills through
Training and Development (T & D) activities (Olian, Durham, Kristof, Brown, Pierce, & Kunder,
1998).
This should also give the HR strategy an improved chance of success if they have a clear
understanding of capabilities and whether investment and development on HR is required or not.
Researchers discovered evidence that more and more employers are demanding that training is
deliberately aligned with the strategic needs of the organization ( Mavin, Lee, & Robson, 2010).
Researchers also have identified the importance of designing Training & Development effectively
with organization’s overall strategies and business objectives, particularly where their people are
one of major sources of competitive advantage.
The survival of any organization in the competitive society lies in its ability to train its human
resource to be creative, innovative, inventive who will invariably enhance performance and
increase competitive advantage (Edralin, 2004), (Lynton, 2000), (Vemić, 2007). However, training
and development play a vital role to enhance the effectiveness of an organization (Goldstein and
Ford, 2002.). It is one of the most pervasive techniques for improving employees’ performance
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enhancing organization productivity in the work place (Gupta and Bostrom, 2006). Batool and
Batool (2012) remarked that Organizations mostly invests a lot on their human capital to fulfill
their training needs and improve their skills generally by organizing training programs/modules to
make their competencies in accordance with the needs of changing world which finally contributes
to gain the competitive advantage.
Training and employee progress completely is linked with managerial competitive advantage. A
good chance of training motivates worker contribution and promotes capabilities. Training
promotes competitive advantage in context of job satisfaction and performance, decrease non-
attendance and lower suspend intention (Davis and Daley, 2008). Reviewing above discussed
literature following framework can be produced that can work as the outline of this research:
The study was to investigate the effective design of training and development programs to create
competitive advantage for the e-business of Bangladesh. The entire research was based on
quantitative survey which is mainly descriptive in nature. This type of research method has been
used to understand the factors of effective design of training and development programs as well as
how it is creating competitive advantage of a business especially in an e-business in Bangladesh.
The research methods employed in this study are survey and personal interview using structured
questionnaire. The questionnaires were used as the main survey instrument for collecting primary
data. Survey questionnaire was designed by using five-point Likert’s Scale with the range of
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Strongly Disagree (1) to Strongly Agree (5). Collected data were analyzed quantitatively using both
descriptive and inferential statistics. The hypotheses of this study are outlined below.
Hypothesis 1: Effective designing of training and development programs is positively related to the
competitive advantage of a business company;
Hypothesis 2: Competitive advantage of the business is related to the knowledge and skills
enhancement through effective designing of training and development programs;
Hypothesis 3: Competitive advantage of the business is related to the efficiency and effectiveness
of the employees.
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The confidence level tells you how sure you can be. It is expressed as a percentage and represents how often the true percentage of
the population who would pick an answer lies within the confidence interval. The 95% confidence level means you can be 95%
certain; the 99% confidence level means you can be 99% certain. Most researchers use the 95% confidence level.
Retrieved From: http://www.surveysystem.com/sscalc.htm
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The confidence interval (also called margin of error) is the plus-or-minus figure usually reported in newspaper or television opinion
poll results. For example, if you use a confidence interval of 4 and 47% percent of your sample picks an answer you can be "sure"
that if you had asked the question of the entire relevant population between 43% (47-4) and 51% (47+4) would have picked that
answer.
Retrieved From: http://www.surveysystem.com/sscalc.htm
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4.4: Data Analysis
Statistical Package for Social Sciences (SPSS) was used to analyze the collected primary data. But
before starting analysis, the data had been clarified, coded to make it useable for SPSS, prepared
the SPSS working file, etc. Finally, the data were analyzed and presented statistically using
frequency tables, pie charts, bar charts, cross-tabulations, and correlations. To test the pre-defined
hypotheses, distinct hypothesis testing methods were used.
