Luận văn thạc sĩ UEH key factors contributing to employee engagement, a study in ho chi minh city

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business

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

Le Thi Hoang Lan

KEY FACTORS CONTRIBUTING

TO EMPLOYEE ENGAGEMENT:

A study in Ho Chi Minh City Export

Processing Zones and Industrial Parks

MASTER OF BUSINESS (Honours)

Ho Chi Minh City – Year 2014

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UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business

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

Le Thi Hoang Lan

KEY FACTORS CONTRIBUTING

TO EMPLOYEE ENGAGEMENT:

A study in Ho Chi Minh City Export

Processing Zones and Industrial Parks

ID: 21110012

MASTER OF BUSINESS (Honours)

SUPERVISOR: Dr. CAO HAO THI

Ho Chi Minh City – Year 2014

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ACKNOWLEDGEMENT

Firstly, I would like to express my sincere gratefulness to my supervisor Dr. Cao Hao Thi for

his professional guidance, valuable support, intensive advice, continuous encouragement that

he gave me during the time doing this research.

Secondly, I would like to express my deepest gratitude to Professor Nguyen Dong Phong,

Professor Nguyen Dinh Tho, and Dr. Tran Ha Minh Quan for their valuable time as the

members of ISB Research Committee (IRC). All of their critical comments and suggestions

have contributed significantly for me to complete this research.

My truly thanks are also given to my ISB classmates as well as all people I know who

participated in filling the questionnaires and provided the valuable information for this study.

Last but not least, I would like to express my sincere thanks to all professors at ISB for their

teaching and guidance during my last two-year master course.

Le Thi Hoang Lan

February 2014.

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ii

ABSTRACT

This study attempts to examine key factors contributing to the engagement of employees,

who are working in export processing zones and industrial parks in Ho Chi Minh City. In

details, it examines the impact of the five factors (Supervisor support, Training, Rewards and

Recognition, Working environment, and Job characteristics) on employee engagement.

Based on this objective, a survey was delivered to target respondents and among five

independent factors, the study explored positive effect of the four independent variables on

employee engagement. They were Supervisor support, Training, Working environment, and

Job characteristics. Besides, the Multiple Linear Regression and ANOVA analysis identified

the research model of this study could explain 51% of the total variance in employee

engagement and ANOVA testing result also showed that there was significant difference in

terms of gender (between male and female) on the engagement of employees. The findings

also figured out supervisor support factor seemingly play a crucial role on the engagement of

employees.

As a result, in order to achieve high employee engagement, companies in export processing

zones and industrial parks in Ho Chi Minh City might need of paying more attention on

nurturing the relationship between employees and their supervisors, providing better training

programs, working environment, and job design. Practical and managerial implications are

also further discussed in this study.

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iii

TABLE OF CONTENTS

ACKNOWLEDGEMENT..........................................................................................................i

ABSTRACT...............................................................................................................................ii

TABLE OF CONTENTS..........................................................................................................iii

LIST OF FIGURES ...................................................................................................................v

LIST OF TABLES....................................................................................................................vi

LIST OF ABBREVIATIONS..................................................................................................vii

CHAPTER 1: INTRODUCTION..............................................................................................1

1.1. Research background......................................................................................................1

1.2. Research problem............................................................................................................2

1.3. Research objectives.........................................................................................................3

1.4. Research scope and research methodology.....................................................................4

1.5. Research contribution .....................................................................................................4

1.6. Research structure...........................................................................................................4

CHAPTER 2: LITERATURE REVIEW...................................................................................6

2.1. Employee engagement....................................................................................................6

2.2. Key factors contributing to employee engagement ........................................................8

2.2.1. Supervisor support ..................................................................................................8

2.2.2. Training...................................................................................................................9

2.2.3. Rewards and recognition.........................................................................................9

2.2.4. Working environment ...........................................................................................10

2.2.5. Job characteristics.................................................................................................10

2.3. The research model.......................................................................................................12

CHAPTER 3: RESEARCH METHODOLOGY .....................................................................13

3.1. Research process...........................................................................................................13

3.2. Measurement scale........................................................................................................14

3.3. Data collection methods................................................................................................16

3.3.1. Preliminarily qualitative research (In-dept interview)..........................................16

3.3.2. Quantitative research ............................................................................................16

3.3.3. Main survey ..........................................................................................................17

3.4. Sampling design............................................................................................................17

3.4.1. Population .............................................................................................................17

3.4.2. Sample size ...........................................................................................................18

3.4.3. Sampling technique...............................................................................................18

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iv

3.5. Data analysis methods...................................................................................................19

3.5.1. Statistical Method .................................................................................................19

3.5.2. Descriptive Statistic ..............................................................................................19

3.5.3. Reliability analysis................................................................................................19

3.5.4. Exploratory factor analysis...................................................................................19

3.5.5. Multiple regression analysis .................................................................................20

CHAPTER 4: RESULTS AND DISCUSSIONS ....................................................................21

4.1. Sample descriptive statistics.........................................................................................21

4.2. Assessing the reliability of measurement scale ............................................................23

4.3. Assessing the validity of measurement scale................................................................25

4.4. Multiple Linear Regression...........................................................................................28

4.4.1. Test of assumptions...............................................................................................28

4.4.2. Correlation analysis ..............................................................................................29

4.4.3. Regression analysis...............................................................................................30

4.4.4. Hypotheses testing ................................................................................................31

4.6. Discussing the research results .....................................................................................34

CHAPTER 5: CONCLUSIONS AND IMPLICATIONS .......................................................37

5.1. Summary of findings.....................................................................................................37

5.2. Managerial implications................................................................................................38

5.2.1. Supervisor support ................................................................................................38

5.2.2. Job characteristics.................................................................................................38

5.2.3. Working environment and Training......................................................................38

5.3. Limitations and future research direction .....................................................................39

References................................................................................................................................41

APPENDICES .........................................................................................................................45

Appendix A: A back-tranlated version of questionnaire .........................................................45

Appendix B: Vietnamese-version questionnaire .....................................................................47

Appendix C: English-version questionnaire ............................................................................50

Appendix D: Comments from in-dept interview .....................................................................53

Appendix E: Rejected item(s) in Pilot test...............................................................................58

Appendix F: Determinant, KMO and Bartett’s Test, Sree Plot, Total Variance Explained ....59

Appendix G: Testing assumptions of mutilple linear regression.............................................61

Appendix H: Testing of moderating effects – Demographics (Gender/Age)..........................66

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v

LIST OF FIGURES

Figure 2.1. The proposed research model................................................................................12

Figure 3.1. Research process ...................................................................................................14

Figure 4.1. The final research model .......................................................................................34

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