Influence of human resource development (HRD) practices on hotel industry's performance: The role of employee competencies

Purpose The purpose of this paper is to examine the mediating role of employee competencies in the association between human resource development (HRD) practices and organizational performance. Design/methodology/approach An integrated research model was developed by combining principal factors from existing literature. Data were collected through questionnaire from 600 employees of the selected hotels. The validity of the model and hypotheses was tested using structural equation modeling. The reliability and validity of the dimensions are established through confirmatory factor analysis. Findings The results indicate that some HRD practices impact organizational performance through their influence on employee competencies. The study further revealed that employee competencies mediate the association between HRD practices and organizational performance. Research limitations/implications The research was undertaken in the hotel industry and the analysis based on cross-sectional data which cannot be generalized across a broader range of sectors. Practical implications The findings of the study have the potential to help stakeholders and management of hotels in adopting properly and well-articulated HRD practices to stimulate positive behavior in individuals and impact their knowledge, skills and attitudes. Originality/value This study extends the literature by adducing evidence that employee competencies mediated the association between HRD practices and organizational performance of the hotel industry in Ghana.