Relationship between communication astisfaction and affective commitment an empirical study in the vietnamese banks

UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business  HOANG THI KIM KHANH RELATIONSHIP BETWEEN COMMUNICATION SATISFACTION AND AFFECTIVE COMMITMENT - AN EMPIRICAL STUDY IN THE VIETNAMESE BANKS MASTER THESIS OF BUSINESS ADMINISTRATION SUPERVISOR: DR NGUYEN THI NGUYET QUE HO CHI MINH CITY – 01/2014 UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business  HOANG THI KIM KHANH RELATIONSHIP BETWEEN COMMUNICATION SATISFACTION AND AFFECTIVE COMMITMENT - AN EMPIRICAL STUDY IN THE VIETNAMESE BANKS ID: 22110029 MASTER THESIS OF BUSINESS ADMINISTRATION SUPERVISOR: DR NGUYEN THI NGUYET QUE HO CHI MINH CITY – 01/2014 Running head: Relationship between communication satisfaction and affective commitment – an empirical study in the Vietnamese banks i Relationship between communication satisfaction and affective commitment – an empirical study in the Vietnamese banks Hoang Thi Kim Khanh th 19 January, 2014 ISB Research Committee Relationship between communication satisfaction and affective commitment – an empirical study in the Vietnamese banks ACKNOWLEDGEMENTS I would like to thank my supervisor Dr Nguyen Thi Nguyet Que for the guidance, patience and support during my thesis’s writing period I am also grateful to all ISB members who helped me with necessary materials and paper submission I would like to appreciate all my friends and responders for their contribution to my survey Especially, I would like to give my special thanks to my family who always encourage me throughout my life Hoang Thi Kim Khanh Ho Chi Minh city, 20 th December, 2013 ii Relationship between communication satisfaction and affective commitment – an empirical study in the Vietnamese banks ABSTRACT The main purpose of this study is figure out the relationship between communication satisfaction’s factors (personal feedback, communication climate, horizontal communication, supervisory communication) with affective commitment in Vietnamese banking industry These factors are tested in previous studied in the world, and the previous result indicated that all of them have a positive impact to commitment After conducting a research, collecting and analysing 225 employees in many banks in Ho Chi Minh City, the result indicated that first, the horizontal communication was divided into new components, horizontal formal communication and horizontal informal communication Second, only communication climate, supervisory communication and horizontal formal communication affects to affective commitment Third, communication climate is a strongest factor contributes to employee affective commitment Personal feedback and horizontal informal communication not have influences on affective commitment in Vietnam banking industry Although having a few limitations, but this study highlights the importance of communication satisfaction in workplace It is necessary for banking managers to develop good relationships with their employees to improve employee affective commitment The conclusion of this study discusses the practical implications for managers and the recommendation for future research iii Relationship between communication satisfaction and affective commitment – an empirical study in the Vietnamese banks TABLE OF CONTENT ACKNOWLEDGEMENTS ii ABSTRACT iii LIST OF TABLES vii LIST OF FIGURES viii CHAPTER 1: INTRODUCTION 1.1 BACKGROUND 1.2 RESEARCH OBJECTIVES AND QUESTIONS 1.3 SIGNIFICANT OF THE STUDY 1.4 RESEARCH SCOPE AND METHODOLOGY 1.5 THESIS STRUCTURE CHAPTER 2: LITERATURE REVIEW AND HYPOTHESIS 2.1 COMMUNICATION SATISFACTION 2.1.1 Definition of communication 2.1.2 Definition of communication satisfaction 2.1.3 Dimensions of communication satisfaction 2.2 ORGANIZATIONAL COMMITMENT AND AFFECTIVE COMMITMENT 2.2.1 Definition of organizational commitment 2.2.2 Dimensions of organizational commitment 2.2.3 Affective commitment 10 2.3 COMMUNICATION SATISFACTION AND ORGANIZATIONAL COMMITMENT 11 2.4 PROPOSED MODEL AND HYPOTHESIS 12 2.4.1 Personal feedback and affective commitment 13 2.4.2 Communication climate and affective commitment 14 iv Relationship between communication satisfaction and affective commitment – an empirical study in the Vietnamese banks 2.4.3 Horizontal communication and affective