INTRODUCTION
Research background
Human resource management is essential for modern businesses due to its significant influence on organizational success and talent retention It serves as an empathy factor, where employee attitudes directly affect customer satisfaction and perception, ultimately fostering higher customer loyalty and commitment Consequently, human resources are vital in enhancing service quality and ensuring customer satisfaction.
Job performance is crucial for the success of organizations, particularly in the banking sector Employee motivation significantly impacts their regular attendance, diligence, and flexibility in completing tasks When employees are dissatisfied with their jobs, their performance declines, leading to lower contributions Therefore, enhancing employee motivation is essential to improve job performance in the banking industry.
Numerous studies indicate that job performance is influenced by various factors, particularly the quality of work life and organizational commitment Research, including that conducted by Nguyen and others, explores the significant effects of these elements on employee performance across diverse contexts.
Nguyen(2012),Sirgy, Efraty, Siegel and Dong(2001),Fu and Deshpande (2014).
Accordingly, Mohan and Kanta (2013) showed that quality of work life influences on efficiency and productivity of company Moreover, creating quality of work life will
A high quality of work life is essential for attracting and retaining top talent, as demonstrated by May, Lau, and Johnson (1999), who found that organizations with superior work environments have a competitive edge in hiring and retaining skilled employees Additionally, organizational commitment, defined as the psychological attachment employees feel towards their workplace, plays a crucial role in fostering longer tenure (Murthy, 2013; Lamba & Choudhary, 2013) By enhancing both work life quality and commitment, organizations can create a more dedicated and satisfied workforce.
Research Problems
The banking and finance industries have been integral to the modern economy for centuries, and with the recent advancements in the Vietnamese banking system, the demand for skilled workforce has surged However, banks face significant challenges regarding workforce competency As a result, there is a strong emphasis on developing high-quality employees Job performance is a crucial criterion for assessing employee outcomes and success (Campbell et al., 1993) Thus, it is essential for bank managers to explore the factors that influence employee job performance within the Vietnamese banking sector.
This research focuses on explaining job performance by examing the effects oftwo factors which are quality of work life and organizational commitment on job performance.
Work plays a crucial role in our lives, consuming one-third of our daily time and significantly influencing our personal well-being The quality of work life is essential for enhancing individual life quality, yet while many studies in North America emphasize this aspect, it remains underexplored in Asia (Chan, 2007) In Vietnam, existing research on quality of work life and job performance has primarily focused on the marketing sector (Nguyen & Nguyen, 2010; Nguyen & Nguyen, 2012) Therefore, it is vital to investigate the relationship between quality of work life and job performance specifically within the Vietnamese banking sector.
The transition of skilled employees from the banking sector to more lucrative industries poses a significant challenge for banks, especially during tough economic times Retaining experienced and committed staff is crucial, as they play a vital role in navigating difficulties and enhancing customer service According to Harter, Schmidt, and Hayes (2002), employee commitment is essential for achieving meaningful business outcomes, and in today’s competitive landscape, a dedicated workforce is vital for organizational survival Consequently, it is important to investigate the influence of organizational commitment on job performance within the Vietnamese banking sector.
Research Objectives
The objective of this study is to examine the impact of quality of work life and organizational commitment on job performance among employees in the Vietnamese banking sector.
More specifically, three research questions are given as follows:
Question 1: Doesquality of work life affect job performance of employees in the Vietnamese banking sector?
Question 2: Does organizational commitment affect job performance of employees in the Vietnamese banking sector?
Question 3: Doesquality of work life affect organizational commitment of employees in the Vietnamese banking sector?
Scopes of the study
This study focuses on bank employees in Ho Chi Minh City, a prominent economic hub in Vietnam.
This research focuses specifically on the relationship between organizational commitment, quality of working life, and job performance, while excluding other factors that may also influence job performance.
The significane of the study
This research contributes to the understanding of quality of work life and organizational commitment, and their impact on job performance within the context of
Vietnamese business organizations in generally and within Vietnamese banking sector in particularly.
