Organizational culture, employees' job satisfaction and turnover intention in the hotel industry in Hai Phong city

ORGANIZATIONAL CULTURE, EMPLOYEES’ JOB

SATISFACTION AND TURNOVER INTENTION IN THE HOTEL

INDUSTRY IN HAI PHONG CITY

A DISSERTATION PAPER

Presented to

School of Graduate Studies

Central Philippine University, Philippines

In Collaboration with

Thai Nguyen University, Vietnam

In Partial Fulfillment

Of the Requirements for the Degree

DOCTOR OF MANAGEMENT

PHAM DUONG KHANH

DECEMBER 2020

i

ACKNOWLEDGMENTS

It is hard to imagine how this dissertation could have been completed

without the encouragement and support from my academic supervisor, family and

friends.

Firstly, I wish to thank my academic supervisor, Dr. Tran Nhuan Kien. It is

my honor to receive his guidance, suggestions and feedbacks on each chapter with

great patience. Even with our distance, the academic discussion has not been

prevented. Both direct and indirect meetings between us have been really effective.

These have helped improve my expertise and insights, which finally has improved

the quality of this study.

Finally, I would like to thank my friends who have shared their research

experience, especially in collecting and analyzing the data. I also send my loyal

thanks to my peers in this PhD course who have brought to me many more

experiences in study, work and life as well. I really look forward to working with

them in the future.

ii

LỜI CẢM ƠN

Luận án của tôi đã được hoàn thành nhờ có sự động viên và sự hỗ trợ hướng

dẫn từ giáo viên hướng dẫn, gia đình và đồng nghiệp của tôi.

Lời đầu tiên, tôi xin gửi lời cảm ơn tới người hướng dẫn học tập của tôi là TS.

Trần Nhuận Kiên. Tôi rất vinh dự nhận được sự hướng dẫn, góp ý của Thầy trong

thời gian dài. Mặc dù không được tiếp xúc Thầy trực tiếp thường xuyên nhưng

thông qua các phương tiện truyền thông việc hỗ trợ trao đổi thông tin vẫn rất hiệu

quả. Những điều này đã giúp cải thiện kiến thức chuyên môn và hiểu biết của tôi,

cũng như đã cải thiện chất lượng của nghiên cứu này.

Cuối cùng, tôi xin cảm ơn những người đồng nghiệp đã chia sẻ kinh nghiệm

nghiên cứu của họ, đặc biệt là trong việc thu thập và phân tích dữ liệu. Tôi cũng gửi

lời cảm ơn chân thành đến các bạn cùng khóa với tôi trong khóa học Tiến sĩ này,

những người đã mang đến cho tôi nhiều kinh nghiệm hơn trong học tập, công việc

và cuộc sống. Tôi thực sự mong muốn được làm việc với họ trong tương lai.

iii

COMMITMENT

I assure you that the data and reseach findings in this disertation are honest

and have not been used for publication in any other reseach.

I would like to assure you that all helps for the implementation of the

disertation has been thanked and the information cited in the disertation is clearly

indicated.

Thai Nguyen, December 2020

Author of disertation

Pham Duong Khanh

iv

LỜI CAM ĐOAN

Tôi xin cam đoan: Số liệu và kết quả nghiên cứu trong luận án này là trung

thực và chưa được sử dụng để công bố cho bất kỳ nghiên cứu nào khác.

Tôi cam đoan rằng tất cả những trợ giúp cho việc thực hiện luận án đã được

cảm ơn và thông tin trích dẫn trong luận án đều được chỉ rõ nguồn gốc.

