Asian Institute of Research, Journal Publication, Journal Academics, Education Journal, Asian Institute
Asian Institute of Research, Journal Publication, Journal Academics, Education Journal, Asian Institute

Economics and Business

Quarterly Reviews

ISSN 2775-9237 (Online)

asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
crossref
doi
open access

Published: 17 March 2022

Organizational Commitment Impact on Job Well-Being of SMEs Employees in Taiwan in Post-COVID-19 Era

Te-Han Pan, Yao-Nan Lin

Fu Jen Catholic University, Taiwan

asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, management journal

Download Full-Text Pdf

doi

10.31014/aior.1992.05.01.407

Pages: 97-112

Keywords: COVID-19, Job Well-Being, Organizational Justice, Job Insecurity, Decent Work, Organizational Commitment, Taiwan SMEs

Abstract

Taiwan's industrial structure is mainly composed of small and medium-sized enterprises (SMEs), with over 98% of enterprises being SMEs and employing more than 80% of the workforce in Taiwan. Many industries are under severe stress due to the COVID-19 outbreak, and many companies are reducing staff hiring or staff working hours. The main purpose of this study was to examine the factors influencing the job well-being of Taiwanese SME employees in the context of the COVID-19 epidemic, including organizational justice, job insecurity, decent work, and organizational commitment. Through a questionnaire survey, 653 valid questionnaires were collected and analyzed using structural equation modeling to verify the effects between the study constructs. The study found that organizational justice, job insecurity, and decent work all had significant effects on organizational commitment, with job insecurity having the least effect. Organizational commitment has a positive and significant effect on employees' job well-being, with a standardized regression coefficient of 0.469. In the research model, the R2 of employees' organizational justice, job insecurity, decent work, and organizational commitment on job well-being was as high as 0.724. The results of the study show that Taiwan has a large number of SMEs that can respond quickly and flexibly to the environment. Even in the unsettled environment of an epidemic, employees' organizational commitment to the company remains a decisive factor in employee well-being. The smaller-than-expected impact of employee job insecurity is indirect evidence of the resilience of the Taiwanese industry.

References

  1. Abid, G., Ahmed, S., Elahi, N. S., & Ilyas, S. (2020). Antecedents and mechanism of employee well-being for social sustainability: A sequential mediation. Sustainable Production and Consumption, 24, 79-89. https://doi.org/10.1016/j.spc.2020.06.011

  2. Agarwal, P. (2021). Shattered but smiling: Human resource management and the wellbeing of hotel employees during COVID-19. International Journal of Hospitality Management, 93, 102765. https://doi.org/10.1016/j.ijhm.2020.102765

  3. Allen, N. J., & Meyer, J. P. (1990). The measurement and antecedents of affective, continuance and normative commitment to the organization. Journal of occupational psychology, 63(1), 1-18. https://doi.org/10.1111/j.2044-8325.1990.tb00506.x

  4. Blustein, D. L., Olle, C., Connors-Kellgren, A., & Diamonti, A. (2016). Decent work: A psychological perspective. Frontiers in Psychology, 7,407. https://doi.org/10.3389/fpsyg.2016.00407

  5. Bollen, K. A., & Stine, R. A. (1992). Bootstrapping goodness-of-fit measures in structural equation models. Sociological methods & research, 21(2), 205-229. https://doi.org/10.1177/0049124192021002004

  6. Boyd, N. M., & Nowell, B. (2020). Sense of community, sense of community responsibility, organizational commitment and identification, and public service motivation: A simultaneous test of affective states on employee well-being and engagement in a public service work context. Public Management Review, 22(7), 1024-1050. https://doi.org/10.1080/14719037.2020.1740301

  7. Brown, G. (2009). Claiming a corner at work: Measuring employee territoriality in their workspaces. Journal of environmental psychology, 29(1), 44-52. https://doi.org/10.1016/j.jenvp.2008.05.004

  8. Burhan, M., Salam, M. T., Abou Hamdan, O., & Tariq, H. (2021). Crisis management in the hospitality sector SMEs in Pakistan during COVID-19. International Journal of Hospitality Management, 98, 103037. https://doi.org/10.1016/j.ijhm.2021.103037

