Career Growth Opportunity on Turnover Intention: The Mediating Role of Organizational Commitment in Multinational Corporations

Joonghak Lee, Steven B Kim, Chungil Chae, Jaeeun Lee

Abstract


In accelerated globalization, multinational corporations (MNCs) continually seek opportunities to expand their businesses to foreign countries. For sustainable businesses in foreign countries, it is important to retain a large number of local employees which is challenging. Based on existing literature in international human resource management, we hypothesized that organizational commitment (OC) is a mediator in the relationship between perceived career growth opportunity (CGO) and turnover intention (TO) among local employees in MNCs. We analyzed a sample from five companies affiliated with a Korean MNC located in Vietnam. From the mediation analysis, it was evident that OC is a partial mediator between CGO and TO. In particular, CGO and OC were positively correlated, OC and TO were negatively correlated, and CGO and TO were still negatively correlated when OC was adjusted in the regression model. These findings provide a new insight in the field of international human resource in growing MNCs.


Full Text:

PDF

References


Alam, A., & Asim, M. (2019). Relationship between job satisfaction and turnover intention. International Journal of Human Resources Studies, 9(2), 163-194. https://doi.org/10.5296/ijhrs.v9i2.14618

Al-khrabsheh, A., Abo-Murad, M., & Bourini, I. (2018). Effect of organizational factors on employee turnover intention: An empirical study of academic professionals at Jordanian government universities. International Journal of Human Resource Studies, 8(2), 164-177. https://doi.org/10.5296/ijhrs.v8i2.12847

Allen, N. J., & Meyer, J. P. (1996). Affective, continuance, and normative commitment to the organization: An examination of construct validity. Journal of Vocational Behavior, 49, 252–276. https://doi.org/10.1006/jvbe.1996.0043

Arnold, H. J., & Feldman D. C. (1982). A multivariate analysis of the determinants of turnover. Journal of Applied Psychology, 67, 350-360. https://doi.org/10.1037/0021-9010.67.3.350

Arthur, M. B. (2008). The Hughes award—examining contemporary careers: A call for interdisciplinary inquiry. Human Relations, 61, 163-186. https://doi.org/10.1177/0018726707087783

Aselage, J., & Eisenberger, R. (2003). Perceived organizational support and psychological contracts: a theoretical integration. Journal of Organizational Behavior, 24, 491–509. https://doi.org/10.1002/job.211

Baron, R. M., & Kenny, D. A. (1986). The moderator–mediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations. Journal of Personality and Social Psychology, 51(6), 1173-1182. https://doi.org/10.1037/0022-3514.51.6.1173

Bedeian, A, Kemery, E., & Pizzolatto, A. (1991). Career commitment and expected utility of present job as predictors of turnover intentions and turnover behavior. Journal of Vocational Behavior, 39, 331–43. https://doi.org/10.1016/0001-8791(91)90042-K

Blau, P. (1964). Justice in social exchange. Sociological Inquiry, 34, 193-206. https://doi.org/10.1111/j.1475-682X.1964.tb00583.x

Bloom, M., & Michel, J. G. (2002). The relationships among organizational context, pay dispersion, and managerial turnover. Academy of Management Journal, 45, 33– 42. https://doi.org/10.2307/3069283

Carmeli, A. (2004). The link between organizational elements, perceived external prestige and performance. Corporate Reputation Review, 6, 314–331. https://doi.org/10.1057/palgrave.crr.1540002

Cavanaugh, M. A., & Noe, R. A. (1999). Antecedents and consequences of relational components of the new psychological contract. Journal of Organizational Behavior, 20, 323–340. https://doi.org/10.1002/(SICI)1099-1379(199905)20:3<323::AID-JOB901>3.0.CO;2-M

Chay Y. W., & Aryee, A. (1999). Potential moderating influences of career growth opportunities on careerist orientation and work attitudes. Journal of Organizational Behavior, 20, 613-623. https://doi.org/10.1002/(SICI)1099-1379(199909)20:5<613::AID-JOB979>3.0.CO;2-A

Chung, C., & Furusawa, M. (2015). The HRM of foreign MNCs operating in Europe. In M. Dickmann, C. Brewster, & P. Sparrow (Eds.), International Human Resource Management: Contemporary Issues in Europe (3ed.). London: Routledge.