Thái Nguyên, tháng 12 năm 2020

Tác giả của luận án

Phạm Dương Khánh

v

TABLE OF CONTENT

ACKNOWLEDGMENTS ........................................................................................ i

LỜI CẢM ƠN........................................................................................................... ii

COMMITMENT..................................................................................................... iii

LỜI CAM ĐOAN .................................................................................................... iv

TABLE OF CONTENT............................................................................................v

TABLE OF TABLE............................................................................................... vii

LIST OF FIGURES ................................................................................................ ix

ABSTRACT...............................................................................................................x

CHAPTER I: THE PROBLEM AND ITS SETTING...........................................1

1.1. Background of the Study......................................................................................1

1.2. Objectives.............................................................................................................3

1.3. Hypotheses...........................................................................................................3

1.4. Theoretical Framework ........................................................................................5

1.5. Conceptual Framework ........................................................................................8

1.6. Operational Definitions......................................................................................10

1.7. Significance of the Study ...................................................................................12

1.8. Scope and Delimitation......................................................................................13

CHAPTER II: REVIEW OF RELATED LITERATURE AND STUDIES......15

2.1. Related Literature...............................................................................................15

2.1.1. Corporate Social Responsibility .....................................................................15

2.1.2. Job Satisfaction ...............................................................................................24

2.1.3. Turnover Intention ..........................................................................................28

2.1.4. Corporate Social Responsibility and Employee Job Satisfaction...................34

2.1.5. Influence of Corporate Social Responsibility on Employee Turnover

Intention............................................................................................................38

2.1.6. The effect of Personal Characteristics on Perception of Corporate Social

Responsibility ...................................................................................................42

2.2. Related Studies...................................................................................................43

vi

CHAPTER III: METHODOLOGY ......................................................................49

3.1. Research Design.................................................................................................49

3.2. Research Instruments.........................................................................................51

3.3. Population, Sample Size and Sampling Techniques..........................................53

3.4. Data Collection Procedures................................................................................54

3.5. Data Analysis .....................................................................................................54

3.6. Pretest.................................................................................................................55

3.7. Scale Purifications..............................................................................................57

3.7.1. Item Purification for Perceived Corporate Social Responsibility Scale ........57

3.7.2. Item Purification for Job Satisfaction Scale. ..................................................61

3.7.3. Item Purification for Turnover Intention Scale...............................................62

3.7.4. Scale Reliability ..............................................................................................64

CHAPTER IV: DATA PRESENTATION, ANALYSIS AND NTERPRETATION 65

4.1. Respondents‘ Profile .............................................................................................65

4.1.1. Introduction about Hai Phong City .....................................................................65

4.1.2. Sample Profile.................................................................................................68

4.2. Measurement Model...........................................................................................68

4.3. Hypothesis Testing.............................................................................................75

CHAPTER V: SUMMARY, CONCLUSIONS AND RECOMMENDATIONS..86

5.1. Summary ............................................................................................................86

5.2. Findings..............................................................................................................87

5.3. Conclusion..........................................................................................................89

5.4. Recommendations..............................................................................................90

5.4.1. Improve the hotels’ image by paying attention to employees’ families and

communities where employees live...................................................................91

5.4.2. Improve the hotel image by contributing more to Society ..............................92

5.4.3. Compliance with environmental regulations..................................................93

5.4.4. Pay attention to personal characteristics of employees .................................93

5.5. Suggestions for Future Research........................................................................94

REFERENCES........................................................................................................95

vii

TABLE OF TABLE

Table 1. 1. The Scale of Corporate Responsibility for Society ................................11

Table 1. 2. Corporate Responsibility for Environment Scale ...................................11

Table 1. 3. Employees‘ Job Satisfaction Scale .........................................................12

Table 1. 4. Turnover Intention Scale.........................................................................12

Table 3. 1. Factor Pattern and Reliability of Pretest .................................................56

Table 3. 2.The Descriptive Statistic Results of Corporate Social Responsibility

for Society Scale....................................................................................58

Table 3. 3. Item Purification for Corporate Social Responsibility to Society ..........59

Table 3. 4. The Descriptive Statistic Results of Corporate Social Responsibility

to Environment Scale ............................................................................60

Table 3. 5. Item Purification for Corporate Social Responsibility to Environment .61

Table 3. 6. The Descriptive Statistic Results of Job Satisfaction Scale....................61

