Perceived Learning Climate Between Perceived Investment in Employee Development and Innovative Performance: An Evidence From Emerging Economy

Abstract

Purpose -The ever-changing work environment necessitates the development of employees to better carry out their work tasks in today's challenging times. The current study investigated the direct association between perceived investment in employee development and innovative performance with the moderating role of perceived learning climate strengthening this relationship.

Design/methodology/approach- Multi-wave and multi-sourced data (n = 261) was gathered through a survey-based technique from the employees of the banking and telecom sectors of Islamabad, Pakistan. SmartPLS and SPSS statistical software were utilized to analyze the data and test the proposed hypotheses. Statistical tests included confirmatory factor analysis, descriptive statistics, normality, correlation, and linear regression analysis.

Findings-Results indicated that perceived investment in employee development positively influenced innovative performance, whereby the relationship was strengthened in the case of a highly perceived learning climate.

Implications-It provides guidelines for practicing managers regarding the significance of perceptions of investment in employee development and learning climate in bringing out innovative performance. Seminars, workshops, and counseling sessions can help foster these positive perceptions. This research provided a unique and new contextual factor in the form of a perceived learning climate fostering innovative performance in firms concerned about developing their workers.

Originality-This research uses the tenets of social exchange theory and contributes to the prevailing literature by investigating how perceived investment in employee development instigates employees to display innovative performance and how perceived learning climate as a contextual variable moderates this relationship, thereby strengthening it for workers of banking and telecom sectors in Islamabad, Pakistan.