Organizational culture and organizational citizenship behavior in the service industry

UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business Nguyen Hoang Van ORGANIZATIONAL CULTURE AND ORGANIZATIONAL CITIZENSHIP BEHAVIOR IN THE SERVICE INDUSTRY MASTER OF BUSINESS (Honours) Ho Chi Minh City – Year 2012 UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business Nguyen Hoang Van ORGANIZATIONAL CULTURE AND ORGANIZATIONAL CITIZENSHIP BEHAVIOR IN THE SERVICE INDUSTRY ID: 60340102 MASTER OF BUSINESS (Honours) SUPERVISOR: Dr Nguyen Huu Lam Ho Chi Minh City – Year 2012 ACKNOWLEDGEMENTS This thesis could not have been completed without the support, guidance and encouragement of many people First of all, I would like to express my genuine appreciation to my supervisor, Dr Nguyen Huu Lam, for the precious time of countless advice and sharing his wisdom of knowledge and experience in every stage of my study I could not have completed this research without his teaching, support and assistance I would also like to thank the committee members, Dr Nguyen Dinh Tho, Dr Nguyen Dong Phong, Dr Tran Ha Minh Quan, Dr Nguyen Thi Mai Trang and Dr Nguyen Thi Nguyet Que Thanks for their advice, willingness to help and insightful comments I am thankful to all staffs of International School of Business for their support and help during the last two years as well as their experience sharing There are also a lot of other professors, classmates, colleagues and friends who supported me in the long journey of my graduate study Lastly, I owe a great gratitude to my family I could not have completed this achievement without their continued support and encouragement st Ho Chi Minh City, December 31 , 2012 Nguyen Hoang Van Organizational Culture and Organizational Citizenship Behavior in the Service Industry Page i ABSTRACT Research on organizational citizenship behavior (OCB) has received considerable attention over the past several decades OCB is defined as the discretionary contributions of employees that beyond a job description and not formally result in reward Previous research have identified a wide range of antecedents of OCB, including attitudinal variables (e.g., satisfaction, perceptions of justice, organizational commitment), individual characteristics (e.g., conscientiousness, agreeableness, positive affectivity) and elements within the organization (e.g., leadership, organizational supportiveness, task characteristics) The purpose of current study is finding out the correlation between organizational culture and OCB The research was done by quantitative approach Data was collected from 342 respondents who are employees from service companies in Ho Chi Minh City A two-step approach in SEM was employed to analyze the data Confirmatory factor analysis (CFA) was used to validate the measurement scale of organizational culture and organizational citizenship behavior And structural equation model (SEM) was used to measure the influence of organizational culture on OCB as well as measure the impact of each dimensions of organizational culture on OCB The statistical result identified that organizational culture has a positive impact on OCB Among seven dimensions of organizational culture, three dimensions affected positively on OCB: Competitiveness, Performance Orientation and Stability; four remain dimensions Social Responsibility, Innovation, Supportiveness and Emphasis on Reward did not impact on OCB Based on result of data analysis, managerial implications have been discussed; limitations and further research directions have also been indicated Organizational Culture and Organizational Citizenship Behavior in the Service Industry Page ii TABLE OF CONTENTS ACKNOWLEDGEMENTS ABSTRACT TABLE OF CONTENTS LIST OF TABLES LIST OF FIGURES CHAPTER I: INTRODUCTION I.1 BACKGROUND I.2 RESEARCH OBJECTIVE I.3 RESEARCH QUESTIONS I.4 SCOPE OF THE STUDY I.5 THESIS STRUCTURE CHAPTER II: LITERATURE REVIEW II.1 ORGANIZATIONAL CITIZENSHIP BEHAVIOR (OCB) II.1.1 Definition of Organizational citizenship behavior (OCB) II.1.2 The roots of OCB within organizational theory II.1.3 The development of the concept of OCB 10 II.1.4 OCB Dimensions: 12 II.1.5 Antecedents and Consequences of OCB 15 II.2 ORGANIZATIONAL CULTURE 16 II.2.1 Definition and the importance of organizational culture 16 II.2.2 Levels of organizational