The findings highlight a crucial opportunity for managers to recognize that enhancing employees' quality of work life can positively influence their job performance and commitment to the organization Therefore, it is essential for business leaders to develop effective work requirements and policies aimed at improving employees' quality of work life, ultimately fostering greater organizational commitment and job performance.
Structure of the study
The structure of the study consists five chapters:
This chapter presents research background of the study, as well as, research problems, research objectives, research methodology and scopes.
Chapter 2: Literature Review, Hypotheses, and Research model
This chapter offers a comprehensive literature review, focusing on two key concepts: quality of work life and organizational commitment It also introduces the conceptual model and outlines the study's hypotheses, providing a foundational understanding for the research.
Research process, measurement scales, questionnaire design, data collection method, sampling design, and data analysis method are presented more details in this chapter.
The survey data has been thoroughly analyzed to construct the final model of the study Based on the analysis results, the relationships among the identified factors in the study model will be examined.
Chapter 5: Conclusions, Implication, and Limitation
The conclusions of the study summarize the key findings and propose managerial implementations derived from the results discussed in earlier chapters Additionally, the researcher highlights limitations that may affect these findings and suggests directions for future research.
LITERATURE REVIEW AND HYPOTHESIS DEVELOPMENT
Theoretical foundations
According to Sirgy et al (2001), the quality of work life literature encompasses two primary theoretical approaches: need satisfaction and spillover The need satisfaction approach, rooted in models developed by Maslow, Frager, and Cox (1970), posits that individuals have fundamental needs that can be fulfilled through their jobs Employee satisfaction is contingent upon how well their jobs meet these needs Porter (1961) further advanced this concept by creating a quality of work life measure that evaluates need satisfaction within organizations, aligned with Maslow's Hierarchy of Needs He emphasized that this measure aims to assess employees' need levels in relation to their jobs, the availability of organizational resources that influence employee experiences, and the alignment between individual needs and organizational resources, ultimately reflecting the fulfillment of organizational needs.
Maslow’s hierarchy were covered by the Porter (1961) measure, namely survival needs, social needs, ego needs, and self-actualization needs.
The spillover approach to quality of work life suggests that satisfaction in one area, such as a job, can significantly impact satisfaction in other life domains, including family, leisure, social interactions, health, and finances (Sirgy et al., 2001) This interconnectedness highlights the importance of fostering positive experiences at work to enhance overall life satisfaction.
Organizational commitment refers to an employee's attachment and loyalty to their workplace This article examines the key theories of organizational commitment that have evolved from the 1960s to the present day.
The side-bet theory, introduced by Becker in 1960, describes the accumulation of personal investments—such as time, effort, or money—that an employee risks losing if they leave their organization Meyer and Allen (1990) emphasized that these investments can significantly devalue for the employee, creating a barrier to job change Becker argued that over time, these accrued costs make it increasingly challenging for individuals to switch jobs, as they may hesitate due to potential financial losses, such as forfeiting pension benefits, and the loss of seniority and relationships within their current company.
Becker (1960) proposed a strong link between organizational commitment and employees' voluntary turnover behavior, suggesting that commitment should be assessed by identifying the factors that might lead an individual to leave their organization His framework and the associated scales have been widely adopted in subsequent research to conceptualize and analyze commitment to both the organization and the occupation.
Meyer and Allen's Scale (1991) highlights the impact of the side-bet approach, specifically known as continuance commitment This scale serves as a valuable tool for effectively assessing the side-bet approach and represents one of the three key dimensions of organizational commitment identified by Meyer and Allen.
Meyer and Allen (1984) critiqued the operationalization of the side-bet approach, asserting that Becker's (1960) scales do not accurately measure side-bets but rather attitudinal commitment They suggested that a more effective way to gauge side-bets is through direct assessments of individuals' perceptions of the number and magnitude of their side-bets To validate this idea, they examined the relationships among various commitment scales, including their own developed measures of Affective and Continuance commitment Meyer and Allen posited that the Continuance commitment dimension better reflects Becker's side-bet approach, as it evaluates employees' commitment to their organizations based on the perceived costs of leaving.