  9. Cao, Y., Liu, J., Liu, K., Yang, M., & Liu, Y. (2019). The mediating role of organizational commitment between calling and work engagement of nurses: A cross-sectional study. International journal of nursing sciences, 6(3), 309-314. https://doi.org/10.1016/j.ijnss.2019.05.004

  10. Chen, H., & Eyoun, K. (2021). Do mindfulness and perceived organizational support work? Fear of COVID-19 on restaurant frontline employees’ job insecurity and emotional exhaustion. International Journal of Hospitality Management, 94, 102850. https://doi.org/10.1016/j.ijhm.2020.102850

  11. Cohen, A. (2017). Organizational Commitment and Turnover: A Met A-Analysis. Academy of management journal.

  12. Cohen, A., & Diamant, A. (2019). The role of justice perceptions in determining counterproductive work behaviors. The International Journal of Human Resource Management, 30(20), 2901-2924. https://doi.org/10.1080/09585192.2017.1340321

  13. Cropanzano, R., Bowen, D., & Gilliland, S. (2007). The management of organizational justice, Academy of Management Perspective, 21, 34-48. In. https://doi.org/10.5465/amp.2007.27895338

  14. Darvishmotevali, M., & Ali, F. (2020). Job insecurity, subjective well-being and job performance: The moderating role of psychological capital. International Journal of Hospitality Management, 87, 102462. https://doi.org/10.1016/j.ijhm.2020.102462

  15. De Cremer, D., Brockner, J., Fishman, A., Van Dijke, M., Van Olffen, W., & Mayer, D. M. (2010). When do procedural fairness and outcome fairness interact to influence employees’ work attitudes and behaviors? The moderating effect of uncertainty. Journal of Applied Psychology, 95(2), 291. https://doi.org/10.1037/a0017866

  16. Diao, Y.-H., & Chen, C.-S. (2020). Research on the Relationship Between Job Competence and Job Well-Being in Service Industry—Based on the Mediating Effect of Job Insecurity. International Business Research, 13(1), 1-10. https://doi.org/10.5539/ibr.v13n1p1

  17. Diener, E. (1984). Subjective well-being. Psychol. Bull, 95, 542-595. https://doi.org/10.1037/0033-2909.95.3.542

  18. Diener, E., Suh, E. M., Lucas, R. E., & Smith, H. L. (1999). Subjective well-being: Three decades of progress. Psychological bulletin, 125(2), 276. https://psycnet.apa.org/buy/1999-10106-007

  19. Duffy, R. D., Blustein, D. L., Diemer, M. A., & Autin, K. L. (2016). The psychology of working theory. Journal of counseling psychology, 63(2), 127. https://doi.org/10.1037/cou0000140

  20. Duffy, R. D., Prieto, C. G., Kim, H. J., Raque-Bogdan, T. L., & Duffy, N. O. (2021). Decent work and physical health: a multi-wave investigation. Journal of Vocational Behavior, 127, 103544. https://doi.org/10.1016/j.jvb.2021.103544

  21. Etehadi, B., & Karatepe, O. M. (2019). The impact of job insecurity on critical hotel employee outcomes: The mediating role of self-efficacy. Journal of Hospitality Marketing & Management, 28(6), 665-689. https://doi.org/10.1080/19368623.2019.1556768

  22. Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39-50. https://doi.org/10.1177/002224378101800104

  23. Frone, M. R. (2018). What happened to the employed during the Great Recession? A US population study of net change in employee insecurity, health, and organizational commitment. Journal of Vocational Behavior, 107, 246-260. https://doi.org/10.1016/j.jvb.2018.05.001

  24. Gabčanová, I. (2011). The employees–the most important asset in the organizations. Human Resources Management & Ergonomics, 5(1), 30-33. http://frcatel.fri.uniza.sk/hrme/files/2011/2011_1_03.pdf

