Effect of organizational factors on employee deviant behaviors evidence from service sector companies in vietnam

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Effect of organizational factors on employee deviant behaviors evidence from service sector companies in vietnam

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VIETNAM NATIONAL UNIVERSITY, HANOI VIETNAM JAPAN UNIVERSITY NGUYEN DANH VIET EFFECT OF ORGANIZATIONAL FACTORS ON EMPLOYEE DEVIANT BEHAVIORS: EVIDENCE FROM SERVICE SECTOR COMPANIES IN VIETNAM MASTER’S THESIS Hanoi, 2020 VIETNAM NATIONAL UNIVERSITY, HANOI VIETNAM JAPAN UNIVERSITY NGUYEN DANH VIET EFFECT OF ORGANIZATIONAL FACTORS ON EMPLOYEE DEVIANT BEHAVIORS: EVIDENCE FROM SERVICE SECTOR COMPANIES IN VIETNAM MAJOR: BUSINESS ADMINISTRATION CODE: 8340101.01 RESEARCH SUPERVISORS: Dr TRAN THI BICH HANH Prof Dr DANIEL ARTURO HELLER Hanoi, 2020 TABLE OF CONTENTS ACKNOWLEDGEMENT ABSTRACT LIST OF TABLES LIST OF FIGURES LIST OF ABBREVIATIONS CHAPTER 1: INTRODUCTION .1 1.1 Background of the study 1.2 Research questions and research objectives .3 1.3 Organization of the thesis CHAPTER 2: LITERATURE REVIEW 2.1 A theoretical background on unethical behavior 2.2 Workplace Deviance 2.2 Organizational factors .10 2.3 Hypothesizes development .12 2.3.1 Code of conduct and deviant behaviors 12 2.3.2 Social norms and deviant behaviors 13 2.3.3 Unethical leadership and deviant behaviors .14 2.3.4 Performance pressure and deviant behaviors 16 2.3.5 Likelihood of Detection and deviant behaviors .18 2.3.6 Internal Virtual Community Participation as a moderator in the relationship between organizational factor and employee deviance behaviors 19 2.4 Research model .21 CHAPTER 3: METHOD 23 3.1 Sample 23 3.2 Procedure and Data Analysis 24 3.3 Measures 26 3.3.1 Deviance behaviors 26 3.3.2 Code of conduct 26 3.3.3 Social norms .26 3.3.4 Unethical leadership 26 3.3.5 Performance pressure .27 3.3.6 Likelihood of Detection 27 3.3.7 Internal Virtual Community Participation 27 CHAPTER RESULT 28 4.1 Reliability test 28 4.2 Exploratory factor analysis .29 4.3 Regression analysis 31 4.4 Moderating Effect 34 CHAPTER 5: DISCUSSION 37 5.1 Conclusion 37 5.2 Implications 39 5.3 Limitations and future research direction .42 REFERENCES 44 APPENDIXES ACKNOWLEDGEMENT The academic life in VJU was exciting with friends and supportive people around To complete this essay, I would like to express my sincere gratitude to my supervisor Dr Tran Thi Bich Hanh, and co-supervisor, Prof Daniel Arturo Heller Their tireless support has been a massive motivator for me to complete this study I sincerely thank all VJU staff for providing me an opportunity to the research and review it Finally, I wish all my friends and my teachers have a lot of joy in their way Yours sincerely, Nguyen Danh Viet ABSTRACT The purpose of this research is to point out the organization factors that affect the deviant behaviors and the impact of Internal Virtual Community Participation in those relationships from service organizations in Vietnam The study focuses on two types of employee’s deviant behaviors: interpersonal deviance and organizational deviance Self-report data was collected among 174 employees of some Vietnam services company through an online survey Correlational and moderated regression analyses were used to test the hypotheses The results show that Likelihood of detection (L) is the most critical factor that impacts both Interpersonal and Organizational Deviance, which is followed by Code of Conduct (C), Social Norms (S), Unethical Leadership (U) According to the research results, the minimum impactful factor toward Interpersonal Deviance (ID) is Code of Conduct (C), and the least impactful factor toward Organizational Deviance (OD) is Unethical Leadership (U) And Performance Pressure (P) fails to support the hypothesis Finally, the moderating effect is not significant Future research directions and practical implications for organizational settings are addressed in the last chapter Keywords: Unethical behaviors, workplace deviances, business organizational factors, internal virtual communication participation ethics, LIST OF TABLES Table 2.1 Measures of misconduct behaviors…………………………… Table 2.3 Literature on outcomes of unethical leadership on employee… Table 2.4 Summarizes some studies on the influence of