commitment 14 2.4.4 Supervisory communication and affective commitment 15 2.5 RESEARCH MODEL AND HYPOTHESIS 15 2.6 CONCLUSION 16 CHAPTER 3: METHODOLOGY 17 3.1 RESEARCH DESIGN PROCESS 17 3.2 QUESTIONNAIRE DEVELOPMENT 18 3.2.1 Measurement scale 18 3.2.2 Questionnaire design 22 3.3 PILOT STUDY 22 3.3.1 Purpose of pilot study 22 3.3.2 Method of pilot study 22 3.3.3 Result of pilot study 23 3.4 MAIN SURVERY 23 3.4.1 Sampling method 23 3.4.2 Sample size 24 3.4.3 Questionnaire administration 24 3.5 DATA ANALYSIS TECHNIQUE 24 3.5.1 Cronbach’s alpha 25 3.5.2 Exploratory factor analysis (EFA) 25 3.5.3 Multiple regression analysis 26 3.6 CONCLUSION 26 CHAPTER 4: DATA ANALYSIS AND RESULTS 28 4.1 DESCRIPTIVE ANALYSIS 28 4.2 MEASUREMENT ASSESSMENT 29 v Relationship between communication satisfaction and affective commitment – an empirical study in the Vietnamese banks 4.2.1 Cronbach’s Alpha 29 4.2.2 Exploratory factor analysis 32 4.3 MULTIPLE REGRESSION ANALYSIS 37 4.3.1 Assumption testing 37 4.3.2 Result of regression analysis 38 4.4 CONCLUSION 40 CHAPTER 5: DISCUSSION AND CONCLUSION 42 5.1 DISCUSSION OF FINDINGS 42 5.2 CONCLUSION 43 5.3 PRACTICAL IMPLICATIONS 44 5.4 LIMITATIONS OF THE STUDY 46 5.5 RECOMMENDATIONS FOR FUTURE RESEARCH 46 REFERENCES 48 APPENDIX A 53 APPENDIX B 55 APPENDIX C 57 APPENDIX D 58 APPENDIX E 60 APPENDIX F 64 vi Relationship between communication satisfaction and affective commitment – an empirical study in the Vietnamese banks LIST OF TABLES Table 01: Scale of personal feedback 19 Table 02: Scale of communication climate 19 Table 03: Scale of horizontal communication 20 Table 04: Scale of supervisory communication 20 Table 05: Scale of affective commitment 21 Table 06: Cronbach’s Alpha Reliability Coefficient 25 Table 4.1 Sample Description 28 Table 07: Reliability analysis 30 Table 08: Summary of Cronbach’s Alpha 32 Table 09: KMO and Barrtlett’s Test 33 Table 10: Total Variance Explained in EFA process 34 Table 11: Factors loading 35 Table 12: Model Summary 38 Table 13: ANOVA 38 Table 14: Correlations 60 Table 15: Model Statistics 61 Table 16: Coefficients 39 Table 17: Result of testing hypothesis 40 vii Relationship between communication satisfaction and affective commitment – an empirical study in the Vietnamese banks LIST OF FIGURES Figure 01: A conceptual model 16 Figure 02: Research design process 17 Figure 03: A new conceptual model 37 Figure 04: Overall regression plot 62 Figure 05: Histogram of Affective Commitment 62 Figure 06: Normal P-P Plot of Affective Commitment 63 Relationship between communication satisfaction and affective commitment – an empirical study in the Vietnamese banks CHAPTER 1: INTRODUCTION The first chapter presents the research background, research questions, research objectives, value of the research and thesis structure 1.1 Background The key factor for any achievement of one organization is not only the huge capital but also the power of human In the analysis of Mathieu and Zajac (1990) states that organizational commitment is an antecedent of job performance, intention to leave, lateness and turnover ; moreover, according to Cooper-Hakim and Viswesvaran (2005) organizational commitment is negatively related to turnover; according to Memari, Mahdieh & Marnani, (2013), organizational commitment is positively related to job performance Therefore, employee’s organizational commitment plays an important role to prevent the potential risk of human resource management Communication is very important to all of organizations in the world Effective communication is key point for organizational success All of the activities in one organization involve with the communication Most of the managers focus to business and only a few of them take care of how to communicate effectively to create a smooth working condition A wellinformed person have better attitude than a less-informed person Many kinds of verbal and viii Larson, J., Jr (1989) The dynamic interplay between employees: Feedback-seeking strategies and supervisor’s delivery of performance feedback Academy of Management Review, 14, 408-422 Matkar, Anil (2012) Cronbach’s alpha reliability coefficient for standard of customer service in Maharashtra state cooperative bank IUP Journal of Bank Management, 11(3), 89-95 Mathieu, J and Zajac, D (1990), A review of meta-analysis of the