  25. Gorgenyi-Hegyes, E., Nathan, R. J., & Fekete-Farkas, M. (2021). Workplace Health Promotion, Employee Wellbeing and Loyalty during Covid-19 Pandemic—Large Scale Empirical Evidence from Hungary. Economies, 9(2), 55. https://doi.org/10.3390/economies9020055

  26. Greenhalgh, L., & Rosenblatt, Z. (1984). Job insecurity: Toward conceptual clarity. Academy of Management review, 9(3), 438-448. https://doi.org/10.5465/amr.1984.4279673

  27. Hair, J. F., Black, W. C., Babin, B. J., Anderson, R. E., & Tatham, R. L. (1998). Multivariate data analysis (Vol. 5). Prentice hall Upper Saddle River, NJ.

  28. Hanaysha, J. (2016). Testing the effects of employee engagement, work environment, and organizational learning on organizational commitment. Procedia-Social and Behavioral Sciences, 229, 289-297. https://doi.org/10.1016/j.sbspro.2016.07.139

  29. Hartley, J., Jacobson, D., Klandermans, B., & Van Vuuren, T. (1990). Job insecurity: Coping with jobs at risk. Sage Publications Ltd. http://oro.open.ac.uk/36773/

  30. Heaney, C. A., Israel, B. A., & House, J. S. (1994). Chronic job insecurity among automobile workers: Effects on job satisfaction and health. Social science & medicine, 38(10), 1431-1437. https://doi.org/10.1016/0277-9536(94)90281-X

  31. Holbrook Jr, R. L. (2002). Contact points and flash points: conceptualizing the use of justice mechanisms in the performance appraisal interview. Human Resource Management Review, 12(1), 101-123. https://doi.org/10.1016/S1053-4822(01)00053-5

  32. Hou, C.-K. (2020). The effects of IT infrastructure integration and flexibility on supply chain capabilities and organizational performance: An empirical study of the electronics industry in Taiwan. Information Development, 36(4), 576-602. https://doi.org/10.1177/0266666919884352

  33. Huang, G. h., Zhang, Y., Zhang, X., & Long, L. (2021). Job insecurity, commitment and proactivity towards the organization and one's career: Age as a condition. Human Resource Management Journal, 31(2), 532-552. https://doi.org/10.1111/1748-8583.12322

  34. Huang, W., Shen, J., & Yuan, C. (2021). How Decent Work Affects Affective Commitment Among Chinese Employees: The Roles of Psychological Safety and Labor Relations Climate. Journal of Career Assessment, 10690727211029673. https://doi.org/10.1177/10690727211029673

  35. Hussain, S., & Shahzad, K. (2021). Unpacking perceived organizational justice-organizational cynicism relationship: Moderating role of psychological capital. Asia Pacific Management Review. https://doi.org/10.1016/j.apmrv.2021.03.005

  36. ILO. (1999). Report of the director-general: Decent Work. Retrieved December 19 from http://www.ilo.org/public/english/standards/relm/ilc/ilc87/rep-i.htm

  37. ILO. (2020). Decent Work. International Labor Organization. Retrieved December 30 from https://www.ilo.org/global/topics/decent-work/lang--en/index.htm

  38. Imamoglu, S. Z., Ince, H., Turkcan, H., & Atakay, B. (2019). The effect of organizational justice and organizational commitment on knowledge sharing and firm performance. Procedia Computer Science, 158, 899-906. https://doi.org/10.1016/j.procs.2019.09.129

  39. Jackson, D. L., Gillaspy Jr, J. A., & Purc-Stephenson, R. (2009). Reporting practices in confirmatory factor analysis: an overview and some recommendations. Psychological methods, 14(1), 6. https://doi.org/10.1037/a0014694

  40. Jain, P., Duggal, T., & Ansari, A. H. (2019). Examining the mediating effect of trust and psychological well-being on transformational leadership and organizational commitment. Benchmarking: An International Journal. https://doi.org/10.1108/BIJ-07-2018-0191

  41. Jang, J., Lee, D. W., & Kwon, G. (2021). An analysis of the Influence of organizational justice on organizational commitment. International Journal of Public Administration, 44(2), 146-154. https://doi.org/10.1080/01900692.2019.1672185