A few years later, a third dimension was added, the normative commitment (Allen
Normative commitment refers to the sense of obligation employees feel to stay with their organization Those with strong normative commitment believe they should remain in their roles, influenced primarily by socialization and cultural factors experienced before joining the company.
Overview on job performance, quality of work life and organizational commitment
Borman and Motowidlo (1993) define job performance as the work-related behaviors that can be quantified based on an individual's contribution to achieving organizational goals, ultimately assessing how effectively a person performs their job.
Job performance is a crucial activity that embodies the goals and means necessary for achievement, reflecting both specialist efficiency and an organization’s expected outcomes It represents the effort employees exert to meet specific objectives, with actual results serving as an objective measure of a company's success.
Job performance is defined as the extent to which an employee's behaviors contribute to organizational goals (Daniel & Harris, 2000) It reflects an employee's ability to effectively complete assigned tasks within the organizational context (Arverty & Murphy, 1998).
Briefly, job performance indicates the effectiveness of employee’s specific actions that contribute to attain organizational goals.
Ever since the concept of quality of work life (QWL) was first used over 30 years ago there are some different definitions of QWL (Martel &Dupuis, 2006) Feldman
Quality of Work Life (QWL) refers to the quality of the relationship between employees and their overall working environment, as defined by (1993) Since the 1960s, QWL has emphasized the importance of prioritizing employees' health and well-being, ensuring they feel satisfied and fulfilled in their work experiences (Bowditch & Buono, 2005).
Kashani (2012) highlights that many organizations are increasingly focusing on assessing the quality of work life for their employees by involving them in the evaluation process This engagement allows employees to share valuable insights on enhancing human resource management and related policies, ultimately leading to improved work quality Additionally, it emphasizes the impact of the working environment on employee participation in problem-solving and the importance of a rewards system to motivate staff effectively.
Quality of work life, as defined by Mohan and Kanta (2013), refers to the provision of supportive working conditions that enable employees to perform at their best A motivating workplace fosters a positive attitude among staff towards both their jobs and the organization.
Quality of work life refers to the overall well-being of employees, encompassing their satisfaction with diverse needs met through various resources, activities, and outcomes derived from their involvement in the workplace (Sirgy et al., 2001).
The concept of quality of life, as explored by Sirgy et al (2001), is rooted in the need theories of Maslow, Frager, and Cox (1970) along with spillover theories Porter (1961) identified four primary need categories—survival needs, social needs, ego needs, and self-actualization needs—encompassing seven specific needs aligned with Maslow's hierarchy.
The concept of quality of work life has evolved to encompass seven essential needs: health and safety, economic and family stability, social connections, esteem, self-actualization, knowledge acquisition, and aesthetic appreciation (Nguyen & Nguyen, 2010).
In a recent study by Nguyen and Nguyen (2010), the authors introduced the term "Survival needs" to encompass the fulfillment of health, safety, economic, and family requirements They defined "Belonging needs" to address the satisfaction of social and esteem needs, while "Knowledge needs" was used to represent the fulfillment of actualization, knowledge, and aesthetic needs These three concepts—survival needs, belonging needs, and knowledge needs—highlight the different dimensions of human requirements.
“knowledge needs” are accepted by several researchers including Nguyen and Nguyen
The quality of working life significantly influences employee satisfaction, which in turn positively affects job performance Employee satisfaction is closely linked to how well their jobs meet their fundamental human needs.
In the Vietnamese market, Nguyen and Nguyen (2012) defined the quality of work life as the satisfaction of marketers with various human needs in the workplace These needs encompass health and safety, economic and family, social, esteem, actualization, knowledge, and aesthetic needs Their study identified three key variables that significantly explain human demands in the workplace: survival needs, belonging needs, and knowledge needs.
