1. Kolej Universiti Polytech MARA, Kuala Lumpur, Malaysia; surianamohd.s@gmail.com
2. Kolej Universiti Polytech MARA, Kuala Lumpur, Malaysia; md_ Ibrahim@gmail.com

*             Correspondence: md_ Ibrahim@gmail.com

Keywords: knowledge development processes, organizational financial performance, training & development programs

1. INTRODUCTION

In the field of management, knowledge management has emerged as a comprehensive and interdisciplinary approach that enables the acquisition of knowledge from diverse disciplines in both formal and informal settings [1]. The approach encompasses a wide range of disciplines, such as information technology, economics, management sciences, knowledge sociology, and biological systems, among various others. The primary emphasis lies in directing information towards the promotion of sustainability and the equitable utilization of all resources, regardless of their formal or informal nature. The aforementioned phenomenon has resulted in the emergence of knowledge operating systems and novel theoretical frameworks, such as Industry 4.0 organizations. These advancements have propelled the knowledge domain towards the establishment of intellectual organizations and instigated a transformative revolution in the realm of knowledge. Organizations are increasingly leveraging knowledge development capabilities in order to attain their desired financial outcomes. However, the existing body of research on this subject remains incomplete and lacks comprehensiveness. In order to improve the financial performance of organizations, it is imperative for companies to conduct a comprehensive analysis of their performance by harnessing their capabilities for knowledge development and leveraging multiple factors that contribute to this process [2]. Organizations are increasingly leveraging knowledge development capabilities in order to attain their desired financial outcomes. However, the existing body of research on this subject remains incomplete and lacks comprehensiveness. In order to optimize organizational performance, it is imperative for companies to conduct a comprehensive analysis of their performance by harnessing their knowledge development capabilities and leveraging diverse factors that contribute to this process. The impact of an element that can enhance the correlation between knowledge development and an organization’s productivity is of considerable importance. Training and development programs are of paramount importance among these factors. Hence, the primary aim of this research endeavor was to determine the extent of their impact [5]. In contemporary times, knowledge is regarded by organizations as a highly advantageous and invaluable asset. Nevertheless, the process of acquiring knowledge can present considerable challenges, and the failure to utilize it judiciously can result in significant obstacles when it comes to efficiently producing top-notch products and services. Hence, knowledge is regarded as an indispensable and essential asset for organizations, akin to other tangible or intangible resources [6]. In the contemporary landscape of fiercely competitive business environments, the cultivation of knowledge has emerged as a critical factor in driving organizational growth and achieving prosperity. Organizations that offer their employees ongoing opportunities for learning and skill development are frequently regarded as industry frontrunners in the field of knowledge acquisition [7]. In the realm of knowledge development, organizations typically face a choice between leveraging technology or embracing a more informal approach [8]. Nevertheless, it is imperative for managers to thoroughly analyze the interplay between technologies, individuals involved, and the methodologies employed for the implementation of said technologies. In order to achieve a sustainable competitive advantage over an extended period of time, it is imperative to establish a harmonious equilibrium between the social and technological systems within organizations. The integration of technology within an organization has the potential to augment the effectiveness of the workforce [9], optimize communication processes, and expedite the distribution of information. Previous researchers have identified that knowledge development processes, namely knowledge creation, knowledge adoption, and knowledge distribution, are associated with significant advantages, particularly in terms of fostering innovations [10]. Through ongoing skill development and improvement, employees have the potential to make valuable contributions to the advancement of new products, services, and processes. Ultimately, this can confer a competitive advantage upon the organization within the marketplace. Hence, it is imperative for organizations to allocate resources towards the implementation of knowledge development initiatives and foster an environment that promotes ongoing learning and enhancement [11]. The capacity of personnel to generate knowledge, obtain information, disseminate knowledge, and employ it proficiently can augment their competencies and foster innovation within an institution. The dissemination of knowledge, specifically, can exert a substantial influence on innovation by facilitating the interchange of novel viewpoints and experiences among individuals (12). Nevertheless, the implementation of these processes may pose challenges in the absence of a skilled facilitator to provide effective support. In order to cultivate a knowledge-driven organizational environment, it is imperative to provide employees with training in the acquisition, retention, application, and dissemination of knowledge among their colleagues. This paper emphasizes the significance of training programs in fostering knowledge development and innovation within an organization [13]. Multiple research studies have underscored the importance of knowledge development and its implications for various facets of organizational functioning. The significance of knowledge development in improving the financial performance of organizations has been widely recognized. However, there remains a need for additional investigation into the factors that can supplement knowledge development processes. There is a notable research gap that pertains specifically to the relationship between knowledge development processes, organizational performance, and training and development initiatives. The primary objective of this study is to investigate the role of training and development processes as mediators between knowledge development practices and the financial performance of organizations. Additionally, this study seeks to identify the factors within training and development programs that can enhance user adoption, improve data quality, and facilitate proactive problem-solving during knowledge transition in large organizations. In contemporary discourse, the significance of knowledge development has been acknowledged as an indispensable element in attaining organizational prosperity. Nevertheless, there is a need for additional research to explore the extent to which training and development programs contribute to optimizing the advantages of knowledge development [14]. The objective of the proposed study is to investigate the role of training and development programs in facilitating the relationship between knowledge development processes and organizational financial performance. This study aims to investigate the impact of various components within training and development programs on user adoption, data quality, and knowledge sharing. By examining these specific aspects, the study will offer practical insights into effective strategies for enhancing knowledge within organizations. Furthermore, the research places particular emphasis on prominent public sector entities such as the Department of Irrigation and Drainages in Malaysia. This choice is particularly pertinent due to the distinct obstacles these organizations encounter in the realm of knowledge advancement, thereby requiring tailored approaches to training and development. By comprehending the ways in which training and development programs can effectively facilitate the dissemination of knowledge and foster proactive problem-solving in various contexts. The research conducted by these organizations has the potential to enhance the efficacy of knowledge development processes. The aim of this study is to investigate the relationship between knowledge development processes and organizational financial performance, while also addressing a research gap related to other mediating variables that influence the impact of training and development programs on organizational performance.