Table 3. 7. Item Purification for Job Satisfaction Scale............................................62

Table 3. 8. The Descriptive Statistic Results of Turnover Intention Scale...............63

Table 3. 9. Item Purification for Turnover Intention Scale.......................................63

Table 3. 10. Scale Reliability ....................................................................................64

Table 4. 1. Distribution of Respondents as to Their Characteristics ........................68

Table 4. 2. Measurement Model Results for Corporate Social Responsibility for

Society Scale .........................................................................................70

Table 4. 3. Measurement Model Results for Corporate Social Responsibility for

Society Scale .........................................................................................70

Table 4. 4.Measurement Model Results for Corporate Social Responsibility for

Environment Scale.................................................................................71

Table 4. 5. Measurement Model Results for Corporate Social Responsibility for

Environment Scale.................................................................................72

Table 4. 6. Measurement Model Results for Satisfaction Scale ...............................72

Table 4. 7. Measurement Model Results for Turnover Intention Scale....................73

Table 4. 8. Measurement Model Results for Turnover Intention Scale....................73

viii

Table 4. 9. Measurement Model Results...................................................................74

Table 4. 10. Construct Correlation Matrix................................................................75

Table 4. 11. Mediation Analysis Results for Employee Satisfaction .......................79

Table 4. 12. Bootstrapping Results for Indirect Effect of Employee Satisfaction

with CSRS ...........................................................................................80

Table 4. 13. Mediation Analysis Results for Employee Satisfaction with CSRE ....82

Table 4. 14. ANOVA Analysis Results for Perception of Corporate Social

Responsibility toward Society.............................................................83

Table 4. 15. ANOVA Analysis results for Perception of Corporate Social

Responsibility toward Environment....................................................83

Table 4. 16. ANOVA Analysis results for Perception of Corporate Social

Responsibility toward Society in Term of Working Time Between

Group 1 year and Group from 1-3 years.............................................84

Table 4. 17. ANOVA Analysis results for Perception of Corporate Social

Responsibility toward Environment in Term of Working Time

Between Group 1 -3 years and Group above 3 years..........................84

ix

LIST OF FIGURES

Figure 1. 1.The Research Paradigm..........................................................................10

Figure 3. 1. Research Procedures..............................................................................50

Figure 4. 1. Structural Equation Modeling for Research Model...............................76

Figure 4.2. Direct and Mediation Effect ...................................................................78

x

ABSTRACT

CORPORATE SOCIAL RESPONSIBILITY, EMPLOYEES’ JOB

SATISFACTION, AND TURNOVER INTENTION IN HOTEL INDUSTRY

IN HAI PHONG CITY

PHAM DUONG KHANH

This study is to examine the influence of corporate social responsibility on

employee job satisfaction and employee turnover intention by clarifying the

mediating role of job satisfaction on relationship between corporate social

responsibility and turnover intention and is to propose some managerial

implications to help hotels in Hai Phong city to improve their performance, to

increase employees‘ job satisfaction, and reduce employee‘s turnover intention.

This study was conducted among respondents who are employees in hotels in

Hai Phong City, in Vietnam. Total 401 participants took part in this research.

Exploratory Factor Analysis (EFA) was used to identify the factors initial items.

The purification process was conducted to assure that all scales are convergent and

reliable. The confirmatory factor analysis was also conducted to check the

measurement model and showed that all constructs were discriminant and

convergent.

In this study, the effect of corporate social responsibility on employee job

satisfaction was tested. The results suggest that corporate social responsibility has a

significant influence on employee job satisfaction as it predicted overall job

satisfaction. The results imply that the hotels with social or environment concern

may achieve their employee‘s loyalty.

Hotels in Hai Phong City should pay attention to society and environment

to increase employee satisfaction and reduce turnover intention. Based on a strong

relationship between social corporate responsibility and employee satisfaction,

hotel managers/leaders should increase the activities with community. From the

good perception about hotel images, employees may commit to work for hotels for

long time.