This study is among the first research to examine the level at which employers perceived and utilised training as a means to improve employee productivity and organisational performance in transitional economies. | Thang, N. N. & Quang, T. (2011). The Impact of Training on Firm Performance in a Transitional Economy: Evidence from Vietnam, Research and Practice in Human Resource Management, 19(1), 11-24. The Impact of Training on Firm Performance in a Transitional Economy: Evidence from Vietnam ABSTRACT Nguyen Ngoc Thang & Truong Quang Although research on the relationship between training and firm performance in developed country abounds, little has been done hitherto to estimate the impact of training on firm performance in an emerging country context. This study is among the first research to examine the level at which employers perceived and utilised training as a means to improve employee productivity and organisational performance in transitional economies. The data were collected from 196 companies across industries to measure the level of impact of training on firm performance in Vietnam. The research results indicate that manufacturing companies that implemented training in 2006 had increased sales and productivity, while training had a non statistically significant effect on sales and productivity of non manufacturing companies. In addition, manufacturing companies that implemented training programmes after 2005 achieved an annual increase in both sales and productivity between 2005 and 2006, but there is no statistically significant effect on 2005 and 2006 percentage change in sales and productivity of non manufacturing companies if these companies provided training after 2005. Based on these findings practical implications for managers and suggestions for future research are discussed. INTRODUCTION Academics and professionals in human resource management (HRM) have identified that training policies are critical for improving employee skills, firm performance, and organisational survival (Schuler 2001) and essential for a firm is to remain competitive (Barney 1991, MacDuffie 1995, Salas & CannonBowers 2001). Several authors have attempted to estimate the .