In short, quality of work life also refers to the satisfaction of employees with survival needs, belonging needs, and knowledge needs based on the definition of
Organizational commitment is defined as the strength of an individual's identification with and involvement in a specific organization (Mowday, Steers, and Porter, 1979) O'Reilly and Chatman (1986) later expanded on this definition, emphasizing its importance in the workplace.
“individual's psychological attachment to an organization - the psychological bond linking the individual and the organization.”
Meyer and Allen's (1991) definition of organizational commitment is widely recognized, describing it as a psychological state that reflects an employee's relationship with their organization, influencing their decision to remain a member They introduced a three-component model of commitment, which includes affective, continuance, and normative commitment Employees with high organizational commitment tend to exhibit greater adaptability, job satisfaction, productivity, accountability, and loyalty, ultimately proving to be more cost-effective for the organization.
Affective commitment is the emotional bond an employee feels toward their organization, characterized by their identification with its goals and active involvement in its mission This emotional attachment influences how employees manage their tasks and engage socially, aligning their actions with the organization's values and objectives (Lee, Allen, Meyer & Rhee, 2001).
Hypothesis development
2.3.1 Quality of work life and job performance
Quality of work life and job performance both are organizationally based (Beh
A study conducted by Beh and Rose (2007) examined the relationship between quality of work life and job performance among 475 managers in the Malaysian manufacturing industry The findings revealed a positive correlation, indicating that higher quality of work life is associated with improved job performance.
In the paper ofKorunka, Christian, Peter Hoonakker, and Pascale Carayon
(2008),Regoand Cunha(2008), quality of work life has a positive impact on employee’s productivity, loyalty and performance In Vietnamese market, Nguyen and Nguyen
In 2010, research identified key factors influencing human demands in the workplace, such as survival needs, belonging needs, and knowledge needs However, this study did not address the connection between quality of work life and job performance specifically within the Vietnamese banking sector Therefore, this study hypothesizes a positive relationship between quality of work life and job performance.
H1: Quality of work lifeimpacts positively on job performance among employees in the Vietnamese banking sector.
2.3.2 Organizational commitment and job performance
Research indicates a strong connection between organizational commitment and job performance Jaramillo, Mulki, and Solomon (2005) found that organizational commitment significantly predicts job performance Similarly, Khan, Ziauddin, Jam, and Ramay (2010) explored this relationship within Pakistan's oil and gas sector, revealing a positive correlation between organizational commitment and employee performance Notably, their comparative analysis highlighted that normative commitment is particularly associated with enhanced job performance among employees.
The Vietnamese banking sector has experienced significant growth, with numerous international banks establishing branches and various mergers taking place This research focuses on the commitment levels and performance of bank employees in their roles By examining these factors, we aim to identify key aspects that enhance employee performance and foster greater organizational commitment.
A study conducted by Memari, Mahdieh, and Marnani (2013) revealed a positive relationship between organizational commitment and employees' job performance at Meli Bank in Iran The research identified three dimensions of organizational commitment—affective, continuance, and normative commitment—demonstrating several positive correlations with job performance among employees.
Observation on previous studies (Fu & Deshpande, 2014) showed that organizational commitment had a significant direct impact on job performance
Therefore, the second hypothesis is proposed as follows:
H2: Organizational commitment impacts positively on job performance among employees in the Vietnamese banking sector.
2.3.3 Quality of work life and organizational commitment
Research by Gupta (2013) indicates that employees who experience a favorable quality of work life demonstrate higher levels of commitment and are more likely to maintain long-term relationships with their organizations Additionally, a positive quality of work life correlates with increased organizational commitment Supporting this, Fattahi et al (2014) provide further evidence of the beneficial relationship between quality of work life and organizational commitment.
Research by Normala (2010) revealed a significant relationship between quality of work life and organizational commitment among employees in Malaysian firms Supporting this, Birjandi, Birjandi, and Ataei (2013) identified a positive correlation between quality of work life components and employee commitment Additionally, Farid (2015) confirmed a strong relationship, indicating that higher quality of work life in bank employees correlates with increased organizational commitment Furthermore, Sirgy et al (2001) emphasized that quality of work life positively influences organizational commitment.
