Bureau of Employment and Vocational Training in Taiwan implements Taiwan TrainQuali Scorecard (TTQS) to measure organizations’ training effectiveness since 2007. It is trying to link the individual training to organizational strategy. Conversely, knowledge-based view emphasizes the streams of new knowledge that are obtained, transferred, and integrated to enrich and change an organization’s knowledge stock. This research seeks to delineate Kang, Morris and Snell’s (2007) three dimensions (cognitive, social exchange and network structure) in value creation which, in turn, explain the knowledge flow in training system among employment modes. Two studies were included in this research; first, the case study approach is adopted to explore the knowledge flow and training effectiveness among employment modes. Further, the questionnaire survey is used to enforce the reliability and validity in the finding. In so doing, it would further increase the explanation of training effectiveness among different groups of employees on firm performance from network theory and social exchange theory.  
KEYWORDS: Training Effectiveness, Employment Modes, Knowledge-based View, Network Theory, Social Exchange Theory 

Competition in the hospitality industry has accelerated. It is not acceptable to only satisfy the customer. The key to customers’ loyalty and commitment are exceptional service and quick and precise recovery approaches when the problems occur. Meeting these new standards requires a workforce that is trained in all respects. It necessitates people who are capable of analyzing and solving job related problems and shifting from job to job as well. Training has increased in importance in this turbulent environment where jobs are complex and change.At the same time when customer demands are increasing, the hospitality work force is changing. Recently there has been a rapid increase in the use of external labor arrangements such as workers from temporary help services and limited-duration direct hires in industry. The growth of external labor arrangement use suggests the need for a theory to explain the sorts of jobs that should be externalized. Ettorre(1994) suggested that overuse of external labor arrangements might reduce an organization’s core competencies, and Pfeffer (1994) noted that the trend toward using temporary help, part-time employees and contract workers, particularly when such people are used in core activities. Nesheim’s (2003) survey shows empirical support for the use of external arrangements in core value-creating areas. Externalization of work is explained as a response to intensified competition. To strengthen an organization’s core competency, there is increasing demand for numerical flexibility as well as a strategy that fits easily with the mentioned situation (Kalleberg, 2001; Lepak & Snell, 1999).  
In particular, as business closures and unemployment levels rise amidst a protracted global economic downturn, a rise in â€�“externalâ€Â� forms of employment could be seen. â€�“External employmentâ€Â� refers to employing temporary or contract employees. Temporary work is usually part-time and casual, with the salary usually paid by the hour. Contract work is typically set up for a specified working period such as one year. Workers need to negotiate a contract extension to stay on longer; otherwise, they must leave the firm when the -