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How Does Trust Climate Improve Performance And Reduce Employee Turnover Intention:A Cross-cultural Examination

Posted on:2019-02-15Degree:DoctorType:Dissertation
Country:ChinaCandidate:Muhammad RafiqFull Text:PDF
GTID:1369330566497849Subject:Business Administration
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Facing a new round of global industrial restructuring,it is vital for developing and less-developed yet populous regions to build a trusted,happy,engaged workforce to achieve competitiveness.Given this challenge,researchers are increasingly recognizing the need for promoting strong employee's wellbeing at the workplace.As working is an important part of most individual's lives,and,in turn,it exerts a great deal of influence on their wellbeing.Workplace situations differ greatly from general life situations;thus,the concept of employee's wellbeing must be clearly distinguished from general wellbeing.Explicitly,previous scholars most of the focus on work related wellbeing.In fact,previous literature on non-work related wellbeing specifically employee's life satisfaction completely ignored.Thus,in this study,we use both work and non-work related wellbeing.Although in developing countries the pillar of the national economy lifeline is traditional,labor-intensive industries,it is vital to gain a better understanding of the mechanisms between employee wellbeing and employee's job outcomes,in order to build a high-quality workforce.This study examined trust climate on employee job performance and turnover intention,and as well as whether the relationships between organizational trusted climate – job performance and turnover intention are mediated by employee's wellbeing(work engagement and life satisfaction).Additionally,this study integrates an indigenous cross-cultural perspective with the organizational embeddedness theory to delve into employees' job performance and wellbeing-turnover issues in large developing country ingrained predominantly with Confucius and Muslim cultural values.Also,this study examined whether the moderated mediating effect would be different across cultures.Traditionally,China and Pakistan have been considered collectivist behaviour,in comparison to US(predominantly individualistic).However,the important cultural differences(possibly subtle)in moderated mediating effects were explained based on cross-cultural culture perspectives.When comparing trust and its outcomes in organizations,even countries with comparable cultures and similar national values may find subtle but important differences.It will be illogical to assume that your own view of trust is always admirable.This form of nationalism is a common human condition and must be readjusted and re-evaluated when multiple cultures are present.Although companies have become accustomed to educating their management of the customs and language of foreign trade associates such education must be developed to embrace reliance anticipations.This acquaintance will lend a hand to trim down misinterpretations,help boost confidence and build trust in the workplace,across organizations and nations.We conducted a questionnaire survey on employees from the media sector in the China and Pakistan.The data was analyzed using moderated mediation models examination conducted in cross-cultural perspectives.For data analysis,we used multigroup confirmatory factor analysis(MCFA),multi-group structure equation modeling(MSEM)through bootstrap method,and moderated mediation approaches to test the hypotheses in AMOS and SPSS.Results suggest that all the predictors analyzed(trust climate,work engagement,life satisfaction,organizational embeddedness)were p-value significant positively related to job performance and negatively related to turnover intention.Furthermore,firstly,employee's wellbeing(work engagement and life satisfaction)mediates the relationships between trust climate — job performance and turnover intention.Specifically,this mediation(employee's wellbeing)effect is higher on Chinese media employee's job performance and for Pakistan media employee's this mediation effect is higher on their turnover intention.Secondly,the employee's wellbeing(work engagement and life satisfaction)on job performance and turnover intention mechanisms are moderated by organizational embeddedness.This moderation effect is also higher for Chinese media sector employee's job performance and Pakistan media employee's turnover intention.Finally,the findings of this study revealed that the moderated mediation(indirect effect)of trust on job performance and turnover intention via employee's wellbeing and organizational embeddedness is also higher for Chinese media employee's job performance and Pakistan media sector employee's turnover intention.The main contribution of this study is to develop a model that illustrates the importance of employee work/ non-work related well-being and organizational embeddedness on the relationships between trust climate — job performance and turnover intention,providing insightful implications in cross-cultural perspective.Specifically,unlike mature markets where employee's well-being and organizational embeddedness may not be directly link to work efficiency and quality due to a highlevel of automation.The applicability of the Western concepts to Eastern culture is also examined.Other managerial implications are also discussed.
Keywords/Search Tags:Trust climate, Work engagement, Life satisfaction, Organizational embeddedness, Job performance, Turnover intention
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