The Impact of On-the-Job Training on Employee Performance: Mediating and Moderating Mechanisms in Myanmar’s Manufacturing Sector

Employee skill development has become essential for organizations operating in dynamic, knowledge-based environments, particularly in developing countries, where on-the-job training (OJT) remains the most widely used training approach. Despite its prevalence, empirical research on how OJT enhances employee performance (EP) remains limited in Myanmar’s manufacturing sector. This study explores how on-the-job training (OJT) influences employee performance (EP) in manufacturing organizations in Myanmar, adopting theories of human capital, social exchange, transfer of training, and self-determination. Survey data were collected from 309 employees representing 248 manufacturing firms, and statistical analysis was conducted using SPSS 27 and Hayes’ PROCESS macro. The analysis results demonstrate that OJT has a significant positive impact on EP. Moreover, individual characteristics, including prior knowledge and skills, self-efficacy, motivation to learn, and motivation to transfer, serve as mediating variables, showing how OJT translates into performance improvement. In addition, the effects of OJT are further shaped by training characteristics, such as training design, delivery approach, needs assessment, and training evaluation practices. Hence, the findings of this study showed that effective OJT outcomes arise from alignment between well-prepared on-the-job training programs and employees’ psychological readiness to apply new skills. This study advances understanding of employee development in recent industrial landscapes. It offers actionable insights into designing more adaptive, reliable, and learner-oriented OJT programs in a manufacturing context, especially for developing countries such as Myanmar.