Coff, R. W. (1997). Human assets and management dilemmas: Coping with hazards on the road to resource-based theory. Academy of Management Review, 22, 374-402. https://doi.org/10.5465/amr.1997.9707154063

Cohen, A. (1993). Organizational commitment and turnover: A meta-analysis. Academy of Management Journal, 36, 1140–1157. https://doi.org/10.5465/256650

Cohen, A. (2007). Commitment before and after: an evaluation and reconceptualization of organizational commitment. Human Resource Management Review, 17, 336–354. https://doi.org/10.1016/j.hrmr.2007.05.001

Crossley, C. D., Bennett, R. J., Jex, S. M., & Burnfield, J. L. (2007). Development of a global measure of job embeddedness and integration into a traditional model of voluntary turnover. Journal of Applied Psychology, 92, 1031–1042. https://doi.org/10.1037/0021-9010.92.4.1031

Davis-Blake, A., & Pfeffer, J. (1989). Just a mirage: The search for dispositional effects in organizational research. Academy of Management Review, 14, 385-400. https://doi.org/10.5465/amr.1989.4279071

DeConinck, J., & Bachmann, D. (2005). An analysis of turnover among retail buyers. Journal of Business Research, 58, 874-882. https://doi.org/10.1016/j.jbusres.2003.10.009

Dowling, P., & Welch, D. (2004). International Human Resource Management: Managing People in a global context (4th ed.). London: Thomson Learning.

Fayol-Song, L. (2001). The Reasons behind management localization: A Case Study of China. Journal of Asia Pacific Business Review, 17(4), 455-471. https://doi.org/10.1080/13602381.2010.546642

Fields, D. (2002). Taking the measure of work: a guide to validated scales for organizational research and diagnosis. Thousand Oaks: Sage. https://doi.org/10.4135/9781452231143

Granrose, C., & Baccili, P. A. (2006). Do psychological contracts include boundaryless or protean careers? Career Development International, 11(2), 163-182. https://doi.org/10.1108/13620430610651903

Griffeth, R. W., Hom, P. W., & Gaertner, S. (2000). A meta-analysis of antecedents and correlates of employee turnover: Update, moderator tests, and research implications for the next millennium. Journal of Management, 26, 463-488. https://doi.org/10.1177/014920630002600305

Hailey, J. (1993). Localisation and expatriation: the continuing role of expatriates in developing countries. Cranfield Achool of Management Working Paper Series, SWP 18/93.

Hair J. F., Hult, G. T. M., Ringle, C., & Sarstedt, M. (2014). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM). Thousand Oaks, CA: Sage Publications, Inc.

Harvey, M. G., & Buckley, M. R. (1997). Managing inpatriates: Building a global core competency. Journal of World Business, 32, 35-52. https://doi.org/10.1016/S1090-9516(97)90024-9

Harzing, A. W. (2001). An analysis of the functions of international transfer of managers in MNCs. Employee Relations, 23, 581-98. https://doi.org/10.1108/01425450110409248

Hayes, A. F. (2009). Beyond Baron and Kenny: Statistical mediation analysis in the new millennium. Communication Monographs, 76, 408–420. https://doi.org/10.1080/03637750903310360

Hayes, A. F. (2013). Methodology in the social sciences. Introduction to mediation, moderation, and conditional process analysis: A regression-based approach. Guilford Press, New York, NY.

Hertel, G, Geister, C, & Konradt, U. (2005). Managing virtual teams: a review of current empirical research. Human Resource Management Review, 15, 69-95. https://doi.org/10.1016/j.hrmr.2005.01.002

Hollenbeck, J. R., & Williams, C. R. (1986). Turnover functionality versus turnover frequency: A note on work attitudes and organizational effectiveness. Journal of Applied Psychology, 71, 606–611. https://doi.org/10.1037/0021-9010.71.4.606

Homans, G. (1974). Social Behavior. New York: Harcourt Brace Jonvanovich.

Huselid, M. (1995). The impact of human resource management practices on turnover, productivity, and corporate financial performance. Academy of Management Journal, 38, 635-672. https://doi.org/10.2307/256741

Ito, J. K., & Brotheridge, C. M. (2005). Does supporting employees’ career adaptability lead to commitment, turnover, or both.? Human Resource Management, 44, 5–19. https://doi.org/10.1002/hrm.20037

Joo, B. K., & Park, S. (2009). Career satisfaction, organizational commitment and turnover intention. Leadership and Organizational Development Journal, 31(6), 482-500. https://doi.org/10.1108/01437731011069999

Khatri, N., Fern, C. T., & Budhwar, P. (2001). Explaining employee turnover in an Asian context. Human Resource Management Journal, 11(1), 54-74. https://doi.org/10.1111/j.1748-8583.2001.tb00032.x

