SELF SPONSORED TRAINING AND EMPLOYEES’ INTENTION TO LEAVE THE ORGANIZATION: THE MODERATING ROLE OF PERCEIVED ORGANIZATIONAL SUPPORT – CASE STUDY AT SMALL AND MEDIUM ENTERPRISES (SMEs) IN DONG THAP PROVINCE, VIET NAM
Author: Nguyen Thanh Sang, PhD
ABSTRACT
In the context of a highly competitive human resource market, investing in improving human capital is increasingly of interest to many people, because human capital is one of the most important capital sources of an organization, especially Individuals paying their own training costs is the current trend. Based on human capital theory (HCT), organizational equilibrium theory (TOE), and organizational support theory (POS), this study aims to develop a comprehensive model of self-sponsored training (SST), human capital (HC), Desirable of Movement (DM), Ease of Movement (EM), Intention to leave the organization (IL) and Perceived organizational support (POS). Using a survey questionnaire, this study collected data from 509 participants. The study hypotheses were evaluated using piecewise linear squared structural equation modeling (PLS-SEM). Research results show that SST has a positive impact on HC; HC positively affects DM and EM; DM, EM promote IL. POS plays an important moderating role in the relationship between DM and IL. From there, the study proposes some management implications to limit the intention to leave the organization of employees at small and medium-sized enterprises (SMEs) in Dong Thap province, Vietnam.
Keywords: Self-sponsored Training, Human Capital, Desirable of Movement, Ease of Movement, Perceived organizational Support, Intention to Leave the organization, SMEs.
REFERENCES
- Ahmed, I., & Nawaz, M. M. (2015). Antecedents and outcomes of perceived organizational support: A literature survey approach. In Journal of Management Development (Vol. 34, Issue 7, pp. 867–880). https://doi.org/10.1108/JMD-09-2013-0115
- Ajisafe, O.E., Orifa, R.A., & Abosede, B. J. (2015). Influence of Human Capital Management on Organizational Performance. In Journal of Resources Development and Management (Vol. 14, pp. 8–14).
- Allen, D. G., Shore, L. M., & Griffeth, R. W. (2003). Allen2003. Journal of Management, 29(1), 99–118.
- Booth, A. L., & Bryan, M. L. (2002). Who Pays for General Training? New Evidence for British Men and Women. IZA Discussion Paper, 46, 1–40.
- Coyle-Shapiro, J. A.-M., Henderson, D. J., Wayne, S. J., & Dulac, T. (2008). Not All Responses to Breach are The Same: The Interconnection of Social Exchange and Psychological Contract Processes in Organizations. In Academy of Management Journal (Vol. 51, Issue 6, pp. 1079–1098).
- Dostie, B. (2020). Who benefits from firm-sponsored training? In IZA World of Labor. https://doi.org/10.15185/izawol.145.v2
- Eisenberger, R., Huntington, R., Hutchison, S., & Sowa, D. (1986). Percieve Organisational Support. In Journal of Applied Psychology (Vol. 71, Issue 3, pp. 500–507).
- Freund, P. A., & Holling, H. (2011). Who wants to take an intelligence test? Personality and achievement motivation in the context of ability testing. Personality and Individual Differences, 50, 723–728.
- Gerhart, B. (1989). Voluntary turnover and alternative job opportunities. Journal of Applied Psychology, Forthcoming, 1–39.
- Griffeth, R. W., Hom, P. W., & Gaertner, S. (2000). A meta-analysis of antecedents and correlates of employee turnover: update, moderator tests, and research implications for the next millennium. Journal of Management, 26(3), 463–488. https://doi.org/10.1016/s0149-2063(00)00043-x
- Hair, J. F., Sarstedt, M., Hopkins, L., & Kuppelwieser, V. G. (2014). Partial least squares structural equation modeling (PLS-SEM). European Business Review.
- Hair, J. F., Sarstedt, M., Ringle, C. M., & Gudergan, S. P. (2017). Advanced issues in partial least squares structural equation modeling. saGe publications.