Unethical 17 17 leadership to subordinate behaviors……………………………………… Table 3.1 Demographic data…………………………………………… Table 4.1 Coefficient α reliabilities result……………………………… Table 4.2 KMO and Bartlett’s Test……………………………………… Table 4.3 Rotated Component Matrix (N = 174)………………………… Table 4.4 Correlation and descriptive result…………………………… Table 4.5 Coefficients for the sample for Deviant behaviors toward 26 30 31 32 33 34 Interpersonal misconduct Table 4.6 Coefficients for the sample for Deviant behaviors toward 35 Organizational misconduct Table 4.7 Conditional indirect effect of Unethical Leadership (U) on 35 Interpersonal Deviance (ID) at Internal Virtual Community Participation (V) Table 4.8 Moderating effect……………………………………………… 38 LIST OF FIGURES Figure 2.1 Typology of deviant behaviors at workplace………………… Figure 2.2 Categories of influences on individual decision-making process Figure 2.3 Research model ……………………………………………… Figure 4.1 Research moderation model………………………………… Figure 4.2 Statistical diagram of moderating effect……………………… 10 11 24 36 36 LIST OF ABBREVIATIONS No Abbreviated characters Detail C Code of Conduct ID Interpersonal Deviance IVCP Internal Virtual Community Participation OD Organizational Deviance P Performance Pressure S Social Norms U Unethical leadership WD Workplace Deviance CHAPTER 1: INTRODUCTION 1.1 Background of the study In the early years of the 21st century witnessed a series of scandals in the unethical behaviors’ issue Many of the biggest corporations is a typical example of the collapse of the company after those scandals came to light Some giants like WorldCom, Tyco, and Lehman Brothers collapsed after those scandals were leaked out The financial loss is noticeable; the value of securities instantly falls dramatically The stock market response is almost immediately after the scandal events are revealed According to a statistic of 23 primary cases of business scandals (see: appendix C) links with corporate governance problems in the period 2000 - 2010, the total market capitalization loss estimated by $751 billion, of which 16 cases in total 23 were confirmed linking to fraud (accounting for 70% case) and total company's market capitalization decreased by $369 billion (da Silveira, 2012) More recently, there was a scandal of formal chairman of Nissan, Carlos Ghosn Nissan has been in turmoil after Carlos Ghosn was detained in Tokyo The first time in 11 consecutive years, Nissan recorded a full-year $ 6.2 billion loss in its 2020 financial report Those issue of ethics at the workplace is an attractive topic to be concerned, especially for deviant behavior Misconduct behavior clearly has many adverse outcomes for an organization as also confirmed by researchers; Workplace deviance like many other unethical behaviors seems to have a further impact on customers (Babin, Boles, & Robin, 2000; Gilbert, 2003) Deviant workplace behaviors become a problem that many businesses have noticed 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AIG USA 2008 239 Unclear WorldCom USA 2002 186 Yes Madoff USA 2008 65 Yes Enron USA 2001 60 Yes Lehman Brothers USA 2008 60 Unclear BP UK 2010 45 No Société́ Générale France 2008 20 Yes Bear Sterns USA 2008 20 Unclear Vivendi France 2002 13 Unclear 10 Livedoor Japan 2005 Yes 11 Olympus Japan 2010 Yes 12 Refco USA 2005 Yes 13 Parmalat Italy 2003 Yes 14 Siemens Germany 2007 Yes 15 Aracruz Brazil 2008 No 16 Satyam India 2009 Yes 17 Adelphia USA 2002 2.5 Yes 18 Panamericano Brazil 2009 2.5 Yes 19 Xerox USA 2001 Yes 20 Royal Ahold Netherlands 2003 Yes 21 Sadia Brazil 2008 No 22 Tyco USA 2002 Yes 23 Royal Dutch Shell Netherlands/UK 2004 Yes Total 751 Source: (da Silveira, 2012, p27) .. .VIETNAM NATIONAL UNIVERSITY, HANOI VIETNAM JAPAN UNIVERSITY NGUYEN DANH VIET EFFECT OF ORGANIZATIONAL FACTORS ON EMPLOYEE DEVIANT BEHAVIORS: EVIDENCE FROM SERVICE SECTOR COMPANIES IN VIETNAM. .. of employees in service organizations in Vietnam? Does Internal Virtual Community Participation (IVCP) moderates the effect of Organizational factors on the workplace deviant behaviors of the employee? ... influence of some organizational factors on the misconduct behaviors of employees inorganizationn, in the context of Vietnam service company The independent variable that the study takes into account

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