The Role of Employees Education on Firm’s Performance

Firm performance can be defined with various criteria which learning is considered as one of them. However, learning can be analyzed at the individual level in addition to firm’s level, but with a closer look, learning by firms depends on the composition of employees which can be apart in terms of educational levels. This issue had examined on Non-metallic mineral products manufacturing industry by Feizpour et al., (2015). But, this article focuses on investigating the effect of higher education level on learning, using data in the textile manufacturing firms, as one of the main manufacturing industry in Iran as a developing country. With investigating two distributions, lognormal and Pareto, the results of this study have shown that a certain threshold of percentage of higher educated employees for affecting on firm’s learning is needed. In particular, firms with 20 to 30 percent of higher educated employees affects firm’s learning and follows Pareto distribution, but firms with more than 30 percent of higher educated employees follows Lognormal distribution. So, only after a critical mass of 20 percent higher educated employees, firms reached to a particular structure. In other words, the behavior of firms can be different based on the percentage of employees with higher education. Additionally, in comparison with Feizpour et al., (2015) which have determined a critical mass of 30 percent of higher education for affecting firm’s learning, this study has shown that the behavior of firms varies from industry by industry. From policy point of view, this finding indicates that soft business support, instead of hard business support, including employee’s education can be considered as one of the most important policy in the case of developing countries.

کلیدواژه ها:

Learning ، Education ، Textile Industry ، Iran