Return on Investment (ROI) training evaluation in Malaysian SMEs: factors influencing the adoption process

Luqman Hakim Satiman (Department of Human Resource Development, Universiti Teknologi Malaysia, Johor Bahru, Malaysia.)
Nur Naha Abu Mansor (Department of Human Resource Development, Universiti Teknologi Malaysia, Johor Bahru, Malaysia.)
Nadiatulhuda Zulkifli (Department of Communication Engineering, Universiti Teknologi Malaysia, Bahru, Malaysia.)

Development and Learning in Organizations

ISSN: 1477-7282

Publication date: 2 February 2015

Abstract

Purpose

The purpose of this study is to emphasize the importance of return on investment (ROI) within training programs in Malaysian small and medium enterprises (SMEs). Specifically, this paper focuses on the determinants that may influence the adoption of ROI in the current training evaluation practice.

Design/methodology/approach

The paper highlights the internal and external organizational factors that may influence ROI adoption within the Malaysian context. The internal drivers are identified as management support, while the external drivers are policies and regulation, competitive pressure and customer expectation.

Findings

Based on a comprehensive review in the human resource field, the main drivers for ROI adoption are identified as management support, policies and regulations, competitive pressure and customer expectation.

Practical implications

On the face of fierce national and international competitions, SMEs need to seriously consider investing in higher-level training evaluation, i.e. ROI, to increase its labor quality and subsequently organization’s productivity.

Originality/value

Prior studies tend to concentrate on larger organization, whereas research on the adoption of ROI in SMEs has received less attention from the scholars. This study builds a conceptual work based on the integration of internal and external environments in the scope of study rarely analyzed, i.e. Malaysian SMEs. Strong SMEs are undoubtedly important for Malaysia to achieve its vision in becoming a developed nation by end of the decade. It is also worth to note that findings from this study are applicable to other developing countries with similar background to Malaysia.

Keywords

Citation

Satiman, L.H., Abu Mansor, N.N. and Zulkifli, N. (2015), "Return on Investment (ROI) training evaluation in Malaysian SMEs: factors influencing the adoption process", Development and Learning in Organizations, Vol. 29 No. 2, pp. 18-21. https://doi.org/10.1108/DLO-05-2014-0035

Publisher

:

Emerald Group Publishing Limited

Copyright © 2015, Emerald Group Publishing Limited

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