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Continued Professional Development and Organisational Performance: A Structural Equation Modelling (SEM)

Fadilah Puteh

Pertanika Journal of Tropical Agricultural Science, Volume 25, Issue S, January 2017

Keywords: Continued professional development, formal learning, informal learning, non-formal learning, organisational performance, service-based organisation, structural equation modelling

Published on: 28 Jul 2017

Literature on Continued Professional Development (CPD) suggests that learning could take place in three dimensions, namely formal learning (FL), non-formal learning (NFL) and informal learning (IL). However, there is a big gap in the literature as much of the discussions on CPD focus on FL and NFL, while studies on the IL component are still vague, under-researched and often overlooked. The effects of CPD and professional competency have been extensively studied but those focusing on the relationship between CPD and organisational performance (OP) are somewhat limited. This papers examines the correlation between CPD components and OP. Data was collected via structured questionnaire from 1120 executives from four different sectors of the service-based industry in Malaysia, namely Multi-National Corporations (MNCs), Malaysian Government Linked Corporations (GLCs), Small and Medium Enterprises (SMEs), and Malaysian Government Agencies (MGAs) that are located in the Klang Valley. The SEM-PLS was used to show the hypothetical relationships. The model tested in this study shows that CPD components account for 34.7% of the variance in OP. Furthermore, 24.6% explains the prediction effect of CPD components on OP. Overall, the proposed model of CPD has relatively good predictive power on OP. The findings provide invaluable insights with regards to developing a new strategic HRD model for excellent OP via CPD activities. This study also fulfils the demand for more empirical research on CPD, knowledge management, competency and OP.

ISSN 1511-3701

e-ISSN 2231-8542

Article ID

JSSH-S0303-2016

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