Fostering dynamic capability through the synergistic impact of employee training and organizational trust: a field study

Purpose Organizations seek to increase their innovation ambidexterity through knowledge management practices. This study aims to examine how training and development (T&D) impacts an organization’s dynamic capability, a key antecedent to innovation ambidexterity. Based on the knowledge-based view and dynamic capability theory, this study also investigates the mediating role of the organizational climate of trust (OT) in the relationship between training and development and dynamic capability. Design/methodology/approach This study develops and validates a conceptual model using the partial least squares-structural equation modeling technique, considering data gathered from a field study of 362 survey responses from a firm in an emerging economy. Findings This study reveals that T&D directly impacts dynamic capabilities’ dimensions of sensing, seizing and reconfiguring, with organizational trust mediating these relationships. Practical implications The findings highlight the importance of providing robust T&D programs that enable desired competency building and urge managers to recognize the critical role of a climate of trust in enabling dynamic capabilities. The findings suggest that practitioners must adopt this dual approach to build organizational dynamic capability strategically. Originality/value Research on human resource management initiatives like T&D and collaborative relationships is crucial for enhancing innovation within firms. However, most research primarily focuses on knowledge dissemination motivations, neglecting the varying effects of formal and informal knowledge-sharing mechanisms on dynamic capability creation. Despite increased research in trust and training, the role of T&D and the organizational climate of trust in influencing dynamic capability is not yet established. Thus, the proposed research model is unique and extends the KBV and dynamic capability theory literature.