antecedents, correlates and consequences of organizational commitment, Psychological Bulletin, 108(2), 171-94 Memari, N., Mahdieh, O., & Marnani, A B (2013) The impact of organizational commitment on employees job performance "a study of meli bank" Institute of Interdisciplinary Business Research, 5(5), 164-171 Relationship between communication satisfaction and affective commitment – an empirical study in the Vietnamese banks Meyer,J P., & Allen, N J (1984) Testing the "side-bet theory" of organizational commitment: Some methodological considerations Journal of Applied Psychology, 69(3), 372-378 Meyer, J P., & Allen, N J (1990) The measurement and antecedents of affective, continuance and normative commitment to the organization Journal of Occupational Psychology, 63, 1-18 Meyer, J P., & Allen, N J (1991) A three-component conceptualization of organizational commitment Human Resource Management Review, 1(1), 61-89 Meyer, J P., & Allen, N J (1997) Commitment in the workplace: Theory, research, and application Thousand Oaks, Calif: Sage Publications Meyer,J P., Stanley, D J., Herscovitch, L., & Topolnytsky, L (2002) Affective, continuance, and normative commitment to the organization: A meta-analysis of antecedents, correlates, and consequences Journal of Vocational Behavior, 61, 20-52 Meyers, L.S., Gamst, Glen, & Guarino A.J (2006) Applied multivariate research: Design and interpretation California: Saga Publications Inc Mowday, R T., Porter, L W., & Steers, R M (1982) Employee-organization linkages : the psychology of commitment, absenteeism, and turnover New York : Academic Press Mowday, Richard T., Richard M Steers, and Lyman W Porter (1979) The measurement of organizational commitment Journal of vocational behavior, 14, 224-247 Nancy, L L., Karen , C B., & George, A M (2005).SPSS for intermediate statistics: Use and interpretation (2 ed.) London: Lawrence Eribaum Associates, Inc Peters, T., & Waterman, R (1982) In search of excellence New York: Harper & Row Putti, J M., Aryee, S., & Phua, J (1990) Communication relationship satisfaction and organizational commitment Group & Organization Studies, 15(1), 44-52 Relationship between communication satisfaction and affective commitment – an empirical study in the Vietnamese banks Potvin, T C (1991) Employee organizational commitment: An examination of its relationship to communication satisfaction and evaluation of questionnaires designed to measure the construct Unpublished doctoral dissertation, University of Kansas, Lawrence, KS Ramaprasad, A (1983) On the definition of feedback.Behavioral Science, 26(1), 4-13 Redding, W C (1972) Communication within the organization: An interpretative review of theory and research New York: Industrial Communication Council Robbins SP (2001) Organizational Behavior, 9th ed NJ: Prentice Hall Sias, P M (2005) Workplace Relationship Quality and Employee Information Experiences Communication Studies, 56(4), 375- 395 Tabachnick, B.G., & Fidell, L.S (1991) Using multivariate statistics (3rd ed.) New York: Harper Collin Thayer, L (1968) Communication and communication systems (p 144) Homewood: Richard D Irwin Tucker, L R., & MacCallum, R C (1997) Exploratory factor analysis Unpublished manuscript, Ohio State University Varona, F (1996) Relationship between communication satisfaction and organizational commitment in three guatemalan organizations The Journal of Business Communication, 33(2), 111-140 Relationship between communication satisfaction and affective commitment – an empirical study in the Vietnamese banks APPENDIX A: ENGLISH QUESTIONNAIRE Dear Madam/Sir My name is Hoang Thi Kim Khanh I am a student of International school of Business University of Economic Ho Chi Minh city Currently, I am conducting a research “A relationship between communication satisfaction and affective commitment” Therefore, I make this survey to collect your valued idea I would appreciate your help if you spend a few minute to fill in this questionnaire All of yours answer are valuable for this research I commit that all of your information is used for this research only Everything that related to this research, please kindly contact my email goldbell1303@gmail.com Thank you very much! PART 1: AFFECTIVE COMMITMENT Please kindly circling only 01 number Rule: 1: totally disagree; agree; neutral; agree; totally