Chapter 6: Organizational Commitment: Complication or Clarification?

1 Running head: ORGANIZATIONAL COMMITMENT Chapter 6: Organizational Commitment: Complication or Clarification? S Arzu Wasti Sabanci University Faculty of Management Orhanli 34956 Tuzla Istanbul, Turkey Phone: +90 216 4839662 Fax +90 216 483 9699 E-mail: awasti@sabanciuniv.edu Dating back to the 1960s, organizational commitment (OC) has become an important topic for organizational research due to its association with employee performance, prosocial behaviors, absenteeism and turnover (Meyer & Allen, 1997) While much of this literature has been primarily relevant to the North American context, there is now an accumulation of more than three decades’ of cross-cultural research The early stream of research was spurred largely by a concern to explore whether the widening productivity gap between Japan and the United States (US) in the late 1970s might be due to differences in employees’ OC as reflected in their respective turnover rates In addition to comparing the conceptualization of OC (e.g., Marsh & Mannari, 1977) and mean differences in its level (e.g., Luthans, McCaul, & Dodd, 1985), researchers sought to discern whether structural versus cultural factors had a greater influence in generating employee commitment (Lincoln & Kalleberg, 1985; Near, 1985) While suggesting that some determinants of commitment are universal, the results were counterintuitive as they reported lower levels of commitment among the Japanese Redding, Norman and Schlander (1994) argued that this inconsistency might have been due to methodological problems like the response bias that stems from Japanese reticence in asserting personal claims More importantly, they noted that such studies made an undue assumption that the two essential components –commitment and organization – meant the same across cultures and researchers thus possibly ended up comparing different phenomena In a broader review, Randall (1993) further concluded that due to the limited number of studies reporting comparable data, the wide reliance on different instruments for measuring commitment, the different nature of samples across countries as well as an insufficient focus on why and how culture would matter, it was very difficult to compare the nature, development and consequences of commitment across contexts This chapter takes up from where Randall (1993) left off and critically evaluates the cross-cultural OC literature of the last decade The term cross-cultural in this review refers to comparative studies as well as to single-nation studies conducted outside the mainstream, where mainstream is defined as research from North America as well as those nations that have high representation in top US journals (Kirkman & Law, 2005) The chapter is organized as follows: In the first section, studies investigating the dimensions of OC are presented Next, research on the antecedents and outcomes of OC is reviewed A summary of the studies reviewed is provided in Table Finally, future research directions are discussed - Table about here Dimensions of OC The early mainstream conceptualizations of OC were unidimensional, defining it either as a consistent line of activity due to a recognition of costs associated with quitting (Becker, 1960) or more popularly, as an emotional attachment (Mowday, Steers, & Porter, 1979) In the 1980s and early 1990s, several alternative models of commitment, all of which were multidimensional, were developed (e.g., Allen & Meyer, 1990; O’Reilly & Chatman, 1986) Of these, the three-component model by Meyer and Allen (1991) has gained substantial popularity According to this model, employees with strong affective commitment (AC) remain in the organization because they want to, those with strong continuance commitment (CC) because they need to, those with strong normative commitment (NC) because they feel they ought to so As such, the three components are hypothesized to develop from different antecedents and to have different implications for job outcomes other than turnover The three-component model has received considerable empirical support in the North American context (Meyer, Stanley, Herscovitch & Topolnytsky, 2002) Studies from Western Europe, Australia or New Zealand also confirm its validity (e.g., Iverson & Buttigieg, 1999) For instance, using two French-speaking Belgian samples, Stinglhamber, Bentein and Vandenberghe (2002) found strong support for the model within and across several foci, namely the organization, the occupation, the supervisor, the work group, and customers Vandenberghe, Stinglhamber, Bentein and Delhaise (2001) further investigated the validity of this model across employees from 15 European nations, all of whom worked for the European Commission While for CC and NC, the organizational and occupational foci were indistinguishable empirically, measurement properties were culturally robust and the relationships between commitment components and turnover intentions were consistent across the Western European employees in this study Additionally, employees from more individualistic European nations displayed higher levels of CC to their organization and occupation, and employees from countries high on masculinity exhibited stronger levels of AC to being a European Findings from contexts considerably different than North America have been more mixed For instance, in contrast to Chen and Francesco (2003), Cheng and Stockdale (2003)’s data from Chinese employees revealed only a modest fit for Meyer and Allen’s (1991) model Nevertheless, the antecedents of the three dimensions were associated most strongly with their respective scales Furthermore, AC and NC significantly predicted job satisfaction and all three components predicted turnover intention, although associations between CC and these outcomes were moderated by NC This effect was attributed to the primacy of norms concerning organizational attachment in the Chinese national culture NC and AC were significantly higher and CC was significantly lower in the Chinese sample than in samples