2. LITERATURE REVIEW

The pursuit of progress and innovation is an essential aspect of organizational life in order to maintain a leading position in competitive markets, both domestically and globally (15). The existing body of literature on knowledge development processes within organizations has facilitated the identification of the innovations that organizations adopt from the market. These innovations are typically based on the knowledge that organizations have acquired about the industry. It is imperative for organizations to continuously seek new and updated knowledge that is prevalent in the market, as this is a key factor in achieving a competitive advantage over rival firms [16]. Prior research has demonstrated that the ongoing involvement and enhancement of employees’ knowledge contribute to the long-term viability of an organization. In order to attain enduring value for stakeholders, organizations have the capacity to adopt inventive methodologies that augment their competencies and knowledge strategy, thereby resulting in enhanced sustainability. The objective of this endeavor encompasses the reduction of expenses and the augmentation of income, all the while giving precedence to the requirements of stakeholders, upholding distinctiveness, and exhibiting qualities of leadership [17]. Therefore, existing literature has demonstrated the importance of management ensuring that their leaders are well-informed about advanced knowledge and techniques by utilizing diverse training and development methods. This, in turn, can lead to the achievement of optimal financial performance within the organization. The management of these training sessions can be conducted internally through the utilization of virtual training programs or by establishing partnerships with certified institutions to provide employees with experience in specific fields with certifications and refresher training opportunities, thereby ensuring the continuous updating of their knowledge.

2.1 Collective Action Theory

A study presented an Action theory perspective that outlined how individuals may effectively handle their knowledge and adapt actions for the achievement of goals in both typical and uncustomary situations. A recent study analyzed the collective action theory structured framework as a useful tool for understanding how mental abilities are utilized to regulate performance in various scenarios. The key components of the theory include the concentration, sequencing, and structure of collective actions, which work together to influence an individual’s understanding and behavior [18].

