The Effects of Training on the Competitive Economic Advantage of Companies in Spain

Abstract

The search for factors that lead to competitive advantage in a company in relation to its competitors is a widely debated subject; a wide range of issues have been examined to determine which factors are the most influential. The aim of this paper is to study training effect on business results (particularly on firm's financial turnover). For the present research, the classical model of Industrial Economy as a frame of reference has been used. The data collection instrument was a questionnaire sent to 381 large organizations in Catalonia (Spain) during 2009 and 2010. The empirical section of the present article was developed using structural equation modeling (SEM). Results relate training to company's financial turnover in a positive way. The General Expenditure and Costs is the variable that most contributes to the explanation of firms' financial turnover. The Organization of Training variable is the second most important construct to account for financial turnover However, training is required to be well organized as well as properly financed.