from Canada and South Korea (hereafter referred to as Korea) Gautam, van Dick and Wagner (2001) explored the dimensionality of Meyer and Allen’s (1991) model in Nepalese organizations Interestingly, no demographic or organizational variable was associated with AC Older employees, those in lower-level positions, and those who perceived their jobs to be more interesting and challenging had higher levels of CC Those with higher numbers of dependent family members, those with a perception of a more interesting job, and those who perceived more support from their leaders showed more NC Regarding job search and turnover intentions, only AC was significant Ko, Price and Mueller (1997) tested Meyer and Allen’s (1991) model in Korea The three scales had acceptable reliability and convergent validity, but the AC and the NC scales lacked discriminant validity and the construct validity of NC and CC were questionable Likewise, Lee, Allen, Meyer and Rhee (2001) used back-translated versions of Meyer, Allen, and Smith’s (1993) scales in Korea and obtained results similar to Ko et al (1997) To investigate whether this was due to culturally irrelevant items, Lee et al (2001) pilot tested a new set of items written by an international team (Meyer, Barak & Vandenberghe, 1996) The authors reran the validity analyses and found support for the three-component model Similarly, Wasti (2003a) adapted Meyer et al.’s (1993) scales by adding emic (culturespecific) items that she developed through interviews with Turkish employees and validated the three-factor conceptualization In addition to testing the validity of North American models, indigenous approaches have been emerging For example, Wang (2004) cited two Japanese studies which refer to four dimensions of commitment (Takao, 1998; Tao, 1997): affective emotional, value rational, normative and continuance Wang (2004) also drew on the work of Ling, Zhang and Fang (2001) in Chinese, who proposed a five-factor model including AC, NC, ideal commitment (which reflects communist ideals, arguably corresponding largely to CC), economic commitment and opportunity commitment They further made a distinction between active CC, associated with an awareness of an opportunity to improve oneself by onthe-job training or promotion, and passive CC, which suggests that employees have to remain due to lack of alternatives Using Chinese respondents, Wang (2004) empirically confirmed a five-factor model, distinguishing AC, NC, active CC, passive CC and value commitment, which refers to an employee’s feelings of value congruence with their organization It should be noted however, that value commitment and active CC as defined above are typically considered antecedents of AC in the mainstream research Thus, there is substantial evidence in favor of a three dimensional structure of OC Taken together with Stanley, Meyer, Jackson et al.’s (2007) meta-analytic findings which indicate that the three components are distinguishable across cultures, future investigations can contribute by refining the operationalization of the components, particularly CC and NC To this end, it is strongly recommended that researchers develop decentered scales, i.e., ones that are composed of items that are applicable both in meaning and choice of expression to many national cultures (van de Vijver & Leung, 1997) Regarding NC, for instance, the rewording of items that refer to “feelings” to reflect obligations (Bergman, 2006), or the adding of items that explicitly tap the perceived appropriateness of commitment for the employee’s specific reference groups may improve the construct’s cross-cultural validity Such undertakings, however, will require the involvement of international collaborators at stages prior to data collection, as well as multi-method designs that incorporate quantitative as well as qualitative tools Antecedents of OC While in the mainstream literature there are literally hundreds of studies on the antecedents of OC (especially AC), the meta-analysis by Meyer et al (2002) indicates that AC develops primarily from positive work-related experiences, in particular higher levels of job scope (e.g., autonomy) and perceived organizational support and justice CC, in contrast, develops from perceived lack of job alternatives and costs associated with leaving Although there is insufficient empirical evidence to substantiate the claim, NC is theorized to develop by early socialization experiences from family or culture and on the basis of an employee’s psychological contract regarding reciprocal obligations Interested readers are referred to Meyer and Allen (1997) for the theoretical bases of these antecedents (see also the discussion of psychological contracts by Schalk & Soeters, Chapter 7) The cross-national generality of these antecedents has been the concern of much research Three themes dominate this literature: Firstly, researchers have investigated the influence of cultural differences, mostly collectivism and power distance, on the salience of various work-related antecedents, especially those characterized to be more relational or hierarchical, such as leadership and voice Secondly, studies have explored whether workers from different institutional systems (e.g., former communist countries) are similarly motivated by the antecedents identified in the mainstream literature Finally, researchers have focused on individual differences In the next section, studies falling under the first two of these themes are presented as a series of work-related antecedents, followed by a section on the third theme, namely individual-related antecedents Work-related Antecedents Justice Organizational fairness has been most popular in terms of work-related antecedents For example, Rahim, Magner, Antonioni and Rahman (2001) examined the relationships between distributive, procedural and interactional justice and AC with faculty members and managers from the US and Bangladesh Distributive justice did not predict AC across the board, whereas procedural justice was significant in all samples except the Bangladeshi managers (for whom only interactional justice was significant) These authors concluded that culture had little influence on justice-commitment relations However, studies which have included culturally salient variables or explicitly measured cultural values suggest otherwise For instance, Ohbuchi, Suzuki and Hayashi (2001) found that for Japanese employees, attainment of group goals and not individual goals increased perceptions of justice, which in turn was associated with OC In two experimental studies, Brockner, Ackerman, Greenberg et al (2001) showed that the tendency for people to respond with lower AC to lower levels of voice was greater in a low power distance national culture (US) than in high power distance national cultures (China and Mexico) In a survey study with Chinese employees, they also found that the predicted interaction between voice and power distance emerged for a host of dependent variables, including AC More recently, Fischer and Smith (2006), using data from (former East) German and British employees and drawing on Schwartz’s (1992) values framework, showed that openness to change moderated the relationship between procedural justice perceptions and AC such that the relationship was stronger for individuals who endorsed openness to change values to a greater extent Furthermore, the three-way interactions between values, justice perceptions and national culture were significant suggesting that the strength of the moderation was related to the salience of the values within a society These latter two studies are notable as the cultural values hypothesized to influence the justice-commitment relationship were measured, thereby providing stronger evidence as to the influence of culture (see also Fischer, Chapter 8) Going back East and drawing on the concept of collectivism, Kickul, Lester and Belgio (2004) tested the differences between the psychological contracts operating in the US and in Hong Kong Because of the financial pressure that utilitarian familism places on Hong Kong employees, the authors hypothesized that the Hong Kong Chinese would react more negatively (lower levels of job satisfaction, AC, NC, CC and organizational citizenship behaviors (OCBs)) to breaches of the extrinsic components of the psychological contract US workers, who derive more of their self-worth from their career, were expected to react more negatively to breaches of the intrinsic components Their results largely confirmed their expectations Organizational Support and Leadership Yoon and Thye (2002) argued that perceived organizational support (a relational construct) would be a better predictor of AC than job satisfaction (an individual emotion) in Korea but they found that both variables were equally potent in predicting commitment Comparing US and Singaporean nurses, Lee and Bruvold (2003) found that perceived investment in employee development predicted AC, but was unrelated to CC in both countries AC was negatively related to turnover intention only in Singapore, but CC did not predict turnover intentions in either sample These authors argued that investing in employees contributes to a desirable form of employee commitment across both Eastern and Western settings, a conclusion corroborated with Indian (Agarwala, 2003) as well as Korean (Chang, 1999) data These conclusions can be more thoroughly tested by studies that have included individual-level measures of individualism-collectivism, also referred to as idiocentrismallocentrism In three emerging economies, namely China, India and Kenya, Walumbwa and Lawler (2003), measuring collectivism at the individual level, carried out a sub-group comparison and showed that transformational leadership was more strongly related to satisfaction with coworkers and AC in the high collectivist group compared to the low collectivist group In a related vein, Wasti (2003b) showed that while satisfaction with work was a significant antecedent of AC and NC both for allocentrics and idiocentrics in a Turkish sample, satisfaction with supervisor was significant only for allocentrics, also with respect to CC A further study by Walumbwa, Orwa, Wang and Lawler (2005) revealed that transformational leadership predicted AC in Kenyan and US samples Walumbwa, Lawler, Avolio, Wang and Shi (2005) also found that both collective- and self-efficacy moderated the relationship between transformational leadership and AC and job satisfaction across their Chinese, Indian and American samples The three-way interactions were insignificant, suggesting country had little influence once the effects of the efficacy measures had been taken into account In another study from Kenya, Mulinge (2001) showed that agricultural technicians who were able to transmit information upwards, who had sufficient organizational resources, 10 high job security, vertical occupational mobility, task significance, co-worker support and firm-specific training, low job repetition and low role ambiguity were more satisfied with their jobs Job satisfaction, in turn, was the strongest predictor of OC In addition, higher levels of supervisor support, task significance, legitimate promotion standards, lower levels of role ambiguity as well as gender, tenure, sector and kinship responsibilities directly predicted commitment This study as well as those by Walumbwa and his colleagues are valuable particularly because research from Africa, with the relative exception of South Africa, is very limited Furthermore, Gbadamosi (2003) argues that while Western management concepts dominate the thinking of academics and managers in Africa, such practices are not widely applicable and despite years of colonization African managers have indigenous practices that are under-investigated (see Smith, Chapter 19) Teamwork Teamwork has also been explored in relation to commitment For instance, Kirkman and Shapiro (2001) examined whether employee resistance to teams and to selfmanagement mediated the relationships between cultural values and OC Specifically, they argued that an individual-level measure of collectivism would be negatively