agree I feel a strong sense of belonging to this organisation I feel “emotionally attached” to this organisation This organisation has a great deal of personal meaning I feel “part of the family” in this organisation I would be very happy to spend the rest of my career with this organisation I enjoy discussing my organisation I really feel as if this organisation’s I think I could easily become as attac to this one PART 2: COMMUNICATION SATISFACTION Part 2A: Please indicate how satisfied you are with the amount and/or quality of each kind of information by circling the appropriate number at the right Rule: very dissatisfied; satisfied; neutral; satisfied; very satisfied Information Information Recognition Reports on how problems in my job are being handled Relationship between communication satisfaction and affective commitment – an empirical study in the Vietnamese banks Part 2B: Please indicate how satisfied you are with the following Rule: very dissatisfied; satisfied; neutral; satisfied; very satisfied Extent stimulates an enthusiasm Extent to which communicators Extent to which with it or feel a vital part of it Extent Extent to which to which communication 10 Extent Extent 11 to which to which members is accurate and free flowing 12 13 Extent Extent to which to which 14 Extent Extent to which to which 15 by subordinates 16 Extent Extent 17 18 Extent to which my supervisor 19 20 Extent Extent Kindly inform your gender: Kindly inform your age:  lower than 18 How long have you been working in your current bank?  to which to which problems Personal information: to which Under year to which to which What’s your average income per month?  Lower than 5.000.000 VND  From 5.000.000VND to under 10.000.000VND  From 10.000.000 to under 1.5000.000 VND  15.000.000 VND or greater What’s yout current position in your bank?  Staff  Supervisor  Manager Thank you very much! Relationship between communication satisfaction and affective commitment – an empirical study in the Vietnamese banks APPENDIX B: VIETNAMESE QUESTIONNAIRE Kính chào Chị/Anh, Tơi tên Hồng Thị Kim Khánh Tơi học viên Viện đào tạo quốc tế ISB- trường Đại học Kinh tế TP HCM Hiện nghiên cứu đề tài “Mối quan hệ thỏa mãn giao tiếp gắn kết với tổ chức nhân viên cơng ty”, đó, tơi tiến hành khảo sát nhằm tìm hiểu ý kiến Chị/Anh vấn đề Rất mong Chị/Anh bớt chút thời gian trả lời số câu hỏi Tất ý kiến Chị/Anh có giá trị nghiên cứu Tôi xin cam kết thông tin Chị/Anh bảo mật dùng với mục đích phục vụ nghiên cứu Mọi thông tin liên quan đến đề tài này, xin liên hệ địa email goldbell1303@gmail.com Xin chân thành cám ơn giúp đỡ Chị/Anh PHẦN 1: SỰ GẮN KẾT VỚI TỔ CHỨC Chị/Anh vui lòng chọn 01 số để thể ý kiến Quy ước: Hồn tồn khơng đồng ý; Khơng đồng ý; Khơng có ý kiến; Đồng ý; Hồn tồn đồng ý Tơi có cảm giác vơ phấn khởi làm việc cơng ty Tơi cảm thấy gắn bó với cơng ty Cơng ty có ý nghĩa Tơi cảm thấy Tơi hạnh phúc dành quãng đường nghiệp sau để tiếp tục gắn bó với cơng ty Tơi thích nói cơng ty với người ngồi cơng ty tơi Tơi cảm thấy vấn đề khó khăn cơng ty vấn đề khó khăn tơi Tơi cảm thấy tơi dễ dàng gắn kết với cơng ty khác giống tơi gắn bó với công ty PHẦN 2: SỰ THỎA MÃN TRONG GIAO TIẾP Phần 2A: Chị/Anh vui lòng chọn 01 số thể mức độ hài lòng Chị/Anh chất lượng và/hoặc số lượng loại thông tin mà Chị/Anh nhận Quy ước: Hồn tồn khơng đồng ý; Khơng đồng ý; Khơng có ý kiến; Đồng ý; Hoàn toàn đồng ý Tơi hài lịng với thơng tin cách thức mà cấp so sánh công việc với đồng nghiệp khác Tơi hài lịng với thơng tin cách thức cấp đánh giá Tôi hài lịng với việc nỗ lực tơi ghi nhận Tơi hài lịng với báo cáo cách xử lý vấn đề xảy công việc Relationship between communication satisfaction and affective commitment – an empirical study in the Vietnamese banks Phần 2B: Chị/Anh vui lòng chọn 01 số để thể ý kiến Quy ước: Hồn tồn khơng đồng ý; Khơng đồng ý; Khơng có ý kiến; Đồng ý; Hoàn toàn đồng ý Việc giao tiếp thúc đẩy tơi hồn thành mục tiêu cơng vi Mọi người cơng ty có khả giao tiếp, truyền đạ tốt Việc giao tiếp giúp tơi cảm thấy phần công ty Tôi nhận thông tin cần thiết cho công việc m lúc 10 11 12 Mâu thuẫn công việc giải hợp lý thơng qua giao tiếp thích hợp Tơi hài lịng với mức độ nhanh nhậy thơng tin ngồi công ty Thông tin trao đổi thành viên cơng ty ln chí tự Trong tình khẩn cấp, việc trao đổi thông tin luô kịp thời để giải vấn đề 13 Các thành viên nhóm tơi phối hợp làm việc với nha Kênh giao tiếp khơng thức (trao đổi ngịai cơng việc) n 14 xác 15 Cấp biết hiểu vấn đề mà cấp giải 16 Cấp biết lắng nghe ý đến 17 Cấp đưa dẫn để giải vấn công việc 18 Cấp tin tưởng Cấp sẵn sàng tiếp thu ý tưởng tro 19 việc 20 Tôi theo dõi (kiểm tra, giám sát) mức độ hợp lý Thơng tin cá nhân: Vui lịng cho biết giới tính:  Vui lịng cho biết độ tuổi: 18 Vui lịng cho biết tính đến tại, anh chị làm việc Ngân hàng rồi?  