culture 18 II.2.3 Dimensions and types of organizational culture 19 Organizational Culture and Organizational Citizenship Behavior in the Service Industry Page iii II.3 RESEARCH HYPOTHESIS: 23 II.4 MODEL 25 CHAPTER III: RESEARCH METHODOLOGY 26 III.1 CONSTRUCT MEASUREMENT AND QUESTIONNAIRE .26 III.1.1 Questionnaire 26 III.1.2 Construct measurement 26 III.2 DATA COLLECTION AND SAMPLING 29 III.3 DATA ANALYSIS 30 CHAPTER IV: DATA ANALYSIS 32 IV.1 ANALYSIS RESULTS 32 IV.2 DESCRIPTIVE ANALYSIS 32 IV.3 CHECK THE RELIABILITY OF MEASUREMENT SCALE BY CRONBACH’S ALPHA 33 IV.4 CONFIRMATORY FACTOR ANALYSIS (CFA) 35 IV.5 STRUCTURAL EQUATION MODEL ANALYSIS .45 IV.4.1 Estimate the casual relationship between OC and OCB …………46 IV.4.2 Measure the impact of each dimension of OC on OCB 47 CHAPTER V: DISCUSSION, IMPLICATION, LIMITATION AND SUGGESTION FOR FUTURE RESEARCH 52 V.1 DISCUSSION AND IMPLICATION 52 V.1.1 Discussion 52 V.1.2 Implication 53 V.2 CONTRIBUTION, LIMITATION AND SUGGESTIONS FOR FURTHER RESEARCH 55 V.2.1 Contribution of the study 55 V.2.2 Limitations and further research directions 56 Organizational Culture and Organizational Citizenship Behavior in the Service Industry Page iv REFERENCES APPENDICES Appendix A: Questionnaire Appendix B: Regression Weights and Standardized Regression Weights of Model (Standardized Estimates) Organizational Culture and Organizational Citizenship Behavior in the Service Industry Page v LIST OF TABLES Table 3.1: Organizational Culture measurement scale 27 Table 3.2: Organizational Citizenship Behavior measurement scale 28 Table 3.3: Key goodness-of-fit indices (Byrne, 2001 and Kline, 2005) 31 Table 4.1: Descriptive Analysis of respondents 33 Table 4.2: Cronbach’s alpha of measurement scale 35 Table 4.3: Goodness-of-fit Indices of CFA with Organizational Culture construct 38 Table 4.4: Standardized Confirmatory Factor Analysis Coefficients, Construct Reliability and Average Variance Extracted (Organizational Culture) 40 Table 4.5: Regression Weight and Standardized Regression Weight – CFA with OCB construct 42 Table 4.6: Goodness-of-fit Indices of CFA with OCB construct 43 Table 4.7: Standardized Confirmatory Factor Analysis Coefficients, Construct Reliability and Average Variance Extracted (Organizational Citizenship Behavior) 44 Table 4.8: OC and OCB scale 45 Table 4.9: Regression Weight and Standardized Regression Weight – SEM 47 Table 4.10: Regression Weight and Standardized Regression Weight – SEM 49 Table 4.11: Regression Weight and Standardized Regression Weight – SEM 50 Organizational Culture and Organizational Citizenship Behavior in the Service Industry Page vi LIST OF FIGURES Figure 2.1: There levels of organizational culture Adapted from Organizational rd Culture and Leadership by Schein, E.H (3 ed.), 2004, San Francisco, CA: Josses-Bass, Inc 18 Figure 2.2: The Competing Values Framework Quadrant Adapted from Diagnosing and changing organizational culture by Cameron, K.S., & Quinn, R.E., 1999 Reading, MA: Addison-Wesley 20 Figure 2.3: Dimensions of Organizational Culture Profile (OCP) Adapted from People and Organizational Culture: A Profile Comparison Approach to Assessing Person-Organization Fit by O’Reilly, Charles A.III, Chatman, J., & Caldwell, D.F.,1991 Academy of Management Journal 34, 487-516 22 Figure 2.4: A conceptual model 25 Figure 4.1: CFA with Organizational Culture construct 37 Figure 4.2: Revised CFA – CFA with organizational culture construct 39 Figure 4.3: CFA with Organizational Culture construct 41 Figure 4.4: Revised CFA – CFA with OCB construct 43 Figure 4.5: Structural Equation Model (SEM 1) 46 Figure 4.6: Structural Equation Model (SEM 2) 48 Figure 4.7: Structural Equation Model (SEM 3) 50 Organizational Culture and Organizational Citizenship Behavior in the Service Industry Page vii Chapter I: Introduction CHAPTER I INTRODUCTION This chapter presents general information about organizational citizenship behavior and the importance of developing organizational citizenship behavior in the organization The research objective, research questions and scope of the study are also discussed in this chapter I.1 BACKGROUND Utilizing current resources is one of the factors for the success in any organization In order to achieve the highest utilization, managers should understand the different types of individual behavior