Kraimer, M. L., Seibert, S. E., Wayne, S. J., Liden, R. C., & Bravo, J. (2011) Antecedents and outcomes of organizational support for development: The critical role of career opportunities. Journal of Applied Psychology, 96(3), 485-500. https://doi.org/10.1037/a0021452

Lambert, E. G., Hogan, N. L., & Barton, S. M. (2001). The impact of job satisfaction on turnover intent: A test of a structural measurement model using a national sample of workers. Social Science Journal, 38, 233–250. https://doi.org/10.1016/S0362-3319(01)00110-0

Lee, C. H., & Bruvold, N. T. (2003). Creating value for employees: investment in employee development. International Journal of Human Resource Management, 14(6), 981-1000. https://doi.org/10.1080/0958519032000106173

Li, P. S. (2008). World migration in the age of globalization: Policy implications and challenges. Halifax, NS: Atlantic Metropolis Centre.

Maertz, C. P., & Campion, M. A. (2004). Profiles in quitting: Integrating process and content turnover theory. Academy of Management Journal, 47, 566–582. https://doi.org/10.2307/20159602

Masterson, S. S., Lewis, K., Goldman, B. M., & Taylor, M. S. (2000). Integrating justice and social exchange: The differing effects of fair procedures and treatment on work relationships. Academy of Management Journal, 43(4), 738-748. https://doi.org/10.2307/1556364

Mathieu, J. E. (1991). A cross-level nonrecursive model of the antecedents of organizational commitment and satisfaction. Journal of Applied Psychology, 76, 607-618. https://doi.org/10.1037/0021-9010.76.5.607

Mathieu, J. E., & Zajac, D. M. (1990). A review and meta-analysis of the antecedents, correlates, and consequences of organizational commitment. Psychological Bulletin, 108(2), 171-194. https://doi.org/10.1037/0033-2909.108.2.171

Mauer, T. J., & Tarulli, B. A. (1994). Investigation of perceived environment, perceived outcome, and person variables in relationship to voluntary development activity by employees. Journal of Applied Psychology, 79, 3–14. https://doi.org/10.1037/0021-9010.79.1.3

Meyer J. P., & Allen, N. J. (1997). Commitment in the workplace: Theory, research, and application. Thousand Oaks, CA: Sage.

Meyer, J. P., & Allen, N. J. (1984). Testing the “side-bet theory” of organizational commitment: Some methodological considerations. Journal of Applied Psychology, 69, 372–378. https://doi.org/10.1037/0021-9010.69.3.372

Meyer, J. P., & Allen, N. J. (1991). A three-component conceptualization of organizational commitment. Human Resource Management Review, 1(1), 61-89. https://doi.org/10.1016/1053-4822(91)90011-Z

Mobley, W. H. (1982). Some unanswered questions in turnover and withdrawal research. Academy of Management Review, 7(1), 111-116. https://doi.org/10.5465/amr.1982.4285493

Morrow, P. (1993). The theory and measurement of work commitment. Greenwich: Jay Press Ltd.

Mowday, R. T., Koberg, C. S., & McArthur, A. W. (1984). The psychology of the withdrawal process: A cross-validational test of Mobley's intermediate linkages model of turnover in two samples. Academy of Management Journal, 27, 79-94. https://doi.org/10.2307/255958

Nouri, H., & Parker, R. J. (2013). Career growth opportunities and employee turnover intentions in public accounting firms. The British Accounting Review, 45(2), 138-148. https://doi.org/10.1016/j.bar.2013.03.002

Oh, I. S., Kim, K., Darnold, T. C., Hwang, J. O., Yoo, T. Y., Park, Y. A., et al. (2007). Relationships among job satisfaction, organizational commitment, job performance, and turnover intention: A literature review and meta-analysis with Korean samples. Korean Journal Management, 15(4), 43-86.