In the Vietnamese banking sector, a strong organizational commitment among employees correlates with increased attachment to various aspects of their work This relationship suggests that fostering employee commitment may enhance their overall engagement and dedication to their roles.
H3: Quality of work life impacts positively onorganizational commitment among employees in the Vietnamese banking sector
Research model
A proposed model illustrates how the quality of work life and organizational commitment influence employee job performance within the Vietnamese banking sector.
Belonging needs Quality of work life
Figure 2.1 Conceptual framework of the study
H1: Quality of work life impacts positively on job performance among employees in the Vietnamese banking sector.
H2: Organizational commitment impacts positively on job performance among employees in the Vietnamese banking sector.
H3: Quality of work life impacts positively onorganizational commitment among employees in the Vietnamese banking sector
RESEARCH METHODOLOGY
Research process
This thesis explores how the quality of work life and organizational commitment influence employee job performance within the Vietnamese banking sector The research methodology includes a comprehensive literature review, a structured research design, qualitative methods, a main survey, and detailed data analysis, all of which are outlined in the subsequent process.
Literate Review Formulating Research Problem
Development of hypothesis, Research question
Research Design Questionnaire design, measurement scale
Data Analysis Reliability analysis Exploratory Factor Analysis Hypothesis Testing Model SEM analysis
Research design
The questionnaire consists of eight sections: personal information, survival needs, belonging needs, knowledge needs, affective commitment, continuance commitment, normative commitment, and job performance It employs a 5-point Likert scale to assess employees' attitudes regarding the influence of quality of work life and organizational commitment on their job performance Respondents rate their agreement on a scale from 1 to 5, where 1 indicates "strongly disagree" and 5 signifies "strongly agree." Initially drafted in English, the questionnaire has been translated for broader accessibility.
The questionnaire was translated into Vietnamese by an academic fluent in both languages to ensure comprehension among banking officers in Vietnam, as English is not universally understood Prior to its launch, the questionnaire underwent pre-testing through face-to-face interviews with five experienced banking professionals to confirm clarity and appropriateness of the scale This process aimed to refine the measurement scale for better applicability in the Vietnamese context, leading to the release of the final version for the main survey.
3.2.2 Measurement scale Quality of work life
The questionnaire of quality of work life is mentioned into three dimensions: survival needs, belonging needs, and knowledge needs.
To measure these items, the study adapts the measurement given by Nguyen and Nguyen (2012) who suggest several questions The questions are as follows:
Construct Coding of variables Item
QS1 My job provides good health benefitsQS2 I am satisfied with what I’m getting paid for my workQS3 My job does well for my family
QB1 I have good friends at work
QB2 I have enough time away from work to enjoy other things in life QB3 I feel appreciated at work
QK1 I feel that my job allows me to realize my full potential QK2 My job allows me to sharpen my professional skills
QK3 My job helps me develop my creativity
The questionnaire of organizational commitment is mentioned into three dimensions: affective commitment, continuance commitment, and normative
To measure the affective commitment, the study adapted the measurement given
Fu and Deshpande (2014) who suggest several questions The questions are as follows:
Construct Coding of variables Item
AC1 I would be very happy to spend the rest of my career with this organization AC2 I really feel as if this organization’s problems are my own
AC3 I feel a strong sense of belonging to my organization;
AC4 I feel like ‘‘part of the family’’ at my organization AC5 I feel ‘‘emotionally attached’’ to this organization
AC6 This organization has a great deal of personal meaning for me
CC1 It would be very hard for me to leave my organization right now, even if I wanted to;
CC2 Too much in my life would be disrupted if I decided I wanted to leave my organization now;
CC3 Right now, staying with my organization is a matter of necessity as much as desire CC4 I feel that I have too few options to consider leaving this organization
CC5 One of the few serious consequences of leaving this organization would be the scarcity of available alternatives
CC6 If I had not put so much of myself into this organization, I might consider working elsewhere
NC1 I would feel guilty if I left the organization now
NC2 I do not feel any obligation to stay with my current employer
NC3 Even if it were to my advantage, I do not feel it would be right to leave my organization NC4 This organization deserves my loyalty;
NC5 I would not leave my organization right now because I have a sense of obligation to the people in it;
NC6 I owe a great deal to my organization.