inside the organization McShane and Von Glinow (2008) discussed types of work-related behaviors They are: - Task performance - Exhibiting Organizational Citizenship - Counterproductive Work Behavior - Joining and Staying in the Organization - Maintaining Work Attendance While other positive behaviors are related directly to the employee’s productivity within his role, organizational citizenship behavior (OCB) focuses on extra activities performed by the employee beyond his formal duties OCB as definition is a type of organizational behavior that goes beyond existing role expectations (Organ, Podsakoff & MacKenzie, 2006) OCB includes positive and constructive behaviors that employees by their own volition, which supports co-workers and benefits the company Typically, employees who frequently engage in OCB may not always be the top performers but they are the ones who are known to “go the extra mile” or “go above and beyond” the minimum efforts required to a merely satisfactory job The study of OCB dates back several decades Since 1980s, with the introduction of the term Organizational Citizenship Behavior by Organ and his Organizational Culture and Organizational Citizenship Behavior in the Service Industry Page Nunnally, J.C (1978) Psychometric theory (2 nd ed.) New York: McGraw-Hill O’Reilly, Charles A.III, Chatman, J., & Cadlwell, D.F (1991) People and Organizational Culture: A Profile Comparison Approach to Assessing Person-Organization Fit Academy of Management Journal 34(3), 487-516 Organ, D.W (1988) Organizational Citizenship Behavior: The good soldier syndrome Lexington, MA: Lexington Organ, D.W & Ryan, K (1995) A meta-analytic review of attitudinal and dispositional predictors of organizational citizenship behavior Performance psychology, 48(4),775-802 Organ, D W (1997) Organizational citizenships behavior: It's construct cleanup time Human Performance, 10, 85-97 Organ, D W., Podsakoff, P.M., MacKenzie, S.B (2006) Organizational Citizenship Behavior It’s nature, antecedents and consequences Thousand Oaks, California: Sage Podsakoff, P.M., MacKenzie, S B., Paine, J B & Bachrach, D G (2000) Organizational Citizenship Behavior: A Critical Review of the Theoretical and Empirical Literature and Suggestions for Future Research Journal of Management 26(3), 513-563 Podsakoff, N.P., Whiting, S.W., Podsakoff, P.M., & Blume, B.D (2009) Individual and organizational level consequences of organizational citizenship behavior: A meta-analysis Journal of Applied Psychology, 94(1), 122-141 Recardo, R., & Jolly, J (1997) Organizational culture and teams SAM Advanced Management Journal, 62(2), 4-7 th Roethlisberger, F.J & Dickson, W.J (1964) Management and the worker (13 ed.) Cambridge, Masssachusetts: Harvard University Press Sarros, J.C., Gray, J.H & Densten, I.L (2005) The organizational culture profile revisited and revised: An Australian perspective Business and Economics Management, 30(1), 159-182 Organizational Culture and Organizational Citizenship Behavior in the Service Industry Page 61 Schappe, S.P (1998) The influence of job satisfaction, organizational commitment, and fairness perceptions on organizational citizenship behavior Journal of Psychology, 132(3), 277-290 Schein, E H (1990) Organizational culture American Psychologist, 45(2), 109119 Schein, E H (2004) Organizational Culture and Leadership (3rd ed.) San Francisco, CA: Jossey-Bass, Inc Smith C.A, Organ, D.W., & Near, J.P (1983) Organizational citizenship behavior: Its nature and antecedents Journal of Applied psychology, 68, 655-663 Tepper, B.J., & Taylor, E.C (2003) Relationship among supervisors’ and subordinates’ procedural justice perceptions and organizational citizenship behavior Academic Management Journal, 46(1), 97-105 Van Dyne, L., Graham, J.W & Dienesch, R.M (1994) Organizational citizenship behavior; construct redefinition, measurement and validation Academic Management Journal, 37(4), 765-802 Williams, L.J., & Anderson, S.E (1991) Job satisfaction and organizational commitment as predictors of organizational citizenship and in-role behaviors, Journal of Management, 17, 601-617 Yang, F.H., Chang, C.C (2007) Emotional labor, job satisfaction and organizational commitment amongst clinical nurses: A questionnaire survey Retrieved from http://search.proquest.com/docview/201563641?accountid=63189 