Reliability Statistics shown in Table 1 identified Cronbach’s alpha (α) ranges from 0.729 to 0.923,
which was required to know internal consistency of the items used in the questionnaires. George
and Mallery (2003) provided the following rules of thumb on Cronbach’s alpha; “(α) > .9 =
Excellent, (α) > .8 = Good, (α) > .7 = Acceptable, (α) > .6 = Questionable, (α) > .5 = Poor, and (α)
< .5 = Unacceptable” (George, D. & Mallery, P., 2003, p. 231). Table 2 shows that all the
independent variables’ alpha coefficients that are at the acceptable limit. Dependent variables’ alpha
coefficients are also good in order to be acceptable for further analysis.
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Source: Survey Data
Secondly, the mean score of the variable effective design of training and development programs
which is the key independent variable in this study is 3.7604. It indicates most of the respondents
showed neutral to agree attitude toward the effectiveness of designing training and development
programs and its related activities. But here the standard deviation is 0.71050 that indicates
responses of the respondents fluctuated moderately but here more than 50% of the respondents
showed agreeing attitude towards the effective design of training and development programs.
Thirdly, the mean scores of the variable knowledge and skills which is the 2 nd independent variable
in this study are 3.9921. It indicates most of the respondents showed agree attitude toward
enhancing knowledge and skills through the effective design of training and development activities
for creating competitive advantage for the business. Here, the standard deviation is 0.55058 which
also gives the support to the mean score by indicating that fluctuation of the responses almost
minimal.
Fourthly, the mean scores of the 3rd independent variable efficiency and effectiveness is 4.0356. It
indicates most of the respondents showed agree attitude toward achieving efficiency and
effectiveness through the effective design of training and development programs for creating
competitive advantage for the business organization. Here, the standard deviation is also supporting
the mean score by showing a lower value 0.56667.
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Variables Descriptive Statistics
Mean Std. Deviation
Competitive Advantages 3.9980 .66181
Effective Design of Training and Development 3.7604 .71050
Knowledge & Skills 3.9921 .55058
Efficiency and Effectiveness 4.0356 .56667
N= 101
By using Pearson Correlation 5 and Linear Regression6, the data were analyzed and the result of the
Hypothesis identified. To understand summary of correlation and regression Table 4 is mentioned
below. The results show that R Square value of 14.40% and adjusted R Square value is 13.60%
that means the variables identified here in this study explain more than 14% of the dependent
variables.
Above Model Summary also provides R value that represents the simple correlation and is 0.380
(the "R" Column), which indicates a moderate degree of positive correlation between dependent
(Competitive Advantage) and selected independent variable (Effective Design of Training &
Development). The other variables may be concerned with the training budget, expertise of the
people who are working at the training and development department and external factors are
industrial and national practices in this regard.
Table 5 shows the Analysis of Variance (ANOVA). It reports how well the regression equation fits
the data i.e., predicts the dependent variable.
Table 5 ANOVA
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Correlation coefficients estimate strength and direction of association between two interval/ratio level variables. Used
to create a summary measure that reflects the co-variation between two interval/ratio variables, the Pearson Correlation
Coefficient presented here can range from a -1.00 to 1.00
Retrieved From: http://www.acastat.com/Statbook/correlation.htm
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Regression analysis is the next step up after Correlation; it is used when we want to predict the value of a variable
based on the value of another variable. In this case, the variable we are using to predict the other variable's value is
called the independent variable or sometimes the predictor variable. The variable we are wishing to predict is called the
dependent variable or sometimes the outcome variable.
Retrieved From: https://statistics.laerd.com/spss-tutorials/linear-regression-using-spss-statistics.php
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Sum of
Model Squares df Mean Square F Sig.
1 Regression 6.327 1 6.327 16.716 .000b
Residual 37.472 99 .379
Total 43.800 100
a. Dependent Variable: Dependent (Competitive Advantage)
b. Predictors: (Constant), Ind1mn (Effective Design of Training & Development)
This indicates that the regression model predicts the dependent variable significantly well. This also
indicates the statistical significance of the regression model that was run. Here, p < 0.0005, which
is less than 0.05, and indicates that, overall, the regression model significantly predicts the outcome
variable statistically. So, it is a good model fit for the data.
