To train or not to train? Firms’ considerations in the knowledge economy

Scholars in economics and political science have long studied the economic and institutional configurations conducive for the collective provision of private goods, such as education. What has largely been overlooked is the role of firms as providers of training and the factors supporting their ongoing continuation of training-provision. With the rise of the knowledge economy, training firms are facing pressures to upskill and adapt to new technologies, while at the same time maintaining in-firm vocational education and training (VET) attractive for young people. Using Hirschman’s “Exit, Voice, and Loyalty” framework, we examine how training firms’ voice channels, through membership in intermediate associations, and long-term stretegic orientation of training affect considerations to exit or not exit from the VET system. We analyze survey data from over 1,700 firms in Switzerland and show that non-exit considerations are associated with membership in professional associations and retention-oriented training strategies. Our study contributes to understanding how private actors navigate their roles as providers of collective goods in various economic environments, revealing the conditions under which firms maintain or reconsider their commitment to the dual VET system.