Multinational Companies’ Approaches to Transfer of Skill Formation in Technical Vocational Education and Training; A Systematic Literature Review

In the complex global economic environment, multinational companies (MNCs) hold tremendous power, not only in driving economic growth but also in changing host nations’ skill formation systems and TVET landscapes. However, there is a gap in understanding the complex approaches MNCs use to practice the transfer of skill formation to these locations. This study investigates the strategies used by MNCs to transfer skills in TVET in their host countries, focusing on the impact of skill formation transfer on TVET program efficiency. Also identify the factors influencing the practice in their host countries. Three research questions guided the review. The study used a systematic literature review strategy following PRISMA guidelines. This study reveals a range of approaches used by MNCs, ranging from strategic collaborations, school-based collaboration, localization and integration of training programs, in-company training, apprenticeship empowerment, and transnational transfer of skill formation. The study also highlights the impact of local knowledge and skill formation, strategic industry-relevant skills workforce development, internal training provision, promoting apprenticeships, and encouraging multinational corporations to train in host countries. Factors influencing MNCs’ transfer of skill formation include inconsistencies between their skills development practices and national goals, subsidiary discretion in training policies, uneven institutional resources, stakeholder collaboration, political conditions, legislative frameworks, etc. This review enhances academic knowledge and provides practical insights for policymakers, educators, and business leaders, enabling them to develop updated approaches to skill development and workforce improvement worldwide.