In spite of decades of research into high-performance work systems, very few studies have examined the relationship between executive learning and development and organisational performance. In an attempt to close this gap, this study explores the effects of a validated four-dimensional executive learning and development measure on a composite measure of organisational performance. The study is based on ordinal regression analysis with empirical data elicited from 222 executives and senior leaders drawn from a wide geographic region. The theoretical link theoretical between the two variables was established by building on the Activity-Motivation-Outcome concept in order to encapsulate human capital, dynamic capability, resource dependency, social exchange and leader-member-exchange theories. The study reported an overall positive effect of executive learning and development on firm performance and has significant implications for the effective development of executive and senior management capabilities as a means of improving organisational effectiveness.
Evaluating the returns on intangible assets in general and executive human capital in particular is still a challenging endeavour. One possible means of addressing this challenge involves developing a broad measure of executive learning and development (L&D), encapsulating both the formal and informal activities that closely reflect the dynamic job profile of modern business executives. Yet an extensive review of the literature fails to confirm the existence of such a broad measure. The present study seeks to fill this gap. It puts forward an executive L&D measure defined by four main dimensions: strategy, self-direction, experience and participation. This measure has been validated through exploratory and confirmatory factor analysis. All four factors within the construct exhibited good unidimensionality, validity and reliability characteristics and are underpinned by high Cronbach's alphas. We conclude that organizations can increase executive human capital capacity by focusing on strategically-aligned informal learning interventions supported by carefully selected structured activities. In terms of originality, this research offers a broad and internationally validated executive L&D measure which we believe is suitable for evaluating and monitoring executive L&D interventions within organizations.
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