- Harris, K. J., Harvey, P., Harris, R. B., & Cast, M. (2013). An Investigation of Abusive Supervision, Vicarious Abusive Supervision, and Their Joint Impacts. The Journal of Social Psychology, 153(1), 38–50. https://doi.org/10.1080/00224545.2012.703709
- Holtom, B. C., Mitchell, T. R., Lee, T. W., & Eberly, M. B. (2008). Turnover and Retention Research: A Glance at the Past, a Closer Review of the Present, and a Venture into the Future. The Academy of Management Annals, 2(1), 231–274.
- Huang, S., Chen, Z., Liu, H., & Zhou, L. (2016). Job satisfaction and turnover intention in China: the moderating effects of job alternatives and policy support. https://doi.org/10.1108/CMS-12-2016-0263
- Hulin, C. L., Rpznowski, M., & Hachiya, D. (1985). Alternative Opportunities and Withdrawal Decisions: Empirical and Theoretical Discrepancies and an Integration. Psychological Bulletin 1985, Vol. 97, No. 2, 233-250 Copyright, 97(2), 233–250.
- Khan, B. R. A. G., & Khan, F. A. (2011). Impact of Training and Development on Organizational Performance. Global Journal of Management and Business Research, 11(7), 64–68.
- Kim, T.-Y., & Leung, K. (2007). Forming and reacting to overall fairness: A cross-cultural comparison. Organizational Behavior and Human Decision Processes, 104, 83–95.
- Koslowsky, M., Sagie, A., Krausz, M., & Singer, A. D. (1997). Correlates of employee lateness: Some theoretical considerations. In Journal of Applied Psychology (Vol. 82, Issue 1, pp. 79–86). https://doi.org/10.1037/0021-9010.82.1.79
- Kucharˇcíková, A., & Miciak, M. (2018). Human Capital Management in Transport Enterprises with the Acceptance of Sustainable Development in the Slovak Republic. Sustainability Article, 10(2530), 1–18.
- Kurniawaty, K., Ramly, M., & Ramlawati. (2019). The effect of work environment, stress, and job satisfaction on employee turnover intention. In Management Science Letters (Vol. 9, Issue 6, pp. 877–886). https://doi.org/10.5267/j.msl.2019.3.001
- Kurtessis, J. N., Eisenberger, Robert, Ford, M. T., Buffardi, L. C., Stewart, K. A., & Adis, C. S. (2015). Perceived Organizational Support: A Meta-Analytic Evaluation of Organizational Support Theory. In Journal of Management (pp. 1–31).
- Kwon, K., & Deborah E.rupp. (2012). Hight-performer turnover and firm performance: The moderating role of human capital investment and firm reputation. Journal of Organizational Behavior, J. Organiz. Behav., 1–22. doi: 10.1002/job.1804
- L.Price, J. (1989). The impact of Turnover on the Organization. Work and Occupations, 16(4), 461–473.
- Loi, R., Hang-yue, N., & Foley, S. (2006). Linking employees’ justice perceptions to organizational commitment and intention to leave: The mediating role of perceived organizational support. Journal of Occupational and Organizational Psychology, 79, 101–120. https://doi.org/DOI:10.1348/096317905X39657
- Long, C. S., Ajagbe, M. A., Nor, K. M., & Suleiman, E. S. (2012). The Approaches to Increase Employees’ Loyalty: A Review on Employees’ Turnover Models. Australian Journal of Basic and Applied Sciences, 6(10), 282–291.
- Maertz, J., Griffeth, Campbell, & Allen. (2007). The effects of POS and PSS on turnover. In Journal of OB (Vol. 17, Issue 2, pp. 1–20).
- Mamun, C. A. Al, & Hasan, M. N. (2017). Factors affecting employee turnover and sound retention strategies in business organization: A conceptual view. Problems and Perspectives in Management, 15(1), 63–71. doi: 10.21511/ppm.15(1).2017.06
- Muneer, S., Iqbal, S. M. J., Khan, S. ur R., & Long, C. S. (2014). An Incorporated Structure of Perceived Organizational Support, Knowledge-Sharing Behavior, Organizational Trust and Organizational Commitment: A Strategic Knowledge Management Approach. Pakistan Journal of Commerce and Social Sciences, 8(1), 42–57.
