Luận văn thạc sĩ UEH factors influencing organizational commitment and intention to stay of core

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business

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

Huỳnh Thiên Hải

FACTORS INFLUENCING

ORGANIZATIONAL COMMITMENT

AND INTENTION TO STAY OF

CORE EMPLOYEES IN

SMALL - MEDIUM SIZED COMPANIES

IN HOCHIMINH CITY

MASTER OF BUSINESS (Honours)

Ho Chi Minh City - Year 2012

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UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business

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

Huỳnh Thiên Hải

FACTORS INFLUENCING

ORGANIZATIONAL COMMITMENT

AND INTENTION TO STAY OF

CORE EMPLOYEES IN

SMALL - MEDIUM SIZED COMPANIES

IN HOCHIMINH CITY

ID: 60340102

MASTER OF BUSINESS (Honours)

SUPERVISOR

Dr. NGUYỄN THỊ NGUYỆT QUẾ

Ho Chi Minh City - 2012

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INDEX

ACKNOWLEDGEMENTS ...................................................................................................... 5

LIST OF FIGURES ................................................................................................................... 6

LIST OF TABLES ..................................................................................................................... 6

LIST OF APPENDIX ................................................................................................................ 7

ABSTRACT .............................................................................................................................. 9

1.1. Background to the research ........................................................................................... 10

1.1.1 The importance of small and medium sized companies ........................................ 10

1.1.2. The facts of labor force in SMEs and problem statement .................................... 10

1.2. Research objective ........................................................................................................ 12

1.3. Scope of the study ......................................................................................................... 12

1.4. Significances of the study: ............................................................................................ 12

1.5. Structure of the study .................................................................................................... 13

CHAPTER 2: LITERATURE REVIEW ................................................................................. 14

2.1. Chapter introduction ...................................................................................................... 14

2.2. Relative concepts and definition .................................................................................. 14

2.2.1.Small and medium companies ............................................................................... 14

2.2.2. Core employees .................................................................................................... 15

2.2.3. Core employee retention ....................................................................................... 15

2.3. Review of previous study .............................................................................................. 17

2.3.1. Organizational commitment ................................................................................. 18

2.3.2. Training ................................................................................................................. 19

2.3.3. Leadership ............................................................................................................. 19

2.3.4.Working environment ............................................................................................ 20

2.3.5. Remuneration and reward ..................................................................................... 21

2.3.6. Organizational culture and policies ...................................................................... 22

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3.3.7. Intention to stay .................................................................................................... 22

2.4. Proposal research hypotheses ........................................................................................ 23

2.5. Chapter conclusion ........................................................................................................ 24

CHAPTER 3: METHODOLOGY ........................................................................................... 25

3.1 Research process ............................................................................................................ 25

3.2. Questionnaire design ..................................................................................................... 26

3.2.1 Measure of variable ............................................................................................... 26

3.2.2. Draft questionnaire ............................................................................................... 30

3.3. Pilot study ...................................................................................................................... 30

3.4 Main survey .................................................................................................................... 31

3.4.1. Sample method ..................................................................................................... 31

3.4.2. Sample size ........................................................................................................... 31

3.5. Data analysis technique ................................................................................................. 32

3.5.1. Recoding data ....................................................................................................... 32

3.5.2. Testing of Reliability ............................................................................................ 32

3.5.3. Exploratory factor analysis (EFA) ........................................................................ 33

3.5. 4. Hypotheses testing: Multiple Regression Analysis ............................................. 33

3.7. Chapter conclusion ........................................................................................................ 34

CHAPTER 4: DATA ANALYSIS .......................................................................................... 35

4.1. Sample description and data clearance ......................................................................... 35

4.2. Demography Sampling .................................................................................................. 35

4.4. Testing of Reliability ..................................................................................................... 36

4. 5. Exploratory factor analysis (EFA) ............................................................................... 37

4.7. Chapter conclusion ........................................................................................................ 43

5.1. Finding and discussion .................................................................................................. 45

5.2. Limitation ...................................................................................................................... 46

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5.3. Suggestion for future Research ..................................................................................... 47

APPENDIX ............................................................................................................................. 55

APPENDIX 1.1: QUESTIONAIRE (English version) ........................................................ 55

APPENDIX 1.2: QUESTIONAIRE (Vietnamese version) ................................................. 59

APPENDIX 4.1 CODING ................................................................................................... 62

Appendix 4.2 Demography .................................................................................................. 65

Appendix 4.3: Testing of reliability variables ..................................................................... 65

Appendix 4.4 . EFA for all independent variables ............................................................... 67

Appendix 4.4 .1. EFA for all independent variables (The first time in 4 times) ............ 67

Appendix 4.4.2: EFA with all independent variable (the second time in 4 times) ........ 68

Appendix 4.4 .3. EFA for all independent variables (The third time in 4 times) ........... 70

Appendix 4.4 .4. EFA for all independent variables (The fourth time in 4 times) ......... 71

Appendix 4.5. Regression, model 1. Independent variables: Training, leadership,

remuneration and company policies; dependent variable: Commitment ............................. 73

Appendix 4.6. Regression, model 2. Independent variables: Organizational Commitment;

dependent variable: intention to stay .................................................................................... 76

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5

ACKNOWLEDGEMENTS

First at all, I would like to express my sincere gratitude to my supervisors, Dr.

Nguyen Thi Nguyet Que for her continuous support of my thesis.

I would like to take this opportunity to thank leaders, teachers and staffs in ISB who

help me usefully all the subjects of my master course.

My sincere thanks also goes to the friends and colleagues who participated in the

initial trial survey stages that led to the development of the final survey questionnaire and

their support over the time when I am busy to study.

I would like to thank my Mummy, my sisters, brothers and my special friend who is

my moral support in all my studying period.

Last at all, I would like to present the achievement to my Dad's soul who spent all the

life for my family

Ho Chi Minh City, December 28, 2012

Huynh Thien Hai

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6

LIST OF FIGURES

Name of configure Page

Figure 2.1 proposal research hypothesis 24

Figure 3.1 Research Design Process 26

Figure 4.1 Final model 44

LIST OF TABLES

Table name Page

Table 2.1. Classification of SMEs in Vietnam 16

Table 3.1. Measurement of training and career

development 27

Table 3.2. Measurement of leadership 27

Table 3.3. Measurement of working environment 28

Table 3.4. Measurement of remuneration and

rewards 29

Table 3.5. Measurement of company policies 29

Table 3.6. Measurement of organizational

commitment 30

Table 3.7. Measurement of intention to stay 30

Table 3.8: Cronbach’s alpha reliability coefficient

33

Table 4.1 Sample Demography 37

Table 4.2: Cronbach’s alpha reliability coefficient

of variable 37

Table 4.3: Pattern matrix in the last time (the fourth

time) of regression analysis 37

Table 4.4 Correlations model 1 40

Table 4.5 Model Summaryb

model 1 40

Table 4.6 ANOVA of model 1 41

Table 4.7. Coefficientsa

of medel 1 41

Table 4.8 Model Summaryb

model 2 43

Table 4.9. Coefficientsa

of model 2 43

Table 5.1. Questionnaire for organizational polices 46

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