Human Resource Development and Employee Performance: The Role of Individual Absorptive Capacity in the Nigerian Oil Sector

Abstract

Human Resource Development (HRD) is a process whereby the management of an organization improves the skill-set and capabilities of its workforce through deliberate training, career and organizational development. This study seeks to investigate the role of HRD in employee performance using individual absorptive capacity as a moderator for selected firms in the Nigerian oil sector. It employed a cross-sectional survey research design. The population size comprised 1,274 employees of the selected firms and sample size of 274 employees. To generate data, a 5-point Likert scale questionnaire was used and analysis carried out using Stata version (13) software. The results revealed that HRD has a positive significant relationship with employee performance. Results also showed that individual absorptive capacity has a positive significant relationship with HRD and employee performance, implying that individual absorptive capacity moderates the relationship between the independent and dependent variables. In conclusion, HRD was found to play a significant role in employee performance in the selected companies in Nigeria. The study recommends that management should focus on improving their HRD practices such as training and development, career development, and organizational development in order to increase their individual absorptive capacity and ultimately boost employees’ performance. The study contributed to knowledge by revealing that individual absorptive capacity can determine the extent to which HRD practices affect employee performance of selected companies.

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