  42. Jankelova, N., Joniakova, Z., Blstakova, J., & Nemethova, I. (2017). Readiness of human resource departments of agricultural enterprises for implementation of the new roles of human resource professionals. http://repository.embuni.ac.ke/handle/123456789/1960

  43. Jones, D. A., & Skarlicki, D. P. (2003). The Relationship Between Perceptions of Fairness and Voluntary Turnover Among Retail Employees 1. Journal of Applied Social Psychology, 33(6), 1226-1243. https://doi.org/10.1111/j.1559-1816.2003.tb01947.x

  44. Jung, H. S., Jung, Y. S., & Yoon, H. H. (2021). COVID-19: The effects of job insecurity on the job engagement and turnover intent of deluxe hotel employees and the moderating role of generational characteristics. International Journal of Hospitality Management, 92, 102703. https://doi.org/10.1016/j.ijhm.2020.102703

  45. Khan, K., Abbas, M., Gul, A., & Raja, U. (2015). Organizational justice and job outcomes: Moderating role of Islamic work ethic. Journal of Business Ethics, 126(2), 235-246. https://link.springer.com/article/10.1007/s10551-013-1937-2

  46. Kim, J. S., Milliman, J. F., & Lucas, A. F. (2021). Effects of CSR on affective organizational commitment via organizational justice and organization-based self-esteem. International Journal of Hospitality Management, 92, 102691. https://doi.org/10.1016/j.ijhm.2020.102691

  47. Konovsky, M. A. (2000). Understanding procedural justice and its impact on business organizations. Journal of management, 26(3), 489-511. https://doi.org/10.1016/S0149-2063(00)00042-8

  48. Koo, B., Curtis, C., & Ryan, B. (2021). Examining the impact of artificial intelligence on hotel employees through job insecurity perspectives. International Journal of Hospitality Management, 95, 102763. https://doi.org/10.1016/j.ijhm.2020.102763

  49. Lin, X. (2015). How does procedural justice climate influence individual outcomes? An affective perspective. Asia Pacific Journal of Management, 32(3), 771-800. https://link.springer.com/article/10.1007/s10490-015-9421-4

  50. Lu, Y., Wu, J., Peng, J., & Lu, L. (2020). The perceived impact of the Covid-19 epidemic: evidence from a sample of 4807 SMEs in Sichuan Province, China. Environmental Hazards, 19(4), 323-340. https://doi.org/10.1080/17477891.2020.1763902

  51. Meyer, J. P., & Allen, N. J. (1991). A three-component conceptualization of organizational commitment. Human resource management review, 1(1), 61-89. https://doi.org/10.1016/1053-4822(91)90011-Z

  52. Meyer, J. P., Paunonen, S. V., Gellatly, I. R., Goffin, R. D., & Jackson, D. N. (1989). Organizational commitment and job performance: It's the nature of the commitment that counts. Journal of applied psychology, 74(1), 152. https://doi.org/10.1037/0021-9010.74.1.152

  53. Mohr, G. B. (2000). The changing significance of different stressors after the announcement of bankruptcy: A longitudinal investigation with special emphasis on job insecurity. Journal of organizational Behavior, 21(3), 337-359. https://doi.org/10.1002/(SICI)1099-1379(200005)21:3<337::AID-JOB18>3.0.CO;2-G

  54. Nunnally, J. C. (1994). Psychometric theory 3E. Tata McGraw-hill education.

  55. Ponnu, C., & Chuah, C. (2010). Organizational commitment, organizational justice and employee turnover in Malaysia. African Journal of business management, 4(13), 2676-2692. https://doi.org/10.5897/AJBM.9000442

  56. Pradhan, R. K., & Hati, L. (2019). The measurement of employee well-being: development and validation of a scale. Global Business Review, 0972150919859101. https://doi.org/10.1177/0972150919859101

  57. Rahman, A., Belas, J., Kliestik, T., & Tyll, L. (2017). Collateral requirements for SME loans: empirical evidence from the Visegrad countries. Journal of business economics and management, 18(4), 650-675. https://doi.org/10.3846/16111699.2017.1357050

