Training and development of employees increases the value and breadth of employee capabilities and knowledge, although this improvement, we suggest, cannot drive improved competitive performance in the absence of effective commercialisation of these capabilities. We propose and test a model of training and organisational performance, mediated by effective market engagement and transformation by firms. We find, as we anticipate, no direct link between training and performance, although there is a significant and positive path between training and performance when mediated through effective and contemporaneous market engagement.