This study revised two questions in two variables in to negative questions to avoid bias The questions were revised as below:
Construct Coding of variables Item
AC4 I do not feel like organization
‘‘part of the family’’ at my
AC5 I do not organization feel ‘‘emotionally attached’’ to this
To measure job performance, this study use the four items Nguyen and Nguyen
(2012) Four questions are designed as below:
Construct Coding of variables Item
I consider myself an effective employee, consistently delivering high-quality work that meets expectations My manager recognizes my efficiency, while my colleagues acknowledge my productivity in contributing to team goals.
Qualitative method
The researcher conducted in-depth interviews with five employees to assess their understanding of the questionnaires and evaluate the appropriateness of the scale for research in Vietnam Additionally, the author sought suggestions from the interviewees to enhance the questionnaires All feedback was collected to refine the questionnaires, resulting in slight modifications based on the respondents' insights to improve clarity and comprehension (See Appendix E).
Main survey
To ensure reliable statistical analysis, the minimum sample size should be at least five times the number of independent variables, as outlined by Hair et al (2009) In this research, with 31 independent variables, the required sample size is calculated to be n = 5 x 31 = 155.
According to Tabachnick (1996), the minimum sample size for multiple regression analysis should be calculated using the formula n > 50 + 8m, where m represents the number of independent variables For this research, with six independent variables, the required sample size is at least 98 To enhance reliability and validity, the initial target sample size was set at approximately 200 employees from the banking sector.
A total of 300 questionnaires were distributed to bank employees in Ho Chi Minh City using a mail survey method to minimize varied interpretations of the questions The mail and online surveys were selected for their cost-effectiveness, ability to reach a large audience quickly, and the convenience they offer respondents in terms of time and privacy (Mangione, 1995) Out of the 270 participants who completed the questionnaires, 259 were deemed valid for analysis, while 11 were excluded due to incomplete responses or inconsistent answers.
Upon completing data collection, the analysis phase begins, involving a thorough review of all accepted questionnaires for validity It is essential to implement reverse scoring for negatively-keyed items prior to calculating individual total scores and conducting further analyses The study utilized SPSS Statistics version 20 for data analysis, and the data processing procedures are summarized as follows.
Cronbach’s Alpha is a widely recognized statistical measure used to assess the reliability of a scale by evaluating the inter-item correlations This method effectively identifies and eliminates inappropriate or irrelevant variables, thereby enhancing the integrity of the study By calculating the Cronbach’s Alpha coefficient, researchers can ensure the reliability of their scales (Hair et al., 1998; Pallant).
In 2001, it was established that scales are considered reliable when the Cronbach’s Alpha coefficient is 0.7 or above A lower alpha value may indicate a limited number of questions, weak interrelatedness among items, or the presence of heterogeneous constructs.
Exploratory Factor Analysis (EFA) was utilized to identify the number of factors and examine the relationships among independent variables, as factor analysis is a multivariable statistical technique that reveals the underlying structure among numerous variables (Hair et al., 1998) The primary objectives of factor analysis are to summarize extensive information and condense it into a smaller set of factors (Hair et al., 1998) In this study, six dimensions were identified as influential on employee job performance, and factor analysis helped create factors corresponding to each of the six measurement scales Additionally, this analysis enabled the researcher to identify which factors were strongly correlated with employee job performance According to Pallant (2001), factor analysis is suitable for data that meets specific criteria.
The Kaiser-Meyer-Olkin value (KMO) is 0.6 or greater
The Bartlett’s test of inadequate is statistically significant: p < 0.05
The transmission coefficient variables (factors loading) is less than 0.5 or the difference between the two factors less than 0.3 will be disqualified.
