A Study on the Relationship between HRD Investment and Organizational Effectiveness of Foreign Invested Firms in Korea

The purpose of this study is to examine the relationship between human resource development (HRD) investment and organizational effectiveness in foreign-invested enterprises in South Korea. For this purpose, we established hypotheses regarding the relationships among per capita training expenditures, the number of HRD systems, job satisfaction, and organizational commitment. To verify these hypotheses, we conducted regression analysis on data from the Human Capital Corporate Panel (HCCP) of the Korea Research Institute for Vocational Education and Training. The results showed that while the effect of per capita training expenditures on job satisfaction was not statistically significant, a greater number of HRD systems positively moderated this effect, enhancing the impact of training expenditures on job satisfaction. Additionally, it was found that the positive effect of per capita training expenditures on organizational commitment was strengthened when the number of HRD systems increased. The contributions of this study are twofold. First, it analyzes the interaction effects between training expenditures and the number of HRD systems, providing insights into maximizing the effectiveness of HRD investments. Second, it offers valuable academic and practical implications, guiding companies in optimizing their HRD investments.