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The relatively low emphasis on training is often attributed to concerns about the uncertain return on investment in training initiatives. However, there has been limited research conducted to understand the critical success factors for training effectiveness in these enterprises. The current research aims to address this gap by examining the role of training transfer factors in enhancing training effectiveness within micro, small and medium enterprises (MSMEs) in India. Influenced by the Learning Transfer System framework proposed by Holton et al. (2007), this study aims to focus on investigating the impact of performance coaching, human resource development (HRD) climate and employee agility on training transfer in MSMEs.

Data has been collected from 411 respondents working in MSMEs of India through validated survey instruments. MSMEs have been chosen owing to the increasing contribution of the sector to the Indian gross domestic product and the lack of sufficient management research in the sector. The statistical software SPSS-AMOS has been used to create structural equational modeling for testing the hypotheses.

The result shows that performance coaching is the most impactful factor for training transfer, followed by HRD climate and employee agility.

The result suggests MSME practitioners activate a positive coaching environment in the organization by following the best practices in performance coaching. Further, the research suggests practitioners to realize the significance of HRD climate and employee agility. Appropriate management practices have been suggested to groom and develop HRD climate and employee agility for higher training transfer.

To the best of the authors’ knowledge, the research is first of its kind to study the impact of performance coaching, employee agility and HRD climate on training transfer in MSMEs.