Podsakoff, P. M., MacKenzie, S. B., Lee, J. Y., & Podsakoff, N. P. (2003). Common method biases in behavioral research: a critical review of the literature and recommended remedies. Journal of Applied Psychology, 88, 879–903. https://doi.org/10.1037/0021-9010.88.5.879

Porter, L. W., & Steers, R. M. (1973). Organizational, work, and personal factors in employee turnover and absenteeism. Psychological Bulletin, 80, 151–176. https://doi.org/10.1037/h0034829

Preacher, K. J., & Hayes, A. F. (2004). SPSS and SAS procedures for estimating indirect effects in simple mediation modes. Behavior Research Methods, Instruments, & Computers, 36, 717–731. https://doi.org/10.3758/BF03206553

Preacher, K. J., & Hayes, A. F. (2008). Asymptotic and resampling strategies for assessing and comparing indirect effects in multiple mediator models. Behavior Research Methods, 40, 879 – 891. https://doi.org/10.3758/BRM.40.3.879

Randall, D. (1990). The consequences of organizational commitment: methodological investigation. Journal of Organizational Behavior, 11, 361-378. https://doi.org/10.1002/job.4030110504

Reiche, B. S. (2008). The configuration of employee retention practices in multinational corporations foreign subsidiaries. International Business Review, 17(6), 676-687. https://doi.org/10.1016/j.ibusrev.2008.09.004

Reiche, S. (2007). The effect of International Staffing practices on subsidiary staff retention in multinational corporations. International Journal of Human Resource Management, 18(4), 523-536. https://doi.org/10.1080/09585190601178711

Reichers, A. E. (1985). A review and reconceptualization of organizational commitment. Academy of Management Review, 10, 465-476. https://doi.org/10.5465/amr.1985.4278960

Riketta, M. (2002). Attitudinal organizational commitment and job performance: A meta- analysis. Journal of Organizational Behavior, 23, 257–266. https://doi.org/10.1002/job.141

Rosenzweig, P. (2006). The dual logics behind international human resource management: pressures for global integration and local responsiveness. In G. Stahl & I. Björkman (Ed.), Handbook of Research in International Human Resource Management, Cheltenham: Edward Elgar.

Rupp, D. E., & Cropanzano, R. (2002). The mediating effects of social exchange relationships in predicting workplace outcomes from multifoci organizational justice. Organizational Behavior and Human Decision Processes, 89(1), 925-946. https://doi.org/10.1016/S0749-5978(02)00036-5

Shaw, J. D., Delery, J. E., Jenkins, G. D., & Gupta, N. (1998). An organization-level analysis of voluntary and involuntary turnover. Academy of Management Journal, 41, 511–525. https://doi.org/10.2307/256939

Simonsen, P. (1997). Promoting a development culture in your organization. Palo Alto, CA: Davies-Black.

Sinem, A., & Baris, A. (2011). The effect of transformational leadership behavior on organizational culture: An application in pharmaceutical industry. International Review of Management and Marketing, 1(3), 65-73.

Sturges, J., Guest, D., & Davey, K. M. (2000). Who’s in charge? Graduates’ attitudes to and experiences of career management and their relationship with organizational commitment. European Journal of Work and Organizational Psychology, 9(3), 351–370. https://doi.org/10.1080/135943200417966

Tett, R. P., & Meyer, J. P. (1993). Job satisfaction, organizational commitment, turnover intention, and turnover: Path analyses based on meta-analytic findings. Personnel Psychology, 46, 259–293. https://doi.org/10.1111/j.1744-6570.1993.tb00874.x

Toh, S. M., & DeNisi, A. S. (2003). Host country national reactions to expatriate pay policies: a model and implications. Academy of Management Review, 4, 606–621. https://doi.org/10.5465/amr.2003.10899387

UNCTAD. (2003). World Investment Report 2003: FDI policies for development: National and international perspectives. Geneva: UNCTAD.

Wright, P. M., & Kehoe, R. R. (2007). Human resource practices and organizational commitment: A deeper examination (CAHRS Working Paper #07-15). Ithaca, NY: Cornell University, School of Industrial and Labor Relations, Center for Advanced Human Resource Studies.

Zheng, C., & Lamond, D. (2009). A critical review of human resource management studies (1978–2007) in the People’s Republic of China. International Journal of Human Resource Management, 20(11), 2194–2227. https://doi.org/10.1080/09585190903239609




DOI: https://doi.org/10.5296/ijhrs.v9i4.15245

Copyright (c) 2019 Jaeeun Lee, Joonghak Lee, Steven B Kim, Chungil Chae

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

International Journal of Human Resource Studies  ISSN 2162-3058

Email: ijhrs@macrothink.org

Copyright © Macrothink Institute  

To make sure that you can receive messages from us, please add the 'macrothink.org' domain to your e-mail 'safe list'. If you do not receive e-mail in your 'inbox', check your 'bulk mail' or 'junk mail' folders.

------------------------------------------------------------------------------------------------------------------------------------------------------