related to resistance to teams They also proposed that power distance and determinism (fatalism) would be positively, but doing-orientation (the extent to which people have a strong work ethic) would be negatively related to resistance to self-management Higher resistance in turn would lead to lower levels of AC Their data from self-managing work teams in Belgium, Finland, Philippines and the US largely confirmed their hypotheses but showed that country remained a significant predictor of outcomes even after these cultural values had been entered into the equation (See also Halevy & Sagiv, Chapter 15) Institutional effects Drawing not on cultural but on institutional differences, Pearce, Branyiczki and Bigley (2000) argued that neo-traditional political systems, prevalent in excommunist or economically developing countries, are conducive to the emergence of 22 compared to idiocentrics, were less likely to engage in withdrawal behaviors More recently, Meyer and his colleagues (Powell & Meyer, 2004; Gellatly, Meyer & Luchak, 2006), in addition to developing measures of both socio-normative and economic costs, underlined the importance of looking at the influence of norms when they co-occur with a cost-avoidance versus an affective mindset Given the salience of norms in collectivist contexts, future research can benefit from these theoretical and empirical developments, as well as the arguments put forth regarding the nature of CC in other contexts (Wang, 2004; Wasti, 2002) in an attempt to better conceptualize and operationalize these constructs Future Directions The present review indicates that the available research has been focused on determining the boundary conditions for North American theories and that very few studies have incorporated emic insights As Berry (2000, p 197) put it, “one has to be ‘cultural’ before being ‘cross’” Investigations in different contexts, without extensive reliance on imported theory or measurement, are essential for the discovery of both etic and emic aspects of OC Such an endeavor undoubtedly calls for different research strategies, such as qualitative inquiry as well as greater consultation with disciplines like sociology, political economy and history Qualitative inquiry is crucial also for the validation of imported research instruments, because there is always the possibility that an imported instrument is under-inclusive, even if it yields a structure identical to that found in the original culture (van de Vijver & Leung, 1997) Academic disciplines, such as sociology, history that provide frameworks for the contextualization of organizational phenomena are likely to contribute to indigenous theory development For instance, based on a historical analysis of the varying socio-economic conditions in several East Asian countries, Redding et al (1994) proposed differential manifestations of OC in kin- versus non-kin collectivist cultures However, much research has simply relied on Hofstede’s (1980) classification 23 Finally, although AC has been the dominant focus in this field, Ashforth and Mael’s (1989) reconceptualization has triggered a growing interest in organizational identification (OI) in recent years OI is argued to be contingent on factors such as perceived similarity and fate shared with the organization, which may serve as precursors to self-categorization as a member of the organization In contrast, antecedents of the more attitudinal construct of AC have more usually been sought in factors that make the job fulfilling Recent theoretical and empirical work (e.g., Meyer, Becker & van Dick, 2006) has focused on distinguishing and integrating these two constructs, and has formulated OI as an important antecedent to OC However, with the exception of a few studies, which have explored the discriminant validity of these constructs in various contexts (e.g., Cole & Bruch, 2006, in India; Gautam, van Dick and Wagner., 2004, in Nepal), there is a dearth of cross-cultural research into the meaning, nature, antecedents and outcomes of OI Although it is difficult to go beyond speculation at this point, it is pertinent to question whether some puzzling findings from the field, such as the negative correlation between job satisfaction and OC in Egypt (Parnell & Hatem, 1999), and the weaker correlation between OC and performance for the allocentric Chinese (Francesco & Chen, 2004), could be explained if OI and OC had been considered together Perhaps some collectivist contexts are like situations where OI is high, but AC is low For instance, Parnell and Hatem (1999) argued that due to the prevalence of ingroup recruitment in the collectivist Egyptian context, most employees are loyal to their organization even if it does not provide for their personal interests Such a profile of attachment (i.e., high OI and low AC) might have surprising implications such as low turnover and low performance or low in-role but high extra-role performance Collectivist contexts might be of further interest with respect to the development of OI Collectivists typically have stronger ingroup identities (Triandis, 1995), and unless working for ingroups (e.g., family firms), the lower permeability of ingroup 24 identity might result in the treatment of the organization as an outgroup As Meyer et al., (2006) phrase it, ‘situated’ identities may prevail Alternatively, one might reason that the lower permeability of ingroup identity renders collectivists capable of identification at more proximal levels (e.g., to their workgroup), and to the extent that the workgroup and the organization goals conflict, this discrepancy could be more detrimental in collectivist contexts Evidently, there are many more complications to tackle on the road to a clearer understanding of 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state-owned enterprise and a joint venture Asia Pacific Journal of Human Resources, 43, 332-360 36 Table Summary of Studies Reviewed Note OCQ= Organizational Commitment Questionnaire (Mowday, Porter & Steers, 1979) Several studies have used a subset of items of the scales listed