Dưới năm Thu nhập trung bình hàng tháng anh chị? 10 triệu trở lên Vui lịng cho biết vị trí Chị/Anh  Dưới triệu  Nhân viên Rất cảm ơn Chị/Anh hòan thành khảo sát ! Relationship between communication satisfaction and affective commitment – an empirical study in the Vietnamese banks APPENDIX C: LIST OF THE BANKS Name of the bank Eximbank transaction office Eximbank Hoa Binh branch ANZ Phu My Hung branch Standard Charter Ho Chi Minh branch BIDV Ho Chi Minh branch Sacombank Binh Tay branch Indovina Bank Head Office Nam Viet Bank Head Office Nam Viet Bank Card Centre 10 Maritime bank Ho Chi Minh branch 11 Woori bank Ho Chi Minh branch 12 Hua Nan bank Ho Chi Minh branch Relationship between communication satisfaction and affective commitment – an empirical study in the Vietnamese banks APPENDIX D: MEASUREMENT SCALE AND CODIFIED VARIABLES Name of variables Affective Affective Affective Commitment Commitment Commitment Affective Affective Commitment Commitment Affective Commitment Affective Commitment Affective Personal Feedback 01 Personal Feedback 02 Personal Feedback 03 Personal Feedback 04 Personal Feedback 05 Communication Communication Communication Communication Communication Horizontal Communication Horizontal Communication Horizontal Communication Horizontal Communication Horizontal Communication Supervisory Supervisory Commitment Relationship between communication satisfaction and affective commitment – an empirical study in the Vietnamese banks Supervisory Supervisory Supervisory AC PF CC HCinformal HCformal SC Communication Communication Communication Relationship between communication satisfaction and affective commitment – an empirical study in the Vietnamese banks APPENDIX E: RESULT OF ASSUMPTION TESTING AND REGRESSION Table 12: Model Summary Model Summary b Model R a 541 a Predictors: (Constant), b Dependent Variable: AC Table 13: ANOVA Model Regression Residual Total a Dependent Variable: AC b Predictors: (Constant), Table 14: Correlations Pearson Correlation Sig (1-tailed) N Relationship between communication satisfaction and affective commitment – an empirical study in the Vietnamese banks Table 15: Model Statistics Model Statistics Model ACModel_1 Table 16: Coefficients Model (Constant) PF HCinformal HCformal CC SC a Dependent Variable: AC (where AC is dependent variable affective commitment; PF is personal feedback; HCinformal is horizontal informal communication; HCformal is horizontal formal communication; CC is communication climate; SC is supervisory communication) Relationship between communication satisfaction and affective commitment – an empirical study in the Vietnamese banks Figure 04: Overall regression plot Figure 05: Histogram of Affective Commitment 62 Relationship between communication satisfaction and affective commitment – an empirical study in the Vietnamese banks Figure 06: Normal P-P Plot of Affective Commitment Relationship between communication satisfaction and affective commitment – an empirical study in the Vietnamese banks APPENDIX F: LIST OF TEN PARTICIPANTS IN THE PILOT STUDY Name of the participants Đàm Hoàng Oanh Lục Thế Bảo Đặng Thị Thanh Nga Nguyễn Dương Nguyệt Minh Nguyễn Trung Hậu Đoàn Vạn Hậu 63 Nguyễn Ngọc Đan Thy 10 Lương Ngọc Trâm Anh Huỳnh Thị Hồng Nhung Phạm Thị Tuyết Mai ... empirical study in the Vietnamese banks i Relationship between communication satisfaction and affective commitment – an empirical study in the Vietnamese banks Hoang Thi Kim Khanh th 19 January,... climate and affective commitment 14 iv Relationship between communication satisfaction and affective commitment – an empirical study in the Vietnamese banks 2.4.3 Horizontal communication and affective. .. satisfaction and affective commitment – an empirical study in the Vietnamese banks understand the main content of the scale After reaching to the final questionnaire, 865 paper questionnaires and many