  58. Riketta, M. (2002). Attitudinal organizational commitment and job performance: a meta‐analysis. Journal of Organizational Behavior: The International Journal of Industrial, Occupational and Organizational Psychology and Behavior, 23(3), 257-266. https://doi.org/10.1002/job.141

  59. Russo, D., Hanel, P. H., Altnickel, S., & van Berkel, N. (2021). Predictors of well-being and productivity among software professionals during the COVID-19 pandemic–a longitudinal study. Empirical Software Engineering, 26(4), 1-63. https://doi.org/10.1007/s10664-021-09945-9

  60. Salas-Nicas, S., Moncada, S., Llorens, C., Morina, D., & Navarro, A. (2020). A complex view of perceived job insecurity: Relationship between three domains and their respective cognitive and affective components. Safety Science, 129, 104796. https://doi.org/10.1016/j.ssci.2020.104796

  61. Small and Medium Enterprises Division, M. o. E. A. (2021). SMEs show resilience and are the cornerstone of economic stability and job creation. Small and Medium Enterprises Division, Ministry of Economic Affairs. Retrieved Nov 2 from https://www.moeasmea.gov.tw/article-tw-2276-7454

  62. Tett, R. P., & Meyer, J. P. (1993). Job satisfaction, organizational commitment, turnover intention, and turnover: path analyses based on meta‐analytic findings. Personnel psychology, 46(2), 259-293. https://doi.org/10.1111/j.1744-6570.1993.tb00874.x

  63. Tseng, C.-C. (2010). The effects of learning organization practices on organizational commitment and effectiveness for small and medium-sized enterprises in Taiwan. University of Minnesota. https://www.proquest.com/openview/477b75b89fbb7094c770722594c04fd1/1?pq-origsite=gscholar&cbl=18750

  64. Vignoli, E., Prudhomme, N., Terriot, K., Cohen-Scali, V., Arnoux-Nicolas, C., Bernaud, J.-L., & Lallemand, N. (2020). Decent work in France: Context, conceptualization, and assessment. Journal of Vocational Behavior, 116, 103345. https://doi.org/10.1016/j.jvb.2019.103345

  65. Wang, X., Guchait, P., Lee, J., & Back, K.-J. (2019). The importance of psychological safety and perceived fairness among hotel employees: The examination of antecedent and outcome variables. Journal of Human Resources in Hospitality & Tourism, 18(4), 504-528. https://doi.org/10.1080/15332845.2019.1626964

  66. Weziak-Bialowolska, D., Bialowolski, P., Sacco, P. L., VanderWeele, T. J., & McNeely, E. (2020). Well-being in life and well-being at work: Which comes first? Evidence from a longitudinal study. Frontiers in Public Health, 8, 103. https://doi.org/10.3389/fpubh.2020.00103

  67. Witte, H. D. (1999). Job insecurity and psychological well-being: Review of the literature and exploration of some unresolved issues. European Journal of work and Organizational psychology, 8(2), 155-177. https://doi.org/10.1080/135943299398302

  68. Yang, C.-C., & Chuang, H.-Y. (2020). The strategy for return to work after the COVID-19 pandemic on small and medium-sized enterprises. Journal of occupational and environmental medicine, 62(8), e471-e472. https://doi.org/10.1097/JOM.0000000000001926

  69. Yeh, C.-H., & Chen, C.-Y. (2017). The Relationships among Pay Secrecy, Distributive Justice, and Job-Related Outcomes. 人力資源管理學報, 17(3), 85-110. https://doi.org/10.6147/JHRM.2017.1703.04

  70. Yiing, L. H., & Ahmad, K. Z. B. (2009). The moderating effects of organizational culture on the relationships between leadership behaviour and organizational commitment and between organizational commitment and job satisfaction and performance. Leadership & Organization Development Journal. https://doi.org/10.1108/01437730910927106

  71. Zhou, Y. S. (2020). BCG Survey: How are companies responding to the epidemic? 12 Tips for Leaders. Bnext Media. Retrieved December 16 from https://www.managertoday.com.tw/articles/view/59574