The relationship between training effectiveness and financial performance in cooperative organizations
ISSN: 1750-8614
Article publication date: 8 April 2024
Issue publication date: 25 April 2024
Abstract
Purpose
The purpose of this study was to identify the relationship between training and financial performance in cooperative organizations.
Design/methodology/approach
To achieve this goal, the fixed-effect panel regression technique was used, from a single database containing hours and amounts invested in training by 35 large Brazilian agribusiness cooperatives over 10 years as the main independent variable of the econometric model. Financial performance was operationalized by the Net Margin and ROE.
Findings
It was possible to identify a positive relationship between expenditure on training and the future rate of return and profitability of the organizations in question. The results also indicate that this relationship grows stronger over the first three years after the investments are made and ceases to exist after this period. The findings are robust with regard to a series of alternative explanations and contribute to understanding the relationship between training and organizational performance in financial terms, considering the extent and duration of training.
Originality/value
The originality this study is justified by the pioneering spirit of presenting direct evidence linking investment in training and financial performance and the duration of this relationship. Thus, the study makes a significant contribution to the construction of knowledge on the subject.
Keywords
Acknowledgements
This study was supported by National Council for Scientific and Technological Development Project: CNPq/SESCOOP Nº 11/2022, Process: 404241/2022-0. The author acknowledges SESCOOP/PR for financial support for the development of master’s dissertation, which originated the article.
Citation
Oliveira, B.S.C., Weymer, A., Piccoli, P. and Ramos, S.C. (2024), "The relationship between training effectiveness and financial performance in cooperative organizations", Social Enterprise Journal, Vol. 20 No. 3, pp. 391-415. https://doi.org/10.1108/SEJ-07-2023-0082
Publisher
:Emerald Publishing Limited
Copyright © 2024, Emerald Publishing Limited