2.2 Knowledge Development Processes

To gain a long-term competitive advantage, organizations can foster sustainable knowledge development through collaborative and integrated processes that allow for the creation, assembly, and utilization of intellectual assets [19]. Furthermore, a company’s ability to acquire and apply knowledge, known as its knowledge development capabilities, is an important component of this process. Knowledge accession, knowledge storage, knowledge disbursement, and knowledge implication are four essential elements of knowledge development processes [20]. Companies can respond to changing environments more quickly and expand their technical knowledge by increasing the depth and breadth of present information and improving their proficiency in technical skills. Processes and systems for managing and archiving information are commonly regarded as a means of storing knowledge. These IT-based tools are primarily utilized to store and retrieve operational knowledge [21].Knowledge storage is often referred to as information management and archiving processes and systems, which are usually based on IT tools used to store and access operational knowledge. Innovation heavily relies on knowledge transformation [22]. An organization’s ability to adapt and utilize information directly impacts its level of creativity. This, in turn, influences the organization’s capability to develop innovative problem-solving approaches and create new products that meet evolving consumer demands. When businesses utilize and leverage knowledge to improve their operations, create innovative products, and generate new knowledge resources, it is referred to as “knowledge Implication” [23].  Businesses can improve their competence and reduce costs by applying practical experience. Knowledge implication includes problem-solving and decision-making. This leads to a continuous process of knowledge development where knowledge is accessed, stored, distributed [24], and utilized to facilitate the procedures utilized by businesses to develop their expertise and create sustainability. To understand how means of knowledge can contribute to positive outcomes, it is essential to evaluate the effectiveness of knowledge development. However, organizations must proactively seek out useful knowledge and prioritize its collection, storage, distribution, and application [25].

2.3 Organization Performance

Organizational productivity is a topic of extensive discussion and concern in both administrative and business communities. The key factor in assessing an organization’s behaviors, patterns, and structures is its financial performance. To achieve optimal financial performance, an organization focused on strategic management must prioritize improving its overall performance. The topic of organizational performance covers all aspects of activities carried out in organizations, regardless of their size or structure [26]. The definition of organizational performance includes several segments as process development, process improvement, staff’s decision-making ability, quality of work produced, and staff & leaders’ relationship. The diversity of products and services, products, market portfolio, service innovation, the staff’s problem-solving capabilities, technological empowerment, and modern & unique approaches to product development are subdimensions [27]. Organizational financial performance can be defined as the capacity of a company to efficiently utilize its resources in order to accomplish its objectives. Scholars emphasize the implementation of a financial performance measurement system in organizations as it offers valuable information on the efficiency of internal operations, strategic plans, and advancements toward achieving organizational objectives [28].

