Factors and obstacles determining the investments in continuing education and training of managers: the case of Bulgarian enterprises

Abstract

Purpose This study aims to examine internal and external factors as well as main obstacles to managers’/owners’ participation in education and training. Design/methodology/approach The sample comprises managers of 151 Bulgarian predominantly micro- and small-size enterprises. The data was gathered in 2020 through direct standardized interviews at the respondent’s workplace. This study uses quantitative estimation methods including binominal and multinominal logistic regression as well as nonparametric testing. Findings Regarding the findings in the relevant studies, the results confirm that the larger firm's size, the existence of human resource management strategy and practices as well as learning-oriented culture stimulate employer-financed management training. The lack of trainers with relevant need-specific expertise appears to be a major barrier. Additionally, the outputs highlight the role of other important determinants not being extensively discussed so far such as the level of development of the region in which the company operates, involvement in R&D and innovation activity as well as the issue of trust in trainer. Practical implications This study provides insights into (under)investments in continuing vocational training which might lead to practical implications for businesses, education and government policy in lifelong learning. Moreover, this study focuses on a country with one of the lowest participation rates in adult education across Europe which allows for a better understanding of similar examples. Originality/value To the best of the author’s knowledge, this is the first paper examining determinants of management training in Bulgaria and one of the few in the European context. It gives support to the existing literature but adds new findings as well.

Exploring the Factors of Firm-Provided Continuing Education and Training: A Systematic Literature Review

“…At the macro level, the studies for both developing and developed countries confirm the fundamental role of academic institutions as providers of high-quality training services tailored to companies' needs for (specific) training. This finding complies with the works of Fuchs et al (2021), Mousa et al (2022), and Neycheva and Baltov (2024). National authorities provide a regulatory framework, incentives, and support.…”

“…There is a lack of trust in the business qualifications of universities to provide vocational training. Supporting evidence can be found in Mitreva (2019) for Macedonia and Neycheva and Baltov (2024) for Bulgaria. On the other hand, Fuchs et al (2021) for Germany highlighted the cooperation between universities of applied sciences and foreign subsidiaries in providing industry-specific skills.…”

“…Although far fewer in number, some papers examined the role of training in the business environment in which the company operates (e.g., the region, technologies, and nature of competition). On the one hand, a positive link between regional development and training frequency was found in Eastern Europe (Neycheva & Baltov, 2024;Stacho et al, 2019). Conversely, in southern Italy, companies in regions with lower employment density have lower training opportunity costs (Filippetti et al, 2019), which stimulates investment in training.…”