Rethinking skill development in a VUCA world: firm-specific skills developed through training and development in South Korea

Abstract

PurposeThis study aims to examine the effect of firm-specific skills on formal and informal training and development (T&D) effectiveness, job satisfaction, turnover intentions, and the moderating effect of job tenure on each hypothesized path. The authors adopt a micro perspective on human capital, arguing its significance to examine the role of job attitudes in developing firm-specific skills.Design/methodology/approachA total of 1,514 South Korean workers' responses were obtained from the Human Capital Corporate Panel dataset. This study conducted structural equation modeling (SEM) to examine the structural relationships between the study variables. A subsequent multigroup SEM was conducted to determine whether the structural model differed across job tenures by comparing the results for employees with more than and less than six years of tenure.FindingsThe findings indicate that (a) firm-specific skills have a negative effect on formal T&D effectiveness and no significant effect on informal T&D effectiveness; (b) firm-specific skills have a negative effect on job satisfaction and no significant effect on turnover intentions; (c) formal T&D effectiveness has a positive effect on job satisfaction and a negative effect on turnover intentions; (d) informal T&D effectiveness has a positive effect on job satisfaction and no significant effect on turnover intentions; and (e) job tenure partially moderates the relationships among the proposed study variables.Originality/valueThe study's findings provide new insights into human capital theory, focusing on whether firm-specific skills can be a source of sustained competitive advantage from employees' perspectives.

Learning and development in highly dynamic VUCA contexts: a new framework for the L&D function

“…Five papers in this special issue focus on themes related to competencies that are appropriate to operate effectively in a highly dynamic VUCA context and the implications for L&D practices Kim et al (2023; this issue) focus on the needs to rethink skills development in a VUCA world. The authors spotlight the effects of firm specific skills development utilising both formal and informal learning and development processes on employee job satisfaction and turnover intentions.…”

“…Given the emphasis on a multi-actors approach that is highlighted in our framework, it is important to develop insights around L&D function engagement with community groups, government agencies, trade unions to ensure sustainable responses. An interesting question that arises in the context of the Kim et al (2023) paper in this specific issue concerns the types of L&D practices that organisations should prioritise. For example, what are the trade-offs between investments in general versus specific training investments?…”

“…Five papers in this special issue focus on themes related to competencies that are appropriate to operate effectively in a highly dynamic VUCA context and the implications for L&D practices Kim et al . (2023; this issue) focus on the needs to rethink skills development in a VUCA world.…”

“…In particular we need to know more about the factors that create VUCA. In this special issue different factors that potentially create VUCA conditions were identified including pandemics, energy crises, wars and international conflict, the emergence of new technologies, emerging markets and different types of international crises (Kim et al ., 2023; Wesche and Handke, 2023; Dutta and Kannan Poyil, 2023). While scholars have suggested and emphasised environmental dynamism for some time, the notion of highly dynamic VUCA contexts suggest that there is a greater acceleration of change which is more prolonged, long lasting and profound in terms of its impact for organisations, employees and society and therefore a more complex and challenging context.…”

A VUCA-ready workforce: exploring employee competencies and learning and development implications

“…In a VUCA world, it is imperative for individual employees to learn and develop new competencies (Nowacka and Rzemieniak, 2021). Failing to do so can lead to a range of challenges, from career stagnation and obsolescence to a diminished ability to thrive in rapidly changing environments (Kim et al, 2023). Conversely, the active pursuit of competency development offers numerous benefits such as enhanced adaptability, problemsolving capabilities, competitiveness in the job market and a broader skill set (Bourne, 2021).…”