Associate Professor University of Minnesota University of Minnesota Minneapolis, Minnesota, United States
Abstract: Even though internal labor market (ILM) theory from economics suggests training as a critical dimension of ILM, little is known about how the labor market model affects training and development practices. This paper aims to reveal different applications of training in ILMs and identify specific training needs that arise in the context of ILMs. Adopting an integrative literature review approach, we found five distinctive applications of training in the context of ILMs, and three were exclusive to ILMs. We also suggested training needs that emerge in ILMs due to internal movements, including promotion and transfer. The changes in skill requirements resulting from such transitions accentuate the demand for training. Long-term employment was another significant factor that stimulated training needs by necessitating life-cycle-based support and skill retention in the face of various environmental shifts. Based on the findings, we highlighted how contextual differences caused by the labor market model can create meaningful disparities in training applications. We also offered a concrete comprehension of the training support needed in the ILM context, thus enabling the betterment of training and development practice and research. Finally, this paper contributes to the understanding of the economic foundations of HRD while advancing ILM theory and human capital theory.