Zabihi, M., Hashemzehi, R & Hashemzehi, E (2012) A comprehensive model for development of organizational citizenship behavior, African Journal of Business Management 6(23), 6924-6938 Organizational Culture and Organizational Citizenship Behavior in the Service Industry Page 62 APPENDICES APPENDIX A: QUESTIONNAIRE Dear participants, I am studying MBUS, a Master program in English of University of Ho Chi Minh City I would like to invite you to participate in a study: “Analysis the influence of organizational culture on organizational citizenship behavior in service industry” As you know, employees nowadays are the most valuable asset in the company especially employees who have discretionary behaviors because they contribute a lot to the company such as work more than job description, assist their colleagues and always pay attention to the image as well as the development of the company Thus, there is a need to identify antecedents that may affect to organizational citizenship behavior Organizational culture is considered as one of the antecedents The objective of this study is to find the relationship between organizational culture and organizational citizenship behavior Please kindly support to fulfill and response all the statements and questions as below There is no right or wrong answers to any questions The “right” answer is your frank and truthful response Your response will be kept completely confidential Only the aggregate data will be reported If you are interested in, the result of research will be sent for your reference SECTION 1: The following statements describe your organization, your attitude and behavior toward job-related regarding the organization you currently work for For each, please indicate the extent to which you agree/ disagree with the statement by marking the appropriate number on the scale Organizational Culture and Organizational Citizenship Behavior in the Service Industry Page i Strongly Disagree (1) Achievement orientation An emphasis on quality Being distinctive-being different from others Being competitive Being reflective Having a good reputation Being socially responsible Having a clear guiding philosophy Being team oriented Sharing information freely Being people oriented Collaboration Being innovative Quick to take advantage of opportunities Risk taking Taking individual responsibility Fairness Opportunities for professional growth High pay for good performance Praise for good performance Having high expectations for performance Enthusiasm for the job Being results oriented Being highly organized Stability Being calm Security of employment Low conflict Organizational Culture and Organizational Citizenship Behavior in the Service Industry Page ii Altruism work loads I am willing to assist my colleagues who have heavy absent I am willing to support my colleagues who have been I am willing to help other colleagues work productively I am willing to help orient new employees even though it is not required Conscientiousness average I am always on time Attendance at work is above I maintain a clean work place I obey company rules and regulations even when no one is watching and no evidence can be traced I take the initiative to troubleshoot and solve problems before requesting help from my manager/ supervisor Courtesy I try to avoid creating problems for my colleagues I consult with related people who might be affected by my actions or decisions I respect the rights and privileges of my colleagues I show genuine concern and courtesy toward my colleagues, even under the most tiring business or personal situations Civic Virtue I stay informed about developments in the company 2.I attend training/information sessions that I am encouraged to, but not required to attend Organizational Culture and Organizational Citizenship Behavior in the Service Industry I offer suggestions for ways to improve operations in my company I demonstrate concern about the image of the company Sportsmanship I consume a lot of time complaining about trivial matters* I express resentment with any changes introduced by management* I think only about my work problem not others’* I pay no attention to announcements, messages, or printed materials that provide information about the company* SECTION 2: GENERAL INFORMATION Please select the appropriate answer for each question Your Age: 