- Nguyen, L. T., & Shao, Y. (2019). The Impact of Training on Turnover Intention: The Role of Growth Need Strength among Vietnamese Female Employees. The South East Asian Journal of Management, 13(1), 1–17.
- Noe, R. A. (1986). Trainees’ Attributes and Attitudes: Neglected Influences on Training Effectiveness. Academy Ot Management Review, 11(4), 736–749.
- Olander, H., Hurmelinna-Laukkanen, P., & Heilmann, P. (2015). Human resources – strength and weakness in protection of intellectual capital. Journal of Intellectual Capital, 16(4), 742–762. DOI 10.1108/JIC-03-2015-0027
- Ormrod, R. P., & Henneberg, S. C. (2010). An investigation into the relationship between political activity levels and political market orientation. European Journal of Marketing, 44(3–4), 382–400.
- Osibanjo, A., Adeniji, A., Salau, O., Atolagbe, T., Osoko, A., Edewor, O., & Olowu, J. (2020). 23311975.2020.1794676.pdf. Cogent Business & Management, 1–16.
- Park, J., & Min, H. (Kelly). (2020). Turnover intention in the hospitality industry: A meta-analysis Jeongdoo. International Journal of Hospitality Management, 90, 1–11. https://doi.org/10.1016/j.ijhm.2020.102599
- Priyashantha, K. G. (2011). The Impact of Job Satisfaction on Perceived Desirability of Leaving: A Study in Cable Manufacturing Organizations in Sri Lanka.
- Rahman, W., & Nas, Z. (2013). Employee development and turnover intention: theory validation. EJTD 37,6 564 Received 29 May 2012 Revised 14 January 2013 Accepted 14 February 2013 Employee Development and Turnover Intention: Theory Validation Wali Rahman Department OfManagement Sciences, National University OfModern Languages, Islamabad, Pakistan, 37(6), 564–579.
- Rosin, H. M., & Korabik, K. (1991). Workplace variables, affective responses, and intention to leave among women managers. 64(Printed in Great Britain 317), 317–330.
- Srivastava, S., & Agrawal, S. (2020). Resistance to change and turnover intention: a moderated mediation model of burnout and perceived organizational support. In Journal of Organizational Change Management (Vol. 33, Issue 7, pp. 1431–1447). https://doi.org/10.1108/JOCM-02-2020-0063
- Sun, L. (2019). Perceived Organizational Support: A Literature Review. In International Journal of Human Resource Studies (Vol. 9, Issue 3, p. 155). https://doi.org/10.5296/ijhrs.v9i3.15102
- Trevor, C. O. (2001). Interactions among actual Ease-of-Movement determinants and job satisfaction in the prediction of voluntary turnover. Academy of Management Journa, 44(4), 621–628.
- Victor Y. Haines, I., Jalette, P., & Larose, K. (2010). The Influence of Human Resource Management Practices on Employee Voluntary Turnover Rates in the Canadian Non Governmental Sector. Industrial & Labor Relations Review, 63(2), 228–246.
- Vidotto, J. D. F., Ferenhof, H. A., Selig, P. M., & Bastos, R. C. (2017). A human capital measurement scale. Journal of Intellectual Capital, 18(2), 1–25. http://dx.doi.org/10.1108/JIC-08-2016-0085
- Wei, Y.-C. (2015). Do employees high in general human capital tend to have higher turnover intention? The moderating role of high-performance HR practices and P-O fit. Personnel Review, 44(5), 739–756.
- Weng, Q., & McElroy, J. C. (2012). Organizational career growth, affective occupational commitment and turnover intentions. Journal of Vocational Behavior, 80, 256–265.
- Zhang, Y. (2016). A Review of Employee Turnover Influence Factor and Countermeasure. In Journal of Human Resource and Sustainability Studies (Vol. 04, Issue 02, pp. 85–91). https://doi.org/10.4236/jhrss.2016.42010