2.4 Training & Development

Training is the act of obtaining knowledge, skills, and competencies necessary to perform a job through structured education and defined as “a systematic effort to assist employees in acquiring job-related knowledge, skills, and attitudes” [29]. The training & development process should provide ample time for the employee to reflect on the outcomes desired. Training will be ineffective if it is perceived as a one-time event with no long-term impact on behavior. Furthermore, if training is viewed as a one-time event, the potential for behavior change is limited. Moreover, ineffective training may result if employees are not held accountable for outcomes. Typically, employees are not held responsible for how they apply what they have learned in the workplace, and behavioral change will not occur unless they are held accountable [30]. Training efforts will be ineffective if the learning environment is not conducive. Moreover, training programs will fail without the involvement of line managers, as employees may resist applying their new-found skills and knowledge if their supervisors don’t encourage them. The training efforts will have been in vain if the environment is not suited for learning [31]. Additionally, training without the assistance of line management will also fail. Employees will resist using the new skills and knowledge they learned throughout the training course if their direct managers or supervisors do not encourage them. The participation of management is essential to the learning process. The failure of the company to separate the effects of training and development is another factor in the training and development’s failure [32]. To ensure an accurate evaluation of performance, it is important to distinguish training-related improvements and account for other variables that may impact performance aside from training alone. Failure to do so may lead to the dismissal of training initiatives that are negatively impacting the bottom line. Successful training programs require the support of top executives who not only allocate resources but also participate in the design process. Finally, without feedback and the use of results data, training programs will not be effective. Without feedback, program facilitators may be unable to evaluate the effectiveness of their initiatives, while employees may lack the means to track their progress [33]. The knowledge development processes have been identified by various scholars and agreeably categorized into 4-factor processes, i.e., Knowledge accession, storage, transmission, and implication [34]. These are the key processes that put the organization on the path of successfully achieving its goals through improved performance because a well-maintained knowledge flow process minimizes the time of operations and enhances integration among several sections through communication and adequate deliverance of required knowledge. Measuring Organizational performance is a complex process because there is no single factor that possibly evinces an organization’s performance as high performing. Considering the complexity of this measurement, we assume that Knowledge development processes are required to be added to the measures of performance. Knowledge is created and then flows through the collaboration of management and sub-levels [35]. Effective knowledge processes require leaders to guide their organizations in the purposeful accession and productive utilization of knowledge[36]; thus, the accession of knowledge is forwarded through educating employees to learn and implement it for the goal achievement purpose. In order to keep up with rapidly evolving internal and external factors, meet the dynamic knowledge needs of their customers, Achieve the enduring organizational performance, and strive for both l leadership at both the local and global levels, organizations are actively seeking effective knowledge development and organizational learning practices and tools[37]. Based on this argument, the study proposes a relationship between knowledge development processes and training &development programs. Studies show that the cognitive ability of human resources, though not limited, however, at a specific moment in time, becomes limited[38] to the capacities of human beings. The study proposes that training and development of human resources can break this halt, as we assumed that it happens due to the non-injunction of fresh knowledge in employees. This conversation prompts us to ponder how training and development initiatives impact the overall performance of an organization. It is correct to state that The acquisition and retention of knowledge within an organization is reliant on its people, and HRM issues are crucial in facilitating knowledge management. HRM practices such as recruitment and selection, education and development, performance management, pay and reward, and the development of a learning culture can all help organizations develop knowledge [39]. While previous research on the effect of HRM on Knowledge development has tended to adopt a partial. Approach, focusing on one particular HRM practice or aspect of Knowledge development, there has been increasing recognition of the importance of taking a more holistic view. In particular, there has been an increasing level of interest in the role that Knowledge development can play in training and development for better knowledge handling. Knowledge development programs play a crucial role in the evolution and sustaining of competitive advantage through innovative product development[40], but this is becoming increasingly complex due to changing customer demands, market competition, and rapid technological advancements [41]. Therefore, these advancements require an ongoing learning system that should add to the existing knowledge operating system in an organization. Employers who offer and upgrade training and development programs are demonstrating a genuine commitment to providing their employees with opportunities to learn and develop a range of skills, knowledge, attitudes, and behaviors[42] because they understand that without it, the staff gets stuck at conventional ways of performing their tasks which become obsolete and time-consuming by the time. Thus, employees feel hindrances in their role performance and do not easily learn new knowledge and skills [43]. The established discussion evinces that the process of knowledge creation and transmission through set procedures enables human resources to break their plateau of implying something new. Training & development programs enhance the competence of employees [44], which ultimately increases performance and adds to organizational goals. The study discusses the practical application of acquired knowledge through various methods,i.e., from outbounds or through the knowledge depositories, which not only benefits the existing human resources but also paves a facile path for subordinates and new learners. Improving the productivity and performance of employees through several training and development programs is a crucial objective for all organizations. However, this goal cannot be accomplished without the active and effective participation of the employees themselves[45]. If employees have a positive attitude towards a training program, such as being satisfied with the program or feeling that they have acquired new skills, they are more likely to experience a behavioral impact from the training[46]. It enables the workforce to comprehend the already-acquired knowledge and develop successful models of products and services which are sustainable[47] and adds to the performance of an organization.

3. CONCLUSIONS

Enhancing leadership and development training should be regarded as a paramount concern for organizations in order to address the disparity between organizational performance and knowledge development procedures. Training and development programs are of utmost importance in bolstering this trajectory, and the implementation of knowledge development processes has the potential to augment organizational performance. In order to accomplish this objective, it is imperative for organizations to actively involve their training and development institutions and prioritize three fundamental elements: the advantages of information dissemination, acknowledging knowledge transmission endeavors within the workplace, and offering employees guidance in knowledge distribution and comprehension. This study underscores the significance of efficient dissemination of knowledge by implementing a theoretical framework in practical contexts. Rewards, relationships, and involvement are illustrative of incentives that have the potential to yield anticipated advantages. Training and development programs facilitate the dissemination of information within organizations. The research findings indicate that non-academic personnel working in higher education institutions demonstrate enhanced behavior in distributing knowledge after undergoing professional development and training. The term “programs” refers to a set of instructions or procedures that are designed to perform The present study was undertaken within a distinct organizational framework with the aim of gaining deeper insights into the broader significance of training and development programs in Malaysian public sector organizations, thereby paving the way for potential future investigations of similar organizations. The findings of this study enable the organization to identify specific measures that can enhance the financial growth of learning initiatives. For instance, one such measure involves incentivizing employees who actively contribute their knowledge, an aspect that has been found to be less satisfactory compared to other aspects of knowledge development.

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