The Table 6 shows the coefficients of the variables. It provides the necessary information to predict
how competitive advantage of the business creating from the effective design of the training and
development programs, as well as determine whether effective design of the training and
development contribute significantly to the model and obviously by statistically acceptable (by
looking at the "Sig." column as shown p<0.05).
Table 6 Coefficientsa
Unstandardized Standardized
Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) 2.667 .331 8.049 .000
Ind1mn .354 .087 .380 4.089 .000
a. Dependent Variable: Dpndmn (Competitive Advantage of the Organization)
Furthermore, the values in the "B" column under the "Unstandardized Coefficients" column to
present the regression equation can be used as:
Hypothesis 1: Effective designing of training and development programs is positively related to the
competitive advantage of a business company.
Here, from the Table 7 it can be seen effective designing of training and development programs is
positively related with creation of competitive advantages of business. The Pearson Correlation is
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clearly showing that, study had found moderate positive (r = .380**, p<.01) correlation between the
effective design of training and development and competitive Advantage for the organization. Thus,
hypothesis 1 (Effective Design of Training and Developments are positively related with the
creation of Competitive Advantages for the e-commerce business) is accepted here. At the same
time, the summary of regression analysis is also supporting the decision by indicating positive
relation as β = .345 at 5% significance level.
Hypothesis 2: Competitive advantage of the business is related to the knowledge and skills
enhancement through effective designing of training and development programs.
Table 7 also shows that competitive advantage of the business is positively related to the knowledge
and skills enhancement through effective designing of training and development programs. The
Pearson Correlation is clearly showing that, study had found strong positive correlation between
competitive advantages of the business and knowledge and skills enhancement through effective
designing of training and development (r = .810, p<.01). Thus, hypothesis 2 (Effective Design of
Training & Development is adding Competitive Advantages through enhancing knowledge & skills
of the personnel) is accepted here. At the same time, the summary of regression analysis is also
supporting the decision by indicating positive relation as β = .974 at 5% significant level (Table 7).
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Hypothesis 3: Competitive advantage of the business is related to the efficiency and effectiveness
of the employees.
Here, from the Table 7 it can be seen that, competitive advantages of the business is positively
related with the efficiency & effectiveness of the employees which can be increase through
effective design of training and development programs. The Pearson Correlation is clearly showing
that, study had found strong positive correlation between competitive advantages of the business
and efficiency & effectiveness of the employees in terms of (r = .763, p<.01) all types of
employees. Thus, hypothesis 3 (Efficiency and Effectiveness is fluctuating due to the effectiveness
in designing of training and development which hampering the competitive advantages of the
organization) is accepted here. At the same time, the summary of regression analysis is also
supporting the decision by indicating positive relation as β = .891 at 5% significant level (Table 7).
After analysis and discussions, it can be concluded that the effective design of training and
development programs can create competitive advantage for e-commerce businesses of
Bangladesh. Though, still e-commerce industry of Bangladesh is not that much developed in terms
of strategic purpose of the Human Resources Management, most of the e-commerce ventures in
Bangladesh are failing to utilize the effective designing of training and development programs but
they are very much eager to accept this positive change inside their organizations to have long-term
and sustainable competitive advantage to ensure continuous incremental profitability. All the
independent variables like effective design of training and development, skills and knowledge
enhancement through training & development, increased efficiency and effectiveness of the
employees through training & development have found positive correlations with the dependent
variable in terms of the development of competitive advantage for e-commerce business in
Bangladesh. Hence, from the results of the study it can be opined that e-commerce industry of
Bangladesh has huge potentials to create strong, long term, and sustainable competitive advantage
for itself through effectively designing of training and development programs that will also provide
them with long-term productivity and profitability along with high market share and achievement
of the satisfactions the employee and customers. However, there is an ample scope to conduct
further study in this field by taking larger samples and taking more variables into account that may
give better results in this regard.
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