Stop Eigenvalue (representing the variance explained by each factor) greater than
1 and the total variance extracted (Cumulative Extraction Sum of Square Loadings) greater than 50%.
Testing the reliability and validity of measurement model
Amos 20 ran for CFA with purpose of testing the reliability and validity of measurement model The CFA results indicated the model fit if Cmin/df was less than 03 with p-value larger than 5% The goodness of fit index (GFI) was a measure of fit between the hypothesized model and the observed covariance matrix The comparative fit index (CFI) analyzed the model fit by examining the discrepancy between the data and the hypothesized model, while adjusting the issue of sample size inherence in the chi- squared test of model fit A CFI value is more than 0.95 is good, more than 0.9 is traditionally, and more than 0.8 is sometimes permissible The root mean square error of approximation (RMSEA) avoided issues of sample size by analyzing the discrepancy between the hypothesized models, with optimally chosen parameter estimates, and the population covariance matrix A value of 0.1 or less was indicated and acceptable model fit Based on composite reliability (CR), the author evaluated the measurement scale’s reliability According to CFA results, average variance extracted (AVE) was used to conclude the convergent validity and correlation between items was used to identify the discriminate validity Then, structural equation modeling (SEM) tested the hypothesized model and estimated path coefficients for each proposed relationship in the structural model SEM is a comprehensive statistical approach to testing hypotheses about relations among observed and latent variables (Hoyle, 1995) Rigdon (1998) defined that SEM is a methodology for representing, estimating, and testing a theoretical network of (mostly) linear relations between variables.
DATA ANALYSIS AND DATA RESULTS
Preliminaries of data analysis
The survey participants, as detailed in Table 4.1, exhibit diversity in age, gender, bank positions, and seniority across various banks Notably, the gender distribution reveals 54% female and 46% male employees The predominant age group is 26-35 years, constituting 54% of respondents, followed by 39% in the 18-25 age range A significant portion of the workforce comprises credit officers (49%), with back officers making up 24% Most employees have been with their companies for 2 to 5 years (51%), while 22% have less than one year of experience In terms of monthly net income, 44% earn between 5 to 11 million VND, and 34% earn between 12 to 20 million VND Additionally, the majority of employees are situated in State-owned Banks (68%), with Joint-Stock Commercial Banks representing 31%.
Table 4.1 Summary of employees’ profile
No Items Scale Frequency Percent
3 Job at respondents bank of
4 Net income per month of respondents
5 Kind of respondents bank of
6 Years at the bank job of respondents
Reliability analysis
In this study, Cronbach’s Alpha was employed to evaluate the reliability of the measurement scales, with acceptable reliability defined as an alpha coefficient exceeding 0.7 Items that displayed a Cronbach’s Alpha coefficient below 0.7 and a corrected item-total correlation lower than 0.3 were excluded, resulting in the removal of NC2 Ultimately, all factors in the research demonstrated satisfactory reliability, with Cronbach’s Alpha coefficients ranging from 0.810 to 0.893.
Variable Item-Total Statistics Reliability Statistics
Scale Variance if Item Deleted
Cronbach's Alpha if Item Deleted
Exploratory Factor Analysis
Following the assessment of Cronbach’s Alpha coefficient, the analysis progressed to Exploratory Factor Analysis (EFA) to examine the relationships among internal variables This study adhered to stringent criteria, eliminating factors with loadings below 0.5 while retaining components with Eigenvalues greater than 1.0 The goal of EFA is to group items that exhibit strong interrelationships and are consistently answered by respondents According to Hair et al (1995), a sample size of 100 or more is recommended; thus, this study's sample of 259 valid observations, detailed in Chapter 3, satisfies the requirements for EFA analysis.
The study commenced with 30 items across all variables, revealing a KMO value of 0.824, surpassing the acceptable threshold of 0.7 (Leech, Barrett & Morgan, 2005) This KMO test indicates that there are sufficient items predicted by each factor Furthermore, the Chi-squared value for Bartlett's test was 4655.835, with a significance value of 0.000, which is below the statistically significant level of p
