Local embeddedness and training intensity: The mobility constraints perspective

Abstract

The aim of this article is to analyse the relationship between a company's local embeddedness and training intensity. It is argued that local embeddedness might influence training through several mechanisms, which eventually should lead to a higher level of training intensity. In order to verify this hypothesis, several two‐level ordered logit models were analysed on the basis of data gathered from employees working in Polish cooperative banks (N = 1707). Results confirm a positive correlation between local embeddedness and training intensity (measured by the number of training events and the number of training days). Next, it was verified to what extent this relationship might be attributed to the employees’ mobility constraints. To reach this goal, the level of education was employed as a moderator in a company's local embeddedness and training intensity relationship. The interaction analysis revealed that for lower thresholds (lower intensity of training) the positive correlation between local embeddedness and training intensity occurred only for employees with higher education. Since the employees with a higher level of education are generally perceived as those who receive more training, but are also more willing to change the employer, this result suggests the occurrence of a mobility constraints mechanism of local embeddedness.

Training activities in subsidiaries of foreign multinational companies: Local embeddedness in Germany?

“…However, these liabilities of ‘outsidership’ and foreignness can be overcome over time. Economic geography describes this local integration with the ‘embeddedness’ metaphor (Hess, 2004), also related to issues of local learning (Bathelt et al, 2018; Bathelt & Li, 2020) and training (Piasecki, 2021).…”